General Procedures
Buyer issues ICPO with full banking.
(May require BCL/LOA)
A. Seller issues Draft Contract in favor
of the buyer.
B. Buyer returns the Draft Contract by
exchanging it by facsimile or email attachment, duly signed and sealed
within 48 hours.
The draft copy shall be deemed legal until hard copies exchanged.
C. Seller sends four (4) hard copies
duly signed & sealed. Buyer duly signs & seals all copies and returns back
two (2) copies
to the seller.
D. Buyer’s bank shall send to the
seller’s bank his capability to purchase the contracted quantity against
which the seller will
send his capability to supply the contracted quantity.
E. Within five (5) working days of
successful verification, the buyer shall issue the non-operative letter of
credit to seller’s bank
as per agreed in the contract.
F. Within ten (10) working days of
receiving the non-operative letter of credit the seller’s bank will post 2%
operative
performance bond guarantee and the proof of product and allocation which
will activate the letter of credit..
G. Delivery and shipment commence as per
schedule mutually agreed.
We offer flexible payment terms.
Pricing and Terms
If you are familiar with the commodities market, then you know that
prices fluctuate often, and that prices depend upon many
variable factors. We cannot give quote without knowing these many variable
details of buyer's desired terms and conditions,
as submitted in freshly dated, signed, official Letter of Intent on buyer's
letterhead, no more than 2 days old, and containing
all details for said cement purchase as per our procedures. Since prices
fluctuate often, prices quoted are ENTIRELY dependent upon the many variable
factors detailed by buyer.
PAYMENT:
Our suppliers accept the following methods of payment:
Prime Bank Guarantees (BG), Standby Letter of Credit (SBLC),
Fully Funded Documentary Letter of Credit (FFDLC), Auto Revolving
Documentary
Letter of Credit (ARDLC) or Cash
Wire Transfer (T/T) are acceptable. In all cases, the financial instrument
must be issued or guaranteed by a Top 25
world bank. Letters of credit must be transferable, divisible, and payable
on sight. If the cement is to be shipped in
installments, then the letter of credit must revolve to cover each
subsequent shipment. Non transferable
letters of credit and revocable letters of credit will not be accepted as
payment.
PLEASE NOTE:
Financial information must be consistent with issuer of
the LOI. Only Buyers and/or their Authorized-with-Signature,
Power-of-Attorney Mandates are authorized to issue LOI + BCL and sign all
necessary documents including
Contract + opening of L/C in Seller's Favor. We do not accept LOI issued by
agents or brokers "on behalf of buyer".
SAMPLE FORMS:
Sample
LOI / ICPO
Official
Quote Form
COMMON ACRONYMS USED:
LOI = Letter of Intention.
BCL = Bank Comfort Letter.
CPO = usually means a Conditional Purchase Order where the buyer makes an
offer conditional on the seller's acceptance of the
buyer's terms and conditions. This sort of document is quite common in all
sorts of commercial fields and is similar to a Contract Purchase Order.
RWA = Ready Willing and Able
LC = Letter of Credit
ICPO = Irrevocable Corporate
Purchase Order
ASWP = Any Safe World Port
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