GENERAL BUSINESS PROCEDURES (INCOTERMS 2020)

1. End Buyer sends Official Letter of Intent (LOI)

2. The Seller to send an official FCO to the Buyer, stating the approved CIF Conditions and prices as well as the Non-negotiable Procedure.
2.1 The Buyer to fills in the Buyer’s details, sign/stamp the FCO & sends it with a Passport Copy (in full color) to Seller along with ICPO with the approved seller’s procedure, along with the Buyer’s Companys Know Your Customer (KYC) with full contact details of the legal representative, including attachments of their POF/RWA/BCL.

3. The Seller to issues the Draft Contract or SPA, and send to the Buyer within 72 hours for the Buyer’s Review, upon acceptance, the Buyer informs the Seller in writing of his/her acceptance of the draft SPA within 72 hours.

4. The Seller then issues, sign and seals the final Contract or SPA accompanied by the Commercial Invoice (CI)/PI, and send it to the Buyer. Then Buyer Signs and Seals and Returns it back within 24/48 hours.
4.1 Once the Invoice is accepted in-full, the Buyer and Seller will deposit a copy of the fully- signed and executed contract (SPA) with the respective banks.

5. Once the SBLC-MT760 has been accepted by the Seller’s bank, the Buyer undertakes to process the SBLC-MT760 within 7 Days; Shipping Procedures are initiated and Buyer is informed of the progress.

5.1 FOR THE TRIAL SHIPMENT Buyer issues Swift SBLC-MT760 Irrevocable, Transferable, Assignable, Divisible, Confirmed and Operative Documented Letter of CreditSBLC-MT760
of validity of Ninety days from any World’s Prime Bank or Confirmed by one of Prime World’s Banks; covering the Trial Shipment’s value and the confirmation must be written in the Clause 49 in the Verbiage.

5.2 FOR THE CONTRACT MONTHLY SHIPMENTS Buyer issues Swift SBLC-MT760 Irrevocable, Transferable, Assignable, Divisible, Confirmed and Revolving Operative Documented Letter of Credit SBLC-MT760 to be Revolving until the end of the contract until final delivery (from prime banks or confirmed by World’s Prime Banks), and the confirmation
must be written in the Clause 49 in the Verbiage.

6 The Seller receives a Confirmation of the SBLC-MT760 from the Seller’s bank.
6.1 The Seller undertakes to issue 2% Performance Bond (PB) (MT600) from 2nd shipments if SAP for 12 months within 7 days of SBLC-MT760 Confirmation, as well as full shipping documents to the Buyer’s Bank including but not limited to (SGS report, BL, sailing schedule, Proof of Seller’s Ownership, Proof of GACC, etc.).

7 The Buyer confirms receiving the shipping documents, with vessels captain while delivery commence to Buyer discharge port according to the specified schedule as per the contract.
7.1 Within 48 Hours of receiving the shipping documents by the Buyer’s bank, the Bank sends a confirmation of receiving the documents and request a transfer of ownership from the Seller to the Buyer with a confirmation to release the fund via MT103 within 24hours of transfer of ownership.

8 Buyer’s bank will release the payment for the total value of each Shipment to Seller’s bank (MT103) at the LOADING-PORT upon receipt of the full shipping documents. The payment will be 100% guaranteed payable directly to Seller’s bank, payable immediately 100% at LOADING PORT, for the whole of each monthly shipments loaded with the delivery of documents and SGS Inspection documents at the LOADING-PORT upon receipt of the full shipping documents.

8.1 Upon receiving the Bank’s confirmation by the Seller, the seller undertakes to transfer ownership to the Buyer’s name and hand all documents to the Buyer or his representative.

8.2 The seller is responsible for customs clearance at the port of loading and issuing export documents; while the buyer is responsible for customs clearance costs at the port of destination.

8.3 Upon arrival at the port of discharge, the buyer undertakes to issue the proof of inspection by SGS or similar (at buyers expense) and confirms acceptance of the goods.

8.4 The Buyer must have the legal requirements to be able to introduce the goods into the country of destination, at their own expense.

8.5 In case the Vessel arrives to the destination port within three days and the Buyer does not carry out SGS inspection, automatically the Seller entitled to consider (SGS of loading port as final inspection and confirmation of delivery of shipment in the discharge port).