1. BUYER ISSUES IRREVOCABLE CORPORATE PURCHASE ORDER ALONG WITH:
a) DETAILS OF BUYER’S CORPORATE BANK.
b) DETAILS OF BUYER’S DLC MT700 ISSUING BANK + KYC OF ISSUING COMPANY.
c) COPY OF BUYER’S PASSPORT.
d) COPY OF BUYER’S COMPANY REGISTRATION.
2.THE SELLER SUBMITS A DRAFT SALES AND PURCHASE AGREEMENT FOR REVIEW AND AMENDMENT
3. WITHIN THREE WORKING DAYS, THE BUYER RETURNS THE ENDORSED COPY OF THE SPA. BOTH BUYER AND SELLER LODGE THE EXECUTED SPA WITH THEIR RESPECTIVE BANKS ALONG WITH NCNDA/IMFPA.
4.THE SELLER SUBMITS A COMMERCIAL INVOICE TO BUYE THE BUYER BANK ISSUES PRE-ADVISE VIA SWIFT MT705 TO SELLER BANK. THIS MESSAGE IS A BRIEF ADVICE OF THE DOCUMENTARY CREDIT, THE FULL DETAILS OF WHICH SHALL FOLLOW.
**THE PRE-ADVICE IS NOT AN OPERATIVE CREDIT INSTRUMENT.**
5. THE SELLER ISSUES TO BUYER PARTIAL POP CONSISTING OF THE FOLLOWING DOCUMENTS BELOW:
a) PRODUCT ANALYSIS REPORT
b) COMMITMENT TO SUPPLY
c) STATEMENT OF PRODUCT AVAILABILITY
d) COMPANY EXPORT LICENSE
e) COMPANY REGISTRATION CERTIFICATE
6. THE BUYER, WITHIN SEVEN TO TEN BANKING DAYS, SUBMITS AN IRREVOCABLE NON-TRANSFERABLE CONFIRMED LC AT SIGHT VIA
SWIFT MT700, VALID FOR 60 DAYS FOR 100% SHIPMENT VALUE TO THE
SELLERS DESIGNATED BANK ACCOUNT, AND THEN THE BUYER PROVIDES THE TRANSMITTED SWIFT COPY OF THE LC TO SELLER VIA EMAIL.
7. SELLER PROCEEDS TO ARRANGE LOGISTICS LOADING WITHIN 20 WORKING DAYS, AND PROVIDES POP DOCUMENTS:
a) CERTIFICATE OF ORIGIN
b) CLEAN ON-BOARD BILL OF LADING
c) QUANTITY & QUALITY CERTIFICATE
d) COMMERCIAL INVOICE AS PER LOADED CARGO.
e) Q88 VESSEL QUESTIONARE
8. THE BUYER PROVIDES THE DETAILS OF ITS SHIPPING AGENT AT THE PORT OF DESTINATION.
9. UPON ARRIVAL OF VESSEL AT BUYER’S PORT; BUYER’ PROCEEDS SGS / CIQ Q&Q INSPECTIO
10.AFTER Q&Q, BUYER MAKES PAYMENT VIA MT103/TT WITHIN 24 HOURS OR SELLER PROCEEDS TO SEND BANK REQUIRED DOCUMENTS PURSUANT TO DLC TERMS FOR WITHDRAWING AGAINST THE LETTER OF CREDIT.
11.UPON SUCCESSFUL CONCLUSION OF THE TRIAL, BUYER ISSUES A REVOLVING IRREVOCABLE TRANSFERABLE SBLC/DLC FOR 365+15 DAYS VALIDITY COVERING ONE MONTH’S SHIPMENT VALUE AS COLLATERAL SECURITY GUARANTEE. ACTUAL PAYMENT IS MADE BY MT103/TT WIRE TRANSFER FOR EACH SHIPMENT SUBSEQUENT TO Q&Q AT DISCHARGE PORT. SELLER ISSUES A 2% PERFORMANCE BOND, AND THE UPCOMING SHIPMENT BEGINS AS PER THE DELIVERY SCHEDULE.