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EXPORT BUSINESS PROCEDURES

 

BUY with Letter of Credit (LC)

Key points

  • Works well with top 100 world banks
  • Works ONLY for contracts ¬†over 50 000 USD
  • Does not work for test supply ( 1-2 containers ) ¬†to a new ¬†client
  • IRREVOCABLE DOCUMENTARY AT SIGHT LETTER OF CREDIT (LC) opened by buyers bank and confirmed by a bank acceptable by sellers (LC should comply with UCP 600).
  • Quality of product tested by independent international surveyor (SGS,¬†VERITAS)
  • Safe way to do new business and buy overseas

IMPORTANT

  • FIRST TIME BUYER¬†– if you are well established company provide us with Bank Guaranty for ¬†test consignment or see >whilst we are working throughout the LC >> or BUY with Cash >>>
  • Once we have established relations ( successful trade) we are happy and willing to discuss terms of trade to ¬†make it work best ¬†for both of us

Procedure

  1. Buyer inquires on the goods availability terms of sale &  prices.  Submit request online
  2. Seller (Abbottpm) provides the non-binding quote of Soft Offer.
  3. Buyer submits one of the following: a) Bank endorsed Letter of Intent (LOI). b) Bank Comfort Letter (BCL). c) Bank endorsed Irrevocable Purchase Order.
  4. Seller and Buyer reach an agreement upon price and terms of trade ( including but not limited to : timeline \ schedule,  packaging, terms of payment, terms of delivery, surveyor, etc)
  5. Seller (Abbottpm) sends   a) Proforma Invoice  b)Full Corporate Offer (FCO) or the Contract  (GAFTA, FOSFA, other).
  6. Buyer returns duly signed and sealed FCO to Seller(Abbottpm) and provides Draft of LC.
  7. Seller’s bank checks suggested LC and liaison the matter with Buyer Bank.
  8. Seller’s and Buyer exchange with  Proof of Product (PoP) in form of warehouse receipt  and Proof of Funds (PoF) in form of NT199 from buyer bank.
  9. Buyer’s Bank Officer contacts Seller’s Bank Officer or visa versa, to confirm readiness to proceed with the signed contracts.*MT-799 should be issued by buyer‚Äôs bank
  10. *MT-799  received and verified by the seller’s bank
  11. After confirmation of funds (PoF) ¬†and product (PoP), and other formalities needed, the ¬†Buyer’s bank opens Non-Operative or Pre-advise Letter of Credit for outstanding amount due. LC should comply with set of 2007 Revision of Uniform Customs and Practice for Documentary Credits, UCP 600, and (ICC Publication No. 600).
  12. Seller’s bank activates Letter of Credit by posting Performance Bond in favor of buyer ( optional) otherwise based on¬†SGS certificate and PoP).
  13. Shipments commence.
  14. Buyer gets the product and transactions closed as per contract

BUY with Cash (CAD, T/T)

Key points

  • Transaction is quicker compare to LC ¬†more likely to go ahead.
  • Possible for smaller business ( ALL contracts under 50 000 USD) and/or for larger dealings with the ¬†regions where banks cannot offer reliable CL
  • Can offer better price value compare to LC.
  • This is ¬†THE ONLY option for the FIRST TIME BUYERS ( especially¬†from a¬†regions with increased scam and commercial fraud )

IMPORTANT

  • FIRST TIME BUYER¬†– we will only sell ¬†80% down payment + 20% 14 days upon goods ¬†obtained ¬†– ( ¬†buy small load first ¬†CFR ( 1 TEU) to understand if it works for you )
  • Once we have established relations ONLY THEN we can work out¬†other terms
  • DO NOT approach us with an alternative offers if you FIRST TIME BUYER – unless you are ready to buy test consignment with down payment

Procedure

  1. Buyer inquires on the goods availability terms of sale and current prices. Submit request online
  2. Seller (Abbottpm) provides the non-binding quote.
  3. Buyer submits  one of the following: a)Letter of Intent (LOI) with full credentials of the Buyer b) Bank endorsed Irrevocable Purchase Order.
  4. Seller and Buyer reach an agreement upon price and terms of trade (including but not limited to : timeline \ schedule,  packaging, terms of payment, terms of delivery, surveyor, etc).
  5. Seller (Abbottpm) sends   a) Proforma Invoice  b)Full Corporate Offer (FCO) \ the Contract  (model GAFTA, FOSFA, other). c)
  6. Seller’s and Buyer exchange with  Proof of Product (PoP- in form of warehouse receipt) and Proof of Funds (PoF Рin form of NT199 from buyer bank).
  7. Buyer returns duly signed and sealed Invoice & Contract\FCO to Seller (Abbottpm).
  8. Buyer makes down payment as per Proforma Invoice.
  9. Seller load the goods and arranges for  independent survey (SGS, VERITAS)
  10. Once weight and quality of loaded cargo is confirmed by surveyor, containers are sealed and handed to freight forwarder/logistic company Buyer makes next payment as per Proforma Invoice.
  11.  Once containers are delivered to the shipment line as per Contract Terms  and   reference number is given by the shipment line  further  payment is made by the Buyer as per Proforma Invoice.
  12. You also can order this service if buying from other supplier  Supplier Manufacturer Inspection & Auditing Service for Ukraine & Russia & Belarus
  13. Upon obtaining the cargo buyer makes final payment of 20% within 14 working days.
 FAQ (question & answers)
  • The Invoice and/or FCO are an offer to enter into the agreement.
  • Singed FCO and partial or full payment shall be deemed as an acceptance of the offer to enter into the agreement on the terms and conditions set out in FCO.
  • FULL CORPORATE OFFER is valid for a period entioned on it ¬†starting from ¬†the date of issue.
  • If required down payment ¬†is not made and confirmed by the buyer bank to the seller bank ¬†within the set time¬†new¬†Proforma Invoice should be issues ( price of new offer can be different¬†)
  • Freight insurance and terms of the delivery of goods as specified in FCO or\and Proforma Invoice and in accordance with INCOTERMS 2010.
  • Quality of the products ¬†is tested and confirmed by SGS or VERITAS final at the time of testing as per INCOTERMS 2010 and the contract.
  • All ¬†reasonable survey and\or goods inspection by ¬†international surveyor (SGS or VERITAS ) ¬†are at the Seller expenses.
  • All extra charges custom and/or otherwise in the port of delivery of goods ¬†( if CIF CFR contracts ) ¬†paid by the buyer.
  • All charges of correspondent banks are at the Buyer‚Äôs expenses.
  • Any disputes arising out of the agreement between the Parties shall be settled by the competent court at the location of a defendant or by the rules of GAFTA (FOSFA).
  • Buyer or their representative¬† welcome to visit and inspect manufacturing facilities¬† throughout the process.
 SHIPPING DOCUMENTS for FOB
  • ‚ÄúClean on Board‚ÄĚ Ocean Bill Of Lading (B/L) marked ‚Äúfreight prepaid‚ÄĚ (3) three originals and (3) three copies.
  • Commercial Invoice for total value of the shipment, (1) one original and (3) three copies.
  • Packing List, (1) one original and (3) three copies.
  • Certificate of Origin, (1) one original and (3) three copies.
  • Inspection Certificate issued by the inspection company in loading port for quality, quantity and proper packing, (1) one original and (3) three copies.