GENERAL TRADE PROCEDURES

 1. Buyer issues the LOI (Letter of Intent). The document should be on buyer’s letterhead and should be signed and sealed by the buyer and should include buyer’s banking details. Contact information must be provided for a proper representative with a phone number, where the representative can be reached at international times. All details pertaining to Bill of Lading must be mentioned. For example, complete “Consignee” name and address, “Notify Party” if any must be mentioned. Please refer to the download section for LOI template.

2. Seller issues Pro-forma Invoice. This is also known as Offer or FCO (full corporate offer). This document contains the Buyer & Seller name and address, contact information, material description, loading & destination ports, price at which the contract is negotiated and contracted, terms & conditions, buyer & seller banking information.

3. Buyer agrees to the offer and terms and returns signed, sealed copy of the Pro-forma Invoice. This must be returned within 5 working days. Otherwise, the rate may need to be re-negotiated.

4. Buyer pays advance money (20%). This may not be required for well-established client. First shipment is within 15 days after receiving this advance money.

5. The contract is executed and seller ships as per the contract terms and conditions and documents are created as per requirement.

6. Buyer pays the balance amount by telegraphic transfer. Original documents are submitted to the buyer at the time of payment. Documents include Bill of Lading, Commercial Invoice, Packing List and Pre-shipment Inspection certificate

Alternative payment terms:

1. Payment can also be executed by confirmed Letter of Credit in case of quantity more than 500 MT