PURCHASING PROCEDURE

As brokers, intermediaries, and facilitators, our duties include ensuring both parties ultimately agree to a set of procedure that will be acceptable to all concerned; especially if the two parties are dealing with each other for the first time. Below is a list of our preferred procedures as submitted in previous deals by sellers and buyers.

We hope interested parties from hereon would appreciate these procedures and be ready willing and able to accept after due consideration.

Procedure Checklist

1. After a successful discussion about price and product specifications, Buyer issues either
• LOI or BC
• authorization to verify funds
• authorization for soft probe
• and signs ICPO (irrevocable corporate purchase order), NCNDA (non circumvention, non disclosure agreement) and IMFPA (irrevocable monetary fee protection agreement)
2. Seller confirms the ICPO or makes a counter offer, with an FCO (full corporate offer)
• availability
• price
• payment terms
• delivery schedule
• and signs IMPF
3. Buyer
• confirms the FCO or issues a counter offer
• buyer signs and seals
4. Seller
• sends Draft Contract with
• full terms and
• conditions
5. Buyer
• signs the Draft Contract with notary
• seals it and sends hard copies of the Draft contract back to our Manufacturer by fax or email
6. If both Buyer and Manufacturer agree, then
• Manufacturer will mail 5 original copies to the Buyer via DHL or FedEx
7. Buyer forwards to Manufacturer
• Pre Advise SBLC orPartial Bank Guarantee
• irrevocable
• transferable
• unencumbered
• unconditional
• 100% at sight
• in the name of our main manufacturer
8. Seller
• receives the Pre Advise Bank Guarantee by fax or mail and
• sends a copy to our main manufacturer by fax or email
9. Seller sends proof of product
• in form of the letter from the manufacturer/plant
• confirming the product to the buyer's bank and posts a 2% Performance Bond for the transaction
10. Loading initiates as per schedule supplied in the contract
• 30 to 45 days from date of receiving an operative payment instrument

OR, Our preferred term - CIF:

1. Seller
• issues Contract with Full Banking Coordinates & Proof of Product (POP) 
2. Buyer & Seller
• sign the SPA contract incorporating their full banking details.
• parties deposit copy of properly executed SPA with their banks for records & info
3. Buyer returns the signed SPA with:
• a corporate undertaking to confirm RWA
• the RWA shows that Buyer is to issue by SWIFT, BG, or MT760 POF after receipt and confirmation of the issued ETA by Buyer's storage tank farm
• Buyer provides end-buyer's Discharge port facility
4. Seller:
• Within 72 hours, Seller verifies POF & Buyer verifies POP respectively
5. Loading commences
6. Delivery at Buyer's preferred Port
7. Buyer's Inspectors 
• 24 hours after berthing, Buyer's Inspectors conduct Q&Q, sends certified report to both Seller & Buyer
8. Seller
• collates all cargo info and marine docs and
• swift same to Buyer's bank for payment
9. Buyer's Bank
• Within 72 hours, Buyer's bank releases ALL payments including commissions by SWIFT to Seller and all middlemen.

Other Terms:

1. SELLER or seller's agent
• issues soft offer
• SCO to Buyer.
2. BUYER issues ICPO to Seller.
• first response
3. SELLER
• issues draft contract to Buyer.
4. Seller & Buyer
• Both parties sign the contract.
5. SELLER issues full POP, Allocation Number and Tank receipt via seller’s bank.
6. BUYER’S bank issues irrevocable revolving transferable documentary letter of credit.
7. SELLER issues 2% PB to activate buyer’s payment instrument.
8. Payment instrument activated.
9. Delivery Commences as scheduled, within 20 to 30 days.