Procedure
It depends on commodity, but please refer for below procedures;
- Commodity
- Incoterms: CIF at destination port
- Payment Term: DLC
- Others: PPOP/SGS/PB2%
ID | PROCEDURE | DOCUMENT | BUYER | SELLER | |
1 | Seller release a Letter of Intent | LOI | Buyer | → | Seller |
2 | Seller release a Soft/Full Corporate Offer | SCO/FCO | Buyer | ← | Seller |
3 | Buyer issue an Irrevocable Corporate Purchase Order | ICPO | Buyer | → | Seller |
4 | Seller issue a Sales Purchase Agreement and sign | SPA | Buyer | ⇄ | Seller |
5 | Seller issue Partial Proof of Products | PPOP | Buyer | → | Seller |
6 | Buyer’s Bank issue an Irrevocable LC via Swift MT760/770 for the face value of each single shipment to sellers bank coordinate. Seller Bank Issue 2% Performance Bond (PB) and below Full Prove of Product (FPOP) | L/C (SBLC/DLC) | Buyer | → | Seller |
7 | Shipment commences as per signed contract delivery scheduel and the shipment should arrive at discarge port. | CIF | Buyer | ← | Seller |
8 | Buyer releases payment to Seller by TT/MT103 upon receipt of the shipping documents and confirmation of the SGS at unloading port. | DLC | Buyer | → | Seller |