Procedure & Format

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 sample format (pdf)
  • LOI format (word)
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