Procedure for SPOT Purchasing

  • BUYER submits completed Client Intimation Sheet (CIS) w/ quality, quantity and destination port;
  • SELLER issue FCO and BUYER initials every pages, sign and stamp last page and filled up with:

         I. Copy of Company Registration Certificate
         II. Passport copy of signatory

  • SELLER issues draft sales contract agreement in PDF Format. Within 48 hours BUYER approved it or suggest amendment and send it back to SELLER´s email.
  • SELLER transform the draft in final contract, sign and stamp it, then send it to BUYER´s email with draft of escrow agreement.
  • BUYER sign, stamp and notarized the contract then send it back to SELLER´s email. Buyer send hard copies (notarized contract) by express mail with the track number to SELLER´s email.
  • After reception of notarized contract by email, SELLER send Proforma Invoice (PI) to BUYER´s email with SELLER´S bank information addendum.
  • Within 7 (seven) banking days of PI issuance, BUYER send SWIFT MT 705 pre- advise of MT700 DLC (Documentary Letter of Credit). MT705 pre advise is used to open a smooth communication between Banks and acts as a straightforward confirmation on DLC MT700 issuance.
  • Otherwise if the issuance is not occurred in the agreed 7 days, BUYER shall open escrow account and deposits the value of 1.00 U$/MT (one dollar per MT) as commitment and guarantee of bank instrument issuance, and thus, to obtain 30 extra days to proceed with the bank´s instrument issuance.
  • With MT705/ pre- advise confirmed by SELLER’S bank, SELLER´S bank reply with “Soft proof of product” (SGS Certificate or similar) to BUYER´S bank.
  • BUYER should issue MT.700 DLC, valid for 90 days, operative, confirmed (by issuing bank), unconditional, irrevocable, transferable, divisible acceptable to SELLER. When the DLC is operative the escrow agent cashback the total amount of the escrow account to the BUYER´s Account.
  • Within 07 banking days after authentication of BUYER’s instrument, SELLER’s Bank will release all documents (POPs) for delivery on the BUYER’s name and will send the buyer a POP (SGS REPORT) for 12,500 MT. (referring of the first shipment).
  • After DLC is operative in SELLER’s bank account, SELLER will commence shipment within 30 to 45 (Thirty to Forty-five) days to deliver at Port of Loading.
  • SELLER provides 110% insurance in favor of the buyer for each shipment based on the CIF value (CIF only).
  • SELLER sends a copy of shipping documents (Bill of Loading, SGS and Vessel’s details) to the BUYER´S email.
  • Within a maximum of 3 days of Bill of Loading issuance, BUYER pays monthly to SELLER. By MT103 or TT.
  • The next shipment will initiate and occurs only after the payment received from the previous one.
  • SELLER´S bank transfers the product title property to BUYER after the fund arrives in SELLER´s account.
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