STANDARD PROCEDURE FOR SALES UNDER CIF TERMS (ASWP)

TRANSACTION INITIATION

The Buyer provides the Seller with the following documents:

Buyer submits ICPO and KYC documentation (passport copy, company registration) — duly signed and stamped.

The seller prepares the FCO; the buyer approves the FCO and returns ıt to the seller. The buyer also sends the swıft message specıfıed ın clause A to the seller’s bank.

Clause A- The party receıvıng and sıgnıng the FCO there by accepts the followıng terms, after whıch the process proceeds to the spa stage.

Message type: MT199 (Free-Form Message).

Purpose: Generally used for RWA (Ready, Wıllıng and Able) declaratıons or POF (Proof of Funds) confırmatıons ın commercıal transactıons. The recıpıent’s bank (Instructıng Bank) sends a SWIFT MT199 RWA (Ready, Wıllıng and Able) message to the benefıcıary bank at the bank address specıfıed ın the FCO.

If these documents are not provıded, the request ıs deemed to have been cancelled.

Seller ıssues Draft Contract

CONTRACT

The Seller prepares and submits a draft Sales and Purchase Agreement (SPA) to the Buyer. Both parties finalize the contract documents, sign them, and exchange them. The contract is registered and submitted to the relevant banks of both parties.

TERMS OF PAYMENT

OPTION 1: MT700 LETTER OF CREDIT

• An Irrevocable, Transferable, Automatically Renewable, and Confirmed 100% Letter Of Credit (MT700) payable at discharge ports. The Letter of Credit (MT700) must be issued and confirmed by a first-class international bank.
• All banking and endorsement fees shall be borne by the final buyer.
• Upon completion of loading, the goods will be shipped to the port of discharge.
• Upon arrival of the cargo at the unloading port and completion of the sgs inspection (in which case, the inspection report costs are the responsibility of the buyer), the buyer confirms that the goods comply with the terms of the contract.
• Upon such confirmation, Letter of Credit (MT700) will make payment via Swift MT103 within maximum seventy two (72) hours.
• All original documents will be sent to the buyer’s bank via DHL through the seller’s bank.
• The goods are shipped to the discharge port after each shipment.
• This process continues until the end of the contract.

OPTIONS 2: MT700 DEFERRED PAYMENT

• An Irrevocable, Transferable, Auto-Revolving, and Confirmed Deferred Payment (MT700), the payment period begins at the port of loading. The deferred payment must be opened and confirmed by a first-class international bank.
• The MT700 Deferred Payment term must be 12 months, and a new MT700 Deferred Payment must be sent to the seller’s bank each month after shipment.
• The seller completes the loading operations at the port of loading, sends all shipping documents to the buyer’s bank, and the 12-month deferred payment period begins.
• The products are sent to the port of discharge after each shipment. The buyer pays the costs of the inspection report to be prepared at the port of discharge.
• All original documents will be sent to the buyer’s bank via DHL through the seller’s bank.
• The goods are shipped to the discharge port after each shipment.
• This process continues until the end of the contract.

  SHIPPING AND DELIVERY

• After receiving the MT700, the Seller shall coordinate with a logistics company to arrange for the goods to be transported to the port specified by the Buyer.
• All freight and insurance costs up to the port of discharge are included in the CIF price.
• The Seller shall insure the cargo in favor of the Seller for at least 110% of the contract value in accordance with the Institute Cargo

DOCUMENTS

Upon arrival of the cargo at the port of discharge, the Seller shall provide the following original documents and/or other necessary documents:

• Commercial Invoice
• Clean Bill of Lading (marked “Freight Prepaid”)
• Vessel Number
• Packing List
• Certificate of Origin
• Certificate of Quality and Quantity
• Insurance Certificate
• SGS Inspection Report
• Any other documents specified in the contract or requested in advance by the Buyer or its bank/customs authorities

FINAL PAYMENT

• Upon arrival of the cargo at the port of discharge and completion of the SGS inspection (here, the inspection report costs are the responsibility of the buyer), the Buyer confirms the conformity of the goods with the contract terms.
• Payments are completed in accordance with the payment methods specified in Options 1 and 2 above..