Can You Really Make Money Trading Commodities Online? Un-Legalese-ing The FCO 2
Payments shall be made within FIVE (5) banking days against presentation of the following documents at the counter of the Buyer's Bank.
1) Bills of Lading
What is the stuff?
2) Certificate of Quality
Is it really the stuff listed on the contract or is it something totally different? If you've specified one kind of wheat, are you actually getting a different and much cheaper kind? There are agencies that do nothing but run around confirming that this gigantic mound of urea is actually a gigantic mound of urea rather than kitty litter and issuing the quality certificates.
3) Certificate of Origin
Where did the stuff come from?
4) Signed Commercial Invoice
A formal invoice that Customs will want to see.
Once all the paperwork is done, confirmed, reconfirmed, verified, and held up against an UV light to makes sure that no one has counterfeited it, then there is a time span of one calendar week where the payment can be made.
BANKING: Seller must be notified in Advance of the type and context of the L/C to be issued by the Buyer.
No surprises. The seller must know what kind of L/C he's getting and if he's not happy with it he doesn't have to do the deal.
A Fax Copy of the L/C is to be sent to the seller at the above fax number within TEN (10) banking days of receipt of this Full Corporate Offer.
Again, there are two calendar weeks to get the L/C done up right and sent to the seller. These deals can't be held up for months. Time is always of the essence.
Any unauthorised contact with the seller's bank is forbidden and represents a serious breach of this agreement and renders this contract null and void.
Unless the seller specifically authorizes you to talk to his bank, don't you even dare call them up just to say hello! Let them do their business. Don't stick your nose where it doesn't belong.
PROCEDURES: Formal Letter of Intent Thus Duly Understood to be Accepted. The Seller has Thus Duly Issued to Bona Fide Buyer or Notorized Buyer's Mandate this Signed and Sealed Full Corporate Offer.
All this says is that this deal is the deal and outlines the steps that must be followed for the deal to be legit.
1) Buyer Signs and Seals with Corporate Stamp this Full Corporate Offer and returns with Funds Confirmed Certificate from a Prime World Bank or a Signed Sealed Bank Comfort Letter or a Bank Endorsed ICPO to Seller at the above address via Fax or Courier.
The guy buying all this stuff agrees to buying it and sends his approved document along with a confirmation from the big Bank that he does have the money and this isn't just a gigantic waste of time.
2) Seller Issues a Draft Contract for Buyer's Approval, Signature, Seal, and return within FIVE (5) banking days to Seller at the above address via Courier.
The guy selling all this stuff draws up a contract which the buyer has one calendar week to sign and return to the seller.
3) Seller issues a Final Hard Copy for Buyer's Approval, Signature, Seal and Return to Buyer at above address via Courier.
The guy selling the stuff incorporates any changes which cropped up while the various parties were mulling over the terms and returns the final draft to the buyer.
4) Buyer submits a copy by fax of the Buyer's L/C text for review and acceptance by Seller.
The guy buying the stuff sends along a copy of the L/C he's obtained to the seller so that he can be certain that he's not shipping off fifty million dollars worth of stuff and getting a piece of paper that he can line his birdcage with.