RenAn Consulting can summarize the steps of the commodity selling procedure as follows:

Step 1. Soft Corporate Offer - SCO

Seller issues SCO (Soft Corporate Offer) and sends this to the Buyer.

Step 2. Irrevocable Corporate Purchase Order - ICPO

Buyer sends ICPO (Irrevocable Corporate Purchase Order) with full BCL (Bank Comfort Letter) or RWA (Ready, Willing and Able) and soft probe authorization.

Step 3. Full Corporate Offer - FCO

Seller issues FCO (Full Corporate Offer), then Buyer signs FCO and returns with acceptance letter (on company’s letterhead).

Step 4. Draft Contract

Seller sends draft contract to the Buyer for signing and opens for amendments if any. Buyer reviews and signs the contract and then sends hard copies by courier services to the Seller

Step 5. Proof of Product - POP

Seller sends via bank SWIFT MT 799 the POP (Proof of Product) to Buyer.

Step 6. Draft of Documentary Letter of Credit (non – operative)

Within … banking days of signing the final contract (electronic version), the Buyer will issue the non operative transferable, confirmed documentary letter of credit payable 100% at sight (or by negotiation), in favour of the Seller.

Step 7. Draft of Performance Bond / Guarantee

Within … banking days upon receipt, verification acceptance and authentication of non operative documentary letter of credit, Seller’s Bank issues in favour of the Buyer’s Bank 2 (two)  % Performance Bond, to activate the L/C.

Step 8. Shipment

Shipments shall commence after the fulfillment of the procedures, stated above, as per the terms and conditions of signed contract and deliveries shall continue until full amount of contracted quantity.

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Start typing and press Enter to search