RenAn Consulting can summarize the steps of the commodity selling procedure as follows:
Seller issues SCO (Soft Corporate Offer) and sends this to the Buyer.
Buyer sends ICPO (Irrevocable Corporate Purchase Order) with full BCL (Bank Comfort Letter) or RWA (Ready, Willing and Able) and soft probe authorization.
Seller issues FCO (Full Corporate Offer), then Buyer signs FCO and returns with acceptance letter (on company’s letterhead).
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
Seller sends via bank SWIFT MT 799 the POP (Proof of Product) to Buyer.
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.
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.
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.