THE PROCEDURES

DTC  Dutch Trader Commodities THE PROCEDURES PROCEDURE FOR GENERAL CONSUMPTION Spot deals GAS OIL D-2 L-0.02/62 GOST 305-82 Heavy Fuel Oil / MAZUT M100 (GOST 10585-75) DIESEL FUEL AGO Automotive Gas Oil EN 590 Metal related products

Procedures

PROCEDURES:These Procedures must be given in the Buyers ICPO as confirmation of accepting the SELLERS TERMS and PROCEDURES; otherwise SELLER will not issue the FCO or DRAFT CONTRACT PROCEDURE : BUYER AND BUYER SIDE INTERMEDIAIRS SIGN NCNDA-IMFPATHE BUYER ISSUES AN IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO) WITH SOFT PROBE (WITH SELLER PROCEDURES IN ICPO) VIA EMAIL IN PDF FORMAT.  THE SELLER ISSUES A DRAFT CONTRACT ONLY DIRECTLY TO THE BUYER VIA EMAIL IN WORD FORMAT. THE BUYER RETURNS SIGNED DRAFT CONTRACT TO THE SELLER VIA EMAIL IN WORD FORMAT THE BUYER RETURNS SIGNED DRAFT CONTRACT TO THE SELLER VIA EMAIL IN WORD FORMAT. THE SELLER REVIEWS AND SIGNS DRAFT CONTRACT AND RETURNS IT TO THE BUYER VIA EMAIL IN PDF FORMAT. THE BUYER WILL THEN, WITHIN 3 (THREE) BUSINESS DAYS OF RECEIVING THE EMAIL COPY OF THE FINAL CONTRACT FROM THE SELLER, OPEN A NON-OPERATIVE FULLY TRANSFERABLE IRREVOCABLE LETTER OF CREDIT OR OTHER BANK INSTRUMENT (BG, SBLC OR MT103) ADDRESSED TO THE SELLER IN THE CORRECT FORMAT REQUESTED BY THE SELLER. THE SELLER WILL, WITHIN 10-14 (TEN-FOURTEEN) BUSINESS DAYS OF RECEIPT OF AN ACCEPTABLE NON-OPERATIVE PAYMENT INSTRUMENT, ISSUE BANK TO BANK, FULL POP AND 2% (TWO PERCENT) PERFORMANCE BOND FOR THE VALUE OF THE PAYMENT INSTRUMENT, FOR EACH MONTHLY SHIPMENT. 

SHIPPING WILL COMMENCE NO LATER THEN 45 (FORTY-FIVE) DAYS FROM THE DATE OF SELLERS RECEIPT OF THE ACCEPTABLE NON-OPERATIVE PAYMENT INSTRUMENT.

THE RATIONALE FOR THE PROCEDURES

Everything we do in the early stages are informal exchanges of information, designed to insure that when the time for written, legally binding commitments are to be made by both seller and buyer, all the terms and conditions are not only perfectly understood, but have been accepted by both parties.

BUYER AND BUYER SIDE INTERMEDIAIRS SIGN NCNDA-IMFPA

THE BUYER ISSUES AN IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO) WITH SOFT PROBE (WITH SELLER PROCEDURES IN ICPO) VIA EMAIL IN PDF FORMAT.  THE SELLER ISSUES A DRAFT CONTRACT ONLY DIRECTLY TO THE BUYER VIA EMAIL IN WORD FORMAT. THE BUYER RETURNS SIGNED DRAFT CONTRACT TO THE SELLER VIA EMAIL IN WORD FORMAT

 

THE BUYER RETURNS SIGNED DRAFT CONTRACT TO THE SELLER VIA EMAIL IN WORD FORMAT. THE SELLER REVIEWS AND SIGNS DRAFT CONTRACT AND RETURNS IT TO THE BUYER VIA EMAIL IN PDF FORMAT. THE BUYER WILL THEN, WITHIN 3 (THREE) BUSINESS DAYS OF RECEIVING THE EMAIL COPY OF THE FINAL CONTRACT FROM THE SELLER, OPEN A NON-OPERATIVE FULLY TRANSFERABLE IRREVOCABLE LETTER OF CREDIT OR OTHER BANK INSTRUMENT (BG, SBLC OR MT103) ADDRESSED TO THE SELLER IN THE CORRECT FORMAT REQUESTED BY THE SELLER. THE SELLER WILL, WITHIN 10-14 (TEN-FOURTEEN) BUSINESS DAYS OF RECEIPT OF AN ACCEPTABLE NON-OPERATIVE PAYMENT INSTRUMENT, ISSUE BANK TO BANK, FULL POP AND 2% (TWO PERCENT) PERFORMANCE BOND FOR THE VALUE OF THE PAYMENT INSTRUMENT, FOR EACH MONTHLY SHIPMENT. 

SHIPPING WILL COMMENCE NO LATER THEN 45 (FORTY-FIVE) DAYS FROM THE DATE OF SELLERS RECEIPT OF THE ACCEPTABLE NON-OPERATIVE PAYMENT INSTRUMENT.  

 

You can now see why we structure all of our transactions this way. The procedures do not favor either the buyer or seller but do favor the successful completion of the transaction. These procedures will very quickly stop a transaction dead in its tracks if either the buyer or seller is not serious. It does stop a broker chain immediately.

Our suggestion is that you please make your buyers aware of the above procedures to see if they will accept them. There is no reason that they would not, but one never knows how people will respond, and none of us want to waste time.