STANDARD PROCEDURE FOR SB LC
1. After accepting the brief offer from the seller , Buyer : confirm soft offer and issues an ICPO (Irrevocable Corporate Parchase Order )
2. Seller issues FCO (Full Corporate Offer).
3. Buyer: signs and returns FCO with a letter of acceptance and Issues BCL (Bank Comfort Clearance Letter ) with right to soft probe
4. Seller issues draft contract open for amendments.
5. Buyer returns signed draft contract
Legal department will go for notarization and stamp duties high
court, registration of contract with ministries the fee for these expenses will be
borne by the buyer.
Legal department will go for notarization and stamp duties high
court, registration of contract with ministries the fee for these expenses will be
borne by the buyer.
6. Seller issue to Buyer the POP. (Proofe of Product Document) Document
7. Seller issues original contract for final signatory, both party exchange hard
copy of contract via courier within 7 “Seven” days of signing electronic version.
Both party lodges’ contracts in respective banks.
copy of contract via courier within 7 “Seven” days of signing electronic version.
Both party lodges’ contracts in respective banks.
8. Buyer’s bank issues irrevocable revolving nontransferable documentary letter
of credit.
of credit.
9. Seller agrees that the Performance Bond (PB) 2% will be issued after receipt of the's BG FULL OR SBLC ,FULL, non operative Financial Instruments, for a time period of 1 months
10. The Performance Bond (PB) 2% activates the Financial Instruments. Over the first BG FULL OR SBLC FULL.
11. The First shipment will commence no later than 45 (Fourteen) days from date issued of the operative
12. Financial Instrument. The remaining consignments will be Shipped in each 30 (thirty) day periods.
13. Effect of payment for each consignment shall be effected within 5 (Five) banking days after receipt by the Seller's Advising Bank of all documents required for payment.
LOI
( Model of letter of intention L.O.I. for irrevocable purchase order, Completed on buyer's letterhead )
Date:................................
We the undersigned (NAME OF BUYER OR COMPANY) hereby state and represent that it is our corporate
intention to purchase the commodity / product ................... in the quantity and for the price as specified in the terms and conditions as stated below. This representation is made with full corporate authority and also responsibility of the above stated buyer.
Commodity / Product :
Origin :
Specifications :
Quantity :
Delivery Size And Schedule :
Mode of payment :
FOB MV price :
Destination Port Discharge
Buyer’s Information Company Name
Corporate Address:
Corporate Address:
City Zip / Postal Code Country:
Company phone :
Company Fax :
Company Fax :
E-Mail Legal Representative: Name / Title:
Buyer’s Bank Information
Bank Name Address:
Bank Name Address:
City Zip / Postal Code Country:
Bank phone
Bank Fax:
E-Mail Bank
Telex Swift Code:
Bank phone
Bank Fax:
E-Mail Bank
Telex Swift Code:
We understand that any and all offers and /or contracts are subject to successful seller verification of funds availability. We hereby give our written permission for the seller to conduct a soft probe of our account.
Signature and typed full name
Position:______
BCL
Comfort - Clearance Letter
WHOM IT MAY CONCERN
Ref. No: ___________: _____________
THE UNDERSIGNED BANK OFFICER/MANAGER WITH FULL BANKING RESPONSIBILITY, HEREBY CONFIRM THAT OUR CLIENT {Buyer's name WITH ACCOUNT NUMBER IS FINANCIALLY ABLE TO INITIATE THE TRANSACTION INVOLVING PURCHASE OF
{quantity and product name}
DURING THE NEXT UNDERSTAND THAT THE SHIPMENT FACE VALUE OF THE NEEDED IRREVOCABLE CONFIRMED {terms of payment: SBLC, BG} PAYABLE AT SIGHT WILL BE loch PER SHIPMENT AND THE TOTAL VALUE OF THE TRANSACTION FOR {period of contract length} WILL BE CERTIFY ONLY THAT {Buyer's name} HAS SUFFICIENT FUNDS ON THE ACCOUNT AND SUFFICIENT LINE OF CREDIT WITH OUR BANK TO COMPLETE THE ABOVE TRANSACTION.GUARANTEE THAT THE PAYMENT ILL BE USED FOR THIS TRANSACTION AND WILL REVOLVE FROM SHIPMENT TO
SHIPMENT DURING THE DURATION OF THE CONTRACT SHOULD OUR ABOVE MENTIONEDCUSTOMER WISHES US TO DO SO.
NAME :_________
NO OF OUR CLIENT :_________
OFFICER'S NAME :_________
NAME BRANCH :_________
NAME BRANCH :_________
PHONE NUMBER :_________
FAX NUMBER :_________
TELEX NUMBER :_________
SWIFT CODE :_________ NUMBER :_________
WE HAVE BEEN INFORMED BY OUR CLIENT {buyer's name} THAT HE HEREBY GIVES PERMISSION TO THE SELLER TO CONDUCT A SOFT PROBE ON HIS ACCOUNT.
Authorized Signature & Bank Seal (Designation of the person signing)