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FOB (Freight on Board)
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Seller makes the offer;
Buyer makes its satisfactory due diligence of the seller and its Bank, and upon its satisfaction request the seller to send the draft contract;
Buyer / Seller sign contract;
Seller issues 2% non-operative performance bond upon receiving confirmation from buyer’s Bank officer that buyer is ready to receive the performance and is ready, willing and able to activate the performance bond by issuing irrevocable financial instrument (preferably documentary letter of credit);
Seller issues 2% non-operative performance bond and also sends the full POP to buyer directly at buyer’s instruction via fax and/or overnight courier service;
Upon satisfactory due diligence of POP in no more than five (5) working days, buyer opens the financial instrument activating seller’s performance bond;
Seller makes all shipping arrangements at the port of loading and informs buyer when it is proper time (Laycan) to have its vessels ready to be loaded;
Seller loads the vessel, and upon receiving the shipping documents such as SGS report, Bill of Lading, Certificate of origin, export licence, contract with the port of loading storage company, and commercial invoice; buyer pays seller via wire transfer to seller’s account in no more than five(5) New York banking days.
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CIF (Cost, Insurance and Freight)
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Seller makes the offer;
Buyer makes its satisfactory due diligence of the seller and its Bank, and upon its satisfaction request the seller to send the draft contract;
Buyer / Seller sign contract;
Seller issues 2% non-operative performance bond upon receiving confirmation from buyer’s Bank officer that buyer is ready to receive the performance and is ready, willing and able to activate the performance bond by issuing irrevocable financial instrument (preferably documentary letter of credit);
Seller issues 2% non-operative performance bond and also sends the full POP to buyer directly at buyer’s instruction via fax and/or overnight courier service;
Upon satisfactory due diligence of POP in no more than five(5) banking days, buyer opens the financial instrument activating seller’s performance bond;
Seller makes all shipping arrangements at the port of loading and informs buyer of charter party and Q88 of its vessel, and “ETA” (Estimated Time of Arrival) of its vessel to the buyer’s port of discharge;
Seller loads the vessel, and delivers the product to buyer’s port of destination and upon submitting the shipping documents such as SGS report, Bill of Lading, Certificate of origin, and commercial invoice, buyer pays seller via wire transfer to seller’s account in no more than five (5) New York banking days.
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