Kalily E. P.

Procedure for CIF Deliveries

Documentary Process

1.  Buyer sends LOI or ICPO to Seller. Seller sends SCO to Buyer. Buyer signs SCO and reverts to Seller. (This stage can be skipped and collected into the next)

Note: we will always verify each LOI or ICPO with the buyer himself. There is no way that we address any SCO or FCO to intermediaries or agents or mandates.

2.  Seller sends FCO to Buyer and Buyer reverts the following documents properly filled out to Seller:

a.   Completed FCO with Buyer’s bank data, signed and sealed.
b.   Customer Information Sheet (CIS; template provided by Seller) on Buyer’s letterheads, containing also:

I.    Copy of Company Registration Certificate
II.   Passport copy of signatory

c. BCL/RWA letter issued by Buyer's bank (optional - can be RWA) confirmable by Seller or his nominated person or Bank

Note: There were too many attempts from Flippers and Resellers without funds and we lose our good ranking from our banks with failed operations. In case the Buyer sends this Bank Confirmation Letter on earlier stage we can skip the FCO and get immediately to the SPA. The BCL/RWA can be addressed to the Buyer himself. No need to address it to our company. It is not only the Buyer involving his bank – we also have to communicate each operation to our bank.

3. Seller drafts Sales & Purchase Agreement (SPA) to be lodged in both banks. Seller and Buyer execute the final contract. Buyer sends the final contract electronically signed in WORD or PDF format. An electronically executed final contract can stand as original.

Guarantee/Collateral Bank-to-Bank Process
4.  Within 5 working days after signing the SPA Buyer’s bank sends MT799/Pre-Advice (verbiage provided by Seller’s Bank) to Seller’s bank and Buyer’s sends copy immediately to Seller’s company email address. After Seller has received the copy of the transferred SWIFT and forwarded to his bank, Seller’s bank opens communication with Buyer’s bank on basis of the lodged SPA to discuss all relevant items and documents for security on the deal for both banks (Buyer/Seller).

5. After successful mutual confirmation of the MT799/Pre-Advice between both banks Seller’s Bank confirms by SWIFT MT799 and Buyer’s bank sends an irrevocable, unconditional, confirmed, open and unrestricted, transferable SWIFT MT760/SBLC (verbiage provided by Seller’s Bank) about the amount for the first delivery to Seller’s bank within 3 banking days.

Delivery Loop

6. Within XX days (depends on the product and other parameters) after confirmation of the instrument by Seller’s bank and depending on SGS inspection timeline loading starts as per delivery schedule agreed in the contract.

7. Vessel sails to destination Port, Seller issues CI and DTA at discharging port and Buyer makes Dip Test with SGS or similar organization.

8. Buyer’s bank pays against title for each shipment 100% by TT or MT103, at sight in the discharging port against presentation of the shipping documents.

9. Seller provides 110% insurance in favor of the buyer.

10. Transaction closed

The final procedure may contain variations of the above depending on the individual case. For some countries and harbours payments are due at loading port and so forth. Details will be discussed and agreed between Buyer and Seller.