Kalily E. P.

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In General


Kalily Standard Procedures
- before we start -


Kalily's Procedures – Security for Buyer and Seller

Due to the variety of products, ports, shipping facilities and other parameters our procedures for FOB and CIF transactions will vary from case to case. The examples for FOB and CIF are basically the required framework we need to follow to avoid issues with authorities, laws and bank regulations.

All our companies and bank connections are in business for many years. Our banks know us and we are trading with them huge amounts each year. Our personal contacts in our banks are always top level managers, never simple customer representatives. We cannot afford to experience any issues with authorities, banks or accounts. Our one and only goal is that the operation goes on as planned between Buyer and Seller. "The show must go on" is our prime philosophy.

For buyers which have already performed with us we offer to cut the MT799/Pre-Advice part and they will be allowed to send the guarantee directly to our bank, after both banks communicated and are in possession of Buyer’s complete credentials. For some banks the MT799/Pre-Advice is a mandatory part of the communication protocol.

Our Procedures at a Glance

Decades of business experience showed us that around 99% of Buyers are no real Buyers. We are aware that the situation for Buyers searching for a real and reliable Seller is as difficult as the opposite. We spent millions (in size of 3 digits) for fake Buyers and fees for these activities (SGS, loaded ships, withdrawn instruments, faked SWIFTS, Buyer disappearing at unloading port, ......) so that our Board decided to rely on bank to bank operations only. All these fake operations with fraudulent documents lead to unbelievable fees for us payable to our banks in regards to blocked bank accounts, fines for fraudulent papers and whatever is possible in these criminal operations which help fraudsters to get access to a product without real money.

Before we bring one of our banks on stage for any deal we need:

  • The completely filled out Customer Information sheet (CIS) including a copy of Buyer's passport and a copy of the company registration certificate

  • A BCL letter signed by Buyer's bank. (Optional)

Once our bank gives us green light from their Due Diligence we will be able to draft a Sales and Purchase Agreement (SPA) including our bank data and provide it to the Buyer. Without this BCL letter we cannot go forward to the next step.

Together with our banks we developed the only certain way for both sides. After confirmation of the BCL letter Buyer's bank sends MT799/Pre-Advice and our banker then gets into secured communication with Buyer's banker to exchange all information which is needed to guarantee for the deal for both banks.

Only when both bankers give their customers - Buyer and Seller - green light, an instrument shall be issued. Our bank guarantees with "Full Banking Responsibility" for the deal based on the SPA and we expect the same from Buyer's bank for the funds.

To make things easy and fast for both sides we asked our banks to send us their preferred verbiage to avoid correction loops and other misunderstandings. We only accept this verbiage. We concentrate on each deal during the purchasing process and we expect same from our buyers. Instruments are for guarantee only – to use them for any other reason is against our understanding of business, mutual trust is our guideline for a long term cooperation and partnership. We want to be relaxed in our deals.

This instrument then enables us to deliver POP/SGS/etc. to Buyer's bank in the name of the Buyer as new titleholder within 48 to 72 hours most probably, never later. There is no way that any party can start a fraudulent activity in this process. It is based on total security for both sides. The transfer of the guarantee in the second step is absolutely seamless as both bankers are already in direct connection at this stage.

I hope Buyers understand that only a real Seller can offer this procedure - for everyone else it is useless. More explanation can be found in our Trading Basics document and in our Q&A section.

We support Resellers which have own credit lines; due to the guarantee on our account we give them authorization to sell immediately with the POP once the instrument has been confirmed by our bank and expect payment within 72 hours after delivery. We deliver into tanks or let the Buyer take over our tanks. We give five days for FOB delivery after payment without additional charging.

Safety First! Our procedures have been developed by our banks and protect Buyer and Seller against any fraud or abusage of documents and goods. If this is also your way of doing business we are looking forward to working with you.

We are a high quality company. We always react fast and deliver our documents within 24 hours on working days and sometimes even on weekends. Our delivery is world class in precision and tempo. We expect the same from our Buyers. There is no way that we will put pressure on a Buyer who is not responsive. If a buyer does not respect timelines which he has signed in our contracts we will cancel the contract without further note. We cannot afford to waste our time with non-performers. (Read also our guideline “General Information” and our Q&A section)

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