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Commodity Broker

The law of the sea.

Commodity Broker

Postby Avrell » Sun Oct 30, 2016 6:46 pm

Dear Mr.Papa,    My name is Othman, an Egyptian Commodity broker. I am trying to close a deal to import 600,000 MT of Sugar Icumsa 45 to my clients in Egypt from the seller who is locating in Brazil.

By searching on the internet, I learned that the best way to make such deal is to ask the buyer to open(An Irrevocable, Confirmed, Transferable, Revolving, Operative L/C) to the favor my Company, and based on this L/C issued by the buyer’s bank, my bank will transfer this L/C to the seller’s bank upon my request as long as the terms of the contract are met. At this point, I have few questions that I wish you help me to find answers for:

The seller requests to get LOI and ICPO before he sends FCO, my question: will my bank accept to issue ICPO depending on the L/C that has been opened by the buyer to my Company?

After receiving the FCO, the seller will request to open(An Irrevocable, Confirmed, and Non-transferable, Revolving, Non-operative L/C) which will be operative my opening 2% PB, my question: Will my bank open such L/C to the seller based on the L/C opened by the buyer for my company?

In fact, I am working to import 600,000 MT for four different buyers, each would like to open separate L/C to my company to import 150,000 MT, I am wondering if that will be possible to proceed in this deal, and whether it is ok to transfer the value of the four L/Cs to seller as long as all terms of the contract are met?

What that bank that you recommend me to deal with? Egypt has branches many world banks such, HSBC, Citibank, Barclays, BNP Paribas, societe Generale and Credit Agricole.

I will appreciate any advice or help.

Thank you very much for your time and effort.
Avrell
 
Posts: 44
Joined: Tue Jan 21, 2014 11:58 pm

Commodity Broker

Postby Alcander » Mon Oct 31, 2016 12:58 am

Dear Othman

(a)  Wrong-and there is too much to know to be able to explain it to you - so i give you these tips  to follow -Assume I am right.

(1)My name is Othman, an Egyptian Commodity broker. I am trying to close a deal to import 600,000 MT of Sugar Icumsa 45 to my clients in Egypt from the seller who is locating in Brazil.

(b) YOU BUY FROM THE SUPPLIER AND AS BUYER  AND YOU SELL TO THE END BUYER AS SELLER - BUY PRICE AND SELL PRICE LEAVE COMMISSION IN YOUR ACCOUNT- HENCE YOU CANNOT BUY FORM ANOTHER BRAZILIAN  INTERMEDIARY BECAUSE THE DLC CAN ONLY BE TRANSFERRED ONCE - FROM YOU TO THE SUPPLIER IN POSSESSION OF GOODS DIRECT-

(c) 600,000 MT  TO ONE CLIENT ONLY - I SHIPMENT ONE CLIENT ONE BOL- IF YOU HAVE 3 CLIENTS THEN 3 CONTRACTS 3 SEPARATE SHIPMENTS PER YEAR EACH AT 200,000 MT -YOU CANNOT BUY 600,000 MT FOR MANY CLIENTS  (SAY 3 CLIENTS) AND GET 2 SHIPMENT Say at  300,000 MT EACH - IT WILL NOT WORK.1 ORDER, 1 CLIENT,ONE CONTRACT-

the buyer to open(An Irrevocable, Confirmed, Transferable, Revolving, Operative L/C) to the favor my Company, and based on this L/C issued by the buyer?s bank, my bank will transfer this L/C to the seller?s bank upon my request as long as the terms of the contract are met.

(D)BANKS HAVE NOTHING TO DO WITH CONTRACTS- BANKS DEAL IN DLC- THE TRANSFER FEE IS PAID BY THE BUYER AS PER YOUR OFFER TO HIM-  YOU ASK THE BUYER TO OPEN LETS SAY ONE CLINT WANTS 50,000 MT PER MONTH FOR 4 MONTHS - IRREVOCABLE ,CONFIRMED ,  TRANSFERABLE  NON CUMULATIVE REVOLVING UCP 600 DLC- CONFIRMATION MUST BE MADE AT BUYERS COST TO YOUR BANK- The seller requests to get LOI and ICPO before he sends FCO, my question: will my bank accept to issue ICPO depending on the L/C that has been opened by the buyer to my Company?

(e) RUBBISH - QUOTE OR OFFER MUST COME FIRST FROM SUPPLIER - NO OFFER NO DEAL- YOU CANNOT BUY 'FRESH AIR" YOU MUST KNOW FIRST WHAT THE COST IS GOING TO BE -

NO ICPO, FCO , LOI ETC.. THESE ARE INCORRECT flawed INTERNAL USA PROCEDURES THEY ARE NOT INTERNATIONAL TRADE PROCEDURES-and MUST not be usewd by professional Intermediaries- FIRST YOU MUST GET OFFER FROM REAL SUPPLIER - WITH OFFER IN YOUR HAND YOU MAKE AN OFFER TO YOUR END BUYER - OFFER ACCEPTED - TO GIVE HIM A CONTRACT. CONTRACT ACCEPTED - HE OPENS DLC AS PER CONTRACT-  YOU NOW ACCEPT OFFER FROM SUPPLIER AND CONTRACT FROM SUPPLIER-

THIS MEANS YOU AS THE BUYER TO THE SUPPLIER HOLD ONE CONTRACT- YOU TO THE END BUYER HOLDS ANOTHER CONTRACT - YOU HOLD TWO CONTRACT- ONCE SIDE NEVER CROSSES OVER TO THE OTHER SIDE - YOU BECOME THE INTERMEDIARY "BUYER AND SELLER" AND YOU CANNOT BE CIRCUMVENTED-

THE DLC MATTER IS AS PER THE TERMS AND CONDITION OF THE DLC- THE BANK WILL ONLY FOLLOW UCP600 RULES THEY ARE NOT ALLOWED TO GET INVOLVED IN MATTERS OF THE SALES CONTRACT-

I HOP THE ABOVE ANSWER IS CLEAR-AND OF HELP

LOOK AS PAST OFFER MODEL I HAVE GIVEN ON THIS SITE-Read URPIB rules - the answer are all there-(www.itsi.itgo.com) you are the SELLER/BUYER -never selling possession of good held , but title of good- supplier owns possession of good , end buyer takes possession of goods once you sold him the title-

REGARDS

DAVIDE PAPA

WWW.FTNEXPORTING.COM

WWW.ITSI.ITGO.COM

WWW.FTNXX.NET

WORLD WIDE AUTHOR: INTERNATIONAL  TRADE AND THE SUCCESSFUL INTERMEDIARY  
Alcander
 
Posts: 48
Joined: Mon Jan 06, 2014 10:03 am

Commodity Broker

Postby Tiffney » Sun Nov 06, 2016 7:35 am

Dear Mr.Papa,    My name is Othman, an Egyptian Commodity broker. I am trying to close a deal to import 600,000 MT of Sugar Icumsa 45 to my clients in Egypt from the seller who is locating in Brazil.

By searching on the internet, I learned that the best way to make such deal is to ask the buyer to open(An Irrevocable, Confirmed, Transferable, Revolving, Operative L/C) to the favor my Company, and based on this L/C issued by the buyer’s bank, my bank will transfer this L/C to the seller’s bank upon my request as long as the terms of the contract are met. At this point, I have few questions that I wish you help me to find answers for:

The seller requests to get LOI and ICPO before he sends FCO, my question: will my bank accept to issue ICPO depending on the L/C that has been opened by the buyer to my Company?

After receiving the FCO, the seller will request to open(An Irrevocable, Confirmed, and Non-transferable, Revolving, Non-operative L/C) which will be operative my opening 2% PB, my question: Will my bank open such L/C to the seller based on the L/C opened by the buyer for my company?

In fact, I am working to import 600,000 MT for four different buyers, each would like to open separate L/C to my company to import 150,000 MT, I am wondering if that will be possible to proceed in this deal, and whether it is ok to transfer the value of the four L/Cs to seller as long as all terms of the contract are met?

What that bank that you recommend me to deal with? Egypt has branches many world banks such, HSBC, Citibank, Barclays, BNP Paribas, societe Generale and Credit Agricole.

I will appreciate any advice or help.

Thank you very much for your time and effort.
Tiffney
 
Posts: 49
Joined: Mon Jan 13, 2014 2:35 pm


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