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Dear Sir Recently I Received...

The law of the sea.

Dear Sir Recently I Received...

Postby Jenda » Sun Nov 20, 2016 2:00 pm

Dear Sir

Recently I received some information from an associate that he is a seller mandate for Saudi Light Crude Oil and accordingly sent me a Full Corporate Offer using his company letterhead. I informed another associate(potential buyer mandate) of mine about this and he wrote back to me to verify the following:

"Before we go any further, I would like to know the followings:

Do you have OPEC Resell No.? Authorised OPEC No? Export Lisence NO? Export Permit No?"

Are these relevant qustions and what do they mean?

Furthermore, I remember reading in one of your previous articles that the buyer must also have the OIL REFINERY BUYERS NUMBER as registered under OPEC. Should I then inquire if this potential buyer has this OIL REFINERY BUYERS NUMBER as registered under OPEC.

I would appreciate very much your thoughts and answers to the above. Thank you very much for your co - operation.

Best regards

TS
Jenda
 
Posts: 50
Joined: Mon Jan 06, 2014 3:13 pm

Dear Sir Recently I Received...

Postby Odwolfe » Wed Nov 23, 2016 2:53 pm

Dear Dr Thavasi,

(1)If a person is claiming to be a mandate holder on behalf of a Saudi Prince or other entity-It is YOU who has to ask such a mandate holder to provide documentation  of his clear mandateship-A Mandate holder will NEVER be afraid to disclose his Principal if he is a true mandate holder-because they are fully protected from circumvention by international law-If the person refuses to disclose his mandateship papers drop the deal...its a false or not proper deal...A delegate cannot delegate, is a famous Roman verse-A person who claims mandateship cannot claim to be a mandate of simply another intermediary-a mandate holder must be the mandate appointed by the principal supplier..Check the mandateship papers if they don't give you the suppliers name..Drop the deal..Your Job is to find a Buyer for YOUR PRODUCTS found..The mandateship holder MUST prove to YOU that he is a genuine mandate holder..he does that because he cannot find a buyer for his product..like you can-As far as the MANDATE HOLDER IS CONCERNED YOU ARE THE BUYER AND YOU have no obligation to devulge who you are selling the oil to..that's your business not the mandate holder-

(2)Once you have witnessed clear documentation that the person is indeed a mandate holder for the oil...Get the person to make ANOTHER offer you-YOU ARE NOW A LEGALLY DEFINED SELLER as per ICC rules of Agency;-because you have an offer which has been supplied by a genuine mandate-which is probably genuine-Note;You are allowed to check up directly with the mandate holders supplier in getting verification of the oil and the bone fides of the mandate holder..If he is a true mandate holder he will have no problems with this whatsoever..The supplier will expect such calls-but after verification has been made you must continue only to deal with the authorized mandate holder in closing such a deal..

(3)You then file the original unsanitized offer as proof of your good  intent should things later go wrong with the deal-You then make another offer carrying YOUR OWN TRANSACTION CODE, to your buyer as SELLER ON BEHALF OF AN UNDISCLOSED PRINCIPAL.;The offer must be made as a new document on your letter head...you cannot simply sent somebody elses santized offer  onwards..Many don't understand that doing as such is an illegal act-Here is an example of your offer to the buyer

I,Dr Thavasi of 123 street Bahrain do here by with good and honourable intent make this offer to supply the following product as Seller on behalf of an undisclosed Principal-The product being offered is done so as defined by the term 'secondary contract" of supply.All terms of contract to be traded in ENGLISH language:All transaction must follow strict ICC defined UCP500 banking rules:Terms of trade as defined by INCOTERMS 2000:

(4)BY STATING THE ABOVE-YOU ARE THE SELLER:YOU DO NOT HAVE TO DISCLOSE WHO YOUR SUPPLIER IS:AND SHOULD THE DEAL MEET PROBLEMS LATER-YOU CAN DEFEND YOURSELF BECUSE YOU HAVE DOCUMENTS VERIFYING THAT YOU HAVE BEEN ACTING IN GOOD FAITH;

(5)ON YOUR LETTER HEAD YOU MAKE THE OFFER TO YOUR BUYER-WHO MUST TRADE WITH YOU DIRECTLY-YOU IN TURN TRADE WITH THE MANDATE HOLDER;Two different deals-of which you are the controller of both-Your mandate must NEVER meet your Buyer and visa versa-You make you deal with YOUR supplier  and you make a deal with YOUR buyer-two deals not connected with each other without you being in the middle;

This is the only way you are ever going to see a cent  from the deal should such a deal be closed.

(6)The numbers you a referring to are Opec controll numbers-hence what you have is a PRIMARY contract  being a Contract of supply sanctioned by OPEC:The product is probably Kuwaite AP31 light crude:(good stuff)..THROW THIS CONTRACT AWAY its worthless to you..YOU MUST DEAL ONLY IN A "SECONDARY CONTRACT" of supply-A primary contract has very little offering of commission because it is strictly controlled by the Prince making the offer to the mandate holder,usually a cousin or relative..The relative does not know how to sell such oil and made the offer available to   intermediaries-but the oil offered is a Primary contract and can only be sold dirtectly to a Opec sanctioned Refinery..The commission is usually around 3 to 4 cents per barrel..and usually non or very little discount is offered.UNLESS you can sell the oil directly to a REFINERY its a worthless offer...Selling directly to a refinery is nearly impossible for a intermediary-because as soon as the refinery gets the Oil allocation numbers or as soon as the relative gets the purchasing  refinery identification numbers-you will get circumvented-The relative and the refinery will keep the few cents on offer as commission for themselves..Your Buyer will be selling the oil to HIS end Buyer...you buyer may be dealing with a refinery direct-hence the questions relating to such numbers-if you have the numbers -Money comes first,before you give such numbers-if you don't have such numbers-then confirm if you have a "secondary contract" and advise as such to YOUR BUYER;

(7)If the oil is offered as a secondary contract-then no problem-BUT it must state on the offer to you from your mandate that the product being offered is indeed a "Secondary contract"..It should list the discount offered to you per barrel-You Keep some of the discount for yourself and make a new offer to your Buyer giving details of the NEW discount being offered..etc..etc..

If you allow the mandate to close the deal directly with your buyer...you will lose the deal-if the mandate or if you buyer tells you that the deal fell through..how can you check if this is true...?You can't-They can close the deal and simply tell you that the deal fell through.

(8)The delivery of oil via secondary contract is a delivery based on "documents" and not actual product-You make the offer- the buyer gets the money(its not you business to know where the money is coming from)The money by way of a financial instrument is placed in your account...your commission stays behind and the new amount gets transferred to your Supplier who has provided all the required documents relating to tile of the oil as defined on contract with you and as defined on the financial instrument ;Once the documents are "delivered"..the deal is done-The mandate got Money-You got your Commission-and the buyer gets his oil about 4 weeks later-The Buyer claims the oil because when the ship arrives in port of discharge-the buyer has the documents to prove ownership-sent to him by airmail when he paid for the product many weeks earlier.

(9)As soon as you make such an offer to your buyer...he will ask for proof of product :Under ICC ready willing and able to BUY(RWA) is clearly defined to mean READY WILLING AND FINANCIALLY able to buy a product..The BUYER MUST first prove RWA- the only way RWA can be proved is by fully depositing the active financial instrument  to purchase the oil-into your account-ONCE such money is deposited into such an account,then you are safe to DISCLOSE the Mandate to your buyer(proof) who will verify the deal and oil-You cannot be circumvented because YOU have the irrevocable L/C in your account which cannot be cancelled-Everyone then helps each other to close the deal-because YOU are in control of the funds-NO MONEY THEN NO DEAL...its that simple-A real Buyer will know that they will have to put up the funds first...only intermediaries don't understand this procedure..Proof of product NEVER comes first-Money always comes first..that's why it is very important that you do have a genuine product in your control.You can do a thousand deals in 5 years-but if only ONE real buyer follows the correct procedurers-then you will make a huge amount of profit-thus always be sure you do have the product first.You cannot simply push faxes around all day..You throw the suspicious deals away quick if they do not follow your procedures..on go onto the next one..Remember -Product first-money second;

BUT BEWARE..You have defined yourself as "seller"..if money is deposited into your account and later it is found that your Supplier is false...you can be charged with Fraud..So it is impairative that you confirm that you supplier is real and genuine..Money is easy to get for a good product...its the genuine product which is hard to find...be sure you have the real  product in your control first..

Look at www.ftnexporting.freeservers.com especially the last few pages it offers free invaluable information on making offers..

This is the only way products can be sold on the international market with safety-You first deal as an intermediary trying to source genuine products-once you have verified the genuine product as being in your control-you become a SELLER and BUYER..all other procedures cannot work;

I hope the above is clear and is of help-

Kind regards

David Papa

Melbourne Australia  
Odwolfe
 
Posts: 54
Joined: Mon Jan 13, 2014 5:51 am

Dear Sir Recently I Received...

Postby Thompson » Fri Nov 25, 2016 8:03 am

Dear Sir

Recently I received some information from an associate that he is a seller mandate for Saudi Light Crude Oil and accordingly sent me a Full Corporate Offer using his company letterhead. I informed another associate(potential buyer mandate) of mine about this and he wrote back to me to verify the following:

"Before we go any further, I would like to know the followings:

Do you have OPEC Resell No.? Authorised OPEC No? Export Lisence NO? Export Permit No?"

Are these relevant qustions and what do they mean?

Furthermore, I remember reading in one of your previous articles that the buyer must also have the OIL REFINERY BUYERS NUMBER as registered under OPEC. Should I then inquire if this potential buyer has this OIL REFINERY BUYERS NUMBER as registered under OPEC.

I would appreciate very much your thoughts and answers to the above. Thank you very much for your co - operation.

Best regards

TS
Thompson
 
Posts: 40
Joined: Sun Apr 13, 2014 12:44 am


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