FINNCIAL AND CLOSING PROCEDURS
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Naturally, the process of communication between the buyer and the seller is vital.We will tailor the communication depending on the type of goods traded and the seller or buyers needs, whether it be the type of goods the proposed, financial method, and the type of delivery FOB or CIF
all instructions about the deed and procedures are mentioned n below
CLOSING PROCEDURE
CLOSING PROCEDURE
Official communication and information due diligence about the parties’ identities and capabilities are indisputable rights and principles of a healthy and successful transaction.
The steps of this action are as follows.
A) The buyer sends an official LOI request to the company’s email, in which the type of goods requested, the method of financial settlement, amount of commodity, and contract duration are sent along with COMPANY PROFILE and BANKING CIS.
B) The seller will send a SCO (Soft Corporate Offer) announcement to the buyer according to the customer’s request.
C) After studying the SCO, the buyer, if he agrees and is willing to the specifications of the goods, price, and method of financial settlement, issues an official ICPO along with a bank BCL or an official CREDIT LETTER certificate from the bank, which indicates the buyer’s sufficient financial capacity.
D) The seller issues and sends the official FCO (FULL CORPORATE OFFER) contract, after the final signature, the finalized contract will be signed by both parties and sent for registration at the International Chamber of Commerce (ICC) and the parties’ banks.
E The seller will send SGS and PRIFOEMA-INVOICE (PI) to the buyer to start the business operation.
CIF FINANCIAL PROCEDURE
CIF
In this method, the seller provides a ship or a transport vehicle of their choice, and the seller delivers the goods to the buyer at the port of destination.
Naturally, the seller proves the existence of the goods after arriving at the destination port and the buyer pays the remaining amount of money for the goods to the seller before unloading.
A) After signing the contract and confirming the goods, which have been explained earlier, the seller issues a CI (commercial invoice) and sends it to the buyer. The buyer sends 10% of the CI amount as an advance payment to one of the direct financial transfer methods such as TT or SWIFT 103 or a Transferable LC credit to the seller’s account. This amount remains a guarantee until the end of the contract period and any cancellation outside the force majeure clause is non-refundable as damage incurred. In the event of termination of the contract, this amount will be paid in the last installment based on the agreement.
B) After receiving the aforementioned amount, the seller prepares the commercial actions and sends the necessary PPOP documents as a confirmation of the goods’ inventory and SGS as a laboratory confirmation of the agreed quality to the buyer.
C) The buyer sends 50% of the invoice amount to the seller’s account through the above methods and informs the seller of the loading schedule.
D) The seller loads the goods and sends them to the buyer’s desired location.
E) The seller informs the buyer of the schedule for the arrival of the goods.
F) After the goods arrive at the port or place of unloading and the final SGS laboratory confirmation, the buyer will proceed to pay the remaining amount of the invoice through the above methods and take the necessary measures to unload the goods.
G) Damages resulting from deviation from the agreed schedule by either party to the transaction can be investigated and compensation for damages resulting from delays such as demurrage, etc. is the responsibility of the other party.
FOB FINANCIAL PROCEDURE
FOB
In this method, the buyer owns a ship or vehicle or transport vehicle of their choice, and the seller delivers the goods to the buyer at the port of origin.
Of course, the seller must prove the existence of the goods before loading and the buyer must pay the balance of the goods to the seller before loading.
A) After signing the contract and confirming the goods explained above, the seller issues a CI (commercial invoice) and sends it to the buyer. The buyer will send 10% of the CI amount as advance payment to the seller’s account using one of the direct financial transfer methods such as TT or SWIFT 103 or transferable LC credit. This amount remains as security until the end of the contract period, and any cancellation of the contract falls outside the force majeure clause, this amount is irrevocable as compensation for damages. In case of termination of the contract, as agreed, this amount will be paid in the last installment.
B) After receiving the mentioned amount, the seller prepares the trade arrangements and sends the necessary documents from PPOP as confirmation of product inventory and SGS as laboratory confirmation of agreed quality to the buyer.
C) The buyer sends 50% of the invoice amount to the seller’s account via the above methods and informs the carrier about the loading schedule.
D) The seller stores the goods at the agreed port or loading place and sends the PPOP confirmation of the goods inventory to the buyer.
E) The buyer will supply the vessel or vehicle according to the schedule.
F) The seller delivers the goods to the buyer for loading and the buyer transfers the balance of the invoice to the seller’s account via the above ways, the seller takes the final steps of clearance and loading of the goods.
G) Damages caused by deviation from the agreed schedule can be investigated by each party to the transaction and compensation for damages caused by delay such as delays etc. is the responsibility of the other party.
