Important Notice for all business associates

Dear business associates and co-partners,

Please read and consider the following points and ask us if you need any guidelines about any point. Please also note that the procedures below are practically almost non-negotiable and have been intensely detailed due to the experience of the past 18 years in the commodity trading business both as a buyer and seller.

Obviously, genuine buyers, experienced intermediaries, and professional traders are looking for all kinds of commodity products,  as well as fishing agencies, amateurs, inexperienced intermediaries, and scammers. Indeed, the solution is not just asking for POP/SGS, product pictures, videos, and many other so-called "proofs" to ensure that both seller and buyer companies are correct.

​From our experience, most inexperienced intermediary companies and individuals think that it is easy to transfer L/C (Letter of Credit) between the buyer and the seller without having enough credit line to cover the size of the transaction, even if the product exists, the transfer will never happen the deal will die and eventually the buyer will be disappointed.

The important thing is that we issue a 2% (two) performance bond to cover the buyer's cost in case any force major occurs out of our control before the transaction takes place.

The seller can always send their staff to check and survey the operation at the loading point. We provide written permission to access the facilities.

We always secure the commissions of the intermediaries/facilitators by proper agreements and therefore no need to hide the actual end buyer. It only makes the business harder and more complicated than it should be.

If you are an intermediary, please note that we like to deal and discuss all the terms, conditions, and prices with the direct buyer.

Nowadays, CIF shipment is not always a very good option for the seller as it is difficult to find vessels. However, some buyers may have an arrangement in advance.

In exchange for all these, we kindly ask the designated buyers/traders/intermediaries to respect our due diligence if they have already secured the funds for this particular transaction or not. It is within their knowledge that even a staff member can easily attempt to take an initial advantage without letting the authorized account holder's consent. 

So to avoid this we simply ask our first-time buyers for a detailed proper LOI along with a BCL issued by their bank. Asking these documents is to avoid all misunderstandings and to execute the business deal smoothly according to the buyer's and seller's desires. There is absolutely no meaning to spending time going back and fixing the mistakes. 

​Last but not least, we can not be held responsible for their false attempts in the market to find the product but they have to go through one time the basics if it is the first purchase from us. The procedures will be as below for LC/SBLC/DLC and either FOB or CIF deliveries.

 

 

- BUYER SENDS A PROPER AND DETAILED LETTER OF INTENT (LOI), WITH THE CONTACT PERSON'S NAME, TITLE, E-MAIL, AND PHONE NUMBER. DETAILED PRODUCT DESCRIPTION, SPECIFICATION, PURCHASING TERMS (SPOT OR TERM CONTRACT), PACKAGING, LABELING, QUANTITY, DELIVERY TERMS, DESIRED PAYMENT METHOD, DESIRED TARGET PRICE, NAME OF THEIR BANK AND COUNTRY, AND DESTINATION PORT.

1. SELLER ISSUES SPA & PROFORMA INVOICE FOR BUYER TO REVIEW AND COUNTERSIGN.
2. WITHIN 2 to 3 BANKING DAYS BUYER ISSUE SBLC AND AFTER RECEIVE AND VERIFY THE SWIFT SBLC, SELLER SUBMIT THE 2% PERFORMANCE BOND WITHIN 5 DAYS THEN THE PRODUCT’S POP ISSUING UNDER BUYER’S NEW NAME WITHIN 18 DAYS;
3. ONCE THE SHIPPING SCHEDULE IS ANNOUNCED, SELLER'S BANK SWIFT ALL POP COPY/PRODUCT EXPORTATION TRANSACTION DOCUMENTS LISTED BELOW TO BUYER & BUYER’S BANK & SHIPPING AGENT:

 

A. CERTIFICATE OF ORIGIN,
B. QUANTITY AND QUALITY REPORT
C. SHIP PARTICULARS
D. BILL OF LADING (BL)
E. MANIFEST REPORT
F. PACKING LIST
G. ESTIMATED TIME OF ARRIVAL (ETA +NOR)
4. UPON VESSEL’S ARRIVAL AND FINALIZATION OF QUALITY & QUANTITY INSPECTION AT DISCHARGE PORT, BUYER RELEASES PAYMENT SAME DAY FOR TOTAL SHIPMENT VALUE IN FAVOUR OF SELLER AND RECEIPT OF THE ENTIRE RELEVANT SHIPPING AND NEW TITLE DOCUMENTS.

There is also another option of payment which is via ESCROW. In this case, there will be a slight difference in the procedure and will be adapted to escrow payment as the client pays 20 to 30% of the total amount (depending on the deal) in cash with a wire transfer to the escrow account (buyer and seller signs an additional contract for this) and pays rest of the total amount at product arrival to destination after the SGS or equivalent acquired. 

These procedures are all kept as simple as possible for both buyer and the seller for all the products such as:

Steel Rebars, Steel Billets, Scrap Rail R50/R65, Zinc (Zn), Aluminium (Al), Copper (Cu), Lead (Pb), Sulphur, UREA 46, Petroleum Coke, Steam Coal, various Oil & Gas products, petrochemical products, etc.

​BIMEX NORDIC CONSORTIUM - SALES & PURCHASE TEAM

contact@bimexnordic.com

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