18 09 22

CIF PROCEDURE
LOI; FCO

1. Buyer issues ICPO With Company’ Profile and End Buyer Passport
Copy , Company’s registration Copy, plus POF (BCL, RWA) through
Bank To Bank due diligence.
POF （BCL，RWA）

2. Seller issues Draft Sales and Purchase Agreement Contract, NCNDA

and Commercial Invoice for buyer’s review and signing. And send back
to seller within 24 hours .

3. Seller registers and legalizes the signed Sales and Purchase

Agreement contract and then the both parties will present legalized SPA
to their own banks within 24 hours.

4.Seller sends legalized contract and below Partial POP Documents to

buyer via email as listed below:
---Certificate of Origin.
---Commitment to Supply.
---Product Passport.---Product Passport.
---Statement of Availability of the product.

5. Buyer issues their Financial Guarantee DLC -MT700 ( unconditional,

empty) from TOP 25 RATED BANKS to cover equal to two-months
invoice value, valid for the full period of contract

6. DLC -MT700, seller will send Full POP

and Shipping Documents via SWIFT bank to bank as shown below:
---SGS Quality and Quantity Certificate.---
---Bill of Lading.-----
---Vessel Questionnaire 88.--- Q88
7. Shipment commences and upon arrival of the vessel tanker at the
discharge port, buyer conducts SGS Inspection and makes payment for
the full shipment via TT Wire or MT103 within 48 hours according to
Q&Q report.

8. Seller pays to mandates according to NCNDA agreement within 48

hours after receiving TT/MT103 payment from the buyer’s bank.

9. After completing first shipment, Both Parties will proceed according

to signed SPA.

A proof of funds (POF) is a document proving that a person or a company has the
financial ability to perform a transaction.

A bank confirmation letter (BCL) validates that a bank has a line of credit in place with
one of its customers. The BLC is not a guarantee of payment, but an assurance of the
borrower's financial resources to complete a purchase.

Risk-weighted assets are used to determine the minimum amount of capital that
must be held by banks and other financial institutions in order to reduce the risk
of insolvency. 

due diligence
noun [ U ]

/ˌduː ˈdɪl.ə.dʒəns/

 BUSINESS, FINANCE & ECONOMICS   

specialized

the detailed examination of a company and its financial records, done

before becoming involved in a business arrangement with it

A financial guarantee is an agreement that guarantees a debt will be repaid to a lender
by another party if the borrower defaults. Essentially, a third party acting as a guarantor
promises to assume responsibility for a debt should the borrower be unable to keep up
on its payments to the creditor.
shipment
noun [ C or U ]
ˈʃɪp.mənt/
 a large amount of goods sent together to a place, or
the act of sending them:
A shipment of urgent medical supplies is expected to arrive very soon.

1. The buyer places an order and provide some documents

confirming that they have enough funds.
2. The seller draws up a contract and sends it together with an invoice
to the buyer to sign.
3. The both parties present the signed contracts to their banks.
4. The seller sends some product documents to the buyer.
5. The buyer sends the document confirming their ability to pay for
the order.
6. The seller arranges some documents.
7. The buyer receives the order, conducts an inspection and makes
the payment.