Procedures

The below is the international standard of negotiation procedures used by our company. We are using the procedure used for negotiations on our sugar product as an example.

  1. Buyer issues ICPO in the name of Lanetrade LLC with the BCL.
  2. Seller issues FCO or, if you wish, we can go directly to draft the contract.
  3. Buyer sign, seal and return the FCO or Contract.
  4. Seller issues Draft Contract (in case we go with FCO)
  5. Buyer sign, seal and return the Contract, seller sign the Contract and return to the Buyer
  6. Buyer and Seller deposit a copy of the executed Contract to their respective Banks.
  7. Within 3 (three) banking days, Buyer Bank sends a Non-operative SBLC or BG for total negotiation value to the seller’s Bank
  8. Within 48 hours Seller’s Bank sends Proof of Products (POP) + PB 2% via Swift Bank to Bank methods to the Buyer’s Bank
  9. SBLC or BG operative. Needs 5 bank guarantee will be used on the 5 last months of the contact, and the next years needs to give 5 bgs again, thrown to the end of the 5 months of the second year contract. Price remain the same for the second year.
  10. Obs: BGs will be reflected on the amount of the contract bigger contracts will be bigger BGs.

Feel free to download these files for reference (to download: right-click > save as..):

If you have any questions, please contact us.