Iron Ore Procedures and Specification
COMMODITY : IRON ORE 64.5% below 63.5% rejection
ORIGIN : Philippines
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Specification
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Guarantee
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Rejection
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CIF CHINA
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Fe
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63.5-64.5%
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63.5%
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USD 124/MT
Out $2
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Al2O3
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3.5%
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>5%
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|
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SiO2
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3.5%
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>5%
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P
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0.09%
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>0.01%
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|
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S
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0.09%
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>0.01%
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As
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|||
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Moisture
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8%
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105c
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Size
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3mm – 10mm
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PAYMENT METHOD :
Payment
method is as follows and includes BOTH of the following.
(a) Buyer Default Guarantee SBLC (SBLC, unencumbered,
irrevocable, divisible, transferable preferred, non transferable acceptable,
100% cash backed) for the 12 months paid at signing of contract. Instrument
must be issued by Top 25 Bank. This (one) 1 month value of contract SBLC is
held un-cashed by the seller, for the duration of the contract. This SBLC is
used for payment during the final month of the agreement. It is ONLY in the
event of buyer default and all limitations on the SBLC are to be clearly
defined the SPA.
AND
(b) Monthly Payment - Payment for Shipments (1st
month) through Shipment (11th month) is made via DLC, SBLC, or TT. If
instrument is used, it shall be 100% cash backed, Active, Irrevocable,
Transferable preferred, Non- Transferable acceptable, payable 100% at sight at
loading port to the Seller’s Bank per shipment, with monthly payments for the
value of one month's delivery, issued by top 25 World Bank and valid during all
contracts. The payment will occur with
presentation of each shipment documents at the loading port after SGS/CCIC
inspection. Payment must be made 100% at loading port prior to departure to
destination port
PROCEDURES:
1. Buyer submits LOI on buyer’s letterhead with
buyer’s contact information buyer Company Profile for seller DD
2. Seller Produces SCO on seller’s letterhead with
seller’s contact information for buyer’s DD within 48 hours.
3. Buyer sends ICPO with soft probe and acceptance of
Seller’s procedure. A copy of the draft wording of financial instrument from
the bank. After acceptance by Seller, Seller sends Full Corporate Offer (FCO)
to the Buyer containing terms and conditions along with NCNDA/IMFPA (only if
applicable)
4. Upon signing and sealing the FCO, the Buyer
signifies their Acceptance of all terms and conditions therein and this becomes
a binding contract. The NCNDA/IMFPA (only if applicable) must be returned along
with FCO completed.
5. The draft contract is prepared and sent to the
Buyer. The Buyer marks any changes to the terms or conditions they would like
added and/or deleted and send the document back to the seller. Any and all
changes made by the buyer must be clearly marked/highlighted in red.
6. Site inspection can be arranged only at loading
time. Sample can be arranged to be sent to the buyer after final contract so
the ore can be independently analyzed by the Buyer at the Buyers expense.
