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FTNX has spent decades in formulating its Doctrine, after taking up an international trade course in 1988 which provided nothing directly related to procedure that intermediaries could use. As such FTNX indirectly extrapolated from what learned from matters of international trade rules and laws. We have created the first uniform trading aspect that private home based intermediaries and related others such as lawyers and bankers could safely apply, which is now a mainstream application world wide. Creating such a legally defined and lawfully applicable set of procedures was one aspect. The other aspect was to try such procedures to ensure experience was an added feature supporting the doctrine. After much changes and corrections to the rudimentary aspect of the emerging doctrine, 7 year later FTNX had signed its first trade contract.
It took around 20 years and a lot of time and interactions, now mostly applied online, to finally “get the word out” that 99.9% of traders up to this point in time had been trading unlawfully, fraudulently and illegally. So many traders all over the world (millions) were trading on an ill informed and idiotically inspired basis, by copying what ill informed others were doing online. By 2012, the FTNX doctrine was commencing to have an effect on such ill informed traders. Within 5 year thereafter, ill informed enquiries had dropped dramatically. As new ill informed traders entered the market place yearly, they soon vanished, after crossing paths with a FTNX informed trader. A small number of ill informed new traders still appear every year, many still supporting many adverse trading terms and found in our ‘bad terms of trade link’ at the end of this page. End buyers and export ready suppliers will no longer entertain traders using such adverse terms may be presumed. Many deals will be lost, before that one deal is landed, because suppliers and end buyers will find that the main important aspect of strict procedure cannot be bypassed or changed, denoting that some principals, are also at times–ill informed. However, suppliers and end buyers continue to fill the pages of legal publications yearly, recording great losses that often take years to be brought in front of appropriate court, where added millions are needed in trying to recoup such losses; usually without success; the type of losses that would have not occurred if the FTNX doctrine and procedure there were observed.
Anyone can export or import a few or single container of let’s say canned tomatoes, T.V sets, clothes or sporting gear and the likes. The buyer or intermediary arrive in the country of production, meets with the factory owner, or his representatives and finalises a deal on agreed upon terms. Months later the goods arrive at the required destination port. Anyone can conduct such deals and such suppliers are many and easily found.One does not present themselves to such a meeting without funds as payment or assurance of payment will be sought upfront. Many intermediaries today are simply offering goods online on such a basis and then place the order directly with their supplier. This aspect today is called “drop shipments.” In years gone by this aspect of doing business was called ‘mail order.’ Many individuals are conducting such business including global giants such as e.g: eBay and PayPal who are acting as intermediaries, as are banks conducting the financial side of an export/import transaction being conducted between the seller and buyer. Sellers offering goods on T.V or via an advert placed on browser, also fall into this category once international boundaries are evident.In this aspect local state or federal laws can’t effectively apply.Private and corporate entities should also be following related aspects found in our doctrine. Alas some entities are trying to tie the financial side of a deal with the actual goods being purchased and sold; one entity is even retaining funds paid for goods or services, for period or 3 or 4 weeks before releasing such payment to the ’seller’ which in itself an is unlawful act. Others are also offering ‘guarantees’ and refunds, when in fact they are not ‘guaranteeing’ anything, as the funds are returned by the seller on a legitimate refund. All such entities are conducting business ‘on behalf of a disclosed principal’ meaning that, as intermediaries, such entities must or should disclose who the end buyer or supplier is unless they have physically imported the goods which are then sold to clients directly.
We do not conduct mail-order type business or business applying small orders for goods usually headed for retail stores or personal shoppers. You don’t need to learn much about such business aspects. These kind of business application has saturated the market place and has become highly competitive. We act on the more specialised aspects of trading; we trade in large single bulk shipments or large FCL shipments in where the preferred aspect of a revolving transaction is apparent, for much sought after raw materials– that need to head toward manufacturers. Such goods and thus suppliers, although doable, are very difficult to secure. Under this aspect a USCT PCT must act on “behalf of undisclosed principal”– meaning that that the home based or corporate based Professional Commodity Trader (PCT) must act as a Buyer to the supplier and seller to its own sourced and secured clients defined as the end buyer.To do as much, a PCT must be fully informed on the correct and safest aspect of trading in commodities on such a basis. In return, for those who are able to secure and close upon a commodity deal, a lifetime of earnings could be made on one single transaction; even though such a transaction may take many years of trading to become realised. To secure 80,000 MT of let’s say white sugar or even diesel fuel per month; to sell one shipment per month for one year or more is going to earn the PCT a huge financial benefit. To be able to transact safely and legally on such huge deals, the PCT must be fully informed and apply only the safest legally defined practices as supported by international banks, and international trade rules and laws.
The first supreme rule for the intermediary is to secure ‘export ready or future ready’ goods from an export ready supplier; this aspect can be conducted using formal applications in conjunction with supporting in house procedures and policies–such (legal) policies as prescribed under TRA. The PCT then sells such ‘wanted’ highly sought after goods to it own sourced end buyer as seller, at a higher price, to secure a hard earned profit on the differential. The PCT is selling hard to secure goods, that an end buyer simply cannot readily secure, when needed, at a good price, a future price, or at a discounted price, below that which appear on SPOT market exchanges. Much wanted goods that become very hard to acquire by the end buyer, high prices will also prevail. It’s the supply aspect that’s important to the end buyer. It’s the payment aspect which is important to the supplier.The PCT has to apply standing rules to the deal to conduct a highly secure and safe trade, ensuring that the end buyer receives goods ‘as ordered’ while at the same time ensuring the supplier will be paid. No supplier in their right mind will consider a large transaction without securing funds first. No end buyer will buy and pay for ordered goods via a cash payment or deposit.The whole buy and sell aspect is conducted via banks and the production of documents. No other safe aspect of doing such business is available. To bypass and entertain such precarious trading aspects, is to invite the potential of a financial disaster to serve the transaction.
PCT’s, suppliers and end buyers, please see our ‘good bad and ugly’ terms of trade link below and become informed about such terms; because in this business small mistakes could record losses measured in millions of dollars.
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