Product offered by supplier to PCT MT at : USD$ 200.00 MT
PCT adds 7.5% Operating Expenses (OPX) :US$ 15.00 per MT
PCT offer goods to a potential end buyer at FOB = US$ 215.00 MT FOB
Product and offer by supplier to PCT MT commences at : USD$ 200.00 MT
Less US$ 30.00 per MT FIXED Discount as agreed upon by tracking a SPOT index
PCT adds 8.0% (OPX) to discounted monthly spot price: i.e: US$ 170 +13.60
PCT offer goods to a potential end buyer in that month at FOB = US$ 183.60 MT FOB
TOTAL FCL Value US$ 160,000,00 : FCA FCL 20 FT
OPX ADD 12.0%=US$ 19,200.00 FCL FCA
Sell Price by PCT=179,200.00 FCL FCA
Example: 2 MT bags Harcourt dried beans : 10 bags will fit into a 20ft FCL= Dense Product
Example :Non dense light in weight products taking up volume:40 Ft FCL is a better choice
1 AMERICAN BBL =
9.702 CU IN
34.9276 IMPERIAL GALLONS
5.6146 CU FT
42 US GALLONS
DIESEL OIL GRAVITY IS 0.82 TO 0.92 RANGE
GAS OIL AT 0.82 UP TO 0.90
Product Being Sourced: Qua Iboe Nigeria
API at: 36 degrees
Sulphur at :1.0%
BBL to MT Conversion Factor: 7.45 Bbl = 1 MT
Index selected by PCT: Dubai Platt’s as found via website www.cmegroup.com
PRICE AS TAKEN: 15 Nov 12.01 PM AEST
First Payment lodged 15 December 2022 for first delivery 15 Jan 2023.
Less Discount : 4.66%
Price payable in first shipment in advance 30 days prior to first delivery date there after
Next price taken as payable for second shipment, when first delivery date is realised
Payment sequence follows accordingly
First Delivery: Payment made 15 Dec 2022 for delivery 15 Jan 2023
Second delivery:Payment made 15 Jan 2023 for Delivery 15 Feb 2023
Third delivery :payments made 15 Feb 2023 for delivery 15 March 2023 etc.etc.
Price payable by buyer (PCT) to Supplier as per agreed upon Index used less discount monthly
As per each delivery: 15th day of each month
Mitigation factor: Upon date of delivery price exceeds per BBL by: US$ 10.01 or more
Buyer agrees to apply new price basis and price payable as per sequence formulated herein
Should price fall by US$10.01 or more, new price basis applies.
Price remains within first delivery range if mitigation factor not breached in any given month.
DLC PAYMENTS:END BUYER BUYING FROM FTNX(PCT)
All payments for purchase of goods from FTNX (PCT) are conducted as per ICC UCP banking rules
All delivery terms attached to the DLC follow ICC Incoterms rules in the matter of expenses.
NO SLC/SLBC allowed for payment of goods purchased from FTNX which is an incorrect and risk laden (very risky for the end buyer) instrument for the nature of business being conducted.All Payments are by DLC ( this is the correct instrument) as advised from a top 200 ranked bank of the world, otherwise the DLC must be confirmed. NOTE: Until further notice all DLC’s from China MUST be issued as confirmed (as from the I July 2022), as confirmed by another bank outside China not bearing sanctions with USA. Also note a buyer cannot buy goods from FTNX if they are un-able to apply payment via SWIFT. Buyers from countries bearing sanctions with USA, UK, Canada and or Australia will not be entertained as a matter of law. All goods are sold at sight of statutory documents in accordance with Incoterms rules used in matters of expenses. A DLC will be collected upon when all the required documents have been delivered complying as per ICC UCP rules and URC collection rules as it relates to clean presentation. FTNX uses the rules and laws of commerce and International Trade a strictly applied manner to ensure all the features and added securities related to the financial instrument remain intact. An end buyer who is unable to advise a DLC, 30 days before first delivery or more ( as per contract) should not contact FTNX to purchase or source wanted goods. FTNX is a Professional Commodity Trader (PCT) and leading educator world wide. We do not own the goods we sell.FTNX is not an ill-informed intermediary, but a buyer of export ready goods from a secured supplier and seller of all secured export ready goods to ONLY the end buyers we deal with. FTNX is not legally obligated to discloses such entities as a condition of doing business, as such FTNX is acting as a buyer or seller on belief of undisclosed principals .FTNX also bears consequences and liabilities of its own actions.. As it applies to FTNX so does it apply to all USCT members conducting similar business as endorsed under TRIBE Rules of Association.(TRA)A. DLC cannot be used as cash or security and carries no worth to the PCT unless all the required terms and conditions of the credit have been met to which the DLC then becomes valuable as it applies to a PCT. Such aspect applies to a bank advising a DLC in that - A bank under UCP rules will not accept a DLC as security on a back to back transaction.
33………….0.86 =7.33 BBLS
36………….0.845= 7.46 BBLS
37………….0.84 =7.51 BBLS
39………….0.83 =7.6 BBLS
Blended products are averaged
BRENT=7.598 BBLS = 1 MT
DUBAI=7.323 BBLS = 1 MT
OMAN=7.75 BBLS =1MT
When a specific conversion factor are needed PBP
LNG: BBL TO MT = BBL X 0.086 = Tonnes( MT)
LNG TONNES to BBL=MT X11.60
GASOLINE:BBL to MT=BBL X 0.120
GASOLINE: MT to BBL=MT X 8.35
KEROSENE: MT to BBL=BBL X 0.127
KEROSENE:BBL to MT=MT X 7.88
GAS OIL/D2: BBL to MT=BBL X 0.134
GAS OIL/D2:MT to BBL=MT X 7.46
FUEL OIL:BBL to MT=BBL X 0.157
FUEL OIL:MT to BBL= MT X 6.35
CRUDE OIL: 1 MT=7.33 BBLS
CRUDE OIL: 0.1364 MT =1 BBL
Price and basis of counter goods offered by first supplier is agreed upon via MOU
Price of counter trade goods is secured by PCT acting as Foreign Trade Negotiator (FTN)
Commission rate by FTN is declared openly
Goods sought by the first supplier is secured via usually process from second supplier by PCT (the buyer)
Goods sought and secured are converted to value in accordance with first goods offered by supplier
The PCT must sell the goods as offered by first supplier ‘as per seller acting for a disclosed supplier.’
Funds of end buyer are used to buy goods for the first supplier applying countertrade
PCT buys goods sought by the first supplier and delivers them as per delivery mode CFR,CIF or CIP only
PCT pays all delivery expenses on both sides of the transaction.
Process of offer and contract applies to the end buyer paying for goods under a countertrade
The entity receiving goods under a countertrade requires an agreement (MOU) and offer
Where considerations are in effect (money) a contract is required.No contract is required where no money/payment changes hand
As defined on the offer or contract.Buyer may pay for goods with;
(A) Pre advised Irrevocable Documentary Letter of Credit, where a precondition is served first by the Seller which removes the pre advised status of the credit
(B) Pre advised Confirmed Irrevocable Documentary Letter of Credit, where a precondition is served first by the Seller which removes the pre advised status of the credit
(C) Irrevocable Documentary Letter of Credit.
(D) Irrevocable and confirmed Documentary Letter of Credit
(E) Irrevocable and confirmed Documentary Letter of Credit Deferred Payment at 60/90/120 days ( longer the deferment , more expensive the goods become)
(F) In a revolving transaction the DLC is advised bearing value for the whole contract as ‘non cumulative’ revolving.
(G) The terms of the conditions of the credit applies and not the sales contract to do with the purchase of the goods.
(H) Where the BOL is provided under a delivery term ( ICC Incoterms ) A PCT can only provide a more secure albeit expensive Shipowners Endorsed BOL
(I) All credits are made transferable unless agreed upon otherwise.
(J) A non transferable credit must be advised as confirmed and may attract a higher price for goods.
(K) Unless stayed otherwise on the offer as a matter of added security the end Buyer pays for the transfer fee to the bank of the PCT.
(L) The PCT at its discretion may consider rebating the transfer fee after each delivery has been cleared.
Above DLC many seem the same but in effect as applied under a current trade , each DLC above are different. A end buyer who is unable to to secure a DLC from its bank defines an entity who may not be credit worthy and has been deemed a high risk applicant. A PCT cannot conduct business with such an entity.
Bit Coins ,cash or personal cheques cannot be used in a trade deal.(bank endorsed cheques can be used)
Issuance of a Quote : Not legally binding.A quote is returned to record a confirmation
Issuance of an Offer: Legally binding unless stated otherwise.
Issuance of the Contract : By PDF and hardcopy via courier. PDF copy valid once courier receipt is served.
Buyer advises a bank issued DLC
Seller upon acceptance of DLC advises P.G
First delivery takes place within 30 days of DLC issuance or as specified on contract
Revolving order: When first delivery completed , price taken for second delivery 30 days later in sequence accordingly
Transport Documents in a clean state are presented for at sight examination to bank of the end buyer for collection
Payment is cleared .
Any cash rebates offered by the seller is paid to the buyer at this time (7 days for delivery) directly to a nominated account served at such a time
When ship arrives at destination port , buyer has 90 days to examine goods for defects
Remedy for verified defects are negotiated upon and settled as agreed on contract.
Revolving transaction; Next shipment delivered etc..etc..
Above procedures represents the safest and strictly applied process ensuring the interests of the buyer are protected at all times.No other procedures allowed.
All transactions carry a delivery date from the 15th day of the month or earlier but not later
The 15th day limit ensure no delays are encountered during the Christian festive season of Christmas /New year in any given contracting period.
EXW, DAP or DAT delivery terms are not considered by a PCT as securing the required documents for presentation is not possible.CPT is used for valuable commodities such as scrap gold.All other delivery modes under ICC Incoterms considered. Please note the term ‘delivery’ as defined under Incoterms means delivery of clean transport documents and not physical delivery of goods.
Some end buyers leaving an established supplier (and lax procedures therein), have the misconception that a seller or supplier will apply expense of exporting goods, and loading a ship and sending a ship to another country where goods are unloaded before payment is eventuated as per a past association. No informed supplier with a sound mind will apply such a process unless there is a payment instrument supporting the D/P transaction as serviced once the contract is signed. A end buyer wanting to take goods from ship POL and sell such goods, then pay for the goods must still initiate a financial instrument when the contract is signed-with a deferred payment (D/P) aspect. If the end buyer is unable to sell goods and earn a GP , payment must still be ensured by its bank when the deferred period expiration date has arrived.
A buyer rather than an end buyer wanting to buy goods from a PCT must be able to issue a fresh DLC which is transferable in where the goods will not be endorsed on the BOL under the ‘Notify party ’aspect .The Buyer may now sell such goods to another party or end buyer. Under this aspect the PCT must ship the goods to the country of the buyer and not to the client of the buyer.
No back to back transaction are allowed nor supported by banks when applying the virtues of a UCP endorsed DLC.
Bank will not accepts a DLC advised form a bank located in a country bearing sanctions with USA or other countries. A PCT could end up being charged with a criminal offence if they trade with a country bearing sanctions if the country the PCT is situated in has effected such sanctions.
A belligerent China must now issue payments as confirmed by another bank.
A belligerent China, a war caused by Russia, and a Covid 19 Pandemic (again caused by China) has caused huge delays in matters of supply and delivery as such as a method to assist the supplier or end buyer the PCT is able to apply rebates for certain situation as supported on the offer or contract at the loss of anticipated earnings.
P.G or LDD: Is offered by the PCT to the end buyer
DEMURRAGE: 50/50 share of demurrage expense port of unloading as agreed upon with the PCT and end buyer
TRANSFER FEE REBATE: As agreed upon the offer with the PCT and end buyer
GOOD SAMARITAN CLAUSE : Allowing the PCT to cancel a contract before a DLC is advised without penalty if a suspicious even has occurred that may effect the end buyer
Performance Rebate: A cash payment is promised to the supplier if they deliver ordered goods on time as stated on the offer
A Promissory Note : An agreed upon rebate is serviced under a promissory note, to a supplier or end buyer as agreed upon prior, out side the bounds of the contract .
CERC: Carbon Emission Rebate Certificate :Issued By FTNX to the supplier or end buyer(Trading while reducing emissions) which can be cashed in at the agreed value.
A Supplier or End buyer may use the services of a PCT as agent to open a trading account in the country of the PCT