STANDARD FTNX CONTRACT FORMATION:
Pandemic Induced Procedures (PIP)
To :End Buyers Worldwide
Advised From Seller: FTNX
Posted: Sept 4, 2021
Great loses are being incurred by end buyers due to the Sar Cov 19 Pandemic, which will continue to cause havoc to export and import deliveries worldwide for years to come. PIP when indicated on a conrtrct or offer are FTNX added processess which are intentionally designed to mitigate expenses the end buyer may need to face inculding demurrage expenses @ POD – ‘beyond the scope’ offered under Incoterms delivery rules. It’s a foreseeable event, and forgone conclusion, that late deliveries are occurring and will keep on occurring, no point in pretending otherwise. FTNX offers end buyers purchasing goods on a 12 month revolving basis at least 8 ‘on time’ deliveries. In return for allowing FTNX not to incur penalties for 4 late deliveries, within a 12 month, monthly revolving period FTNX is prepared to bear a percentage of import demurrage expenses incurred by the end buyer; to be split 50/50 with FTNX. Furthermore more; should any of the 8 assured on time deliveries be late FTNX will serve a 2.0% discount on the invoice price of goods–defined as a FTNX created LDD© (Late Delivery Discount) These incentives ar enot lightly served and were pre secured from the supplier by FTNX via negotiations.FTNX as seller transfers such benefits to the qualified end buyer we are dealing with when selling goods.
QUALIFIED END BUYER
A corporate end buyer who is taking possession of goods being purchased from FTNX, who has a good credit histroy with its bank, in being able to instruct its bank to advise a documentary letter of credit to FTNX the seller. FTNX is not intrested to conduct business with any end buyer unless this ability is apparent.
IF PIP PROCEDURES ARE CLEARLY REFERRED TO ON THE OFFER
FTNX assures 8 on time delivers on a 12 month contract of supply. The DLC is opened for 8 deliveries even though 12 deliveries are contract for. FTNX is allowed 4 late deliveries in a 12 month contract without incurring penalty, in return FTNX shares 50/50 demurrage cost incurred Port of Destination (POD) with the end buyer. Before the 8th shipment is delivered , the end buyer may pay for the remaining 4 deliveries, one shipment at a time , or the end buyer has the option to lawfully break the contract (walk away) without consequences. As it applies for a 12 month contract, 8 late deliveries for a 24 months revolving contract applies.etc.etc. in sequence accordingly also applies. This ‘walk away clause’ will greatly benefit the end buyer in mitigating expense if a whole lot of adverse events ( and expenses therein) have caught up to the transaction by the 8th delivery. 12 deliveries secured; but with a ‘walkway clause’ on the 8th delivery is an incentive, only offered by FTNX – ONLY when the offer made to end buyers refers to “Pandemic Induced Procedures” (PIP)
PAYMENT INSTRUMENT: UCP 600 DLC ISSUANCE RULES
Formal Deliveries: The person identified as the disclosed buyer, paying for goods and / or the disclosed representative of such is the entity taking possession of goods being ordered, and is also the same person signing this offer. As an incentive to reserve the goods on offer early, our lowest price is offered. Buyer to advise a Bank issued UCP 600 ruling Transferable, Irrevocable Letter of Credit (TIDLC) as advised from a top 100 ranked S&P rated bank of the world. All pre advising, transfer fee, and activation fee’s and charges therein is for the Buyer to bear at call. The DLC shall be issued as a non cumulative revolving credit. From the early lodgement date to the last delivery date plus 60 days produces the expiration date of the credit. If the TIDLC is not accepted, the End Buyer may lodge a Confirmed DLC .
DELIVERY MODE: CIF&C, CIF, CFR , or CIP ICC INCOTERMS 2020
Added incentive when doing business with FTNX when indicated on the offer. Subsidised freight @ Distance: NO MORE THAN 15,500 N/m or less Port of loading to Port of destination Seller must secure ship worthy carrier @ time charter and is responsible for obtining the freight and insurance rate. Included in Price: Insurance Coverage : 100% Class “A” institute cargo clause @ 110% value is offered by the Seller to End Buyer as relevant to the delivery mode sought. FTNX cannnot, due to the higher level of security applied present as charter party BOL. FTNX must offer a more expensieve Shipowners BOL. Accordingly FTNX freight rate may be slightly higher when compared to the rates that an end buyer is able to secure under a charter party BOL. The end buyer is able to secure a better carriage rate than FTNX may be assumed.
DOCUMENTS TO BE PRESENTED:
DLC TERMS AND CONDITIONS @ CIF&C, CIF WITH VARIABLES
One original copy /set:In accordance with UCP 600 banking rules .No BOL served with Basic FOB delivery mode •
- The added security of a Shipowners and not charter party endorsed BOL marked freight prepaid is served
- Ships Mate’s Receipt
- SGS PSI inspection USA
- Export Permit, License, Authority
- Customs Endorsed SED
- Seller Invoice applying debit /credits
- Certificate of Origin: USA
- Insurance Policy All Risks Coverage and PPIC certificate served when the DLC is advised
- Plus another documents that need to be sought and presented under the terms of the contract.
RULES TERMS AND CONDITIONS OF TRADE AND SALE
- UCP600 (Uniform Custom and Practice for Documentary Credit issuance as per ICC publication 600)
- Rules of Delivery as per “Incoterms 2020” in accordance with ICC Paris, France, trademark application.
- URC522 (Uniform Rules for Collection ICC publication numbered 522 or latest )
- Rules of International Agency and foreign law governance therein (via English law)
- English language applies as well as contract formation rules.\
- Offer once accepted is legally binding or is made subject to contract signatures.
- Settling disputes: LCIA arbitration rules applies in sellers country
- Internet PDF and or facsimile documents allowed to apply up to buyers contract signing time.Hardcopy of contract applies
- Precedence already established under UNCITRAL
SPCT Registered and endorsed Agents attched to FTNX 2022 must also abide by TRIBE Rules of Association when dealing with the supplier or End buyers as posted via www.ftnexporting.com