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SECURING SUPPLY: ITB AND QUOTE
Acronyms are not defined as the advice offered is only suitable for use by informed USCT members / ITSI practitioners who have studied our doctrine .
Even the simplest terms are often misunderstood by the PCT (PIA) after reading the FTNX doctrine. We have clarified such simple terms further in our summary, in support of the premise offered, to deliver the proper insight needed to effectively trade in commodities. Ostensibly a PCT cannot close a deal in the first year is a statement made by FTNX, based on our very long experience–may be assumed. The intermediary must study in-house processes and orthodox procedures first as a continuation of the study period, once a FTNX publication is purchased; which should not take more than 3 months. Once the PCT has studied the doctrine, the main attempt is to secure an inquiry from one ‘supplier in possession of export ready goods.’ To read the doctrine and return to trade i.e: 6 months later is the wrong approach. The PCT is obligated to test and then secure the supply of a wanted product from a supplier in possession of export ready goods, before attempting to source and test end buyers. The PCT is also required to protect the interests of the supplier in the course of its own business practices. The PCT is required to make a good effort to introduce their business to potential suppliers by issuing an in-house document called an ITB. Once the confidence level of the PCT increases, the issuance of an ITB become routine, the PCT advances its position by seeking a quote from a potential supplier, in place of an ITB. Within the first year of trading the PCT learns how to advise an ITB, Quote and subsequently an OTP. This is the basis for the first 9 months of trading as the PCT must obtain hands on experience with and develop a ‘feel the market place' such is conducting business in. The quote is a goods aspect to apply often as no legally binding aspect is evident.
The orthodox and safest trading routine is;
- Quote
- Offer
- Contract
- Payment: Financial instrument
- P.G
- First Delivery
- Presentation of delivery documents
- Collection : Financial instrument
- Payment of commission protected for each SI assisting the PCT
- Remedy for any defective goods
- Next delivery in a revolving transaction
In Summary
So many fake deals and false offerings are on the net, where traders usually accompany criticism of the procedures offered in the doctrine as made by those who are ill informed or ignorant of the facts and the rule of law. The quote is a good document to issue first as it’s an easier document to produce. The quote it is able to weed out those whose intent are anything but honourable.The ITB is a simple document allowing the new PCT to enter the market place sooner rather than later. The PCT seeks a quote from the supplier; is the orthodox trading aspect.Furthermore the quote applies a 'confirmation' of intent unlike the OTP is not legally binding once signed. The maxim found in the doctrine “ the start of a transaction is the most important aspect of the whole transaction as it dictates the final direction of the transaction.” In other words; get the start wrong and the whole deal will eventually produce an adverse aspect. In recent times FTNX has returned to issuing quotes to the end buyer and seeking a quote from a supplier in the form of a ITB/Quote combo, rather than an offer, as it has constantly proven to be an effective application is testing those who intent is to waste time rather than buy goods.
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