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FCE CONTRACTING TERMS AND CONDITONS
The FCE specification may reflect industry standards or they may reflect a FCE defined and created standards, further specified as a FTNX Standard Specifications (FSS). These specifications are applied on the offer to procure (OTP) to form the price basis of the FCE board. The actual specification of the supplier will be used at contracting time and prices will be adjusted to accommodate suppliers actual specifications. Likewise in matters to do with quantities and weight. As related to UCP 600 banking rules all goods bear a 10% tolerance factor as it pertains to delivered quantities (weight) against payment value. No changes to a financial instrument value is needed, unless the change in price exceeds 5.0%.
From January 2026 only supplier and end buyer engaging with a FCE licensed USCT endorsed agent will be able to list products on the FCE. The end buyer or supplier being approached by a USCT FCE Agent, should engage with such agents, with a high level of confidence. Only our very best USCT endorsed Agents are able to represent the FCE in 2026. Suppliers with exceptional quantities may approach FTNX directly otherwise the FCE will not consider any enquiries from suppliers (or end buyers) unless it was forwarded to the FCE by a USCT Licensed Agent in 2026.
Long revolving deliveries and contracting periods exceeding 1 year are eagerly sought by FCE agents from suppliers in possession of goods being listed on the FCE . FCE USCT Licensed Agents will also be able to offer, as specialist traders, attractive new applications not seen in the international trade industry–on behalf of the FCE. The FTN Exporting Commodity Exchange is open to all end buyers, export ready suppliers and Licensed USCT Agents as registered in 2026.
The FCE is not suitable for use by ill informed others and intermediaries. Accordingly this intranet application is a live aspect for all to see but specific few to apply in an open and transparent manner. The board changes its listed prices on the 15th day of each month at 12.01 PM AEST if factors have shifted; otherwise prices remain fixed until such events take place. On the 15th day of every month the prices are adjusted if need be, based on market condition, and Euro rate at the time-if these aspects breach our mitigation factors-otherwise the price remains fixed for the life of the contract.
(a) If the mitigation rate and or currency mitigation rates are not breached on the 15th day of a delivery month when prices are checked , the price offered remains fixed until the next trackable date
(b) Single shipments attract a higher but fixed price to end buyers. The FCE board is only reflecting revolving quantities. Large single NBC shipment 12,500 MT (or higher) being the minimum quantity will attract a higher price more in line with international prices where a small discount may or may not be offered.Private negotiations with a USCT licensed agent is recommended where the supplier or end buyer may discount their single shipment NBC needs accordingly. FCE no longer transacts in FCL’s may be presumed.
While single shipment prices are served, the main interest of the FCE is to buy and sell revolving quantities at FAS, FOB, CIF with or without or FTN exporting created QUD delivery rule w that does not affected the ICC FOB aspect, as described on the specification site page below. FTN Exporting is no longer personally accepting any trade inquiries from end buyer or suppliers unless its been first vetted by a FCE agent is the new agency position from 2026.The goods listed on the FCE are goods secured directly from suppliers with all operational expenses added. All matters of listing are subject to suppliers actual specifications and final price basis as indicated on final contracts, as such the FCE lists goods bearing strong reliable indications of sell and buy prices which may be lower or slightly higher when contracts are finally signed but within a 1.5% tolerance factor. The relevant aspect of a final contract price basis is clearly prescribed in an open and transparent manner, and that;
The supplier provides a standing Assurance of Supply (AOS) for listing on the FCE for 1 year or no less than 4 months.The supplier becomes a FCE reserved supplier where no other supplier may offer goods for listing unless a standing supplier withdraws the AOS
While goods are listed at the stipulated aspects, the FCE may approach a supplier to actually buy goods listed on the FCE while the assurance of supply remains ongoing and valid. One the FCE commences a buying process, a 90 days first delivery protocol applies , in which payment is lodged and once accepted a 21 days delivery process applies leading to the 90 days transaction period and aspect .
ICC Incoterms used as current is a given year.
- Goods listed on the FCE are priced at at: FOB
- The FCE will entertain FAS, CFR, and CIF Incoterms delivery mode, where sought if such delivery mode is indicated on an offer as available.The FAS aspect and the FCE Usage Factor (FUF).
- FUF is the base fee charged to suppliers for using the FCE as deducted from the FCE buy price if the OPX aspect is not activated as apparent on the offer)
- The FCE Usage factor is indicated. If an end buyer accepts to buy goods at ICC FAS delivery mode, the difference between the OPX rate and the FCE USAGE factor differential is subtracted from the end buyers listed sell price.
- The end buyer can assess the better option based on their own ability to secure better freight rates than FCE can, as the FCE cannot use a charter party BOL in a CIF or CFR delivery mode, but the more expensive shipowners BOL to ensure the utmost securest delivery basis is applied.
- All carriage freight rates, if offered or implied, are done as a provisional rate and formally adjusted on final contracts. FCE issues the offer at FOB for expediency.
- The lowest sell price possible is when FTNX Delivery Mode (FDM) defined as QUD is used.
- Quantity Unconditionally Delivered: is a FTNX newly created inhouse delivery mode created out of necessity as many deliveries are late adding expenses that are avoided under QUD. The FTNX QUD delivery mode follows a slightly different variation to the ICC FOB incoterms single delivery rule. QUD can only be applied for revolving deliveries in where exact delivery dates are removed and in where the ship's mate's receipt and not the BOL is secured by the FCE as the main transport documents that must be secured. In this light the FCE guarantee the quantities offered on contract are delivered within the time frame indicated on contract without fear of penalties No performance guarantee is supporting the QUD transaction; Example: If a supplier entertains QUD delivery mode, the supplier will as soon as practical to ensure all goods are delivered ‘within the contract period’ rather than a monthly period as oper a fixed date . e.g: 1 shipment of coal per month for 12 months, would be replaced with “12 shipments of coal delivered in a one year contracting period, plus or minus 30 days” on the condition that 2 shipments do not arrive in a given month. This now allows for a single shipment payment mode, less pressure to perform to a strict delivery time frame and flexibility without added penalties. Ask your FCE agent for more details of the QUD Delivery Mode . After 12 months are up, if 12 deliveries have not eventuated, the supplier is required to discount the last late delivery with an added discount for that one or more late shipments, on the price of goods by a factor of 5.0 % of the purchase priceor served as a cash payment. QUD can be sought by end buyer or taken by FCE suppliers as from 1 March 2026 deliveries onwards .
Reading the FCE Board : Contracting conditions; No FCL’s considered.
On the 15th day of a delivery month, prices on the FCE are updated. If no change is apparent, the buy and sell prices remain the same until the next tracking date.
- PRODUCT : The product we are seeking or have in hand is specified .The specification of such products that serves FCE listing is indicated in the specifications section found below. The specifications is only a guide. The actual grade of the supplier once served is the actual specifications that will apply including applied factors which may differ to what is advised as a guiding aspect on the FCE.
- INTERNATIONAL: This is what competing future commodity exchanges are offering goods at as per stated delivery mode from EXW ( gate prices at EXW) to ICC FAS or ICC FOB Incoterms 2020. At the time of posting on the 15th day of each month, the prices on other exchanges are indicated of the FCE in USD as a gauge. All listings when factors are applied are applied to the nearest whole cent value.
- FCE @ EURO: After converting the USD$ to Euro as per the euro rate secured on the 15th day of a contracting month the EURO Price is the price applied on the FCE
- FCE PREMIUM : Most suppliers offering a AOS to the FCE will receive a premium on standing prices as an added incentive unless a glut is apparent. The standing single price is then discounted to arrive at the revolving prices as revolving prices must bear a discount to favour FCE when buying such goods.
- ONE SHIPMENT: If FCE buys one shipment, NBC at 12,500 MT or more - not exceeding 140,000 MT such is considered privately, and is not part of the FCE aspect which only offers revolving shipments.FCE has discretion to consider a one shipment transaction.FCE does not consider FCL
- REVOLVING DISCOUNT: A FCE discount is sought on a revolving transaction at FOB/QUD . A revolving transaction is 12, 5000 MT minimum at three deliveries over 3, 6, 0r 9 months. 12 Deliveries per year or longer is the preferred revolving rate.
- OPX: Stands for FCE fee charged for using the FCE and USCT network . This fee is to cover all expected and unexpected expenses, fee, charges and commission rates to our agent. To secure large revolving contracts a premium is also served as an incentive to FCE suppliers There is a OPX rate for the supply side and a lesser one for the end buyers side- as made transparent on the FCE .
- MIT: RATE : If the goods remain within the mitigation rate when actual sell prices are recorded on the 15th day of a contracting month, the price of goods offered remains fixed until the next month's reading is taken. Mitigation rates when taken, if such factors are not breached , price remain the same until the next price is taken-until final delivery .If a QUD aspect is also applied to the FOB delivery rules and aspect, the same operational aspect of tracking price apply.The only difference is that a breach of performance is recorded if all deliveries are not made within the contracted term rather than monthly
- LOW/HIGH CHANGE: When taking the sell price on the 15th day of a given month, price will only change if the Low or High mitigation value is breached as per rates indicated - by one whole cent.
- FCE OPX: This is the FCE fixed operational expense which includes all delivery expenses, fee, unexpected charges, and all commission payments when the FCE buys listed goods from suppliers .
- The final payment advised per each delivery less the the OPX fee is the value of each payment made to the supplier for sealing a highly lucrative contract with the FCE.
- When the FCE is dealing with selling goods to the end buyer the end buyer is paying the same gross buy price secured by the FCE with the majority of any discount secured is made for their benefit.
- This aspect above is not available for single shipment deliveries, when considered; where the OPX is made for the account of our end buyers, buying goods from the FCE
- The FCE end buyer is buying goods from the FCE are offered a transparent price basis in where the FCE gross buy price is the actual selling price as well; plus a smaller FCE OPX rate to cover anticipated and non anticipated expense on this side of the deal whether QUD applies or not applied, on any offer not exceeding 0.95% (or less) of the unit offer price.
- The fixed factors such as premium and OPX even if changed during the course of revolving delivery in forming new prices basis; the fixed factors when taken remain the same for the life of the contract as applied on the contract. The only factors that may change prices are currency an or breach of mitigation factors which are apparent taken on the 15th day of a delivery month; at 12.01 PM AEST. All boards listed bear a transaction code, which is applied on the contract.
INSTANTANEOUS CONTRACT APPLICATION (ICS)
All FCE transactions are completed in real time using the internet and email messaging system where the whole nature of business is conducted in writing. The ICS aspect is not applied to the hardcopy contract. The contract is served both as a PDF and hardcopy and the PDF version allows the deal to move forward while awaiting the hardcopy signed contract via courier mail.
CURRENCY
Until further advised the Euro dollar is serving FCE price basis . BPS and USD or other currencies may be used at FCE discretion.
SANCTIONS
FCE is legally unable to conduct business with countries bearing western sanction restricting the use of the SWIFT payment system. FTN Exporting personally will not allow the import or export of products to ISRAEL as a personal protest against the head of the Israeli government ( no protest against the people of Israel or related traders located in other countries) who is deemed a criminal for killing innocent civilians on his orders
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