PROCEDURES AND TERMS
For buyers, we suggest evaluating the sales procedures before requesting a quote, in this way, it will be possible to prepare your company to comply with the procedures within the agreed deadlines.
DO NOT SEND LOI – Most will be discarded when we receive
In order for you to be assertive in your negotiation with Mello Commodity, with regard to agricultural commodities, carefully follow the items below
First of all: Consult the global market, as it dictates prices.
Query sources:
INVESTING – https://br.investing.com/commodities/us-soybeans
CME GROUP -https://www.cmegroup.com/
ISO SUGAR – International Sugar Organization
Quote for the last thirty days: https://www.isosugar.org/prices.php?pricerange=last30
1 – Define your demand [ product type, total quantity, port of destination, target price]
2 – Check if your company is ready to issue a financial instrument [SBLC or DLC] through one of the 50 largest banks in the world
3 – Request a quote
PROCEDURES:
- Send mail to kwhongkong@hotmail.com Ask for quotation
- After receiving the supply proposal, check if your company is able to pay the quoted price and if it can issue a financial instrument through one of the 50 largest banks in the world, ie the TOP 50.Check the website below, and see if the bank where your company has credit is included in the list of TOP Prime 50 banks: https://accuity.com/resources/bank-rankings-top-banks-in-the-world/
- Attention: We understand that your country must have banks with excellent structure and reputation, but it needs to be among the top 50 for your financial instrument to be accepted in import operations with our suppliers.
- If your company is in agreement with the terms of supply submitted in the proposal, please arrange and send us an ICPO Irrevocable Corporate Purchase Order, together with a copy of the company registration and buyer’s passport.
- After receiving and analyzing the ICPO, the supplier will issue an FCO – Full Corporate Offer
- The buyer returns the FCO signed and stamped + RWA
- The supplier issues and sends SPA + Proforma Invoice
- The buyer, within 48 hours, returns the Poforma Invoice and the contract draft signed and stamped
- The buyer sends the DLC or SBLC verbiage
- The seller analyzes and returns the above bank instrument with possible
- changes
- Buyer’s bank issues the Letter of credit (DLC) or Stand-By Letter of Credit (SBLC) – (MT 700/MT 760) as a guarantee for one month and sends it to the seller’s bank within 5 working days.
- After the bank instrument is opened, the seller’s bank sends it to the bank from the buyer a Performance Bond (PB) of 2% in the value of a shipment and a POP (Product Proof) within 10 working days
- Loading begins as per the Delivery Schedule in the Contract
- Buyer makes payment against shipping documents of shipment
- Above there is only a summary of the procedures that can be adjusted according to the negotiation agreed between buyer and supplier.
