AboutDavide Andrew Papa Expertise All matters pertaining to assisting Private import export INTERMEDIARIES, AGENTS and BROKERS Regarding International trade Laws and procedures,Letters of credits, as per UCP 600,Presentation, Commissions,International Rules of agency, and Incoterms 2000. All matters pertaining to shipping documents relating to the Import and export of products from one country to another.All matter for buyers and sellers of commodity products relating to the import and export industry.FTN with the introduction of UCP 600 will release the publication "The world is yours"(2004) made specifically for Intermediaries.Current inhouse tra ining manual is "Follow the Yellow Brick Road"(2008) Our advice website is www.ftnexporting.com
Experience FTN exporting founder Davide Papa has been trading for over 20 years- and has dealt with a huge variety of corporate entities including Gold and crude oil suppliers. FTN appeared in a major controversial Newspaper editorial in 1994. FTN Exporting official publication "International Trade and the Successful Intermediary"(ITSI) is about to be released world wide (December 2009) by the prestigious U.K publishing firm Gower's (U.K) and is listed on Amazon.com (Keyword: International Trade Intermediary) ITSI is ostensibly the first uniform intermediary trading doctrine of its kind, and will become the standard intermediary practice world wide in years to come. FTN exporting has created the said doctrine and supporting rules of trade defined as "URPIB" (Uniform Rules and Practice for Intermediaries and Brokers), which will (has?) become the most successful set of private intermediary rules ever created.
Publications The World is Yours and "Follow the Yellow Brick Road" www.ftnexporting.com . Author of "International Trade and the Successful Intermediary " (ITSI) 2009 excepts on http://www.gowerpub.com/default.aspx?page=637&calcTitle=1&title_id=11177&edition_id=12138
Education/Credentials Let school early. Became a master chef . Took up business management and later studied "international Trade at Stott's college Melbourne, Australia.
I understand that an intermediary has to keep the buyer and seller apart but eventually they are going to find out who each other are from the shipping documents. Is there a way to prevent this from happening? It seems that UCP600 does not make any requirements as to which name appears on documents except the invoice.
Thanks in advance. Your answers are very helpful.
Best wishes
Jay
Answer
Dear Jay
Assume the answer is No OUTRIGHT -
THE sellers INVOICE IS REPLACED WITH YOUR INVOICE HENCE , THE SUPPLIER'S NAME IS NOT ON SUCH A DOCUMENT-
BY THE LOOK OF THE QUESTION I AM ASSUMING YOU HAVE PURCHASED ONE OF MY PUBLICATIONS- THUS I'LL GO TO THE ANSWER DIRECTLY- AS ALL OTHER MATTERS IN BETWEEN SHOULD BE CLEAR TO YOU-
(1) Read the matter regarding Bill of exchange www.itsi.itgo.com -relevant when such becomes apparent in a deal-
(2) The bank of the end buyer will connect with the bank of the supplier eventually via the DLC application.
(3) Supplier will often not change bag marking- and Customs often will require some information on Bags -( OTHER DELIVERY DOCUMENTS CERTIFICATE OF ORIGIN, WARRANTY, CERTIFICATE OF QUALITY ETC.. WILL ALL HAVE THE SUPPLIERS NAME AND CANNOT BE CHANGED)
(4) The DLC Number is linked as per issuance all the way to collection- it's Traceable from issuer to collector at all times - Delivery presentation Document are linked together by such a number-
(5) Most importantly as it directly impacts to the intermediary- In most cases where there is a potential of a deal is strongly implied - the only way around the issue to "clinch"the deal is with the use of a (PPI) "Policy proof of interest" application. The Transferable Pre advised DLC is issued in return for "Something valuable"-(Quid pro quo) Once that item of value is sent the Pre advised status of the credit reverts to a full credit - because without such , a pre advised credit cannot be transferred-
The only thing of "value" to a end buyer is Suppliers full details to confirm that YOU have interest in the goods being offered- i.e: FTN exporting interests in the goods,thus In the contract to the end buyer FTN would insert a s clause- defining a blank "PPI" Certificate-
The contract is signed- meaning that the PPI certificate BLANK format is acceptable to the end buyer- thus you make the blank "Proof document" a part of contract obligations- When the end buyer issues to FTN a Irrevocable confirmed Transferable Pre advised Bank issued UCP600 DLC - The Blank PPI certificate is Filled in and returned to the buyers BANK to amend and activate the credit so that it does not carry the Pre advised condition-
The issuance of the PPI is already applied as a condition on the Pre Advised DLC- WHETHER THE END BUYER CONFIRMS THE INFORMATION OR NOT IS IRRELEVANT- WHAT IS RELEVANT IS THAT YOU HAVE DEFINED A REAL GENUINE SUPPLIER AND OWNER OF GOODS- EVEN IF THE END BUYER IS UNABLE TO CONFIRM YOUR STATUS IN THE DEAL IS IRRELEVANT SO LONG AS YOU HAVE AN OFFER FROM THE SUPPLIER YOUR INTENT IS TRUE , CORRECT AND LEGALLY BINDING-
WHATS RELEVANT UNDER UCP600 IS- IF THE INFORMATION DOES NOT CONVEY ADVICE AS TO THE REAL SUPPLIER BUT ANOTHER INTERMEDIARY , THEN IT'S FRAUD- AND FRAUD ONCE PROVED CAN INDEED CANCEL A THE IRREVOCABLE STATUS OF THE CREDIT -
Remember You have offered the goods "on h behalf of an undisclosed Principal" thus you have no obligation to reveal the supplier-
(6) The BOl where apparent in a deal is issued to ftn exporting to "Order ", "Notify party" FTN exporting-
the Consignors name is apparent -
to which ftn has to Blank endorse on the reap of the BOL the name of the person who is going to obtain both title and possession of goods before the BOl is advised as part of the presentation documents-
And there is more-
Trying to cover up fully 100% the identity of the one party from the other is said to be a wasted time and effort- thus allow the process to flow with the understanding that since its so hard to cover all angles , that the only issue of contention is that the Intermediary WILL not get circumvented- that's the main issues-
If you do a great job you might not lose your buyer- in any case the supplier will still do business with you with other buyers you secure is nearly assured-and if you return to a buyer with another deal from another supplier that's cheaper, the buyer might again do business with you if the first time everything went well-Thus in the overall scheme of things if one really thinks deeply about the matter - the identity of the one party to another is not really an issue at all once the DLC has been advised and ACCEPTED- BEFORE SUCH, THE MATTER OF CIRCUMVENTION IS A VERY REAL THREAT- THUS THAT'S THE MAIN POSITION YOU ARE PROTECTING
Hope the above is of help-
Regards
DAVIDE Giovanni PAPA
WWW.ITSI.ITGO.COM
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