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 am dealing with a buyer party who wants to buy a big amount of D2. Point is buyer party wont believe direct that sellerside may does'nt have the product in possession yet.
So they request this:
1. Seller Bank may check Buyer Bank, the availability of buyer's fund, by bank officer.
Please talk to your seller, do they agree with the above simple procedure or not.
If seller agree, than buyer will sign NCND/IMFPA.
This procedure is very simple, and will cut unnecessary procedure. But showing capabilities each other party ie buyer and seller.
2. If seller doesn't want the above procedure.
Just forget it. Means seller doesn't have the goods. Or the goods are not yet
belong to him.
So what can you advice me about this request? Waiting for your answer, TQ
Best regards
Henny
Answer
Dear Henny
I'm not sure what you are saying? Everything mentioned is unworkable-
Sellers bank my check buyer bank - For what?
(a) Even if buyer has 1 billion dollars in his account - does that guarantee that you will close a deal-? Does it guarantee you will not be circumvented- No is does not.
(2) Banks are not allowed to be involved in matter of contract its against UCP600 rules- bank deal in finance , they can only advise and become involved in matters of finance- Until the buyer deposits the financial instrument , banks cannot become involved.
(3) THe Buyer has to offer a pre -advised DLC which is worthless- nobody can draw on it and it only becomes valuable when "delivery" documents are presented-
The UCP600 pre advised credit state - 'This credit becomes fully active one Evidence of goods are made apparent"
The PA DLC is advised FIRST to prove RWA-
The contract states what is going to be offered as "evidence"
On the evidence is surrendered to the bank , and such is in line with the credit terms and conditions , the bank under UCP600 rules MUST make the credit fully active-
The bank does not care as to the authenticity of the information give - it only cares that such evidence is given as per the credit terms-
accordingly since the "supplier" has given an offer to the intermediary giving the initial offer to others- then intermediaries in the same group are wasting their time-if the supplier has not really got supply capabilities-
No suppply and you accept the credit for a end buyer - then its fraud.
It cost very little to advise a pre advised DLC- thus intermediaries cannot disclose the supplier until it is safe to do so , because intermediaries are working "On behalf of a undisclosed principal" thus they are not required to disclose such a principal until the it is safe to do so-
BCL do not make it a safe situation - it offers nothing- the only way to endure RWA is to get a Financial instrument lodged first-
The intermediary cannot work in any other way safely-
if the end buyer was buying directly from the supplier - the end buyer would be required to issues the DLC first-
Not different when an intermediary is involved-
One intermediary in the whole group has to take legal responsibility and becomes the buyer/seller for the who group on both sides- He accepts the DLC , he offer the evidence and he pay commission to all who "step back" - he can only do that after he has verified that the goods are 100% real- this cannot happen if if middle buyer/seller is buying from other intermediaries- another 'seller" is not the "supplier" and moe often than not such goods ar fake.
Hope the above is very clear - 99.9% of intermediaries have no idea about correct trading procedures is the reality of the situation-
You deal is unworkable ans should be trashed-is my strongest advice-
when working with other intermediaries if you control the deal and nobody wants to give you supplier or end buyers details then you cannot make a move - thus the very best way to control the deal is to find Supply yourself first, then offer such to intermediaries to source end buyers-
In any case the UCP600 DLC can only be transferred once- end buyer issues DLC to you- which must be transferred to the supplier directly - if it's transferred to another "Seller" the deal will collapse because the seller cannot transfer the DLC to another seller or supplier-
There is no other way-
Regards
Davide Papa
www.ftnexporting.com
www.ftnx.9f.com
www.itsi.ito.com
