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.
Thus as per below typical string contract Schematic-
(1) Supplier/ AND OR registered Mandate holder
(2) Sourcing intermediary
(2) Sourcing intermediary
(2) Sourcing intermediary
(2) Sourcing intermediary
(3) INTERMEDIARY BUYER/SELLER
(4) Sourcing intermediary
(4) Sourcing intermediary
(5) END BUYER/AND OR REGISTERED MANDATE HOLDER
First, the example is an absurdly long chain. But, is there any contract that can give a source intermediary a fighting chance of a commission if the controlling intermediary wants to cut you out? For example, if you are a lawyer & can litigate for free, can you have a document that might brow beat an unsavory controlling intermediary to yield and give you a fair shake?
Answer Dear Kipley
No you can't - The chain indicates that only at the end of the actual offer stage only- Three people are actually closing on the deal - 1, 3, and 5-
Nearly most deals start with an average of 5 sourcing intermediaries - 10 intermediaries is not uncommon-
So you get a Jet fuel offer from a supplier - You ask end buyers directly , who say they don't want it- then naturally you may as well get buyers side intermediaries to also help you source end buyers- is the most logical way to go- accordingly you really cannot avoid intermediaries becoming involved , hence what is your option? Control the deal and the intermediaries from the very start-
Thus general acceptable trading position is 1, 3, 4,5
In all cases the goal is to arrive at 1,3, 5-
So your lawyer is going to write up a contract in your country to enforce against an buyer/seller in another country like Brazil- Try and catch such a person if he does a runner- Try and catch such a person who cannot be touched in many counties because no extradition agreements are in place-
Try and catch a runner who is now flushed with cash- and can afford mega bucks to take YOU on-
Famous case in Florida years ago- crude oil- 5 intermediaries were jilted , the buyer seller ran to New York with 4 million per month in commissions- Even trying to gt Citi Corp to release details of the circumventor's account was simply not possible- they needed to prove first that such a deal was closed- they couldn't- not to the satisfaction of a court- So they spilled the whole story to the Florida times-nevertheless nothing could be done.
Finally afer spending 100,000 in legal fee's and a few hundred thousand more in court costs the Buyer/seller intermediary says 'I have 2 cents in my pocket" -what are you going to do then-
It all about the law of Torts- Failure to provide a duty of care- Sure you lawyer can write such a contract- if you are not prepared to enforce it at horrific expenses then what was the point?
you are not buying a car or house- this in an international transaction - many laws and barrier's prevail - at huge costs-
How does you contract protect you as per above ?
I can go on and on and on-
If are not even privy to the deal if you have not control over it - You need to prove that the buyer/seller did make profit and circumvented everyone- How can you do that to a deal- You are not privy to? You can't.
You have a "stepping back" process - that's one deal ( Commission protection) So you get rid of all intermediaries involvement in the sales contract-for protection of commissions-then you have another deal related to the buy /sell part of the transaction- ultimately involving only 3 people-
So you will spend 1000's dollar to "legally" tie a buyer/seller up when after 3 weeks he tells you "Sorry the deal fell through"
How long can you do that for?- It would have cost me millions to do so, for no return-
I am dealing with a lot of end buyer and suppliers directly and still can't close one large " Hit the jackpot deal" per year-
You take control and become the buyer/seller by simply learning procedures- or your second less effective option is to becomne attached to one accordingly- if you know procedures then what are you doing being attached to a buyer/seller who is practicing incorrctly in the first place?
Thus it is UP to you to either control the deal as a well informed Buyer/seller or be informed that you are attached to a buyer/seller who knows what they are doing- Also of which 99% of such don't know what they are doing- either way YOU MUST now procedures-For you own protective benefit- There is no other way effective way to guarantee or party ensure commission payments -
When ftn deal with intermediaries- ftn allows transparency to apply - meaning that, they do all the work as per my instructions ad I close any viable deal- This keeps the intermediary informed themselves if a deal has succeeded or failed-
There are differing way to remain in control- but keeping control of the deal is a must protocol.
Hope above helps-
All the Best
Davide Papa
www.ftnexporting.com
www.ftnx.9f.com
