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 emailed you a few months back when I was beginning a business with my mother. We were aspiring to become wine agents. Since we last communicated we have done just this. We have made many contacts over the months and are now at the end of discussions with two serious buyers in Asia.
Although we are moving forward with a sense of confidence and drive like we never had before, we are a little anxious because our potential importers have suddenly increased the size of their order. We had been expecting to sell between 3-4 containers this YEAR to China. Suddenly we find ourselves with requests for between 12-14 containers.
We are little overwhelmed. If our research has told us anything it is that everything from the first invoice down to the last one you get from the shipper needs to be EXACT. Any discrepancies as we understand will tarnish the entire deal.
Can you please provide your ever more valuable and greatly appreciated advice on the way in which we should follow through on such a deal.
To refresh your memory. We are a NYC based wine agent, representing vineyards / producers in Argentina and Chile. At the moment we are focusing on our Argentine wines. We plan on selling the wines FOB, from the port of Valparaiso, Chile. They will be trucked from Mendoza to the port. Our buyers have already agreed to the FOB price. They just requested more than we could have imagined.
We have a agent in China we fully trust. We plan on sending our international trade consultant in July to meet with our buyers in person.
And... this is where we are. Could you please advise on the best way to proceed at this point? Much appreciated as always.
Cheers,
Bennett A. Reiss
Answer Dear Bennet,
There is really no question here- You are asking about a whole doctrine.
See if I can spread some light on the matter-
Yes very little tolerance is give to mistakes-
First of all Remember ?-The supplier is obligated to you- That's one deal.
You are also the seller to your end buyer,that's another deal-
One side has nothing to do with the other- thus Supply side to end buyer side information must never cross over before the DLC hs been accepted-
You treat the 14 FCL as One contract- One sum.
Thus- offer, contract with supplier is held with you being the buyer-at one price FCA Incoterms (Not FOB- Containers use FCA or CIP not CIF))
Another contract, offer is held by you and the end buyer at a higher price at FCA Incoterms-
Make sure everything discriptive about the wine is supplied to you by he supplier-
This information is used when making your deal with your end buyer as to specifications-
If there is a dispute btween you and you end buyer as to the stated quality- then Supplier has to rectify as such to you-
Always get the DLC for one HIGHER sum(SELL PRICE/Profit/expenses) From the end Buyer in the form of a CONFIRMED UCP600 DLC- AT THE MOMENT THE DLC HAS BEEN ACCEPTED by you - YOU SIGN CONTRACTS WITH THE SUPPLIER -WHICH SHOULD HAVE BEEN ALL READY BY THIS TIME-
Don't oblgate yourself with the supplier unless FUNDS have first been paid as active first to issued from the BUYERS bank- NEVER.
Once you accept the end buyers financial instrument - you can't turn back-failure to perform now is a breach of contract between you and the end buyer-
Time everything to a schedule and learn to control the deal on both side -
You control the deal with the supplier - I.E: 15 days for offer consideration acceptance , 21 days for contract-7 day DLC is issued by you,...etc..etc..Now that you have a schedule with the supplier , work to a lesser time frame with the end buyer - YOU MUST GET DLC PAYMENT INSTRUMENT- BEFORE SIGNING THE CONTRACT with the supplier -MUST.
You Get insurance not for the container - (hence you profits margin is added accordingly ) but for the goods inside-(trap)
As each or all clean doumument set arrives no more than 5 days apart-for the lot- You blank endorse the rear of each - You take the sellers invoice for each container being represented - and you replace it with your invoice at the higher price-
The bank will ring you ,when the document arrive if you send them there- or you can collect them a your business address- take more time , change the sellers invoice then deliver such personally to your bank holding the DLC... thus that's what you need to have ready-Your sellers invoices-
Just Make sure I.E. Let say-You purchased wine at 10 dollar per bottles - but your end buyer paid 20 per bottle from you - Make sure your sellers invoice show that the total equals 20 dollars per bottle x quantities-
Thus If a FCL load value says 30,000 dollars @ 3330 bottles a 5.00 each is applied on the suppliers invoice to you - You change the suppliers invoice with your copies marked " ORIGINAL" to show 60,000 dollars at Ten dollars each to the end buyer.
Te bank will examine each set "at Sight" - subtract the sum for collection against the DLC- and payout on such. Thus Partial payment is marked on the DLC as allowed.
In where there are problems with a document- then Your bank wil ask for a waiver from the issuing bank and if accepted those will also be payable-If not you need to address the document issue stopping payment.
It now allowed that One original document set is allowed to be presented- thus your document set is defind as a CT( Combined transport document) set which will include the important title document the RECIEVED SHIPPED ON BOARD B.O.L-
Other documents that the supplier should present to you thus you need to endorse over to your end buyer is clearly defined in FCA incoterms - a copy should not be hard to find on th net-
The only document you are allowed to change is the sellers invoice-
I've hardly touched on the subject matter- but I think you get the idea.
Hope it helps-
Kind Regards
Davide Papa
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