- Buyer issues LOI
- Seller issues SCO
- Buyer issues ICPO with full banking details.
- The Seller will present the draft contract for acceptance by the Buyer. Contract goes through normal negotiation and validation period.
- Buyer returns the draft contract by exchanging it by facsimile or Email attachment, duly signed and sealed, within 3 working days, the draft copy will be deemed legal until hard copies exchanged along with the Draft LC.
- BuyerĂ¢€™s Bank issues LC as accepted draft for SPOT value, open for full contract period, to be received at SellerĂ¢€™s Bank within 3 (three) working days.
- Seller commence Delivery.
Delivery Period :
- For Spot
- 100% Confirmed LC at Sight
- For Annual
- Revolving LC or Back to Back or SBLC (Stand-by Letter of Credit) via MT760 as guarantee for ONE month's value and TT (MT103) as payment per shipment at Port of Loading or As per Negotiation
- LC from Top 50 Bank or Confirmed by Top 50 bank
Loading usually will begin 30 Ă¢€“ 45 days from the day the financial instrument is accepted.
When rice is shipped, there are many documents which accompany it. Some of these documents are required in order for the seller to be paid, others are required in order that the shipment can be imported into a foreign country, and still others provide assurances that the rice meets the requirements set out in the contract, has been properly handled, and is being shipped aboard a seaworthy vessel. This is a list of the most commonly provided types of shipping documentation, along with explanations of their function.
Not all shipping documentation may apply to this commodity. A list of the full documentation will be listed on the contract.
Signed Commercial Invoice
A commercial invoice is made out from the seller to the buyer. It details the specifications of the product being shipped and the total cost of the shipment. This invoice is normally required in order for the seller to receive payment under the terms of a letter of credit, and functions as a tax invoice for the buyer.
Clean on Board Bill of Lading
A bill of lading is a document which is issued by a carrier or transporter. The document confirms the specifications of the shipment received, the port where it was loaded, and the destination port. It also outlines the terms of carriage. Bills of lading can be negotiable or non negotiable. A negotiable bill of lading enables the holder of the bill of lading to change the destination port of the shipment. A non negotiable bill of lading means that the shipment will be delivered to a specified port, and this port cannot be changed.
A packing list is simply a document which outlines the quantity and type of product shipped. This document is normally very detailed. In order for the seller to obtain payment it is important that the packing list is identical to the terms of the contract and those set out in the letter of credit.
SGS Certificate of Weight Grade, Quality, and Condition
SGS is an international independent inspection company which will inspect the rice shipment before it leaves the port and verify that the rice is of the correct weight, grade, quality, and condition as stated in the bill of lading, packing list, and contract. If all is in order, they will issue an SGS certificate which states that the rice met certain standards when it was shipped.
*Inspection and certification company can differ and it is seller's choice.
Certificate of Origin
A certificate of origin states where the rice is from. This is essential when importing rice from one country to another. The certificate of origin is often issued by the exporter, although it can sometimes be issued by a government agency.
A phytosanitary certificate states that the shipment meets the phytosanitary requirements which are in place in the country it is being exported to. Phytosanitary certificates are always required for plants and plant products, as these can represent a potential hazard to the ecosystem of the country to which they are being exported.
Shipping Company Statement when in Bulk
A shipping company statement relates to the ship aboard which the rice will travel. It normally states that the ship is of a certain age, and that it is well maintained. This document is designed to provide assurance that the vessel is sea worthy.