INCOTERMS : CIF Incoterms 2010

  • Guarantee: 100% confirmed, irrevocable, not transferable, auto revolving, divisible, assignable a Documentary Letter of Credit ( IRDLC ) (MT700) with the value of one monthly shipping and valid for the contract time plus one month.
  • Payment: 100% at sight against shipping documents AT LOADING PORT, with Wire Transfer / TT in the account designated by Seller.
  • Carrier: To be Confirmed at the time of Final contract.
  • Inspection: SGS Inspection for Quality and Quantity Service shall inspect the Commodity at Loading Port on Seller’s cost and at the Port of discharge on Buyer’s cost-.
  • Delivery: 20/30 Working days, after receiving the confirmed IRDLC
  • Performance Bond: Yes, 2% PB (If required)
  • Insurance: 110% of the CIF Value on each shipment on the seller’s cost.
  • CERTIFICATIONS: SGS/ EUR1/ T2L/ ISCC

DELIVERY DOCUMENTS

(FINAL SUPPLY AFTER INSPECTION SGS)
1) BILL OF LADING
2) SIGNED COMMERCIAL INVOICE (INCLUDING PACKING DETAILS)
3) SGS CERTIFICATE OF QUALITY
4) SGS CERTIFICATE OF QUANTITY
5) SGS CERTIFICATE OF ORIGIN
6) PHYTOSANITARY CERTIFICATE
7) ISCC CERTIFICATE
8) CERTIFICATE OF INSURANCE 110%
9) PACKING LIST

PAYMENTS TERMS & PROCEDURES

1) The buyer shall sign the full corporate offer,  and shall send the same to the seller agent, together with proof of funds.

2) The seller shall issue the draft contract (CTR) and shall send to the buyer. (the terms and conditions will be negotiable)

3) The buyer shall cross-check the draft contract, fill in the necessary details and shall coordinate with the concerned bank. The final draft as agreed by both the parties shall be signed,  within a period not exceeding 5 working days, mutually.

4) On perusal of the draft contract, the seller if agrees shall affirm his digital signature, on the terms and conditions as mutually agreed.

5) The buyer after receiving the signed contract from the seller, the buyer shall instruct his bank to issue the draft of verbiage i.e. financial instrument within a period not exceeding 5 working days.

6) On receiving the draft verbiage i.e.  Financial Instrument, it shall be assumed that the buyer has agreed to the terms and conditions. Thereafter, the seller officially accepts the verbiage and the buyer bank issues the final Financial Instrument to seller bank.

7) The seller on agreeing to the verbiage shall prepare the details of product/goods of order, which shall be dispatched as per the agreed terms and conditions, the goods shall be delivered to the port of loading with all the necessary shipping documents. the order shall not be accepted until and unless signed by the certifying authority i.e. "SGS Certification".

8) On receiving the "SGS Certification" and necessary documents, the buyer and his bank shall pay the financial instrument to sellers bank, as per the terms of the contract.

9) On receipt of payment, the seller shall deliver the goods to the port for unloading, as specified in the contract.

10) The seller shall pay immediately to the agent/  intermediaries on receipt of payment from seller or bank,  within 48 hours.

NOTE:

These are the basic procedures for payment with financial instruments. For other types of payment or for particularly safe and reliable letters of credit, some changes to the procedures, such as payment at the port of unloading and guarantee of delivery with penalty or performance bond, can be considered. No other requests are accepted and after 5 working days from the signing of the contract, if the verbiage of the financial instrument is not received, the contract itself will be cancelled, the name of the buyer will be reported to competent authority and claims for damages for non-compliance with the acceptance of Full Corporate Offer. It is therefore advisable, before accepting the Full Corporate Offer, to check the feasibility of issuing the financial instrument with buyer bank.
Thanks for your courtesy.