6th March 2010

In an effort to examine potential supplier or end buyers offered by outside or (mostly) informed URPIB intermediaries the new easier FOA application is now in play. PACT agent may use such a FOA. FTN jpeg signature is made apparent for use.


Procedure of Issuance.

1// Intermediary approaches only one Smice PACT/WAPI agent

2// intermediary discloses what they have except for principal

3// Smice agent considers- If worthy? (due diligence)

4// Smice agent fills in advises FOA. Issued by I.e: " Rick Goossen Reg Number XXXXXX On behalf of FTN Exporting"

5// Applicant must produce fully disclosed information via OTS as instructed by Smice agent.

6// Applicant is attached to SMICE agent for that deal. Applicant is protected by FTN Exporting if an FTN supported deal is apparent.

or; Smice agent makes their own FOA form and signs it , if such if they are attempting to close such a deal alone.



To Smice Agent .
(a) MS DOC advised. FOA Signature FTN advised. When issuing , add a FOA number , add date, add your letter head, add FTN seal- fill in details. Convert to PDF send to applicant .The FOA number becomes part of any transaction code involving products secured by a FOA applicant. When SMICE agent sends Quote or OTS / RFQ to FTN , I will see if it’s from a FOA applicant then, and produce a formal commission rate for passing.

(b) intermediary prints , signs converts to PDF and returns it to Smice agent .

(c) Smice agent keeps it on file.I don’t need it .

(d) SMICE agent only advises details of each protected entity to FTN if contract to potential deal is due for return. FTN advises IPG to agent for passing to protected applicant at such a time.

(c) Note: Attachment is in effect for as long as Smice is listing goods or RFQ is valid or 4 months which ever comes first. 4 months is the maximum a protection at any given time after which URPIB takes over on matter of such disclosures. If an intermediary cannot trust the intent of a SMICE agent by then, assume they never will.

(d) Issuance to the same entity once only. After 4 months protection is automatic if SMICE agent examines applicant offers after 4 months, at their own discretion. Applicant may take it or leave. URPIB rules are in effect.

(e) The commission rate is only implied, and must be apparent to effect a legal application pertaining to ‘consideration” the actual payment rate is worked out as per URPIB rules the appropriate time. Whether it 75 cent or 5 cents per MT.

Scope of Application
Easy to apply. Stepping back request made easy. FTN does not need to know who is being protected until near closing time. Unsure intermediaries feel more confident to reveal source for further checking.