END BUYERS ADVICE 2st September 2011 SMICE EXCHANGE IS NOT A FREE ADVISORY BOARD. THE EXCHANGE IS MAINLY FOR REGISTERED AGENTS , SUPPLIERS AND END BUYERS TO USE. SMICE Exchange buys products from secondary market suppliers legally bound under contract, accordingly – the efforts made to source such hard to secure goods and because often, such suppliers insist on remaining anonymous , no disclosures of SMICE supplier is provided until financial status of the end buyer has been irrevocably ascertained. ‘AN END BUYER NOT UNDERSTANDING THIS PREMIER CONCEPT, SHOULD BE LOOKING FOR THEIR OWN SUPPLIERS AT THEIR TIME AND EXPENSE AND SHOULD NOT BE ASKING FOR A QUOTE OR SUBSEQUENT OFFER FROM SMICE WHEN THEY ARE AWARE OF THIS NON DISCLOSURE POLICY.’ FTN Exporting acquires assurance of supply only from manufacturers, exporters and entities holding possession of goods– We guarantee as much on contract. We do not consider offers from other intermediaries unless suppliers are disclosed. We secure goods to buy such , as offered to FTNX before making such an offer to sell, often on a first come first serve basis. Our offer to buy has validity. Our suppliers work on the same premises and will sell such hard sourced goods to anyone not just SMICE once our validity has eventuated- accordingly no disclosures of our supplier will be allowed until End buyer has paid for goods via lodgement of a secure safe DLC. An End buyer taking possession of goods may seek a quote from the SMICE Board and return it directly to FTN Exporting via ftn_smice@bigpond.com - or may seek further advice/help before considering a quote, from the ‘PI’ as per registration number applied on quote (as found on smice agents registry) SOURCING PRODUCTS NOT LISTED ON EXCHANGE. End Buyer may also confer with any ONE SMICE agent as per registry listing, if they require a product to be sourced . All non registered intermediaries, please apply to any one SMICE Agent and not FTN Exporting direct, if you wish to have products sourced or have an end buyer for SMICE listed products. Full End buyer disclosure required. Product asked to be sourced for a end buyer,must be supported my a full offer to procure or may be inquiry details may be applied on a © ‘RFQ’ form and submitted to one Agent for consideration. (see: RFQ model www.ftnx.9f.com) Once any confidential material is submitted Article 22 URPIB comes into force. Information cannot ever be used without involving the person who submitted the original information in a FTN Exporting headed deal. THE SMICE SELLING PROCEDURES ARE AS FOLLOWS Quote is accepted as confirmed. Legally binding offer is advised for acceptance. Contract is advised for signing. Contract returned by PDF and via hardcopy mail and postal receipt produced. PDF contract is ruling contract while awaiting postal mail copy . DLC instrument advised within 7 days of contract signing. PG advised (If apparent .) Matters of shipping ETA and the likes advised by buyer (FOB) Lay can/berthing schedule advised by seller. Delivery initiated. Payment collection made for. Next delivery initiated until final delivery. All defects– remedy sought applied within 90 days after delivery. Seller advises remedy for verifiable defects. RULES OF TRADE SMICE strictly applies ICC Paris France, Incoterms 2010 Delivery Rules , UCP600 DLC Banking Rules . We also apply in part or fully English contract formation laws and foreign governance of such as well as accepted parts of Agency Rules of Trade; in where a superior safe trading application becomes apparent due to the use of such Rules. Disputes not settled amicably are settled as per LCIA Arbitration Rules Melbourne City, Australia. END BUYERS. PLEASE BE ADVISED FURTHER If PPI (Policy Proof of Seller Interests ) is required a 1.25% deposit or as negotiated via a SLC carrying a 7 days validity will need to be lodged before suppliers details are released. Paid as per first shipment value rate. Once disclosure is given , end buyer may verify if they wish said PPI contents once only and that no permission is implied allowing the end buyer to contact the supplier otherwise so as to hinder SMICE business applications it has with its supplier. Evidence offered after contracts are signed as per contract conditions. If end buyer fails to initiate due process after PPI is released , DLC deposit will be lost . If end buyer performs after PPI is released as per contract , deposit is not collected and is made invalid. No ICPO, BCL, ASWP, LOI, NCND, MPA type of dealings accepted. If a Pre-advised DLC is used , please inquire that end buyer bank is allowed to issue such an instrument. Pre advised credit is advised, evidence is released, Pre advised credit is made fully active without pre advised status applying.(No deposit required) All quotes are provisional subject to the issuance of an offer and do not include transfer fees and pre advising fee’s , accordingly if a transferable credit is advised, all said fees including pre-advising fees are for the account of the end buyer payable at time when transfer is applied. SMICE will also accept a Non transferable Confirmed IDLC as confirmed to the sellers bank, please add administration fee per MT rate implied on the quote to obtain an offer with this type of credit is used. Outsiders please note: FTN Exporting does not advise Pay order until contracts are signed , accordingly all protection of interests are automatically applied once information is surrendered. The participation of the outside intermediary to the deal in play at any given time is made apparent and transparent on the IPG page www.smice.net when a FTN Exporting headed deal is active. PG is only offered as per quotation given at any given time as advised on such .An offer with no P.G will carry cheaper unit price for goods than if a P.G is insisted upon (at FTN’s discretion) on acceptable deals. ‘SMICE /FTN EXPORTING PROTECTS THE INTEREST OF IT CLIENTS- WE KNOW ALL THE TRAPS AND WE ARE EXPERTS AT WHAT WE DO. WE ARE STRICT WITH PROCEDURES BUT IN RETURN, OFFER ONLY SAFE PROCEDURES.’ SUPPLIERS ADVICE Please see front page www.smice.net SMICE even when very busy and will always give reply to positive inquiries, and refrain from doing so for frivolous demands. No offer no deal possible . Any request for ‘financials’ and the likes being sought by a supplier as a condition of providing and offer is inappropriate and incorrect way of doing business to which such requests are trashed. Primary offers such as Crude oil / fuels are considered , but no refinery numbers of end user will be provided until contracts are signed as legally binding. Supplier should indicate on any primary fuel offers made , countries which are not allowed delivery of said goods being offered. Russian and Iraqi Petroleum products are not considered unless supplier if fully disclosed. SMICE will consider to examine all supply offers, for acceptance as provided in most cases. If such an offer is unable to be accepted a counteroffer will be advised for further consideration by the supplier. All matters of any offer are kept 100% confidential at all times. Countries not amicable to the USA in where an embargo or Civil war is apparent , are not given consideration of purchase. FTN exporting is always the buyer of a suppliers product .The nature of business applied to our end buyers are of no concern to the supplier- Smice bears all legal obligations as Buyer, of any deal– once a contract is signed. Smice considers all FAS, FOB, CFR FCA or CIP offer exceeding 1000 MT. The larger the quantity the better as we specialise in large volume revolving purchases . In certain rare instances and once agency agreements have been signed- A supplier may offer goods for SMICE listing in where their name is present on such offer in where FTN exporting is given specific permission in writing declaring FTN representative status of the disclosed supplier. INTERMEDIARY ADVICE (UNREGISTERED) Please connect with one WAPI/Smice registered member who will consider your inquiry and not Smice/ FTN Exporting.