BAD AND GOOD TERMS OF TRADE
SUPPLIER AND END BUYERS ADVICE WORLD WIDE
SMICE INTERNATIONAL TRADE EDUCATION
Last Updated: MARCH 2020
If you see ‘bad’ terms on the deal you are attempting , you are trading with an ill informed clowns may be assumed. Such clown come and go, years in , year out.
A PCT cannot ply ‘investment’ projects, as a securities license or similar is required, but a PCT can ‘create’ investment projects for ‘principals’ to consider ‘buying ‘ outright. I.e: Crude oil is found on a land lease holder and /or owner . The owner wants US$ 4.00 per BBL EXW before allowing others to extract the oil.The PCT finds and secures the future extraction crew. The PCT works out all logistics for the goods to port and arranges port facilities. The PCT works out / negotiates any royalty arrangement with the government in return for an assurance that export license will be granted. The PCT also offers to secure ‘end buyers for the purchaser’ of the project (agreed upon commission rate nothing to do with the sale of the project) All cost are included to the higher end, plus i.e 5.0% in where a healthy gross profit is still very evident. The draft edited and sanitised version is offered to potential ‘buyer/underwriters’ to instigate ( to factor, convert to shares, or finance) .The purchaser will get this own experts to test the assumptions made. If accepted the original fully disclosed version is then sold via a hard-copy.The project is sold for i.e: 2.0 percent of anticipated returns for sharing among all the entities assisting the PCT with the project. Such deals takes years to produce and thus should not be entered lightly.The PCT is offering a ‘ready to go now type deal’ is the attractive aspect
OFF TAKERS and FACILITATORS
In recent times we have seen a rise of both oil informed and informed trader attempting to conduct “off-take” type of deals which often could be construed as being investment deals. We give the American’s a ‘hats off’ for being innovative, and a ‘F’ minus for creating more flawed unworkables deals. What is a ‘Off Take’ deal. Example: FTNX secure a large supply of crude oil by having an MOU or Assurance of Supply, in where other ’traders’ are offering secured goods, who in turns eventually offer it to the end user/end buyer. The ‘Off Take’ deal usually involves a “Seller” who is NOT the Supplier, but who through a past deal(s) has a ‘contact’ in the crude oil industry. Long strings are formed , everyone claiming they have supply, when at the end of it, there is no supplier, just a person who thinks they will be able to supply goods , on the condition it obtains the DLC. The entity claiming to have an ‘off take agreement ’ then closes the deal with its suppliers, who has no idea that many others have assisted in such a deal( Such looks like the buyer) Often one person ‘takes over ’ the supply from the person who secured in where long strings are formed. All the known issues pertaining to ‘ill informed traders’ apply with such deals. Disguising a standard safe practice to an unsafe one does not change the final effect to a favourable event . An Informed PCT ‘also legally flips contracts’ but does it in a manner that defines the position of the USCT endorsed and Informed PCT as being a principal as well as a Buyer or Seller. The FTNX doctrine of trade applies international trade procedures and not localised procedures disguised to serve impression that an international trade deal is apparent. In one recent offer provided to us by an informed PCT trying this ‘unworkable aspect’, every well known disclosed entity that appeared on the document to support supply are well known circumventors going back decades. Non were actual suppliers. In the FTNX Doctrine, no two Sellers can work together on a deal, one Seller ‘has to step back’ as one Seller becomes the Principal and the other a ISS, when a string trade is in effect. Changing the prior terms of reference, to an improper aspect does not change the scene. One who has signed an ‘Off Take’ supply agreement , cannot sell good to another ‘ person’ who then offer ‘an off take’ supply /agreement to others down the line. These ‘back to back’ deals cannot work applying matters of Doctrine , even though it’s obvious aspect of such procedures are apparent in some of these deals. This is just one reason why FTNX does not entertain supporting others. Some have studied ITSI and added their own added terms thereon without understanding that a flawed aspect has been created. Furthermore we cannot accept transhipped goods nor are able to transfer a DLC down a long line of traders acting on the original ‘off take’ deal. Also note: When circumvention is apparent , a ‘ intermediary type of trader’ taking an export ready Supplier who will often be required to stand before a ‘Federal ‘ type of court hearing, will often fail to win such a case because the plight of the jilted intermediary usually cannot be heard in a ‘Federal ‘ court , but by a lower state administered court and jurisdiction therein. This adverse aspect is not apparent hen the PCT acts as a ‘Seller /Buyer’ and Professional Commodity Trader. A ‘PCT” Buyer can take a supplier to a higher court on equal merit . The term ‘facilitator’ is often seen being used in the same manner.
SOLICITATION LAWS WHERE APPARENT
Other aspect of breaching solicitation laws may also become apparent with the above aspect, and trading in general. A Seller with supply secured prior of I.e: D2 contacting a potential end buyer/user is not in breach of solicitation laws. An entity without a supplier/supply , offering to provide supply of goods not ascertained prior, on the hope the buyer takes an offer for goods or services yet to be secured, is breaking solicitation laws and may attract related criminal charges for deception and or fraud. I.e: Localised example: Seller cold calling by phone: “We are able to provide you better electricity rates” can be counteracted quickly by asking “who is your supplier.” When no answer is forthcoming , then you know that the caller is not even acting as a disclosed broker for known supplier. Same kind of aspect applies in international trade deals. Many ill informed traders are offering goods they don’t actually have secured in any form, in a hope they secure a end buyer first , then look for supply later.
IRREVOCABLE CORPORATE PURCHASE ORDER: This is not an international trade term and should not be used. Often seen used by ill informed Traders. Appropriately used often in USA as a localised or interstate business practice. A Professional Commodity Trader (PCT) signing an ICPO in the same USA State as a USA supplier who fails to perform locally or interstate go could find them selves in serious legal hot waste due to the terms ’irrevocable.’ ICPO is used to describe business of Interpol ( International Criminal Police Organisation)
Person acting on behalf a disclosed principal is a broker. I.e: working for an insurance company, Brokerage firm..etc..etc. A trade Intermediary is not a broker not agent unless they represent a named other.
An (ill informed) intermediary in general is neither an Agent, Broker or Principal. Such is a person undisciplined in commercial practices who acts as a third party in a three party deal in where a reward or commission is offered to person who surrenders vital information to a principal or others in return for a payment. An opportunistic person, attempting to secure a commission in an ‘ad hoc’ manner. An ‘informed’ Intermediary who later turns ’professional’ after time spent in study and practices is define as an independent PCT trading as a ‘Buyer’ or ‘Seller.’ In International trade business there is no scope for ill informed intermediaries to exist let alone trade effectively if they do not convert their trading position to a PCT. We have two learn how to trade as a ’buyer/seller’ and PCT or not at all.
A device generated ‘Message Text’ (MT) were the open aspect of such, allows one bank using Internal secure means; to send a message to the another participating bank world wide. MT 799 Is not a text related to the issuance of a DLC, ( and yet we see this mistake the most often) but merely an ‘advice’ being served from one bank to another. I.e: a ‘Bank Comfort Letter’ is being electronically advised stating that the Buyer is RWA to the bank of the Supplier. It does not mean that the Buyer will ‘buy’ anything, nor does it binds the buyer to perform. BCL cannot be used or issued by the PCT as we are traders not end users of the products we buy and later sell.
In international trade business ‘LOI’ stands for ‘Letter of Indemnity’ and not ‘letter of intent.’ The LOI serves no value in this business. Usually found as I flawed procedures via : LOI, ICPO, BCL, PB.etc.etc. combined aspect.
ANY SAFE WORLD PORT: Incoterms requires that the name port of destination must be indicated so that an accurate assessment of carriage rate can be served. Offers carrying ASWP may also indicate that the goods have been ‘marked up’ dramatically as well. What is indicated when such a term is applied is that the trader is ill informed. Import Customs will not tolerate such aspect either. World scale rates are use when assessing freight values.
Proof of funds is another idiotic ill informed aspect applied by those ill informed. So Shell, BP etc.etc. who also buy petroleum based products contact the PCT to look at what they have to offers, and the PCT ask for POF upfront, the deal will end there and then. Each aspect of a deal is treated independently, As each aspect is concluded, a new aspect appears, as will matter of payment. A person’ can flash all the money they like upfront - but unless an offer and subsequent contract is signed first, suing a principal for failing to perform, cannot occur. Failure to perform in this context, means that a ‘breach of contract ‘ has become evident, in where the breach was specific to ‘payment not being made.’ Idiotic clowns acting as ill informed intermediaries have not idea about such matters.
THIRTY (30%) DEPOSIT
No funds must ever be presented up front in any form whatsoever under any circumstances of a legitimate first run deal being sealed. If anyone asks for any money upfront, being it a deposit, fees, charges or the likes; RF the deal immediately. Having said that Chinese ‘Traders’ will often ask for a deposit up front; but after a first challenge after serving the trader a quick lesson on acceptable safe procedures, they soon come to understand that their requests is one that a scam artist would make. Legal Frustration whee a buyer has shifted the deal so far on each demand made, in where a third offer has been produced, the offer may accompany a demand for a performance deposit, is the time such a deposit may be sought. The type of deposit that will stop another offer being issued in where if the buyer fails to enact on the deals the deposit is forfeited.
BANKS AND THE CONTRACT
‘Please advise contract to our bank’ means’ a Rubbish fodder (RF) deal in apparent. Banks have no part is matter of the contract. Banks deal in finance not products. This is a major rule under universally applied UCP 600 Banking rules. Suppliers must always beware of such a request from a person calling themselves ’ buyer’
Buyer beware! A SLC is never used to pay for goods and a deal is dropped is this payment instrument is sought. An SLC can be transferred many times or not transferable at all, depending on the rules supporting its issuance. An SLC is ideal for using in support of a P.G or when paying rebates, fees and commissions. A DLC is a conditional instrument meaning that certain conditions must be met before collection can apply. This make the DLC a deferred payment application. An SLC however bears an unconditional aspect where the production of a drivers license proving I.D may be all that is required to initiate collection–instantly.
PERFORMANCE GUARANTEE (PG)
The buyer must alway must issue the financial instrument to pay for goods first. The supplier counters this act with the issuance of a SLC in support of a performance guarantee–when such a P.G is offered. This aspect MUST never be applied the other way, useless one is keen to lose their money and the deal. We won’t elaborate more on this part in case scam artist are reading this site. A supplier must never offer a P.G first on the lure of a lucrative deal, is our clear advice. The P.G is only forfeited if the supplier through his fault failed to have goods at port to enact delivery on time. The term ‘BOND’ is an ugly improper term and should not be used.
OFFER (LETTER OF OFFER)
The main stay of any international trade transaction is the well defined offer.Unless stated differently on the offer itself , in International trade the offer once signed is accepted as legally binding. From the supplier its called an offer, from the end buyer or PCT it’s an ‘Offer to Procure.’ The offer is the bedrock as such supports the whole ‘deal’ and destroys deal if presented ambiguously. An offer is presented in an expressed formatted pointed letter style using Georgia, Times or Arial fonts.The is no legal contract without an offer first being signed as accepted.The offer MUST ONLY be personally served from the named supplier in possession of goods, or its authorised agent/broker disclosing the supplier. B2B platforms, mailing lists , trading sites should not be used to claim that supply has been secured.
A quote is ‘confirmed’ rather than accepted and has no legally binding aspect like that of the offer.A quote is a good document to service as the deal can be tested with a supplier or end buyer long before a deal moves into ‘deeper waters.’
‘Ready Willing and Financially Able’ is a Bona fide trading and legal aspect .The buyer must have funds secured prior to placing an order rather than before considering to place order. The supplier must have finances in place to export goods being sold. Just like a PCT the buyer must open a bank account to handle the DLC aspect of business ; but if a buyer is looking to finance an export deal, then the loan application has nothing to do with the underlying import contract itself. When the end buyer has become RWA it means that the PCT has received the required DLC to pay for goods; until, this happens no RWA is apparent as per the perspective of the PCT. A BCL serves this aspect well when an end buyer deals with a suppliers directly, and only after the offer is accepted. A PCT simply asking for a quote or offer , does not means a ‘show of fund.’ The offer has to be accepted first to ensure a legally binding aspect is first apparent.A PCT who signs the offer of a supplier is one who already has secured the required funds to pay for goods by the time the contract is signed.ABCl could then be offered via SWIFT; but since the pCT is signing the contract, and payment instrument is to follow within 7 days there after, the expense of secure such a BCL / SWIFT is an expense of the supplier , if he is not prepared to wait for the contract to be signed and returned.
FTN EXPORTING definition for purpose of clarity and study. Entity who has ‘as owner possession of export ready goods and the property in them ‘ who makes the offer.A Seller (PCT) is one who sells title to goods but does not take possession of them .
FTN EXPORTING definition for purpose of clarity and study. Entity who ‘a buyer paying for and taking possession of imported goods and the property in them.’A ‘Buyer’ is one who ensures payment is made to its Supplier, in where it ‘buys’ title to the goods but does not take possession fo such goods, and ships such purchased goods directly to the end buyer, from country of origin.
FTN EXPORTING definition for purpose of clarity and study as it applies to the emerging industry it has created. Professional Commodity Trader (PCT) is neither intermediary, broker, agent, supplier or end buyer, but a highly informed, experienced, disciplined, and educated professional ‘Buyer or Seller’ of commodities at any given time who are also specialised at what they do; who has developed a skill set and discipline required to flip over a contract from once side to another using a legal and lawful application to do so under a set of standards, rules and laws. A person undertaking the principles of leverage and arbitrage. A PCT instigates the deal thus cannot be deemed to be an ‘Ad Hoc’ intermediary nor an ISS member. A PCT is therefore ta ‘first party trader ‘ and principal in their own right who created the ensuing deal.In default the PCT has secured a new market for the supplier, font thing months or year to do so. A PCT working alone on its own deals , is the prime trading aspect in where the greatest position to close on such deals prevails. This aspect greatly diminishes when the PCT trades often/always with string members.
A right to keep possession of property belonging to another person until a debt owed by that person is discharged. Usually an unseen aspect found in ‘many places’ when applied in International trade matters, in particular to (carrier) rights to sell goods for unpaid freight. In 2018 a new aspect has become apparent in that a lien should not be relied upon the applied against goods which at one moment are apparent in where when such goods once used, destroys the lien attached. A lien thus should not be deemed to stand on the same platform like other types of offered security or collateral.
META TAGS AND ICA
It has come to light is a recent court case that ‘an original document once sent by email’ could be deemed in a dispute as not being an original document, because it becomes an altered document when Meta Tags are added. In an ICA ( Instantaneous Contract Application ) adding a term such as “ This document is an original document once sent by email after meta tags have been added’ solves this legal issues. FTNX had raised this issue ten year ago in that I.e: “a bank offering a credit card online’ has no legal offer because the original acceptance was qualified due to the addition of meta tags and lack of an original signature.
Terms used by the issuing bank of the end buyer to ‘visually sight’ delivery document before payment is released to the seller or supplier in where any anomalies can stop payment until the issue(s) is resolved or; a waiver from the end buyer is provided to the bank as indemnity against legal action. Only matters applied on the terms and conditions on the DLC and not contract are checked ‘at sight ‘ and affirmed based on a set of protocols and rules that must apply before collection process may proceed. i.e: A Charter Party BOL is presented where under UCP rules the bank of the buyer can only accept the more secure and costly Shipowners BOL etc..etc..In where the credit terms require a PSI certificate to be issued by SGS in where a BOV Certificate is provided instead will require a waiver from the buyer before payment can be made.Many such aspects must be apparent; is the added security feature using UCP IDLC. When a document does not comply or has been altered it is said not to be presented in an ‘unclean’ state. Waiver as best avoided at all times as waiver ‘opens the door’ for the buyer to make added demands in contrary to the contract basis.
The delivery of original documents and not the physical goods when presented cleanly activates collection process. Even at DAP Incoterms; and even though delivery of goods must apply to an agreed place, often at buyers factory in another country, the documents supporting such are still required to be presented in a ‘Clean’ stated before collection process may apply. In FOB, CFR or CIF, once the goods clear the ships rails in good condition port of loading the risk passes to the end buyer who now owns the goods. Again we have seen many stupidly inspired interpretations of the delivery aspect. The supplier wants to be paid before the goods being sold no longer belong to him. How clear is that? No supplier in their right mind will allow a DLC or payment to be lodged after the goods have arrived at destination port. It’s just commonsense., regardless of the payment method used. To do so means the end buyer can obtain the goods and the supplier never paid. There is not even a claim for payment, if the end buyer takes the goods and coverts it to another product, before payment is collected.
CIP AND FCA
‘Carriage and Insurance Paid’ (CIP) and ‘Free Carrier’ (FCA) are used for FCL (Full Container Loads) sales and not FOB, CFR or CIF. Light product needing volume to initiate good weight often use 40 FT FCL.Dense material often use a 20FT FCL .Both containers have weight limits imposed on them in where all because one can sell 20 MT of I.e: Copper Cathodes via a 20FT FCL . The will not be able to fill a 40FT FCL with 40 MT of Copper. All Containers have their TARE weight and the maximum net weight printed on the door.This does not infer that ALL Port will however accept such weight. The supplier and end buyer need to be informed about such matters before contract are sealed
Full Container Loads; come it all kind of sizes to include cradles and freezers (Reefers) and in where bladders are used for bulk liquids, and ‘Hot Tainers’ with heaters for bitumen. 20 foot and 40 foot lengths are more common lengths. 40 Ft Containers are often used when product carry volume but are light i.e: bales of wool, novelty items , mixed products.
CONTAINER FREIGHT STATION :Area near or along side Port of loading or unloading inside customs control. One set of charges apply from factory to CFS, and a charge for lifting and un-lifting to and from ship, and another charge for storing, moving around, at CFS via place of loading and unloading, deceptively makes up the full freight and delivery cost component, even though most charge only refer to the ocean going component. Added costs pertaining to matters of Quarantine, Currency fluctuations, and late returns of empty container to CFS storage depot may also apply to produce a vey large total cost of final delivery. In 2020 Incoterms 2020 has extended the FCA Incoterms aspect to included localised delivery not to a ‘CFS.’ FTNX remains with the original CFS delivery aspect.
CIF DRAW BACK
Lots of confusion applies to such matters often seen on speculative trading boards or industry advice in where if such boards or advice explained their processes they use better more investors would be secured. CIF Rotterdam, CIF EU, CIF Laverna.. etc. means to to define that the goods ordered are delivered to named destination ports., where the end buyer arranges freight to destination.The Buyer is not receiving a CIF quote to final destination, but is being advised that the freight component in getting the goods to the named pickup port, will still need to be paid , when the buyer picks up such good from such named ports/places. i.e: Freight component from Russian Port to Laverna, Italy. The freight component from Russian port to Laverna is still payable , even though the goods are offered at FOB Laverna.
All major ports have berthing schedules where booked vessels are expected to arrive at a designated berthing time, where the ship can either unload or take on loads. If the buyer fails to have goods ready to load when Lay can is taken, the supplier loses its P.G .
NON BREAK CARGO: The rule here is one whole bulk carrier shipment , one BOL applies, as delivered to one port to one buyer, whereas 50 FCL , 50 different buyers and 50 sets of BOL’s are served to many buyers at the same POD (Port of Destination)
A charge payable to the owner of a chartered ship on failure to load or discharge the ship within the time agreed. Thus the ship has missed lay can and needs to ‘park offshore’ until next berthing the is secured will also need to pay cost of such delays accordingly.
Another misunderstood concept: A buyer states that they want to buy a product using a ‘Bank Guarantee’ in where no payment can be collected until the goods arrive at destination as per CIF. The buyer is not understanding that if a seller is unable to obtain his money owning when goods are loaded on board a ship port of loading, then it’s not longer (a) a CIF transaction but a ICC DAP Incoterms delivery mode and not CIF and that (b) Interest is also applied on to the agreed payment value as a premium and (c) a Guarantee in the form of a SLC should not be used for such a transaction. A Bank guarantee as advised by a bank in another country is a risky proposition and should never be considered as payment because laws and rules retaining to this kind of Guarantee apply localised banking rules and laws. The correct credit is a DLC for delivery as DAP Incoterms. This one aspect assures that once the required delivery documents are presented, the supplier is guaranteed payment under the DLC once 30 days after delivery has completed.We have seen entities who should have known better seek such B.G. A Bank guarantee must not be used for payment of of goods.
DEFERRED PAYMENTS D/P
As for deferred payment, a Negotiating and Confirmed DLC must be secured and interest be calculated in the offer price. Here the supplier bank if accepted, will discount the value of the DLC and pay the supplier accordingly then collect on the whole DLC value later when bank seeks reimbursement. But the end buyer has to pay a higher rate if the seller is not going to collect on documents at a later date (D/A) or collects on such but defers collection. The Buyer is using the sellers ‘money’ to do business– hence such deals attract higher sell prices.
A barge or an other vessel loading a mother ship offshore will produce a trans-shipped BOL , which is not allowed to be used under ta UCP DLC application is another security feature of using a UCP endorsed DLC.
POOP: PERPETUAL OFFER ORBITING THE PLANET
This issue remains in place. In 2019 we are still receiving inquiries for goods offered 12 months earlier as submitted by ill informed others. So a genuine offer once released even though long expired or sold can and will often travel around the world many times due to ill informed intermediaries trading in such documents. This matter makes the work of legitimate PCT traders even more difficult.
This is an important date. If an offer is not returned on time, the basis of the original offer may change is a second offer is sought.
While national news stories sensationalise such matters, In fact ‘scam artists’ have been around long before FTNX started in this business in 1988 when using a facsimile. Most scam artist use a non ISP services email address is a common feature.The other is the use of in particular platforms such as ‘Facebook’ in where scam artists conduct business openly to prey upon gullible victims. Scams involving romance, SLC financial instruments, drug trafficking, money laundering, compassionate requests for money, fake product..etc..etc..are common. In the commodity trading business as advised in the FTNX Doctrine of Trade, such matters are not an issue and easily discovered, if one follows its advice. An internet study offered in primary schools would reduce the ability of scam artist greatly. The Internet is a dangerous place, more so if one is naive. It’s not so dangerous when natters of due diligence are always apparent.
ORTHODOX TRADING ROUTINE
Quote, Offer, Contract, DLC, P.G, Delivery , Collection, Next Delivery. Any strange requests of improper aspect or variants offered are dismissed. This is the basic formal and formidable safe trading aspect applying to any straight forward commodity transaction. Any demand for upfront payments, or mention of incorrect terms of reference seen herein, the nature of business is dismissed. Gods must be secure first. Once secured the PCT acting as buyer reverts to the position of ‘seller acting on behalf of an undisclosed principal .’ The seller is affirming to the buyer ‘WE HAVE SECURED A PRINCIPAL SUPPLIER ‘ which we do not chose to disclose yet. This affirmation if falsely made, could wreck a potential good deal later, as the irrevocable status of a DLC could only be made revocable by the issuing bank if a fraudulent event is later detected.
The term ‘Proof of Product’ when asked for is a another improper term. If an end buyer does not go, under an invitation, to meet the supplier and discuss business and sight goods in suppliers country, no such POP is possible until goods arrive at destination port. But even if an end buyer went to such a meeting it could lose the right to reject goods when they arrive at destination port, because end buyer has already seen and accepted the goods,’ when visiting the supplier. (Legal maxim: Caveat Emptor: Buyer Beware) This is why third party independent inspector are important. An End buyer sighting such goods, cannot possibly know what the inherited properties are ‘just by looking.’ Independent inspector however can, by conducting tests only ON THE GOODS being sold, and not as per goods sold to someone else previously as specified on some other buyers report. How it applies to the end buyer so does it apply when a PCT is offering goods. There is not valid issue nor valid evidence that the goods sighted at port of loading will be the same quality of goods that will arrive. Independent experts must attest to goods at port of loading. The PCT still has discretion to service evidence of his ‘supplier’ , even after the DLC has been accepted, because the PCT is the ‘Seller’ under the law and is not required to provide such evidence; evidence for goods that the end buyer could not secure ( otherwise why use the services of the PCT) nor secure at the price offered by a PCT.
The use of a DOCUMENTARY LETTER OF CREDIT (DLC) as endorsed under UCP rules as administered by the ICC Paris, France, is the safest payment advice one can use, because it comes with a whole lot of conditions. that must be satisfied first. This is a why a SLC MUST never be used to pay for such goods as a SLC has no or very little conditions to apply collection on such payment instruments. An end buyer who cannot open a DLC, is deemed as not being an end buyer at all. A DLC is opened as ‘irrevocable’ meaning that the issuing bank will honour payments on behalf of it’s customer, the end buyer, even if the end buyer protests. Because there is a long period of time between issuance and collection, if the required transport documents are not produced, or do not comply, no payment can be collected. Furthermore if it is found that fraudulent dealing are apparent , this is the one act that can cause the irrevocable status of a credit to become revocable instantly. When a contracting period is 60 days, any fraudulent dealing would be soon discovered in the course of the transactional basis. We have seen may stupidly ill informed payment methods and excuses therein. As far as the PCT is concerned it cannot accept any other payment instrument but an IDLC carrying an ‘at sight’ collection process.
If you have studied the FTNX doctrine, you are an informed PCT and a private commodity trader. One who is trading on documents and is not in possession of goods being sold is a Informed PCT. A PCT must not deal with anyone applying as a routine in part or combined - improper trading terms such a ‘POP, ICPO, LOI, ASWP, SLC, BCL, PB, POF, RWA, NCNDA..etc. To do as much may mean you are dealing with ill informed entities and fake deals. A company may deal in any way they like, we cannot stop people acting foolishly, but an informed specialist private trader such as a PCT may not entertain or trade in such a manner.Either you (PCT) know and understand why you are doing or not