PROFESSIONAL COMMODITY TRADER 2020 (PCT): SECURING THE SUPPLIER
The first task that the PCT must apply once the study is completed, is to take a look at the ITB aspect offered in the doctrine , and prepare their very first document on a similar basis. The PCT is not concerned about receiving a reply as such an event will take time to achieve. In any case applicants who are not supported by SMICE may as a USCT member simply surrender the early supply secured, to a FTNX Primary Agent (P.A) as found on www.ftnx.net to take a look at the reply and service advice accordingly. Assuming the PCT has produced excellent ITB’s, such documents are sent to suppliers as secured online by email as a PDF with inline text clearly stating what the PDF is about. The added advice below on this one crucial matter must be clearly understood and the advice served in the current doctrine must not be circumvented in any way.
- A fully disclosed supplier in possession of a export ready product must be be personally secured first by a PCT.
- This above aspect now clearly defines that ‘intermediaries’ cannot offer a supplier for a PCT to consider, unless they ‘step back’ disclose the supplier upfront.
- No commission pay orders , no other conditions may apply. If the supplier is not disclosed to the PCT , intermediaries may not be involved in a protected export string deal.
- Whether is takes 10 weeks, months or years to do so, the only focus is to secure one supplier in possession of goods being sourced.
- An end buyer must NEVER be secured first, in where the sourcing of a supplier first serves the lawful way to trade in commodities.
- A end buyer may be secured as the first aspect , ONLY when the end buyer and not another intermediary is asking the PCT to source goods; which is an adverse trading aspect.
- To seek an end buyer first is ‘solicitation.’ A PCT asking to buy from supplier export ready goods is not solicitation, because the PCT is legally acting as the ‘buyer.’
- No end buyer will ask PCT to source goods for them, until their name has become apparent when sourcing suppliers anyway.
- Therefore the first premise that a supplier must be personally secured first is the only correct way to start a deal.
- Later when some experience is gained, string deals with other intermediaries can be formed , but as first, the PCT must test securing suppliers for as long as it takes.
- The PCT spends a great deal of time sourcing a supplier ( manufacturer / producer) locally or internationally.
- Once supply in 100% assured and is ‘in hand’ the PCT can test as many end buyers possible directly or with assistance of string members without breaching any laws or rules.
- The PCT is now acting a a ‘Buyer to the supplier and Seller to all end buyers’ being tested in legally defined manner.
- No disclosures of the supplier is part of the legally defined process.The PCT is the lawful seller, so long as a real offer from a real supplier is on hand.
- This is why securing a supplier first is the most important aspect; it ensures that the PCT cannot be charged for making a false offer (fraud) for offering goods it has not secure prior.
To secure a supplier which takes i.e: 9 months to do so means that the PCT has obtained good trading experience and has learned important matters of trade over time. In all cases for the first 12 months this experience is applied only the ICC FOB (Non Break Cargo: NBC) or FCL FCA(Full Container Loads) delivery rules. Once some experience is apparent at the said delivery modes, other delivery modes can be practised and tried because the FOB aspect alone is the stepping stone to all other NBC delivery modes. Work the ITB, be creative and make the supplier pay attention at what you are offering to ‘consider’ buying until one day a supplier does serve reply. The current doctrine will advise what to do if you need to vacate a deal because of lack of experience, thus ‘one step at a time’ is a very important attribute of the overall educational aspect.In this business ‘multi tasking’ serve an adverse trading aspect.The focus at all times must not deviate from the step you are int any given time. Many PCT’s in then past have failed to observe this simple but critical instruction dismissing the advice as being a trivial matter.
Remaining focus is a critical aspect.
“O.K FTNX, can we have a contract.” FTNX Replies:
“Sorry you need to confirm the price first, with a signed quote to which an offer will be advised. Once the offer is signed the contract will be issued.”