PROCEDURES
KWE PROCEDURES FOR METAL PRODUCTS OR SUGAR
Before you send us an LOI/ICPO, please be sure to include the following so we may send you our detailed FCO.
1. Company Name
2. Legal representation
3. Commodity Type
4. Quantity per month
5. Spot or contract
6. Destination port
7. Target price
8. What payment terms are needed
9. Are you the end buyer or an intermediary agent. If you are an agent and or working with an agent within our company, please specify and we will protect your commissions. Please place your internal KWE agents name within the document. Attorney to attorney is our preferred method of transacting once we have all documents completed between KWE and the buyer.
ADDRESS THIS DOCUMENT TO:
Kwe Metals LLC
5501 Camp Road suite 444
Hamburg New York 14075
Attn: Darren Sandlin
PROCEDURES to be followed after LOI.
1. After Loi is received Seller sends FCO with complete banking coordinates, which needs to be sealed and signed by the legal signatory buyer, buyer must confirm quantity and port of discharge.
2. Upon approval of the FCO terms, Buyer issues Irrevocable corporate purchase order (ICPO) and RWA issued to KWE Metals LLC. Email to be sent to darren@kwemetals.org.
3. KWE Metals LLC issues the draft Contract for buyer's review, after FCO terms are agreed and signed.
4. The buyer fills in the missing information in the SPA, Ports, Banking details, signatory information, signs, seals and returns to the seller.
5. KWE receives the SPA signed and sealed electronically returning it to KWE closed in PDF format via security email. The contract is valid with both parties' signatures and seals.
6. KWE Metals receives the SPA signed and sealed electronically, the buyers bank communicates with the seller's bank to coordinate financial operations for the emission of the SBLC / BG or other.
7. Buyer's bank sends SWIFT MT799 pre-advice.
8. After MT799 is received by seller's bank, Buyer's bank issues SWIFT SBLC / BG MT760 issued and confirmed by TOP 50 Bank, within (8) working days.
9. After KWE's bank receives and confirms the SBLC / BG or other financial instrument agreeable to KWE valid for 366 days from the Buyer's bank (Assignable - Transferrable - Confirmed), KWE's bank will send a 2% Performance Bond within (8) Banking days. Following this if agreed upon between KWE and buyer a visit to the facility will be arranged.
10. Shipment commences as agreed in the Contract within 30 - 45 days after the SBLC / BG is operative from the Buyers Bank to KWE's Bank.
11. At the time of shipping determination, KWE will provide and confirm delivery details to the Buyer.
12. Upon vessel loading and completion from origin, KWE will emit shipping documents of the goods and buyers bank makes payment within 3 banking days via MT103 swift TT to KWE's nominated bank account.
13. Contract to be renewed every year with consent of Buyer and KWE on price, total quantity, and terms.
PAYMENT TERMS:
1. The buyer will issue a SBLC / BG or other agreeable to KWE (Transferrable, Divisible, Confirmed) and valid for One year and one day (366 days) according to Remittances to the volume of 1 month, for the same periods each month, until completing the full amount agreed upon, issued and confirmed by a TOP 50 world bank pre-advised MT799 and transferred by a swift MT760.
2. The final decision on the issuing bank for the guarantee mentioned in the item above, will always be of the seller if not TOP 50.
3. After the signed contract, KWE will issue a Commercial Invoice of the total amount, sent to the buyer.
4. Immediately upon receipt of the buyer's bank guarantee, KWE will send to Buyer within 8 days, the following documents:
a) Certificate issued by SGS Certification or similar authority.
b) 2% performance bond in the total amount of each deposited financial instrument.
5. Each consignment, Buyers Bank will pay full value of shipments loaded to vessel with MT-103 to KWE's bank after receiving the following:
a) Bill of lading, three (3/3) copies
b) Commercial Invoice, three (3/30 copies
c) Certificate of Origin, three (3/3) copies.
d) Certificate of Quality and Quantity issued by SGS, three (3/3) copies
e) Phyto-sanitary Certificate, three (3/3) copies
f) Radioactive certificate declaring the product is fit for human consumption issued by SGS only.
g) Certificate of analysis issued by SGS only
h) Insurance policy for 110% of net invoice value covering all risks.
i) Copy of charter party agreement
j) One (1) original and two (2) copies of shipping company statement confirming that the age of the vessel does not exceed twenty (20) years and the vessel is registered under Lloyds registry.
k) Pre-shipment condition survey cargo, inspection certificate for the vessel (cargo hold cleanliness / suitable to load) issued by SGS.
DELIVERY
1. KWE commences export activities within 30-45 days after receiving the bank guarantee and begins the shipments according to the schedule agreed with the buyer on contract.
2.KWE sends a copy of the first Bill of Lading, SGS or similar and Vessel's details to the buyer for verification.
3. Upon receipt of the shipping documents, the Buyer's bank must pay the full amount of the invoice within 72 hours for the shipment to the Sellers bank with the presentation of a full set of documents as detailed on contract.
4. Shipments continue as per agreement between buyer and KWE Financial instruments as per "ICC 758 Standard" codes and any revisions as set by the International Chamber of Commerce (ICC) UCP 600. Any deviation of the above guarantee and payment terms are subject to acceptance by KWE. The Buyer can claim no responsibility towards KWE in the event that the acceptance of the financial instrument is refused.
5. KWE reserves the right to export directly to its customer's or to export through its affiliated companies, for the account and order of industry SELLER maintaining the contractual conditions entered with buyer. The Parties agree that industry SELLER will request that the shipment of the commodity be carried out directly with the producing company (commodity mill) to minimize tax impacts, or by affiliated companies or by whom Industry SELLER expressly indicates.
Documents such as LOI / ICPO will only be reviewed and accepted if it meets KWE's requirements, such as:
a) Total amount
b) Target Price (according to offer available),
c) Form of payment
d) Form of guarantee
e) bank details
NOTE: The above procedures are an orientation and can be adjusted in the course of the negotiation at any given time.
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(DDP) - PROCEDURES - USA NATIONALIZED
1. Buyer Issues LOI, and CIS to KWE.
2. KWE issues FCO including Banking details.
3. Upon approval of the FCO terms, Buyer issues IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO) and RWA issued to KWE by bank email within three (3) business days and CC to our company which is needed to prepare contract.
4. KWE issues thee Draft Contract (SPA) for buyer's review, after FCO terms are agreed and signed.
5. Buyer review's, signs, and returns Purchase Contract within five (5) business days.
6. KWE signs Purchase Contract (SPA) and sends copy to buyers' email, CLOSED in PDF format via a secure email. The CONTRACT is valid with both parties' signatures and seals.
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(OTG) - APPLIES ONLY IF THERE WAS A PREVIOUS CANCELLED CONTRACT AND WE HAVE A SURPLUS SITTING AT PORT MAX 50K MT.
a) KWE extends a letter of authorization to the buyer to visit the warehouse no more than 5 days after receiving an approved RWA and issues a Commercial invoice.
b) Once the verification is made and verified by the buyer, the buyer issues his SBLC to guarantee (1 Month), for the contract of 12 shipments and pays for his first delivery OTG/SPOT shipment via MT103.
c) KWE provides all documents, including the product title for their first delivery.
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7. Buyer's bank sends SWIFT MT799 pre-advice.
8. After MT799 is received by KWE's bank, Buyer's bank issues SWIFT SBLC / BG / MT760 issued and confirmed by TOP 50 bank within (8) working days.
9. After KWE's bank receives and confirms the SBLC / BG valid for 366 days from the buyers Bank (Assignable - Transferrable - Confirmed), the sellers bank sends a 2% performance bond within (8) Eight banking days.
10. Within Ten(10) Working days, the buyer will receive the completed shipping documents and the Pro Forma Invoice (PI), once the vessel is loaded and ready to depart for the US or Foreign port. (Shipment commences as agreed in the contract within 21-45 days after the SBLC is operative from Buyers bankto the sellers bank).
11. Within (21-45) Days, the product will arrive at the designated port facilities and the buyer will be notified. Once the government port authorities have verified the shipment, the buyer will receive the completed shipping documents, US or Foreign customs clearance and nationalized certificates, along with the location of the port facility.
12. After the inspection of the product and documents by buyer or buyer's representative, Buyer will make payment by MT103 in full on the same day of inspection to seller's bank.
13. Seller transfers title to the buyer.
14. Buyer makes arrangements to pick up the product at the port facilities within (15) Fifteen days after each shipment, extending this time period will be at the expense of the buyer.
15. Seller has sole responsibility for securing all permits, licenses or any other documents required by the government of the import nation.