Commodities Ordering Procedures

Normal Industry Procedures:
1. Buyer submits a valid and completed Letter of Intent (LOI) and Bank Comfort Letter (BCL).
2. Seller issues the Full Corporate Offer (FCO) or/and Draft Contract (DC) with full banking
Details.
3. Buyer accepts and agrees the terms and conditions of the FCO or/and DC by counter signature &
Companies stamp and send it to the seller.
4. Signed FCO or/and DC sent via fax or e-mail that will be deemed as original and valid.
5. Hard copies of the Contract to be issued by the seller and exchanged with the buyer.
6. Buyer signs/stamps all the copies and return 2 (two) hard copies of the Contract to the seller.

7. Seller and buyer will lodge the hard copies of the Contract with their respective banks.
8. The buyer bank provides Proof of Funds (POF) to the seller S bank. The POF is the operative or
Non-operative L/C.
9. Seller will provide the Proof of Product (POP) bank to bank. The prime banks only supply the POP
After the L/C has been established.
10. Buyer will present pre-advised L/C to be approved by seller's bank.
11. Seller will issue 2% Performance Bond (PB) to activate the L/C.
12. Delivery and shipment commence as per Contract.