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PROCEDURES

T&T establish a common language for international commerce, outlining the responsabilities of buyers and sellers troughout the trade process.

The specific procedures for payment transactions can vary depending on the situation, but here's a breakdown of a common flow for international trade transactions involving commodities.

  • Phase 1: Initial Communication and Intent

    1. Buyer Issues ICPO (Optional): The Buyer may send an Intent to Purchase Order (ICPO) expressing interest in the commodity and outlining desired terms.

    2. Seller Sends FCO: The Seller responds with a Full Corporate Offer (FCO) detailing their offer, including commodity specifications, price, and payment terms.

    3. Buyer Reviews and Signs FCO: The Buyer reviews the FCO and signs it if they agree with the terms. The signed FCO is returned to the Seller.

    Phase 2: Contract Negotiation and DocuSign

    1. Seller Sends Draft Sales and Purchase Agreement (SPA): The Seller sends a draft SPA outlining the agreed-upon terms of the transaction.

    2. Buyer Reviews and Signs SPA Electronically (Within 48 Hours): The Buyer electronically signs the SPA using DocuSign (https://account.docusign.com/) within 48 hours. They also provide:

      • Authorized Signer's Passport

      • Proof of Signing Authority

      • Buyer Company Incorporation Certificate

      • Buyer Company's CIS/KYC Documents

      • (If Applicable) Financier's CIS/KYC Documents (if a financier issues the payment guarantee)

    Phase 3: DocuSign, Proforma Invoice, and Validation

    1. Seller Signs SPA and Sends with Proforma Invoice: The Seller electronically signs the SPA using DocuSign and sends it back along with a Proforma Invoice.

    2. Buyer Signs Proforma Invoice Electronically: The Buyer electronically signs the Proforma Invoice using DocuSign.

    3. DocuSign Verification: Both the SPA and Proforma Invoice signed electronically using DocuSign are considered legally binding with the same validity as original paper documents.

    Phase 4: Financial Instrument and Validation

    1. Buyer Issues Financial Instrument Draft (Within 7 Business Days): The Buyer issues a drafted financial instrument (not the original) directly to the Seller via official email. This draft includes all relevant information,such as confirming bank details.

    2. Seller Validates Draft with Legal Counsel: The Seller forwards the draft instrument to their fiduciary law firm in New York for validation. The law firm advises on any revisions or confirms if the instrument can be accepted.

    Important Note: The Seller should never accept a financial instrument directly from the Buyer's bank without prior legal validation to avoid potential scams or breaches.

    Phase 5: Delivery and Payment

    1. Delivery After Instrument Opens (35/45 Days): Once the financial instrument is validated and opened (usually within 35-45 days), the Seller commences delivery of the commodity.

    2. Payment Upon Shipping Documents (Within 3 Business Days): Upon receiving the shipping documents from the Seller, the Buyer's bank releases the payment via MT103/TT at the loading port within 3 business days.

  • Phase 1: Initial Communication and Intent

    1. Buyer Sends Letter of Intent (LOI): The Buyer expresses interest in the commodity and outlines desired terms in an LOI.

    2. Seller Mandate Sends Soft Corporate Offer (SCO) (Optional): If the Seller operates through a mandate (representative), the mandate might send a preliminary offer (SCO) outlining the product and potential deal structure.

    3. Buyer Sends Intent to Purchase Order (ICPO) to IberEnterprise Group: The Buyer sends a formal ICPO directly to IberEnterprise Group, specifying their interest in purchasing the commodity.

      • Optional BCL for Due Diligence: IberEnterprise Group may request a Bank Comfort Letter (BCL) for due diligence purposes.

    4. Non-Circumvention and Disclosure Agreement (NCNDA): Both Buyer and Seller sign a confidentiality agreement (NCNDA) to protect sensitive information disclosed during negotiations.

    Phase 2: Contract Negotiation and Agreement

    1. Seller Sends Full Corporate Offer (FCO): IberEnterprise Group sends a detailed FCO outlining the commodity specifications, price, payment terms, and other relevant conditions.

    2. Buyer Reviews and Signs FCO: The Buyer reviews the FCO and signs it if they agree with the terms. The signed FCO is returned to IberEnterprise Group.

    3. Seller Sends Draft Sales and Purchase Agreement (SPA): Within two business days, IberEnterprise Group sends a draft SPA outlining the agreed-upon terms of the transaction.

    4. Buyer Reviews, Negotiates, and Signs SPA:

      • The Buyer reviews the draft SPA and proposes any necessary corrections or modifications.

      • Upon agreement on terms, the Buyer signs the final SPA and returns it to IberEnterprise Group.

    5. Final SPA and Signatures: IberEnterprise Group reviews the signed SPA and, if no further revisions are needed,sends the final SPA for both parties to sign and stamp.

    Phase 3: Verification and Delivery

    1. Proof of Product (Optional):

      • Depending on authorization and availability, a Proof of Product (POP) can be provided. This could be a video showcasing the product, date, and Buyer/Seller name.

      • Alternatively, IberEnterprise Group can provide an allocation letter confirming product availability.

    2. Buyer Issues Operative Financial Instrument: Within seven banking days, the Buyer issues a verified and operational financial instrument from a top 50 world bank.

    Important Note: The Buyer should ensure the financial instrument is operative and verified before sending it.

    1. Delivery Commencement: Upon confirmation of the operative instrument by IberEnterprise Group's bank,shipment commences within the timeframe agreed upon in the SPA (usually 15-25 days depending on the port).

    2. Delivery Details and Communication:

      • At the time of chartering the vessel, IberEnterprise Group will provide delivery details to the Buyer.

      • They will also keep the Buyer informed about the vessel's arrival and any other relevant matters.

    3. Loading and Documentation:

      • The product is loaded onto the ship under the supervision of SGS, an independent inspection agency. SGS will then issue a certified Proof of Product (POP).

      • The Buyer has the option to be present during the loading process.

    4. Subsequent Shipments (Optional): If there are further shipments, they will follow the same procedures.

    5. Payment upon Document Delivery:

      • All shipping documentation is delivered to the Buyer's bank.

      • Within 5 working days upon document verification, the Seller receives payment via MT103.

  • Phase 1: Initial Communication and Intent

    1. Buyer Sends Letter of Intent (LOI): The Buyer expresses interest in the commodity and outlines desired terms in an LOI.

    2. Seller Mandate Sends Soft Corporate Offer (SCO) (Optional): If the Seller operates through a mandate (representative), the mandate might send a preliminary offer (SCO) outlining the product and potential deal structure.

    3. Buyer Sends Intent to Purchase Order (ICPO) to IberEnterprise Group: The Buyer sends a formal ICPO directly to IberEnterprise Group, specifying their interest in purchasing the commodity.

      • Optional BCL for Due Diligence: IberEnterprise Group may request a Bank Comfort Letter (BCL) for due diligence purposes.

    4. Non-Circumvention and Disclosure Agreement (NCNDA): Both Buyer and Seller sign a confidentiality agreement (NCNDA) to protect sensitive information disclosed during negotiations.

    Phase 2: Contract Negotiation and Agreement

    1. Seller Sends Full Corporate Offer (FCO): IberEnterprise Group sends a detailed FCO outlining the commodity specifications, price, payment terms, and other relevant conditions.

    2. Buyer Reviews and Signs FCO: The Buyer reviews the FCO and signs it if they agree with the terms. The signed FCO is returned to IberEnterprise Group.

    3. Seller Sends Draft Sales and Purchase Agreement (SPA): Within two business days, IberEnterprise Group sends a draft SPA outlining the agreed-upon terms of the transaction.

    4. Buyer Reviews, Negotiates, and Signs SPA:

      • The Buyer reviews the draft SPA and proposes any necessary corrections or modifications.

      • Upon agreement on terms, the Buyer signs the final SPA and returns it to IberEnterprise Group.

    5. Final SPA and Signatures: IberEnterprise Group reviews the signed SPA and, if no further revisions are needed,sends the final SPA for both parties to sign and stamp.

    Phase 3: Payment and Delivery

    1. Seller Sends Proforma Invoice and Allocation Letter: IberEnterprise Group sends a Proforma Invoice outlining the payment details and an allocation letter from their bank confirming product availability (Bank-to-Bank).

    2. Buyer Makes Initial Payment (30%): Within 5 days of signing the SPA, the Buyer transfers 30% of the total invoice amount to the Seller's account.

    3. Delivery Commencement: Upon confirmation of the initial payment by the Seller's bank, shipment commences within the timeframe agreed upon in the SPA (usually 15-25 days depending on the port).

    4. Delivery Details and Communication:

      • At the time of chartering the vessel, IberEnterprise Group will provide delivery details to the Buyer.

      • They will also keep the Buyer informed about the vessel's arrival and any other relevant matters.

    5. Loading and Inspection:

      • The product is loaded onto the ship under the supervision of SGS, an independent inspection agency. SGS will then issue a certified Proof of Product (POP).

      • The Buyer has the option to be present during the loading process.

    6. Shipment Documents and Payment:

      • The Seller sends a copy of the shipping documents to the Buyer.

      • Within 72 hours of receiving the documents, the Buyer transfers the remaining 70% of the invoice amount to the Seller.

    7. Release of Original Documents:

      • Upon receipt of the final payment, the Seller sends the original shipping documents to the Buyer via email and DHL.

    Phase 4: Subsequent Shipments (Optional)

    If there are further shipments, they will follow the same procedures outlined above.

  • Phase 1: Initial Communication and Intent

    1. Buyer Sends Letter of Intent (LOI): The Buyer expresses interest in the commodity and outlines desired terms in an LOI.

    2. Seller Mandate Sends Soft Corporate Offer (SCO) (Optional): If the Seller operates through a mandate (representative), the mandate might send a preliminary offer (SCO) outlining the product and potential deal structure.

    3. Buyer Sends Intent to Purchase Order (ICPO): The Buyer sends a formal ICPO directly to the Seller, specifying their interest in purchasing the commodity.

    Phase 2: Contract Negotiation and DocuSign

    1. Seller Sends Full Corporate Offer (FCO): The Seller sends a detailed FCO outlining the commodity specifications, price, payment terms, and other relevant conditions.

    2. Buyer Reviews and Signs FCO: The Buyer reviews the FCO and signs it electronically using DocuSign ([https://www.docusign.com/]) if they agree with the terms. The signed FCO is returned to the Seller.

    3. Seller Sends Draft Sales and Purchase Agreement (SPA): The Seller sends a draft SPA outlining the agreed-upon terms of the transaction.

    4. Buyer Reviews and Signs SPA Electronically (Within 48 Hours):

      • The Buyer electronically signs the SPA using DocuSign within 48 hours.

      • They also provide electronically through DocuSign:

        • Authorized Signer's Passport

        • Proof of Signing Authority

        • Buyer Company Incorporation Certificate

    Phase 3: Escrow Agreement and Payment

    1. Escrow Agreement Negotiation: All parties (Buyer, Seller, and Bank) negotiate and sign an escrow agreement with a reputable Swiss bank.

    2. Buyer Provides Escrow Documentation: The Buyer electronically submits all required documentation to the bank for escrow verification.

    3. Buyer Funds Escrow Account: The Buyer transfers one month's face value of the purchase to the designated escrow account in the Swiss bank.

    Phase 4: Delivery and Payment

    1. Delivery after Funds in Escrow (35-45 Days): After the funds are verified in the escrow account (usually within 35-45 days), the Seller commences delivery of the commodity.

    2. Shipping Documents and Payment Release:

      • Upon receiving the shipping documents from the Seller, the Buyer's bank reviews them for accuracy.

      • If the documents are compliant with the SPA, the bank releases the full payment to the Seller via MT103/TT within 3 business days.

    Phase 5: Escrow Release (Optional)

    1. Escrow Release Upon Completion (Optional):

      • If the SPA includes specific conditions for finalizing the transaction (e.g., product inspection upon arrival),the escrow agent will release the remaining funds to the Seller after these conditions are met.

  • Phase 1: Initial Communication and Intent

    1. Buyer Sends Intent to Purchase Order (ICPO): The Buyer expresses interest in the commodity and outlines desired terms in an ICPO.

    2. Seller Sends Full Corporate Offer (FCO): The Seller sends a detailed FCO outlining the commodity specifications, price, payment terms, and other relevant conditions.

    3. Buyer Reviews and Signs FCO: The Buyer reviews the FCO and signs it electronically using DocuSign ([https://www.docusign.com/]) if they agree with the terms. The signed FCO is returned to the Seller.

    Phase 2: Contract Negotiation, DocuSign, and KYC

    1. Seller Sends Draft Sales and Purchase Agreement (SPA): The Seller sends a draft SPA outlining the agreed-upon terms of the transaction.

    2. Buyer Reviews, Signs SPA Electronically (Within 48 Hours):

      • The Buyer electronically signs the SPA using DocuSign within 48 hours.

      • They also provide electronically through DocuSign:

        • Authorized Signer's Passport

        • Proof of Signing Authority

        • Buyer Company Incorporation Certificate

        • Buyer Company's CIS/KYC Documents

        • (If Applicable) Financier's CIS/KYC Documents (if a financier issues the payment guarantee)

    Phase 3: Escrow Agreement and Block Funds

    1. Escrow Agreement Negotiation: All parties (Buyer, Seller, and Bank) negotiate and sign an escrow agreement with a reputable bank. This agreement will outline the process for holding and releasing funds during the transaction.

    2. Block Fund Arrangement: The SPA will specify the use of block funds. These are funds set aside by the Buyer's bank and held in escrow until certain conditions are met (e.g., delivery of goods).

    3. Pre-Advice and Acceptance (MT799):

      • The Buyer's bank sends a pre-advice message (MT799) to the designated fiduciary bank, stating their readiness to issue the block funds.

      • The fiduciary bank responds via SWIFT message, accepting the block funds to be opened and held in their name.

    4. Block Fund Transfer (MT760): The Buyer's bank sends a SWIFT message (MT760) to the fiduciary bank,transferring the block funds.

    Phase 4: Validation and Delivery

    1. Financial Instrument Validation: The Seller validates the draft financial instrument with their legal counsel in New York.

      • The Seller advises the Buyer of any issues or confirms the instrument can be opened.

      • They also specify the designated fiduciary's name and account number where the block funds should be held.

    2. Delivery after Block Funds Opened (35-45 Days): Once the block funds are verified and opened in escrow (usually within 35-45 days), the Seller commences delivery of the commodity.

    Phase 5: Payment and Release of Funds

    1. Shipping Documents and Payment Release:

      • Upon receiving the shipping documents, including an SGS report (independent inspection), from the Seller,the Buyer's bank reviews them for accuracy.

      • If the documents comply with the SPA, the bank releases the full payment to the Seller from the block funds held in escrow via MT103/TT within 3 business days.

    Phase 6: Escrow Release (Optional)

    1. Escrow Release Upon Completion (Optional):

      • If the SPA includes specific conditions for finalizing the transaction (e.g., product inspection upon arrival),the escrow agent will release the remaining funds (if any) to the Seller after these conditions are met.

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