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Procedure

Procedure

Global Trading Business observes the following procedure. Please note that our procedure is very clear and straight-forward, so there is no place for negotiation except in exceptional cases.

(1) Buyer issues valid letter of intent (LOI) or irrevocable corporate purchase order (ICPO) on a letterhead, signed and sealed by the principal buyer and proof of fund. LOI/ICPO should be issued to: “principal seller via Global Trading Business GTB.” Proof of fund can be in one of the following forms:
(A) A soft probe authorization in the LOI/ICPO  or

( B) A bank comfort letter (BCL)

To view a sample of LOI or ICPO please click here

(2) Upon the successful verification of the buyer’s financial capabilities, in order to complete the transaction the seller issues a full corporate offer (FCO) or draft contract to the buyer.
(3) Buyer signs and sends back the draft contract to the seller within three days.

(4) Seller sends the final draft contract to the buyer after proposed changes. Buyer duly signs and seals FCO & returns to seller, who signs and sends five copies back to the buyer.

(5) Buyer sends duly filled “letter of credit” application form of the L/C issuing bank for the seller’s approval.

(6) After review, the seller returns the L/C application form back to the buyer, with proposed changes (if any)

(7) Within five international banking days of receiving the signed & sealed L/C application form from the seller, the buyer will issue the non-operative L/C to the seller’s bank.

(8) Within seven international banking days of receiving the buyer’s non-operative letter of credit (L/C) from the buyer’s bank, the seller will post the 2% performance bank guarantee (PBG) via SWIFT to the buyers bank.  The performance bank guarantee (PBG) will then
automatically activate the non-operative letter of credit, making the letter of credit operative. The seller will send proof of product (POP) to the buyer’s bank.

(9) Delivery & shipment commence as per schedule mutually agreed. Delivery will be initiated between 30 – 45 days after the seller’s bank accepts the banking financial instrument issued by the buyers bank. Buyer can make a physical inspection with SGS at the time of loading of the product.

(10) Payment will be released to the seller upon negotiation of shipping documents at the seller’s bank.

If the terms and procedures are acceptable, please submit an official letter of intent on a letterhead signed and sealed by the principal buyer and proof of fund to info@globaltradingbusiness.com.

We deal with Principal Buyers or Authorized Mandates only.