Sales Contract UCP600 ICC FOB Incoterms 2010 Advised by David Papa

Master Contract © FTNX 2019 Page 1 of 53
Sales Contract UCP600 ICC FOB Incoterms 2010 defined:

Supported by TWINE 2019
Blue writing defines to explain issues related certain paragraphs. The informed PCT add and
extracts relevant paragraphs to arrive at the required delivery mode. For the first years however
the FOB trading aspect applies. Notes under each paragraph explain certain aspect pertaining to
the paragraph , thus sub paragraphs numbers are missing. When you extract the main headers ,
to create your own contract from this master advice, please ensure main sections and
paragraphs thereunder are numbered. Even though aspects herein override some aspect of past
doctrine, such means that the past doctrine is ‘stale’ rather than unworkable. Stale advice could
mean that sometime in the future such stale aspects will no longer be able to be used, and
may in the future become redundant. This new contract model brings into play an updated
current perspective.
The first contract with the blue printing under each section is not fully specified, with some
section are missing and is given to show the active aspect of using a pre advised credit and
matter of FOB entries.
The second CIF contract is the right fully defined model. Applicant should use the CIF model
and work back to produce the CFR mode and ultimately the FOB contract.
Please apply your one margins Please change and correct any minor errors
START Outline FOB contract

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(Heading )
Seller Details
The ‘Seller’ Davide Giovanni Papa trading as
FTN Exporting, ABN: F345623
P.O. BOX 30 Carlton North, 3054
Melbourne, Victoria, Australia.
UCP 600 DLC is applicable; hence as it applies to the DLC issuance it may as well apply on
contract. Full name and business address will need to apply as well as a mailing address. Using
only Post Office Box should be avoided.
‘Seller’ as defined under the ICC International Rules of Agency further defined to be a private
Independent Intermediate ‘Seller' or ‘Vendor’ acting as such without any disclosure of any
other principal entities.
Trying to protect the Seller’s position to the strongest maxim; the extra term such as ‘Vendor’ is
also applied. There can be no confusion. The End Buyer is well informed in that as such is not
dealing with the Supplier is reinforced accordingly.
Definition of ‘Buyer’
Buyer or End Buyer, - corporate or individually, defines to identify the person, person(s) or
entity, paying for the goods, taking possession of the goods as well as obtaining the title to
such goods.
Details of the Buyer

Mr. Pink: CEO ABC Corporation, 77 Sunset Strip, 90122 California USA
This above is clear: You are not selling to another intermediary buyer, but an End Buyer who gets
both possession and title of the goods, an intermediary cannot obtain possession of such goods
ever only an implied title.
CONTRACT ISSUE DATE

The date of which the contract is made and issued by the Seller to the Buyer is defined to be
date the contract was issued; the date to correspond with the applicable validity date.
Date: The day of in the year 2019
TRANSACTION CODE
The transaction code on the offer and contract once issued cannot be changed.
Transaction Code:
The transaction code on the offer goes here as applied on the purchase offer with the Supplier.
Use words more so than numeric application in defining things like date and values.
Purpose is to avoid battle of Bills
1.0 VALIDITY
Fifteen days or less from the applicable issue date, shall define validity of a date to which upon
such time all negotiations of the Draft contract are to be completed, resulting in the final
signed formal contract. All dates and times as per (AEST) Australian Eastern Standard Times
and Dates, are taken from 12.30 PM. Days shall mean 24 hours per day. 30 days shall define an
average month. 365 days shall define an average year.
No confusion. Thus if you put "Banking days" then according such banking days should be
defined. ‘Days’ is the preferred application for contract, even though UCP600 credit rules define
the use of “Banking days”, such usage is not appropriate for contract application. To follow public
holidays in every country in the world when preparing a contract is not a reasonable expectation.
So when specifically addressing UCP DLC matters then the term banking days may apply.
2.0 ACRONYMS AND DEFINITIONS

All acronyms defined at least once, in running form, throughout the contract.
English language spelling applies
It makes for a shorter document, and much easier reading, as it's cumbersome to scroll pages
every time one needs to stop reading to ascertain the meaning of an acronym.
3.0 PREAMBLE
This contract cannot be applied without acceptance of an offer for the purchase of goods
apparent. The said Seller has purchased, or is holding contract to purchase, or is able to
purchase the interests in offered goods from a confidential undisclosed source or sources,
before offering such goods to the buyer. The Seller is offering such title and interests in such
goods, clean and free of liens to the defined Buyer at a good fair and reasonable price. The
Seller as per the nature of business being conducted will transfer his interests and title of the
said goods or required parts thereof, to the buyer, without obtaining possession of the actual
goods.
The Seller shall be responsible to initiate the process to appease the concerns of the buyer, of
such said matters of warranty and quality to which, the Seller shall ensure that all matters of
said quality and warranty of the goods, follow such goods, for the benefit of the End Buyer of
the goods, and that the obligations to ensure of such shall be the responsibility of the Seller.
The buyer, once paying and obtaining the title to the said goods shall be entitled to
possession of the goods, in accordance with the terms and conditions of this contract. The
Seller shall be responsible for all matters up to final delivery. “Delivery” as defined accordingly
under the rules applied by ICC ‘Incoterms’ 2010.
In all, the Seller shall apply the best of his abilities to ensure above all else, that the goods are
delivered as a primary unconditional application, in accordance within the scope, terms and
conditions of this contract.
It's up to the seller if they choose to incorporate a ‘Preamble' to generalize the whole nature of
business being conducted. Certainly the terms and condition would suffice alone, but the PCT
often applies a preamble, to ensure that in the first instance should some terms and conditions
later prove challenging, the preamble may be able to add support to such a contract term being
later disputed. As for the Goods Warranty - such a Warranty still remains an obligation of the
Supplier, in that the Warranty obligations follow the goods to which the Seller must ensure of
such when sealing a contract with the Supplier. Remember no matter what is gain form the
supply contract, it does not follow that all because we secure one aspect from the supplier, that
the end buyer will also receive the same. If for example a P.G SLC is secured form a supplier, it
does not means that FTN exporting will issue such to its end buyer..etc..
4.0 LETTER OF INDEMNITY: (L.O.I)

The Seller has used a high degree of sourcing ability, skill and expertise in being able to offer a
defined product to the said Buyer for reasonable gain, and where the Buyer has obtained the
lowest fair price for such goods, as a direct result of the Seller’s ability, skill and expertise.
The Buyer shall assist the Seller in all matters as to not hinder the Seller in ensuring that the
goods are delivered within the scope, terms and conditions applied in this contract as a
primary protocol.
If the seller is morally unable to perform it duties pertaining to the execution of the contract,
once it is signed, due to matters of legal frustration, as caused by a subsequent unforeseeable
event or unforeseen discovery, which the seller has deemed, may cause the buyer to be placed
in an adverse and financially precarious position, then seller at his or her discretion, may
cancel or suspend the contract or financial instrument–before the DLC is accepted, or after it is
accepted but before carrier is booked–Inter alia; in the event of this scenario occurring so as
protect the interests of the buyer; no compensation nor consequences for the sellers
honourable action shall be sought, from the buyer, once first class irrefutable evidence of the
frustrating even is provided.
The L.O.I. is simply a statement to reinforce to the buyer that

1. The Seller is indeed an intermediary, and that once the contract is signed, the
2. Buyer cannot ‘pretend' to have not been informed of this fact.
It's also a statement of fact, supporting the preamble in that
1. PCT will give assistance in attempting to look after the buyer’s interests at all times.
5.0 PRODUCT ON OFFER

AUTOMOTIVE ETHANOL
What are you offering? Correct international name of product should be specified.
6.0 ORIGIN
BRAZIL, SOUTH AMERICA
This is the actual product from. Not where its stored but actual origin.
7.0 SPECIFICATIONS, GRADE, PACKAGING

Fuel Anhydrate Ethanol for Automotive Use.
Origin Brazil: Technical Regulation: DNC 01/91 ‘AEAC' Appearance:
Clear and free of suspended matter : Total Acids Mg/Litre-30 P.P.M Max.
Electrical Conductivity : u S/m-500 Max.
Specific “Point of Production” gravity at : 20 C Kg/M3 791.5 max.
Ethanol at point of production : 99.3 min
Copper as Cu : 0.07/ 8 P.P.M
Nil : Fe, Na, Cl, SO4
Obtaining a good quote or offer from the Supplier includes the Supplier’s own specifications to
the goods which must be applied on the contract. Informed Intermediareis (ISS & PCT) do not
need to concern themselves with what such specifications mean. Professional Intermediaries are
not Industrial chemists. A buyer should know what they are buying, and that such information
has come directly from the Supplier. The main properties are advised. It is based on the offer .
Whatever was accepted on the offer is what’s advised on the contract. If the buyer wanted more
information about specification it should have asked for such at the offer stage. In any case , if a
demand was made for more specifications, the PCT has full specification already secured and as
such it would not be problematic to add such to the contract , if the buyer is insisting for such.
8.0 QUANTITY
8.1 Total contracted quantity being sold: 60,000 Cubic Meters (Metres) defined as 'M3. The
terms ‘M3’ is defined to mean 1,000 (One Thousand) litres (litres) plus or minus 10 (Ten)
percent.
8.2 For purpose of clarity the ‘M3 weight factor shall remain the assumed purchase value
in relation to quantity while goods are on land. The supplier shall offer a ‘Metric Ton’ advice on
all delivery documents.
8.3 The seller shall expect that 1 (one) Metric Ton of Ethanol by weight has a density
factor of 0.789 in where for every 1 Metric Ton of Ethanol on board equates to 1.27 Cubic
Metres (M3) of Ethanol -/+10%
8.4 The seller expects an on board quantity of 76200 Metric Tons -/+10%
Pro Intermediaries are now no longer allowed to change the Supplier’s quantity being offered
into another measurement value to appease the End Buyer’s request. If a quote defines let’s say a
supply of 1,000 kilograms of Gold Bars at 1 kilo each, then the Buyer/Seller must not convert this
amount to mean 1 Metric Ton on it own. The Metric Ton aspect is given in connection with
relative factors also being applied on the contract. Metric ton is on board weight, regardless how
such weight is defined on land. How the quote is received pertaining to quantity then the
same must be applied when reselling. The issue here, beside matters of converting such
quantities accurately into another application, is one of clean presentation of
documents. I.e: I Metric Ton of crude oil is not proper. It is proper if conversion factor are
apparent 7.5 Barrels = 1 MT
9.0 SHIPMENT SCHEDULE
The total minimum contracted quantities being purchased shall be defined as;
(a): 60,000 Cubic Meters (M3) delivered over a 3 month period.
The total per monthly minimum shipment delivery range offered.

(b): 20,000 M3 per Month plus or minus 10 percent.
The total minimum shipment per year offered;

(c): 3 shipments of: 20,000 M3 per shipment, per Month, consecutively for 3 months equates to
76200 Metric Tons in total or 25400 Metric Tons per each monthly delivery -/+10%
Name of Port and country of loading said goods;

(d): SANTOS, BRAZIL.
(e): Price of Goods

(f): First Delivery Date
FOB as per "Incoterms 2010" is the delivery rule that applies, thus you must name the port of
loading.
10.0 DELIVERY
FREE ON BOARD "NAMED PORT OF SHIPMENT" (F.O.B.) as per the ICC Paris, France;
(International Chamber of Commerce) delivery mode, as applied under rules ‘INCOTERMS
2010’ defined to mean “International Interpretation of trading terms as last issued in the year
2010”.
If you issue a CFR or CIF contract this past needs to also reflect as much
11.0 PRICE AND WEIGHT TOLERANCE
As allowed under UCP600: plus or minus 5 percent as defined on final contract shall be allowed
to apply as a tolerance applied to the financial instrument used to pay for the goods. Up to 10
percent is allowed to apply as a tolerance of the goods weight without effecting presentation
of delivery documents. The aspect defined this contract respectively as ‘-/+ 5.0% or -/+
10.0%’
Remember the Plus and Minus 5% tolerance factor applies only to the DLC value and -/+10
percent always applies to the goods value - Both are applied to the rules of trade as it applies to
UCP600 DLC issuance and collection rules. It means that the bank does not have to contact the
end buyer if document are a little shy in defining the goods as originally offered. If 100,000 MT is
offered and only 96,000 MT is evidenced as being on board, then the bank will allow documents
to be accepted. If the goods are on board at 87,000 MT bank will refuse to honour presentation
documents unit the buyer has issued a waiver .But this now means if the Buyer does not issue a
waiver in due course, you will still need to ‘perform’ as the contract cannot be made avoidable
because of this one delay in payment , even if it i
s written on the contract, as no unforeseeable nor frustrating event has happened.
12.0 PERFORMANCE GUARANTEE

12.1 As defined accordingly, the Seller shall cause to advise the buyer, an authenticated copy
of the following defined Seller’s Performance Guarantee, personally declaring that the Seller is
ready, willing and able to abide by the stipulation of a Performance Guarantee as defined.
12.2 Should the Buyer be at fault in not ensuring that the carrier is at the loading port on or
before the said given time as applied in this contract, the Performance Guarantee shall
automatically cease to be valid, unconditionally for the total contracted value of the goods
ordered, from the first time such fault is recorded.
12.3 The presentation of said leading document that invalidates the Performance Guarantee
will be delivered in accordance with the conditions scope and terms of this contract as defined
under “Delivery Documents”.
12.4 The said Performance Guarantee value in the format of a ISBP 2013 defined Standby
Letter of Credit (SLC), or similar.
12.5 The Performance Guarantee for the net and clear value of not less than the amount
defined below, is payable unconditionally on first demand upon the Buyer identifying that a
valid genuine breach of said delivery performance has occurred, as verified by the issuing bank
to the advising bank of the Seller.
12.6 Where multi-shipments are involved the issuance of the Performance Guarantee shall
be defined as being “Non-Cumulative Revolving”. The performance guarantee shall be advised
within 3 days after the acceptance of the Buyer’s financial instrument.
12.7 The Buyer shall allow a tolerance of plus or minus 1.0 percent and accept the
Performance Guarantee that bears such a tolerance, per each and every delivery.
Remember even though you offered a LDD as a P.G, the buyer didn’t accept it, then adding the
P.G close on the contract is simple to apply, because you had already secured the SLC P.G from
the supplier. If a UCP SLC is secured it must be made as transferable if the ISBP 2013 SLC is
used , such does not need to be advised as transferable. In the LDD aspect the seller could have
offered the buyer let’s say US$1.25 per MT, in where on default by the supply (late delivery) the
suppliers SLC of lets says US$ 2.00 per MT would have been collected by the PCT, while it paid
the LDD form its gross profit, allowing the seller to pocket the SLC and generate an added
income for the inconvenience caused by the supplier.
13.0 PERFORMANCE GUARANTEE VALUE.

1.20%(percent), plus or minus 0.025% per each shipment contract value of the goods being
purchased.
The Buyer agrees to accept the performance guarantee when lodged carrying the above value
plus or minus 1.0%. The Buyer agrees to accept a Performance value equal to, more than but
not less than the defined rate.
The Intermediary has to make the deal work for him. More about the P.G. later, for now the
above gives clear indications of its value, and "PCT" in its wisdom has even allowed for a 0.025%
percent tolerance to prevail.
Note:
PCT is attempting to offer a P.G. as a personal instrument without the term “bank issued” or
“endorsed” being apparent. If the End Buyer requires changes on the contract to reflect a bank
issued SLC, then the Seller will add the term accordingly. If the goods were sold without P.G. all
mention of such is omitted from the body of the contract. Thus if a supplier does not offer a P.G
to FTN Exporting when buying , FTN exporting does not offer such to the end buyer .
In recent time FTN exporting has offered a newly tested LDD protocol (2009) in place of P.G
(LDD: Late Delivery Discount ) A P.G is not a normal trading application as some may think,
but an extraordinary one. Not offering a P.G is the first best application. Not asking for one from
the supplier is also good practice. From 2015, we now seek a SLC P.G from the supplier but offer
the LDD to the end buyer is the first aspect to apply. We tried making things easier for the
supplier also whether the issue a P.G or not is not ours concern. We will expect a P.G SLC form
the supplier is the assumption and attitude now taken. You need to wait for a supplier to refuse
providing a SLC P,G before applying an alternative arrangement; as refused when the off wash
taken, and not when the contract is issued. Likewise when offering a LDD to the end buyer ; wait
for buyer to refuse it first.
14.0 SELLER’S WARRANTY OBLIGATIONS

The Seller declares with good intent that the goods being sold are fit for specific use and
fulfills the specified condition to which such goods were sold, and that; if the Producer,
Manufacturer or Supplier of the goods is at fault for delivering goods of a defective nature
from the point of manufacture, as to cause concern to the Buyer, the Seller shall take
responsibility of any such reasonably defined defects in the said goods, and initiate procedures
to remedy such defects to the person taking final possession of such goods, within a period of
90 days after such goods having arrived in the possession of the buyer. All claims of such
defects and / or damage must be advised on or before 28 days of the Buyer obtaining
possession of such goods.
The Seller has secured and obtained specific implicit right to transfer warranty obligations,
upon reselling of goods once only, to which the said manufacturer or owner of such goods has
agreed to endorse such an application.
Procedures in claiming remedy for the supply defective goods shall apply the following course
of action. The Buyer shall first make notice to the Seller, of said defects, in writing giving
detailed information regarding such claims, and the proving of such in writing, sworn under
affidavit or an acceptable statutory authority declaring that the goods did arrive in a state
other than ordered, and that such goods are defective or damaged bearing the type of such to
indicate that the Supplier or Manufacturer of such goods is at fault of delivering such said
damaged goods.
Photographic evidence shall also be provided of such damage where appropriate. Such a
notice shall be advised to the Seller via facsimile, Jpeg or e-mail, to which the Seller shall
attempt to rectify the said defect on behalf of the Buyer, in the first instance, to the mutual
satisfaction of both, once the evidence provided has been authenticated proving that such
goods were delivered by the manufacturer or Supplier in a manner not ordered.
The Buyer shall allow any authority of the Seller to visually inspect the damage to the said
goods in possession of the Buyer, in the Buyer’s country and / or premises and make a report
of such to the Seller.
The benefits conferred by the said warranty are in addition to all implied warranties, other
rights and remedies in respect to the goods being purchased, which the buyer has under the
Trade Practices Act and / or similar state or territory laws as applied in the country where the
goods are being exported from, as well as matters of statutory obligations as applied under
the Hague-Visby International shipping rules in conjunction with the "Sales of Goods Act 1979”
as applicable under English law for the carriage of goods, where such matters incorporate
damage caused to such goods that fall upon the obligations of the Carrier to remedy, as
defined by the terms and conditions on the back of the Bill of Lading form.
The Seller shall be obligated to remedy such damage and defect as it applies, on behalf of the
Supplier once such evidence has been established in determining that the said Supplier or
manufacturer is at fault for selling such said damaged or defective goods.
So the goods have Warranty and so long as the buyer proves that the Supplier is at fault for
delivering as such, the Seller shall cause the Supplier to remedy such fault to the buyer directly.
The Seller can only inter-plead on behalf of the Buyer to mitigate such damage and cannot be
made to bear personal responsibility to any damaged goods that have not even been sighted,
because the seller is not the *supplier. Furthermore exporters in nearly every country in the
world have to meet basic standards to export goods. A Buyer causing issue with an exporter in
regards to such damaged goods in where remedy is not forthcoming could place the export
license of the said Supplier in a position where it could be revoked if it’s proved that such a
Supplier has intentionally sold damaged goods where no remedy was forthcoming. Thus once the
Seller/Buyer has obtained the required assurances from the Supplier of Warranty and Remedy it’s
endorsed over to the End Buyer as the first application. If the Supplier fails to act on such a
Warranty Obligation on goods which arrive as damage or defective, then the End Buyer can still
personally cause the matter to be taken up directly with the Supplier as per the laws and rules
applicable to the Supplier’s country in matters of selling such damaged goods and the remedy
thereof. Government Agencies who issue such export licenses to a Supplier don’t look favourably
upon a Supplier’s breach in matters of selling defective or damaged goods. The exporters own
representative being the Consulate in the buyer’s country is the first avenue of approach in
getting remedy for the supply defective of damage goods where satisfaction of the End Buyer has
not been met in the settling of such matters. Most local consumer laws in most buyers country
are enforceable on matters of defective landed goods as well..
A large retail store buy from China vacuum cleaners, which later is found to be faulty and
dangerous. The ‘seller’ is obligated to take up the matter of accommodating the buyer with a
refund, who in turn is reimbursed buy the supplier, not only the buy price but a premium may
be sought for loss of profit as well. It is also an obligation of the seller to recall such goods. But it
can’t get the blame for injuries caused. The supplier remains liable for injuries his faulty product
“not fit for purpose’ has caused.
15.0 PAYMENT OF GOODS

The Buyer shall be required to open a letter of credit to the seller as defined, within 7 days of a
contract becoming formal.
Bank issued Payment Required: An Irrevocable Transferable UCP 600 pre-advised

operational documentary letter of credit unrestricted, issued as transferable.
If a letter of credit is to be issued as transferable then the term MUST appear on the letter of
credit, otherwise it's implied that the credit is issued, as not being able to be made transferable, is
a new additional edict applied under UCP600. If a pre advised credit is sought, the buyer as
stated on the offer but first enquire to its bank if a P.A DLC is able to be opened, as UCP
complying bank have the option not to issues a P.A DLC’s.
Such a financial instrument must be issued from Top 100 ranked world class safe bank as
defined from the year 2019 onwards as listed on the said contract in the form of applicable
web site address or addresses, otherwise pre-advised credit shall be issued being fully
confirmed applied to the Seller’s Advising Bank at the Buyer’s expense. The seller has
discretion to accept such a credit form a top 150 ranked bank.
The point here is that the credit must not be issued from a third world country or a small bank in
a first world country. The seller has to accept the credit, before it can become an “acceptable
credit”. If it’s not accepted, the Buyer is in breach of conditions because the Seller will advise
Non-acceptance of the issued credit, falling back on the contract clause to enable the seller to
stand firm in regards to acceptance. Thus a “Top Bank” is only used as a guiding protocol and
could mean up to a top 150 world class bank will do, so long as the bank is a large well
respected bank the DLC can be accepted. Otherwise IT MUST BE ISSUED AS CONFIRMED.
CONFIRMED BY YOUR OWN HIGHER RANKING WORLD BANK OR CONFIRMED BY ANOTHER
CORRESPONDING BANK OF THE BUYER - IF YOU CANNOT GET A CONFIRMED CREDIT DO SO
, EVEN THOUGH YOU HAVE NOT OFFERED SUCH TO THE SUPPLIER. The pre-advised credit is
not offered to the supplier as the pre-advised status is removed before the DLC is is transferred
to the supplier .
The Credit as referred shall be issued and become payable 100 percent at sight upon
presentation of required complying delivery documents as per those defined under Incoterms
2010 as being specific and applicable as it relates to UCP 600 issuance Rules applicable the
Credit.
At Sight: Present the required “Title/ Delivery documents” for the issuing bank to examine, to
which 5 banking days is allowed for such examination of documents to prevail, after of which, if
all the said delivery documents are presented ”Clean” the DLC issuing bank will allow collection
to proceed on the financial instrument used to pay for such goods.
The credit shall be opened as operational, to which the Seller shall serve a document carrying
the heading ‘Proof of Interests’ in the goods being offered, as defined on contract. Once
genuine disclosed ‘Proof of Interests’ in said goods is advised the pre-advised credit shall
revert to being a normal active operational transferable credit, carrying with it the required
confirmation of such if applicable. The Document bearing the heading “Policy Proof of
Interest Certificate” (PPI) as defined on the contract in blank form, shall be the only
document used to which once such disclosure information has been applied, as
surrendered to the issuing bank of the Buyer, shall cause the pre–advised credit to revert
into a fully active irrevocable transferable letter of credit. Here is the part which states
clearly - Buyer opens the pre advised credit as operational, the seller surrenders the previously
said "PPI", which make the credit active and able to be transferred so long as the transfer fees
have been paid.
PLAY AROUND WITH PRE ADVISED CREDIT AT FIRST, BUT LATER APPLY AS A MINIMUM BASIS
THAT A FULL ACTIVE TDLC IS OPENED. THE PRE ADVISE CREDIT IS THE LEAST SAFEST CREDIT,
BUT ITS GOOD FOR A END BUYER TO OPEN AS ITS THE CHEAPEST INSTRUMENTS TO OPEN.
The actual costs of the goods shall apply that all bank charges and fees including the
transferring charges, pre advisement fees and conversion of the pre advised credit into an
operational and active credit shall be for the cost of the Buyer, the said applicant of the credit.
The said transferring fee only shall then be returned as a credit to favour the Buyer on the
Seller’s invoice. The Buyer hereby agrees with the Seller that such charges shall be the cost
applied to the actual goods, of which the Buyer will pay for on behalf of the Seller, in
accordance as to allow Article 38 of UCP600 Paragraph (c) to imply that the Buyer has ‘agreed’
with the Seller to pay for such fees once the credit becomes transferable and after proof of
goods via the issuance of the PPI Certificate has been advised.
The right to have such transfer fees paid by the buyer is apparent under UCP600 articles, but it’s
a thin line - as such the PCT may insist on such, and that such an insistence is based on the fact
that the buyer has agreed to do so once the contract has been formally signed as accepted
already indicated on the offer. This is why an offer is so important, it allows the buyer to know
beforehand what his expectation are. If the buyer accepts the offer, the contract should require
very little changes. If the issuing Bank refuses to pay such a transfer fee, then the Buyer faces a
breach of conditions with the Seller.
Don’t offer to return the transfer fee if you don’t want to- hence I am showing you the absolute
minimum acceptable contracting conditions. But it’s a good aspect to offer. From you gross
priest, you could readily reimburse the transfer feet show the buyer you added good intent. FTNX
look at deal with merit and if excellent profit margins are evident, FTNX offer to reimburse the
transfer fee, if not it ensure that the relevant clause is removed.
If the Buyer or his bank be unable to issue a pre-advised credit then a normal active credit shall
be advised in its place, without affecting the overall basic terms and condition of issuance, in
accordance with the applicable said UCP600 application, to which the transaction shall
continue to be transacted upon accordingly as defined in this contract.
The “Top Ranking” bank status is still applicable, acceptance of the DLC is still applicable as are
the fees- instead of a pre advised credit being issued, it’s issued as being already active and
operational ready for transferring - "PPI" is still advised within the schedule time frame, but the
DLC can be transferred immediately once advised. It’s at the discretion of the bank to issue a Pre
advised credit, if the buyer signed the contract and finds out later that his bank does not issue
pre advised credits, then that’s the buyer’s fault, to which a normal credit will be issued instead,
or the buyer will still face a breach of contracting conditions.
Upon delivery documents being successfully applied against presentation the applicable rules
of collection as per URC 522 shall prevail (ICC Uniform Rules of Collection Publication 522).
Rules apply to issuance of the credit so do rules apply when collection is being attempted, mostly
as it applies to in-house procedures applied by the bank. The PCT will need a few forms to be
signed for the collection process to be activated in where within ‘5 banking days’ collection
proceedings are finalised. The process allows for the sellers advising bank to collect against the
buyers bank, and remit the proceeds less you gross profit to the suppliers bank.
Where multi shipments are being advised the credit shall be issued as “Non-Cumulative
Revolving”.
Cumulative revolving means: Example: First payment 10 dollars, Second payment 20 dollars,
third payment 30 dollars. Not used in international trade by intermediaries. “Non cumulative
revolving” means: The total Multi shipment contract value is 30 dollars, the DLC value is 30
dollars, and the monthly shipment value is 10 dollars. When 10 dollars is paid from the top of
the "Stack", another 10 dollars value is applied to the bottom of the stack. The value of the DLC
remains at 30 dollars accordingly.
Near the end of the delivery schedule in let’s say a 12 months of supply, the said “Stack” reduces
to zero. On the tenth month the credits value would imply to be 30 dollars, on the eleventh
month 20 dollars and on the twelfth month 10 dollars.
The Performance Guarantee works on the said Non-cumulative revolving basis as well where a
multi deal is in play on the same basis. In the USA the term "Cumulative revolving credit" can
also apply to mean an "Evergreen credit”.
So the DLC Total value is dictated by it contact period.
As it applies to mean 'Pre-advised credit’, so shall it apply to a normal active credit issuance
not carrying the ‘Pre-advised’ status, as appropriate under ‘UCP600’ partial payments are
allowed for partial delivery. Trans-shipments are not allowed.
Transhipment is not allowed, means that the goods must not be loaded on one ship then
transferred to another for final delivery. Ship also means ‘barge.’ The PCT is dealing with one
ship applying one Bill of Lading. The PCT must not, for instance, deal in goods that are destined
for offloading to more than one port. The Intermediary is dealing with one End Buyer, one
shipment and one quantity allotment of bulk goods. In a container deal the opposite prevails.
Many customers to the same or different ports having container loads, or a single container load
of goods delivered accordingly.
The Non-Cumulative Revolving value of the financial instrument lodged for payment as
advised accordingly shall be clearly defined on contract in United States Dollars. Final debit or
credit amount is dictated by tolerances as defined on each set of delivery documents
presentation as defined specifically on the Seller’s invoice, includes all credits and debits
related to subsidies and obligated expenses of each party to the contract as defined under
Incoterms 2010.
Incoterms 2010 establishes who pays for what. Thus debits or credits apply for all such deals.
When we see on a contract or an offer such things like "Certificate of origin" as buyer expense, it
means that the Buyer opens the credit, but the Seller will obtain a certain certificate or document
such as stated, on behalf of the buyer, but the buyer’s account will be debited for such an
expense accordingly. The Intermediary simply needs to follow Incoterms as they apply for a FOB
or CIF transaction to clearly become aware of who pays for what. As the supplier arranges such
documents for the Seller / Buyer, so does the Seller/Buyer transfer or endorses as such to his End
Buyer.
16.0 DELIVERY DOCUMENTS "F.O.B. Named Port of Shipment"

Whether electronically or physically served by a registered courier, to the buyer direct, or to
the bank of such, the Seller shall advise the following documents for presentation and
authentication, in accordance with Incoterms 2010 definition and responsibilities as they
pertain in a strict F.O.B delivery application.
Past advice about trading on courier delivered hardcopies of transport document may still apply.
Today however. The use of electronic documents prevails which a simpler modern aspect is
now also offered. Delivery documents arrive in the hands of the Seller, who then goes to his
bank to instigate transferring of such - or the Seller, may simply endorse the hardcopy
documents over to the Buyer’s bank via registered courier directly, after changing the Supplier’s
invoice with the Seller’s own invoice.
Unless the advising bank instructs you differently, the documents are presented on a bank to
bank aspect electronically. A internet copy is advised to the PCT by the supplier via PDF’s. The
PCT now print each copy and places the word original on the top of each document where
space is available using a blue pen. The PCT all takes a copy on the supplier invoice and make its
own copy with its own entries applying. When the DLC hits the bank for the PCT’s account, the
PCT will receive either a letter or phone call in where the advising bank is affirming your that
you have received a credit, with no role played by them as to payments, in where it will ask the
PCT for Instructions. The PCT instruct the bank to send a copy of such document as well.as. It will
also state that the sellers invoice be replaced and that the PCT will arrive at the bank via an
appointment to provide the said copy of its invoice. These are the initial instruction or the PCT,
regardless if the bank is called, or bank notifies the PCT.
The formal application of “eUCP” (electronic) production of documents has been around for a
long time, but usually applied among big traders and banks covering the same type of order,
where an End Buyer is dealing directly with a Supplier. The application is further reinforced in
that the Letters of Credit on the other hand only need to apply that the electronically transmitted
version is allowed to prevail, but only if words to the effect state on the electronic copy –“This
transmitted version is the active credit” No documents by airmail needed; meaning that no other
hardcopy of such document are needed.
Unless sweeping laws become evident in matters of electronic lodgement of delivery documents,
The PCT from 2019, may now deal in the electronic copies in where hardcopy delivery
documents may also be collected by the PCT via a couriers is now the secondary application, if
issues are present with the first. The term Hardcopy is not to be confused with the term
“Original’. A hard copy document bears the hand applied signature and seal of the Seller, even
though the document is produced from a copy of the original, so long as the copy also bears a
stamp with the words ‘Original’ being apparent, then under UCP600 the bank will accept such a
document as being “Original” accordingly.
One original document of each stated shall be sufficient to meet delivery applications, regardless
if sets or duplicates arrive.
The applicant arrives at the bank, asks for the suppliers invoice, and replaces it with his copying
ask his bank to apply for collection.
Under UCP600 triplicates and duplicates are not applied. The bank will accept an “Original”
document, regardless if triplicates or duplicates are advised.
All documents are made to order where appropriate carrying the name of the Seller and
endorsed over to the Buyer taking possession only.
If the Buyer asks the Seller for instance, in a FOB deal to also secure the Bill of Lading, the
expense of such is for the End Buyer. Even though the Seller is not obligated to secure the Bill of
Lading in such a FOB deal, sometimes it may be necessary for the PCT to offer the buyer to do so
in clinching the deal. Under UCP500 and indeed the previous mentored copy of the FYBR IV
collecting the Bill of Lading was a preferred application only because in 99 percent of cases, the
End Buyer would insist that the Seller secure the said Bill of Lading, but now to strictly apply
Incoterms delivery rules is now considered the best approach under the new UCP600 edict. ‘The
seller shall not secure the BOL unless asked to do so on the offer, at end buyers added expense'
is the better approach.
Leading Primary Delivery Document applied as a financial instrument presentation condition. A

Clean on Board Ships Mate’s Receipt signed on behalf of the Ships master or Ship Owner in
the first instance, evidencing that the ordered goods are on board the named vessel of the
buyer.
Not sure of the type of document that will be made available first, then mitigate your stance add
a secondary protocol application not dissimilar to the following that could also be applied on
contract- So a Ship’s Mates receipt is delayed from being issue because of a looming Hurricane,
but the Forwarder’s receipt is already in hand, the attempt to use such a receipt as a leading
document may be a better immediate option . I.e:
Alternate Secondary leading Clean on board delivery document such as a Non Negotiable
Waybill or such leading document such as that produced by an Authorised Forwarders Agent
of the Ship Owner or Master, signed and identified accordingly shall be allowed to prevail as a
presentation document - evidencing that the ordered goods are on board the named vessel of
the buyer, should the first, primary leading document not be secured in the first instance, due
to unforeseen delays or circumstances beyond the control of the Seller.
The issued credit will stipulate the primary leading document only but in the event of a serious
delay, by defining the secondary alternate document of the contract, the Intermediary could ask
for a immediate amendment to apply on the credit as to allow another secured document to
prevail-
All such said receipts or documents shall indicate, among other things, the quantity of goods
on board and that should the secondary alternative document be presented in lieu of the first,
the Buyer shall agree to notify their bankers to accept one of the said alternate documents,
and issue an amendment to the credit at the expense of the Buyer within 24 hours of
presentation of an alternate delivery document becoming apparent, should in the first instance
the said Primary leading clean on board “Ships Mates receipt” be not presented accordingly.
As per Incoterms 2010 evidence that the goods are on board is all that is needed. these are
added aspects which help to stop delays in case one document fails to arrive as prescribed on
the credit .
To be produced by the PCT to meet its obligations. The BOL is issued and simply directed to the
hands of the End Buyer and not the Seller after all, it's the End Buyer’s ordered ship that is
being provided.
The Seller is required to provide “Evidence of goods on board” the best of which is simply on
board “Ships Mate’s Receipt” or a FCR” (Forwarder Certificate of receipt) If inspection was
bards ship a certificate by SGS could also be used.
Other documents as well as the above said leading documents to be presented, as advised
further shall also prevail.
(d) A Valid Export Permit, license or Authority. Cost is for the account of the Seller.
An export permit is required as a delivery document. No it does not Metter how such is presented
so long as it heads to defines an Export permit from authority, then such will do. The cost of
which is in the price of the goods. It's a cost that belongs to the Supplier, which is ostensibly
“transferred” to become the cost of the Seller. The End Buyer is to secure the import permit. It
came to be noticed on an ESPO crude oil deal in 2018, that some countries in particular Russia
do not need an ‘Export Permit’ and that the ‘title system’ was foreign to them. Nevertheless the
supplier was still required to produce a letter declaring an ‘Export Authority’
(e) An original Seller’s Invoice. The signed commercial Invoice issued by the Seller shall declare
and disclose the price and actual cost of goods and all debits and credits as applicable under
Incoterms 2010. Seller is also agreeing to refund if applicable, the previously paid ‘Transfer fee’,
which shall appear on the Seller’s invoice as a credit favouring the Buyer.
As the Supplier provides an invoice to the Seller, the Seller replaces such a document with his
own produced Seller’s invoice. The Seller may or may not offer to return the transfer fee as a
credit. Anything being offered as a rebate must be declared on the seller invoice. Supreme Court
in India had ruled on such matter, as had the doctrine also made this part clear. If you put a tidal
sum value off the invoice, import charge will be assessed on the whole value. The Buyer could
pay a lot more in import charges than should have had the correctly presented invoice been
presented to customs.
(f) Certificate of Origin - The cost of which is a Buyer’s expense, as debited as such on the
Seller’s invoice in accordance with Incoterms 2010. Non Preferential or Preferential Certificate
of Origin shall be issued unless specifically informed otherwise that no such Certificate is
required by the buyer, to which no such charge shall be recorded on the Seller’s invoice.
Most importers will need a Certificate of Origin, so apply it on the contract body to which if not
needed the buyer will advise accordingly on the offer, to which the contract will not mention
such a term. A Non Preferential Certificate is one that is issued by the Exporter’s Consulate where
available, in the Buyer’s Country a Preferential Certificate is one that is issued from the
Consulate of other Government agencies as applicable in the Exporter’s country. The Supplier
secures the required Certificate, pays for it, and applies the charge to the Supplier’s invoice as a
debit. The Seller does the same to the End Buyer. Like wise a ‘commercial invoice’ may also be
issued by a consulate.’
An “In Rem” Certificate of Quality as issued by SGS defined to mean as issued by “ Societe
Generale De Surveillance” Inspection and internationally recognized analytical agency, stating
that the goods are fit for specific purpose as applied when assessed for use as a product being
sold with integrity.
ISO Certificate of manufacturing, endorsed accordingly by a world class issuing agency defining
that the manufacturer is offering goods which have been produced meeting with an acceptable
minimum manufacturing standards. Ie: iphone.
If an "In Rem" Certificate is offered, as per above, then it’s a certificate issued from the premises
offering the goods as supplied by an inspection agency at infrequent intervals usually once a
year. This Quality “Standard” certificate issuance is a cost incorporated in the goods being
offered. The matter of certification is very important and complex, as the Buyer is entitled to
know exactly what they are buying.
Both quality of the goods and the standards applied by the manufacturer can be inferred with
the issuance of a “In Rem” certificate. The authority issuing the quality and ISO Certificates are
allowed to imply as being the same, but the certificate if asked for in relation to tally counts,
grade, packaging, total weights and visual inspection of goods should apply a different agency to
that issuing the quality Certification, if the information of such applied on the leading certificate
is not sufficient to appease the Buyer. (At the Supplier’s expense)
But let’s say the End Buyer wants a Pre shipment inspection certificate, (PSI) issued by SGS,
the ISO “In Rem” Certificate could still be offered to appease the client but not the standard SGS
quality Certificate as offered.
The above contract would have stated that a PSI certificate is being requested.
PSI Quality Certification is issued when the goods are loaded or even when the goods are on
board ship. The Supplier secures the services of the said Agency who provides an independent
analytical service to test the quality of goods and issue the appropriate dated certificate
accordingly - such a certificate is described as an "In Personam" certificate, to which Incoterms
2010 implies to stipulate that such is an “Extra” expense made against the account of the End
Buyer is once again made to apply as a debit. Thus if a buyer demands the issuance of a PSI
certificate the Seller secures as such, but applies the cost of issuance for the account of the Buyer.
The Buyer may accept the standard SGS certificate at no extra cost, or the buyer may ask for a
further PSI certificate at his own expense.
The PCT must be very careful when negotiating with the Supplier to identify exactly what type of
certificates are being issued, and imply as such on the End Buyer’s contract.
Where Government endorsed agencies in the exporter’s country issue quality health certificates
as per the goods inspected daily for instance like that of a chicken meat processor, then the
request that a PSI certificate be issued could imply a big waste of time and money for the End
Buyer, as such PSI inspection services are very expensive, often in the ten in hundreds of
thousands of dollars depending on the product and quantities being asked to be inspected. If a
“Government” is personally guaranteeing the quality of the goods, then what better quality
Certification does one need.? The Intermediary must first ascertain exactly what kind of quality
certification is available, then ensure only as such is offered accordingly to the End Buyer. If the
End Buyer is not satisfied with such certification then the option is his to ask for a PSI Certificate
to which the added expense of such will be applied on the Seller’s invoice at cost to the End
buyer.
Many Suppliers often are also confused about such matters and depend on relying on the said
“In Rem” issued quality Certificate alone.
So we have (1) A Certificate of manufacturing Standards issued by the Supplier “In Rem”
(Supplier’s Expense) (2) A Certificate of Standard ISO Quality “In Rem” (Supplier’s Expense) (3) A
Certificate of Specific Quality issued prior to or when goods are loaded as requested by the buyer
of the supplier “In Personam” (Buyer’s Expense) (4) A Standard Certificate of quality as issued
prior the goods being loaded that is issued by a Governmental department due to internal
policies and laws of the manufacturers country (Supplier’s expense)
Know your Certificates?

We always seek Number (3) which is nearly always incorporated in the price of goods. If the
supplier is providing a PSI certifications as issued by ‘independent experts’ and your buyer does
not accept it as defined on the offer , instead demand another authority to conduct inspection on
board ship, the end buyer can expect to pay for such on top of the offer price. This is by all those
demands made for ‘POP’ made by so many ill-informed others can’t apply, because the buyer
can only ‘buy’ actual goods offered as on board or alongside a ship. This is the only time that
the evidence required to confirm what the actual grade of good care being purchase becomes
available and ascertained. To use a certificate as secured from another buyer, buying similar
goods should never be used as evidence of anything, because it only served evidence of what
another buyer has purchased, and not what a current buyer is purchasing.
17.0 SPECIAL DOCUMENT PRESENTATIONS

Policy Proof of Interest Certificate
If an acceptable “Pre-advised” credit is used to pay for the goods, the Seller shall cause the
issuance of a “Policy Proof of Interest Certificate”, titled as such, identifying a genuine
Manufacturer, Owner or Supplier of the goods being offered. The Buyer accepts the said
offered blank Certificate model as offered, and the procedures applied therein, for the process
needed to verify that the goods are genuine.
The “Policy Proof of Interest Certificate”, (PPI) shall be issued first, prior to any other document
in making the operational pre advised credit convert into a credit, that is said to be active and
not carrying the pre advised status. Should no “Pre-advised” credit be issued and that a normal
active documentary credit is applied in its place, the said “PPI” shall still be required to be
given. Whether the Buyer verifies such a document or not, is not a concern of the Seller,
regardless which financial instrument is advised, and that the actual surrendering and
disclosing of such good clear and genuine verifiable information is the only obligation
that is required of the Seller.
The Buyer shall cause to accept such information within 3 days or less of issuance, whether
such acceptance is advised or not.
The “PPI” blank model shall be applied at the end of this contract and shall be returned to the
buyer carrying full genuine disclosure of the Seller’s allocation and interests in the goods being
sold, upon the financial instrument for payment of the goods have been advised as accepted
by the Seller.
Only if where the issuance of such disclosed applied information later proves to be false or
fake, no protest is allowed to be applied, in reference to the suitability of such a document
once issued. Should it be proven that the information supplied by the Seller is false or fake,
then the Buyer shall be allowed to make claims of fraudulent and dishonourable intent against
the Seller to which it shall further imply that the Seller has failed with the required obligations
in delivering only good genuine verifiable information, to which 48 hours shall be further given
to the Seller to remedy such a situation before the Buyer calls a breach of the Seller’s
conditions.
The Seller shall be required to make a copy of the PPI certificate at the end of this contact, fill
in the details to disclose the Suppliers of the goods and forward as such from the advising
bank to the issuing bank in electronic form, or to the issuing bank by hard copy courier,
whichever comes first. The Buyer is obligated to read the blank unfilled copy of the PPI
certificate applied herein, to which the Buyer accepts the information yet to be applied on it in
disclosing the Supplier’s information. The Buyer is also obligated to read the terms on the
blank PPI Certificate, and follow its own independent defined terms in getting the information
authenticated once only.
Any demand and extra considerations must be gotten on the offer and or contract. Again of its
offer on the offer it offered on the contract, otherwise all mention of the PPI is removed. The PPI
is an in house created FTNX procedure.
If a pre advise credit is not sought , then the PPIC can be advised when the operative credit is
lodged as accepted.
We are now reinforcing specifically all further matters relevant to the PPI document here,
especially in matters of schedule and intent. Once the Pre-advised credit is advised and accepted,
the blank PPI certificate as offered on this contract is filled in and returned to the Buyer’s bank.
The Pre advised credit is then made active and operational not carrying the pre advised status.
There is no other reasonable safe way a Buyer/Seller can meet the requirements of “Proof” other
than advised. The type of proof being offered must be explained fully and accurately prior to
accepting the pre advised credit, failure to do so will lead to a situation where a pre advised
credit is issued and in where the offered “proof” is poorly defined as to allow the End Buyer to
obtain the Supplier’s details and where the bank refuses to make the said credit active. Thus the
Intermediary actually ties the bank into an obligation not with what is advised on the body of the
PPI, but by simply identifying that a certificate such as a PPI has been issued in accordance with
the requirement of the credit. The Information on the body of the PPI is for the End Buyer’s use
and has nothing to do with the bank’s obligations. This satisfies to meet Article (4) of UCP 600
that implies in effect to declare that - “Banks shall not get involved in matters of the sales
contract”. The term PPI is a recognizable term applied in International trade as used by
insurance companies; It’s the application applied in disclosing and offering via ils contents as an
identifiable offering as matter of contract. In other words what you see on the contract is on
offer, except the details will be added to such at a later time. The Bank is only concerned that an
identifiable document has been advised in meeting the condition of the credit’s issuance, and not
it’s content. The End Buyer is obligated to verify the content of the PPI. The Seller cannot apply to
make specific as a condition of the contract and simply wait for the End Buyer to verify the
content of the PPI; if the End Buyer decides not to verify the content of the PPI the contract could
be placed into a situation where such a deal will collapse, thus the Seller only gives the
opportunity for the End Buyer to verify the PPI of which is given as being genuine, until proven
otherwise, is the only applicable trading premise that is allowed to prevail for such matters in
relation to ostensibly “Prove” that only a genuine product is being offered with genuine intent as
secure from a supplier in possession of such goods. There is no obligation to provide such proof,
but by offering the PPIC, it stops the usual demands of the buyer in asking what evidence is
being offered early in a deal. It also conveys good intent by the seller. If the PPIC is fraudulent it
can be used to remove the irrevocable status of the credit, thus allowing the credit to become
instantly revocable. So the PPIC is also by default a very strong document. The buyer cannot
make a claim of fraudulent intent on a whim. It has to get local police involved which means
making a statement, which is presented to the issuing bank. If a false claim is lodged, the buyer
can now face criminal charges for perjury and be in breach of contract as well.
18.0 E-MAIL AND INTERNET PROTOCOL

Regardless of the Buyer’s internal laws as applicable in the country of destination of said
goods, the obligation of the Buyer as related to the validity of this contract does not invalidate
the personal obligations of such, in the performance of, as it pertains to such matters related
to the issues and/ or use of internet, e-mail or other electronically “tele-transmitted”
documents.
Extraterritorial law shall not be used by the buyer to defeat the legally binding status and
intent of the person who accepts to enter into a legally binding situation as per the terms,
scope and conditions of this contract.
The Buyer is hereby informed that by signing this contract a personal legal obligation will still
prevail even where the local laws of a particular country contravene rules and edits applied in
this internationally enforceable contract.
19.0 SHIPPING MATTERS

Matters and obligations of Shipping, Demurrage, Delays, Berthing, Weather and the like which
are in force as it is applied to the goods being delivered into the care and possession of the
buyer shall dictate in defining responsible parties to such matter(s) and obligations as it
pertains to such events, to which the Seller plays no part in accepting such obligations in such
said matters, of which the owner of the goods has formally been advised accordingly.
The Buyer is further advised to ensure that the Bill of Lading document and its terms and
conditions may apply interference among others, to the Carrier’s obligation(s) that are applied
therein, as applicable to the International Maritime shipping rules further defined as the
“Hague Rules” in the first instance or the ‘Hague-Visby Rules' in the second instance.
The Buyer is responsible for matters of shipping as per his own contract with the Carrier
secured by such.
If the Seller is asked to assist and become involved in the matter of securing the Bill of Lading
on behalf of the Buyer, in a variant FOB transaction, then only upon the written request for
such assistance, will the Seller provide such assistance of such said “Added Services” of the
FOB Variation, to the best of his abilities as a matter of moral obligations in meeting with the
spirit and meaning of Incoterms 2010, where the Seller shall not be held liable where such
assistance fails to procure the required Bill of Lading, to which shall not cause any part of such
failure to imply that the Seller has failed to “deliver”. The Seller hereby declares not to offer
such assistance in matters of securing the Bill of Lading to a rented ship which applies a charter
party agreement to which, in keeping with the spirit of Incoterms 2010, the Seller reserves the
right to assist in securing such a Bill of Lading if asked, from only a carrier, defined as being
that as endorsed by a ship owner of such.
The obtaining and securing of the Bill of Lading is the obligation of the End Buyer. Delays
caused by the Carrier are the fault of the Carrier. Delays in not being ready to accept the goods
pay the freight and other carriage and import statutory charges and obligations therein, once
the goods pass the ship’s rail in port of loading, are for the cost and responsibilities of the
Buyer unless otherwise defined accordingly in this contract. Delays in loading because goods
were not ready for such loading, shall be the responsibility of the Seller to which any cost
imposed for such delays will be applied for the account of the Seller, to which the Seller shall
pay for as obligated under Incoterms 2010.
The Buyer will advise an estimated ship arrival date and time at loading port, 14 days before its
arrival or earlier. Once advised a second arrival date shall be advised once the ship is 48 hours
from berthing at the said loading port or earlier, to the Seller to which the Seller shall make
ready the said goods, alongside ship ready for loading.
As such, the entity causing and / or being at fault, as it pertains to matters of shipping, bears
consequences, in accordance with the terms and conditions of the said Bill of Lading and/ or
Incoterms 2010 as appropriate, once goods are on board ship.
PCT’s don't order ships, and don't deal in shipping contract obligations and are only required to
deliver in relation to presentation documents related to the goods. Even if the supplier implies
such terms, just make sure you have stipulated to your buyer that who is at fault bears
consequences in matters of shipping.
20.0 NAME OF SHIP ARRIVAL DAY

The contract of sale and purchase has a schedule applied for delivery. The date of delivery shall
imply the earliest date the goods will be available for loading. The Buyer shall notify the Seller
within 14 days of the arrival date of such ship at loading port, and the name of carrier. The
Buyer and Seller agree that such a notification date applies from the said delivery date, less 14
days before or more.
Regardless of any other concurrently applicable matters of scheduling being apparent, the
above minimum stipulation shall apply to mean that the Buyer is required to initiate the
processes needed to ensure that the carrier will be at the loading port on or within the
required timeframe and that the Buyer is to start initiating such a process of securing the
required carrier, immediately upon this contract is returned to the Seller as being signed and
formally accepted as being enforceable.
So the Buyer has to inform to the seller (PCT) when the ship is due to arrive, from which the
Supplier is advised accordingly. Being late to perform their duties will result in costly delays and
consequences.
21.0 ARBITRATION
All matters pertaining to contract dispute(s) shall be settled amicably in the first instance.
Where in the first instance such matters have failed to be resolved amicably, the arbitration
rules as applied under the London Court of International Arbitration (LCIA) shall be the
doctrine of application that shall be used for settling any prevailing dispute(s) with the seller,
where the parties to a contract obligation(s) have not been met.
Such doctrine of application shall be enforced in the appropriate venue in the Seller’s country
and state, as defined on this contract. Should the matter of the goods in possession be the
issue of dispute, such matters shall be answerable in the Supplier’s country and state, to which
the Seller’s obligation in defending the Buyer’s claim on behalf of the buyers shall become
apparent if such claims are justified, in said country.
To which, any disputes in relation to the Seller’s obligations as they pertain to these matters as
defined in this contract and offer supporting this contract, shall be arbitrated upon in the
following country and city: - Melbourne City, State of Victoria, Australia.
English language shall apply for all matters as it pertains to this contract. English International
trade laws shall define the ruling applicable edict applied to this contract.
Where the Seller is required to defend the claim made by the End Buyer, in the Supplier’s
country, the Seller shall be obligated to meet the End Buyer in the Supplier’s country and
attend any proceeding accordingly but only on the condition that the End Buyer agrees to be
physically present in such a country to litigate upon the matter in dispute.
The rule here is defined. If there is going to be a dispute with the buyer then let it apply in the
Seller’s country. The Supplier will also insist that if PCT was in dispute with such that such
arbitration would apply to occur in the supplier’s country. If the buyer has issue with only the
Seller then it’s the Seller’s country that prevails. If the Seller has issue with the Supplier on an End
Buyer’s claim, then the Seller will need to travel to the Supplier’s country on such matters, so long
as the End Buyer also fronts up at any such dispute hearing. In Australia we have a tribunal
(VCAT) that can hear such matters; in USA they have ‘AAA.’ LCIA is the most common universal
aspect. The seller may apply such matters to suite local arbitration laws- otherwise LCIA
applies.
22.0 FORCE MAJUERE

In the event of ‘Force Majuere’ defined to mean "unforeseeable course of events", the
transacting parties agree to indemnify each other for failure of deliveries and performance of
contract cause by strikes, lockouts, labour disturbances, anomalous working conditions,
accident to machinery, unforeseen delays en route, policies and restrictions of governments,
including restrictions on export or import or other licenses, war, whether declared or not, riot,
civil disturbances, serious fire, an implied severe act of nature, acts of terrorism or any other
acceptably defined contingency whatsoever beyond the control of either party, to be sufficient
excuse for any delay or non-performance traceable to any of these specific events, including
where delay to the transaction is a result of the untimely death or serious sickness or injury to
any of the principal contract signatories.
Severe "Acts of Nature" replaces, "Acts of God", as to ensure that no ambiguity prevails in the
event of a dispute. Attempting to define "Acts of God" is simply too broad of a premise to apply
in the reality of a real trading disaster as it applies to the loss of goods, and of which FTNX is
unable to find evidence where such claims have been paid because of such said “Acts of God”.
Simply applying the term "ICC Force Majuere shall apply to this contract", is not enough. The
actual term must be applied fully into the body of the contract. “Act(s) of Terrorism” is the latest
addition to the terms.
23.0 FRUSTRATION
This contract has procedures and obligations defined as they pertain to a particular transacting
timeframe, as defined under ‘Validity Date’. Should such stated contracting period not be
maintained then the contract shall automatically be implied as being invalid and not legally
binding, before the said signatures of both parties are applied.
Once the signatures of both parties have been applied on this contract, within the set
timeframe period indicated, the contract shall be deemed to be legally binding.
Issues of ‘Frustration’ allow the offended party to take legal action against the offending party
causing said “Frustration”. The buyer has no permission to make contact with the Supplier,
Owner or Manufacturer of the goods being offered, once such has been disclosed, other than
in a manner as advised in the ‘PPI’ Certificate.
Breaching of this specific condition shall imply an immediate breach of contract condition to
which at Seller’s discretion, the Seller shall bear the right to not continue with the application
of this contract, and take legal action for remedy of the buyer’s breach and implied lack of
honourable intent as implied with the acceptance of the offer.
Once the transaction is finalised as per the nature of business at hand the said condition of
contacting the Supplier shall not apply to which no frustration shall said to have occurred,
once six clear months have passed from when the last successful delivery was initiated, or
when the PPI Certificate was issued to the buyer, whichever comes first. The Seller is the only
person allowed to direct the producer or manufacturer of the goods being offered at all times
accordingly so as to avoid all matters of frustration associated with successful delivery.
The offended party as it applies to the rules being applicable. Thus one party can argue all they
like, but if no rules are being broken then such a party has no recourse. If it’s found that after
such a deal has collapsed due to unforeseen events, the such event have to be totally different to
what exception were to call upon, on a ‘frustrating event.’ The end buyer uses a DLC as advised,
and it was issued by a bank as requested, but ‘Bit coins’ form it value base, such is not a
frustrating event. A Ship is berthed at port when a crane broke lose. Fell on the ship, which cause
12 months delay to the whole operation is not a frustrating event. The buyer order a ship, in
where the on the day 12 little vessels turn up to take the load. The seller will not allow loading to
proceed. The DLC cannot accommodate such, and the port cannot accommodate such- the event
is totally different to what we should have been expected. Now that’s a frustrating event .
24.0 MATTER OF LEGALITY

This contract once signed by all parties involved shall become the legally ruling document, to
which the draft negotiable status of the contract shall cease to favor a formal application, to
which;
All parties signing this document are over 18 years of age, and mentally competent.
All parties signing this contract have not be charged or imprisoned for acts of fraud.
All parties to this contract are not declared bankrupts.
This contract cannot be entered into without a signed offer being accepted first. The
contract is returned to reach the seller via facsimile, and for clarity a Portable Document
Format (PDF) document shall also be advised via electronic mail and computer via the Internet.
At the point where the facsimile and PDF document leaves the realm of the Buyer’s machine,
to travel into the realm of electronically transmitted signals, (also referred to mean “In Limbo”)
shall cause to infer that a legally binding situation is in force between the Buyer and Seller.
The arrival of either the facsimile copy, bearing hand applied signatures and/ or the PDF
format copy bearing the term ‘original' shall define to mean that the intent of the buyer is to
proceed, as being legally bound by the terms and conditions of this contract, and offer
supporting this contract. Good and honourable intent shall govern the parties applied to this
contract at all times unconditionally.
Even attributes of when a "Point of no return" is applied in defining exactly the point in time
when a legally binding contract is effectively in play.
25.0 SUMMARY OF PROCEDURES

The Buyers shall ask for an offer to which once accepted instigates the issuance of the draft
contract, of which the following procedures in the matter of scheduling shall apply.
(1) Draft contract is signed and returned to the Seller from the Buyer to imply a formal legal
contracting situation.
(2) Financial instrument issued within contracted days to initiate acceptance of such.
(3) PPI Certificate defining “Proof of interests in Goods” is advised by the Seller.
The operational credit converts into an active credit.
(4) Performance Guarantee is advised if applicable.
(5) Ship arrival date at loading port advised to Seller.
(6) Goods are proven as being loaded on-board the Buyer’s ordered Carrier
with the issuance of the leading delivery document.
(7) Remaining documents advised within contracted days.
(8) Delivery completed, collection made at sight of the delivery documents.
(9) Next shipment loaded if revolving shipments have been ordered.
(10) ’Days’ shall mean normal 24 hours per day.
Internet references to be used by all parties to the Contract:

(a) In matters of identifying an acceptable Top Class World Bank.
"http://www.forbes.com/2006/03/29/06f2k_worlds-largest-public-companies_land.html"
(b) In matters of distances assuming ship is travelling at 14 knots per hour.

"http://www.distances.com"
(c) In matters of Weights and Measures.

"http://www.onlineconversion.com/"
(d) In matters of identifying loading and unloading ports.

Adding a schedule is of great help in identifying a breaching party. Adding good websites as
points of reference is also of great help if an argument breaks out. If the buyer fails to observe
such websites, then if a serious breach is in play, the Seller could argue that the Buyer did not
perform as defined under the reference page offered. The Seller failing to advise the acceptance
of the Buyer’s DLC in accordance UCP600 now implies that the Seller has accepted the DLC. The
supplier in not accepting the DLC must inform the advising bank as such, or contracting schedule
and conditions will remain in force.
26.0 POLICY PROOF OF INTEREST CERTIFICATE (PPI)

“In accordance with paragraph (17.0) of this contract”, Article (26.0) shall be defined as being
the said "Policy Proof of Interest Certificate", which is hereby exposed to the buyer as a “Blank
Model (A)” document bearing no information other than depicted.
The Seller shall cause the said model document to be fully filled in with the said required
information, to which a copy will be made and returned to the Buyer, upon acceptance of the
Buyer’s financial instrument within 3 days of such occurring. The said information once
provided is said to be genuine and real as secured directly from the owner of the goods being
offered to the Seller, which is consequently being resold to the Buyer, and unless otherwise
proven differently, the Buyer accepts the information unconditionally as being genuine, in
meeting with the Seller’s obligation in accordance with Article (25.0) Paragraph (3) of
procedures as to the timeframe and scheduling applied for the performance of the contract.
The Seller's "Proof of Interest" in the goods being offered is officially declared and disclosed
once the information regarding the owner in possession of such goods has been exposed. The
Buyer has 72 hours or less to verify the confidential disclosed information provided. Whether
verified or not, the surrendering of such information is the only obligation the Seller is required
to provide which allows the pre advised credit to become formally active and not bearing the
pre-advised status within 72 hours or less of issuing the PPI Certificate electronically to arrive
at the Buyer’s issuing bank.
PPI Certificate (Blank Model “A”)

IMPORTANT BANK PRESENTATION DELIVERY DOCUMENT
Advised By: FTN Exporting defined as “Client”
Address
Contact Number
Advising bank:
Applicant’s Issuing bank.
Date PPI advised:
Issued by Facsimile and/ or PDF:
Dear Sir or Madam,

Please be advised that the applicant named below has issued a UCP600 pre-advised credit
from your bank to our advising bank. We are required to present details in identifying the
Supplier of the goods we are reselling to the applicant of the credit, of which this Proof of
Interests Certificate (PPI) is hereby offered as per our contracting conditions, in meeting with
the Pre-advised credit condition. The supplying and disclosing of such meets our obligation,
regardless of whether the applicant confirms the information provided.
In accordance of such, please apply to make the Pre-advice credit to formally apply without the
“Pre advised” status being applicable, to which a normal UCP600 irrevocable transferable
documentary letter of credit is now required to be applied as being the apparent operational
credit.
Thank you.
Print Name:
Signed:
Dated:
PROOF OF POLICY CERTIFICATE (PPI)

To the Bank of the Applicant referred to as a “Third Party”
Name of the Applicant of the issued credit
Name of issuing Bank
Address
Contact details
Name of Bank officer:
Document presentation supporting pre advised credit Number:
Supporting Transaction code:
Name of person selling goods to the Applicant and End Buyer: FTN EXPORTING
Supplier’s Confirmation.
Our client ____________________________ is or has purchased the goods from us, the below
defined Owner and/ or Supplier of such named goods in possession.
Our client has asked us to confirm any request made by a third party, to confirm the interests
of the said named client of the following said goods being purchased by such. The said third
party making an enquiry to verify our said Buyer’s interests, shall be required to send by
facsimile, once filled in by our client, this document to the contact detailed below within 72
hours of the said third party obtaining this document from his bank or office. We shall read the
filled in information provided and if correct we will sign this PPI Certificate adding to confirm
that we have verified that the information on this document is true and correct and return it as
such to the Third Party via facsimile or e-mail only once. No other information as to our client
or the goods shall be provided. No verbal communication accepted.
Third Party Facsimile Number:

Third Party E-mail Address:
Supplier’s Details:
The Supplier and owner of the goods are:
The name of the person representing the Supplier and owner is:
Address:
E-mail:
Facsimile
Phone Number
Business Number
Supplier’s Website, if any
Description of Goods:
Quantity:
Supplier’s Authentication and Verification:

I, We the said Supplier and owner of the goods have received the following enquiry from a
third party, and client of FTN Exporting and that such goods and supporting information
applied are hereby verified as being genuine and that our client has interest in such goods as
described accordingly of who we are serving applying the said nature of business with the
above attached transaction code. We have signed this document and returned as such to the
third party making the enquiry on behalf of our said client and being authenticated and
verified.
Name of Supplier:
Signed:
Date:
Sealed:
Copy sent to the Third Party and client of FTN Exporting and within 30 minutes of sending, an
e-mail has been advised to FTN Exporting that his client has asked for such a document to be
verified, if such event occurs.
27.0 SELLER’S DETAILS

Name of the Seller: FTN Exporting
Name of person offering the goods: Davide Papa
Business Address:
Mailing Address:
All Communication Details:
E-mail:
Phone(s):
Facsimile:
Name of Bank:
Name apparent on Account: David J. Papa
Address:
Account Number:
SWIFT CODE:
Phone/ Facsimile:
28.0 SELLER’S DECLARATION

I, Davide Giovanni Papa C/o P.O. Box 30 Carlton Nth, Victoria, 3054 Citizen of Melbourne
Australia, as an Independent private commodity trader using the registered trading name of
FTN Exporting, do hereby sign and/ or sign and seal this contract with good and honourable
intent as Seller acting on behalf of an undisclosed principal or various principals in the first
instance, to which such Principal(s) shall become disclosed, in the second instance upon the
acceptance of the Buyer’s financial instrument, in accordance with the terms, conditions and
scope of this contract.
Print Name: Davide Andrew Giovanni PAPA

Date: 20 March 2019
Seal
Signature:
29.0 BUYER’S DETAILS

Name of the Buyer:
Person taking possession of goods the goods:
Business Address:
Mailing Address:
E-mail:
Phone(s):
Facsimile:
Name of Bank:
Address:
Name apparent on Account:
Account Number:
SWIFT CODE:
Phone/Facsimile:
30.0 BUYER’S DECLARATION

I, ___________________________________________________ Citizen of _____________________, as an
Independent commodity trader using the registered trading name of ________________________,
do hereby sign and/ or sign and seal this contract with good and honourable intent as Buyer
taking both title and possession of offered goods. I the said Buyer accordingly agree with all
the terms, scope and conditions of this contract.
Print Name:
Date:
Seal
Signature:
End of Contract:
———————————————————————————————————————
Sales Contract UCP600 ICC CIF defined: Basic Aspect

Supported by TWINE 2019
The full CIF contract model is supported by all matters already applied on the offer.
In effect once matters of

1. Insurance cover is omitted from the CIF contract you have a CFR contract, as built upon
the
2. FOB basis which becomes apparent once the CFR aspect is omitted.
3. On the FOB basis, all matters of ‘delivery over the ship rails’ are omitted to arrive at the
FAS delivery mode.For
4. FCL matter in reference to do with container deals take over on NBC aspect.
5. FCL FCA Incoterms the contract is applied at
6. CIP in matters of ‘shipped delivery’ as compared to ‘received deliveries’ are apparent ,
again where goods are delivered to the
7. CFS compared to when goods are loaded onto a named actual carrier.
We suggest that all applicant, take a copy of the CIF contract below.
The applicant then makes another model, by duplicating the CIF document, and by reading the
contract line by line in reverting to produce your CFR and finally a FOB contract model. This
aspect provided excellent training for the mind. Those who have the urge to correct FTNX
documents can apply their own formatting skills, but don’t change the structure of the
contract.
Supporting UCP 600 Incoterms 2010 ‘CIF’ Named Port of Shipment

Fully Applicable for Internet Trading
Please apply your one margins Please change and correct any minor errors
START
———————————————————————————————————————
(Heading )
Seller Details
The Seller herein is;
Davide Giovanni Papa trading as
FTN Exporting, ABN: F345623
37 Lee Street, Carlton North, 3054
Melbourne, Victoria, Australia.
‘Seller’ as defined under the ICC International Rules of Agency further defined to be a
private Independent Intermediate ‘Seller' or ‘Vendor’ acting as such without any
disclosure of any other principal entities.
Definition of ‘Buyer’
Buyer or End Buyer, - corporate or individually, defines to identify the person, person(s)
or entity, paying for the goods, taking possession of the goods as well as obtaining the
title to such goods.
Details of the Buyer

Mr. Pink: CEO ABC Corporation, 77 Sunset Strip, 90122 California USA
CONTRACT ISSUE DATE

The date of which the contract is made and issued by the Seller to the Buyer is defined to be
date the contract was issued; the date to correspond with the applicable validity date.
Date: Monday, 10th day of September in the year 2019
TRANSACTION CODE
The transaction code on the offer and contract once issued cannot be changed.
Transaction Code : FTNX-DGP-001-004
1.0 VALIDITY
Fifteen days or less from the applicable issue date, shall define validity of a date to which upon
such time all negotiations of the Draft contract are to be completed, resulting in the final
signed formal contract. All dates and times as per (AEST) Australian Eastern Standard Times
and Dates, are taken from 12.30 PM. Days shall mean 24 hours per day. 30 days shall define an
average month. 365 days shall define an average year.
2.0 ACRONYMS AND DEFINITIONS

All acronyms defined at least once, in running form, throughout the contract.
English language spelling applies.
3.0 PREAMBLE
3.01 This contract cannot be applied without acceptance of an offer for the purchase of
goods apparent. The said Seller has purchased, or is holding contract to purchase, or is able to
purchase the interests in offered goods from a confidential undisclosed source or sources,
before offering such goods to the buyer. The Seller is offering such title and interests in such
goods, clean and free of any lien, to the defined Buyer at a good fair and reasonable price. The
Seller as per the nature of business being conducted will transfer his interests and title of the
said goods or required parts thereof, to the buyer, without obtaining possession of the actual
goods.
3.02 The Seller shall be responsible to initiate the process to appease the concerns of the
buyer, of such said matters of warranty and quality to which, the Seller shall ensure that all
matters of said quality and warranty of the goods, follow such goods, for the benefit of the End
Buyer of the goods, and that the obligations to ensure of such shall be the responsibility of the
Seller.
3.03 The buyer, once paying and obtaining the title to the said goods shall be entitled to
possession of the goods, in accordance with the terms and conditions of this contract. The
Seller shall be responsible for all matters up to final delivery. The terms ‘Delivery' as defined
accordingly under the rules applied by ICC ‘Incoterms’ 2010, as per good delivered over the
ships rails, port of loading supported and evidenced by relevant transport documents
3.04 In all, the Seller shall apply the best of his abilities to ensure above all else, that the
goods are delivered as a primary unconditional application, in accordance within the scope,
terms and conditions of this contract.
4.0 LETTER OF INDEMNITY: (L.O.I)

4.01 The Seller has used a high degree of sourcing ability, skill and expertise in being able to
offer a defined product to the said Buyer for reasonable gain, and where the Buyer has
obtained the lowest fair price for such goods, as a direct result of the Seller’s ability, skill and
expertise.
4.02 The Buyer shall assist the Seller in all matters as to not hinder the Seller in ensuring that
the goods are delivered within the scope, terms and conditions applied in this contract as a
primary protocol.
4.03 If the seller is morally unable to perform it duties pertaining to the execution of the
contract, once it is signed, due to matters of legal frustration, as caused by a subsequent
unforeseeable event or unforeseen discovery, which the seller has deemed, may cause the
buyer to be placed in an adverse and financially precarious position, then seller at his or her
discretion, may cancel or suspend the contract or financial instrument–before the DLC is
accepted, or after it is accepted but before carrier is booked–Inter alia; in the event of this
scenario occurring so as protect the interests of the buyer; no compensation nor
consequences for the sellers honourable action shall be sought, from the buyer, once first class
irrefutable evidence of the frustrating even is provided.
5.0 PRODUCT ON OFFER

AUTOMOTIVE ETHANOL
6.0 ORIGIN
BRAZIL, SOUTH AMERICA
7.0 SPECIFICATIONS, GRADE, PACKAGING
Fuel Anhydrate Ethanol for Automotive Use.
Origin Brazil: Technical Regulation : DNC 01/91 ‘AEAC' Appearance:
Clear and free of suspended matter : Total Acids Mg/Litre-30 P.P.M Max.
Electrical Conductivity : u S/m-500 Max.
Specific “Point of Production” gravity at : 20 C Kg/M3 791.5 max.
Ethanol at point of production: : 99.3 min
Copper as Cu : 0.07/ 8 P.P.M
Nil : Fe, Na, Cl, SO4
8.0 QUANTITY
8.01 Total contracted quantity being sold: 60,000 Cubic Meters (Metres) defined as 'M3. The
terms ‘M3’ is defined to mean 1,000 (One Thousand) litres (litres) plus or minus 10 (Ten)
percent.
8.02 For purpose of clarity a the ‘M3 weight factor shall remain the assumed purchase value
in relation to quantity while goods are on land. The supplier shall offer a ‘Metric Ton’ advice
on all delivery documents.
8.03 The seller shall expect that 1 (one) Metric Ton of Ethanol by weight has a density
factor of 0.789 in where for every 1 Metric Ton of Ethanol on board equates to 1.27 Cubic
Metres (M3) of Ethanol -/+10%
8.04 The seller expects total delivered quantity of 76200 Metric Tons -/+10%
9.0 SHIPMENT OF GOODS DETAILS

9.01 : The total minimum contracted quantities being purchased shall be defined as
60,000 Cubic Meters (M3) delivered over a 3 month period.
9.01 : The total per monthly minimum shipment delivery range offered.
20,000 M3 per Month plus or minus 10 percent.
9.03 : The total minimum shipment per year offered

3 shipments of: 20,000 M3 per shipment, per Month, consecutively for 3 months equates to
76200 Metric Tons in total or 25400 Metric Tons per each monthly delivery -/+10%
9.04 :Name of Port and Country of Loading Ordered Goods.

SANTOS, BRAZIL
9.05 : Port of Destination

NEW YORK HARBOUR, USA
9.06 : Price of Goods offered

US$500.00 PER METRIC TON AT CIF INCOTERMS 2010
9.07 : First Delivery Date:

(a) 30 days after financial instrument is accepted is defined as the first delivery date
(b) Estimated currently as being : 27 October 2019
9.08 : Total Contract Value:

Thirty Eight Million, One Hundred Thousand US Dollars (US$38,100,000.00)
10.0 DELIVERY
CARRIAGE, INSURANCE AND FREIGHT (CIF) ‘NAMED PORT OF SHIPMENT’ as per the ICC Paris,
France; (International Chamber of Commerce) delivery mode, as applied under rules
‘INCOTERMS 2010’ defined to mean “International Interpretation of trading terms’ in where;
(a) The invoice produced by the seller shall record the cost of goods.
(b) All added delivery charges imposed by Customs
(c) The carriage of goods freight cost component
(d) The insurance premium; as further stated herein.
(e) Sellers added operational expenses including commissions payments /charges.
11.0 PRICE AND WEIGHT TOLERANCE

As allowed under UCP600: plus or minus 5 percent as defined on final contract shall be allowed
to apply as a tolerance applied to the financial instrument used to pay for the goods. Up to 10
percent is allowed to apply as a tolerance of the goods weight without effecting presentation
of delivery documents.The aspect defined this contract respectively as ‘-/+ 5.0%’ or ‘-/+
10.0%’
12.0 PERFORMANCE GUARANTEE

12.01 As defined accordingly, the Seller shall cause to advise the buyer, an authenticated copy
of the following defined Seller’s Performance Guarantee, personally declaring that the Seller is
ready, willing and able to abide by the stipulation of a Performance Guarantee as defined.
12.02 Should the Buyer be at fault in not ensuring that the carrier is at the loading port on or
before the said given time as applied in this contract, the Performance Guarantee shall
automatically cease to be valid, unconditionally for the total contracted value of the goods
ordered, from the first time such fault is recorded.
12.03 The presentation of said leading document that invalidates the Performance Guarantee
will be delivered in accordance with the conditions scope and terms of this contract as defined
under ‘Delivery Documents’.
12.04 The said Performance Guarantee value in the format of a ISBP 2013 defined Standby
Letter of Credit (SLC), or similar.
12.05 The Performance Guarantee for the net and clear value of not less than the amount
defined below, is payable unconditionally on first demand upon the Buyer identifying that a
valid genuine breach of said delivery performance has occurred, as verified by the issuing bank
to the advising bank of the Seller.
12.06 Where multi-shipments are involved the issuance of the Performance Guarantee shall
be defined as being “Non Cumulative Revolving”. The performance guarantee shall be advised
within 3 days after the acceptance of the Buyer’s financial instrument.
12.07 The Buyer shall allow a tolerance of plus or minus 1.0 percent and accept the
Performance Guarantee that bears such a tolerance, per each an every delivery.
13.0 PERFORMANCE GUARANTEE VALUE (P.G) ( As marked with ‘x’)

13.01 If this type of P.G is been served. The value of the SLC supports 1.20% (Percent), per
each shipment contract value to service a Performance Guarantee. The Buyer agrees to accept
a Performance Guarantee value equal to, more than but not less than the defined rate -/+
1.0%( )
13.02 If this type of P.G is been served. A Late Delivery Discount (LDD) is made as per the
offer supporting this contract, to the unit sum of US$3.00 per MT per each shipment contract
value for the goods being purchased. Upon a late delivery being finalised within 7 days of
such, the Seller shall deposit directly to the bank account of the the buyer, the sum due for
late delivery, as per the account nominated at that time.(x)
14.0 SELLER’S WARRANTY OBLIGATIONS

14.01 The Seller declares with good intent that the goods being sold are fit for specific use
and fulfils the specified condition to which such goods were sold, and that; if the Producer,
Manufacturer or Supplier of the goods is at fault for delivering goods of a defective nature
from the point of manufacture, as to cause concern to the Buyer, the Seller shall take
responsibility of any 14.02 such reasonably defined defects in the said goods, and initiate
procedures to remedy such defects to the person taking final possession of such goods, within
a period of 90 days after such goods having arrived in the possession of the buyer. All claims
of such defects and/ or damage must be advised on or before 28 days of the Buyer obtaining
possession of such goods.
14.03 The Seller has secured and obtained specific implicit right to transfer warranty
obligations, upon reselling of goods once only, to which the said manufacturer or owner of
such goods has agreed to endorse such an application.
14.04 Procedures in claiming remedy for the supply defective goods shall apply the following
course of action. The Buyer shall first make notice to the Seller, of said defects, in writing giving
detailed information regarding such claims, and the proving of such in writing, sworn under
affidavit or an acceptable statutory authority declaring that the goods did arrive in a state
other than ordered, and that such goods are defective or damaged bearing the type of such to
indicate that the Supplier or Manufacturer of such goods is at fault of delivering such said
damaged goods.
14.05 Photographic evidence shall also be provided of such damage where appropriate. Such
a notice shall be advised to the Seller via facsimile, Jpeg or e-mail, to which the Seller shall
attempt to rectify the said defect on behalf of the Buyer, in the first instance, to the mutual
satisfaction of both, once the evidence provided has been authenticated proving that such
goods were delivered by the manufacturer or Supplier in a manner not ordered.
14.06 The Buyer shall allow any authority of the Seller to visually inspect the damage to the
said goods in possession of the Buyer, in the Buyer’s country and/ or premises and make a
report of such to the Seller.
14.07 The benefits conferred by the said warranty are in addition to all implied warranties,
other rights and remedies in respect to the goods being purchased, which the buyer has under
the Trade Practices Act and/ or similar state or territory laws as applied in the country where
the goods are being exported from, as well as matters of statutory obligations as applied
under the Hague-Visby International shipping rules in conjunction with the "Sales of Goods Act
2001” as applicable under English law for the carriage of goods, where such matters
incorporate damage caused to such goods that fall upon the obligations of the Carrier to
remedy, as defined by the terms and conditions on the back of the Bill of Lading form.
14.08 The Seller shall be obligated to remedy such damage and defect as it applies, on behalf
of the Supplier once such evidence has been established in determining that the said Supplier
or manufacturer is at fault for selling such said damaged or defective goods.
14.08 In the event defective goods are accepted in where main properties in the goods as
mentioned further are not within the the said specification or grade offered, then a discount
on price is applied to favour the buyer, as compensation for accepting such defective goods,
once such defective state of goods has been verified.
(a) In relation to; Ethanol content at point of production falls below : 98.3
Seller shall deduct as a discount to favour the buyer : US$5.00 per
MT
(b) In relation to: Copper (Cu) content rising above : 12 PPM

Seller shall deduct as a discount to favour the buyer : US$5.00 per MT
15.0 PAYMENT OF GOODS

15.01 The Buyer shall be required to open a letter of credit to the seller as defined, within 7
days of a contract becoming formal. The contract becomes formal when signed and returned
by the Buyer in the form of ‘PDF’ as served via the internet to the seller, while waiting for
hardcopy of the contract to arrive by courier mail.
15.02 Bank issued Payment Required: An Irrevocable Transferable UCP 600 ruling operational
documentary letter of credit (ITDLC) is sought by Seller. Such a financial instrument must be
issued from Top 100 ranked world class safe bank as define from the year 2019 onwards as
listed on the said contract in the form of applicable web site address or addresses, otherwise a
transferable credit shall be issued being fully confirmed, as applied to the Seller’s Advising
Bank at the Buyer’s expense in the first instance or a suitable corresponding bank. The Seller
has discretion to accept such a credit from any appropriate bank if the documentary letter
credit is confirmed, in where all delivery document a will be presented to the confirming bank.
A country holding Sanction or trade embargoes with the Unites States of America, Australia or
both, is deemed to be an ‘inappropriate bank.’
15.03 The Credit as referred shall be issued and become payable 100 percent at sight upon
clean unambiguous presentation of required delivery documents as per those defined under
Incoterms 2010 as being specific and applicable as it relates to UCP 600 issuance Rules
applicable the the Credit.
15.04 The credit shall be opened as operational, to the account of the Seller, to which the
Seller once accepting the ‘ITDLC’ shall serve a document carrying the heading ‘Proof of
Interests’ in the goods being offered, as defined on contract. The Document bearing the
heading “Policy Proof of Interest” (PPI) as defined on the contract in blank form, shall be the
only document used as surrendered to the DLC issuing bank of the Buyer, once only, as
advised from the advising bank of the Seller. The Seller may opt to serve the PPI Certificate
copy, by email directly to the buyer as well.
15.05 The actual costs of the goods shall apply that all bank charges and fees including the
transferring charges, pre advisement fees and corresponding fees, shall be for the cost of the
Buyer, the said applicant of the credit.
15.06 The said transfer fee is payable as called by the advising bank of the Seller to the DLC
issuing bank of the buyers, as paid behalf of the Seller. The transfer fee once paid, shall be
returned in the form of a credit to favour the Buyer on the Seller’s invoice. The Buyer hereby
agrees with the Seller that such a transfer fee / charges is based on the price offered for goods
being purchased. Therefore in accordance Article 38 of UCP 600 Paragraph (c) the Buyer has
‘agreed’ with the Seller to pay for such fees once the credit becomes transferable as paid
before the issuance of the PPI Certificate is advised.
15.07 Upon delivery documents being successfully applied against presentation, the
applicable rules of collection as per URC 522 shall prevail (ICC Uniform Rules of Collection
Publication 522).
15.08 Where multi shipments are being advised the credit shall be issued as ‘Non Cumulative
Revolving’. Where two deliveries are envisaged per month Two (2) shipment values are
revolving per month.
15.09 Trans-shipments are not allowed. Partial shipments are not allowed
15.10 The Non Cumulative Revolving value of the financial instrument lodged for payment as
advised accordingly shall be clearly defined on contract in United States Dollars. Final debit or
credit amount is dictated by tolerances as defined on each set of delivery documents
presentation as defined specifically on the Seller’s invoice, includes all credits and debits
related to subsidies and obligated expenses of each party to the contract as defined under
Incoterms 2010.
15.11 Where a waiver is needed to apply for collection, the buyer agrees to initiate a waiver
sought immediately, upon issues regarding the cause needing such a waiver to be served, is
rectified or is agreed upon as being settled, to the satisfaction of the buyer and seller.
15.12 Uniform Customs and Practice for Documentary Credits (2007) ICC Brochure No. 600
(UCP 600) terms of reference, and matters of procedures pertaining to issuance of a
Documentary Credit, to pay for ordered goods, shall apply to all matters of delivery and
lodgement of the payment instrument.
16.0 DELIVERY DOCUMENTS ‘CIF' Named Port of Shipment

16.01 Whether electronically or physically served by a registered courier, to the buyer direct, or
to the bank of such, the Seller shall advise the following documents for presentation and
authentication, in accordance with Incoterms 2010 definition and responsibilities as they
pertain in a strict CIF delivery application. Single copy presented of any set is suffice to meet
the minimum presentation requirement as served to advising bank of the seller .
16.02 All documents are made to order where appropriate carrying the name of the Seller and
endorsed over to the Buyer taking possession of goods ordered only.
16.03 Bill of Lading: Leading Primary Delivery Document applied as a financial instrument
presentation condition. A ‘clean’ on Board Bill of Lading, as serviced by the Shipowner and
not the entity renting the vessel.
16.04 The ‘BOL’ evidencing that the ordered goods are on board the named vessel of the
buyer is presented in a clean state. The ‘BOL’ will be served as being endorsed over the the
Buyer as per such endorsement added by the Seller on the blank margin of the ‘BOL.’ The
term ‘clean' shall refer to any document, carrying any added or inappropriate marks, or is
illegible, is deemed to have produce an adversely effected document, not complying to the
terms and conditions for the credit.The endorsement applied by the Seller is not a part of this
aspect.
16.05 Forwarders Certificate (FCR): A leading document such as that produced by an

Authorised Forwarders Agent of the Port Authority, or Ship Owner(s) known as a Forwarders
Certificate (FCR) is signed and identified accordingly, shall be allowed to prevail as a
presentation document - evidencing further that the ordered goods were loaded on board the
named vessel.
16.06 A Pre shipment (PSI) Certificate issued by Independent Experts, after conducting test
of ordered goods on board the vessel, or for goods which are located at the named port
storage facility, ready to be loaded; as secured by the Seller, for the benefit of the buyers.
16.07 Other documents as well as the above said leading documents to be presented, as
advised further shall also prevail.
(a) A Valid Export Permit; or license or Authority. Cost is for the account of the Seller.
(b) An Original Seller’s Invoice. The signed Invoice issued produced by the Seller shall
declare and disclose the price and actual cost of goods and all debits and credits as applicable
under Incoterms 2010. Seller is also agreeing to refund if applicable, the previously paid
‘Transfer fee’, which shall appear on the Seller’s invoice as a credit favouring the Buyer.
(c) Certificate of Origin - The cost of which is a Buyer’s expense, as debited as such on the
Seller’s invoice in accordance with Incoterms 2010. A Non Preferential or Preferential Certificate
of Origin shall be issued unless specifically informed otherwise that no such Certificate is
required by the buyer, to which no such charge shall be recorded on the Seller’s invoice.
(d) Insurance Cover and Certificate as indicated on the offer; as marked with an ‘x’
(e) Institute Cargo Clause ‘C’ Cover @ 110% of goods value (x)
(f) Institute Cargo Clause ‘All Risks’ Cover @ 110% of goods value( )
(g) To which the seller is to apply the debit and credit application on its invoice to include the
freight component; the monetary sum arrived at will be left in the account, to favour the
buyer, as per the rate secured by the seller; and that should the buyer draw the funds to pay
for freight rate, as earned by the carrier upon physically delivering goods at to destination
port, which is legitimately more to the rates offered to the Seller prior, the Seller shall
immediately give notice for the carrier to explain, in where, if the seller made a genuine
mistakes to the amount of the credit offered, a wire transfer directly to the buyers account will,
be made by the seller to address the shortfall within 7 days of any such claim being being
genuinely asserted.
(h) The cost of freight carriage rate secured but the seller, using the more expensive aspect of
securing a Shipowners BOL, is specified further. This is the amount in total of each shipment
quantity being delivered that will remain as a credit to favour the buyer so that the buyer
may draw such funds to pay for freight carriage rates at port of destination, when securing the
goods.
(i) Freight and other charges implied were secured at time when the offer was served. The
Seller serves the right to change the freight rate ands insurance rate, to the actual rate
secured, if after the contract is returned such rates had risen, as evidence in writing.
(a) Freight and Carriage Rate Provisionally Secured : US$71.00 per MT
(j) Preliminary Insurance Premium Calculation at Time Contract was Signed

(a) US$0.65 cents per every US$100.00 dollar goods value @110% cover
(b) Total premium value per each shipment : US$83820.00
(c) As formally assessed when Carrier provides the final firm quote.
17.0 SPECIAL DOCUMENT PRESENTATIONS

Policy Proof of Interest Certificate
17.01 If an acceptable DLC is used to pay for the goods, the Seller shall cause the issuance of
a “Policy Proof of Interest Certificate”, titled as such, identifying a genuine Manufacturer,
Owner or Supplier of the goods being offered. The Buyer accepts the said offered blank
Certificate model as offered, and the procedures applied therein, for the process needed to
verify that the goods are genuine.
17.02 The “Policy Proof of Interest Certificate”, (PPI) shall be issued first, prior to any other
delivery document. Whether the Buyer verifies such a document or not, is not a concern of the
Seller, regardless which financial instrument is advised, and that the actual surrendering and
disclosing of such good clear and genuine verifiable information is the only obligation that is
required of the Seller.
17.03 The Buyer shall cause to accept such information within 3 days or less of issuance,
whether such acceptance is advised or not.
17.04 The “PPI” blank model shall be applied at the end of this contract and shall be returned
to the buyer carrying full genuine disclosure of the Seller’s allocation and interests in the
goods being sold, upon the financial instrument for payment of the goods have been advised
as accepted by the Seller.
17.05 Only if where the issuance of such disclosed applied information later proves to be false
or fake, no protest is allowed to be applied, in reference to the suitability of such a document
once issued. Should it be proven that the information supplied by the Seller is false or fake,
then the Buyer shall be allowed to make claims of fraudulent and dishonourable intent against
the Seller to which it shall further imply that the Seller has failed with the required obligations
in delivering only good genuine verifiable information, to which 96 hours shall be further given
to the Seller to remedy such a situation before the Buyer calls a breach of the Seller’s
conditions.
17.06 The Seller shall be required to make a copy of the PPI certificate at the end of this
contact, fill in the details to disclose the Suppliers of the goods and forward as such from the
advising bank to the issuing bank in electronic form, or to the issuing bank by hard copy
courier, whichever comes first. The Buyer is obligated to read the blank unfilled copy of the PPI
certificate applied herein, to which the Buyer is to accept the information yet to be applied on
its form, in disclosing the Supplier’s information. The Buyer is also obligated to read the terms
on the blank PPI Certificate, and follow its own independent defined terms in getting the
information authenticated once only.
18.0 E-MAIL AND INTERNET PROTOCOL

18.01 Regardless of the Buyer’s internal laws as applicable in the country of destination of
said goods, the obligation of the Buyer as related to the validity of this contract does not
invalidate the personal obligations of such, in the performance of, as it pertains to such
matters related to the issues and/ or use of internet, e-mail or other electronically “tele-
transmitted” documents.
18.02 Extraterritorial law shall not be used by the buyer to defeat the legally binding status
and intent of the person who accepts to enter into a legally binding situation as per the terms,
scope and conditions of this contract.
18.03 The Buyer is hereby informed that by signing this contract a personal legal obligation
will still prevail even where the local laws of a particular country contravene rules and edits
applied in this internationally enforceable contract.
19.0 SHIPPING MATTERS

19.01 Matters and obligations of Shipping, Demurrage, Delays, Berthing, Weather and the like
which are in force as it is applied to the goods being delivered into the care and possession of
the buyer shall dictate in defining responsible parties to such matter(s) and obligations as it
pertains to such events, to which the Seller plays no part in accepting such obligations in such
said matters, of which the owner of the goods has formally been advised accordingly.
19.02 The Buyer is further advised to ensure that the Bill of Lading document and its terms
and conditions may apply interference among others, to the Carrier’s obligation(s) that are
applied therein, as applicable to the International Maritime shipping rules further defined as
the “Hague Rules” in the first instance or the ‘Hague-Visby Rules' in the second instance. The
Seller is responsible for matters of shipping as per his own contract with the Carrier secured by
such, until such time goods are delivered ‘over the ships rails’ at Port of Destination.
19.03 If the Seller is asked to assist the Buyer and become involved in other matters beyond
the scope advised under Incoterms 2010 as it pertains to the CIF delivery mode, the Seller may
at its discretion agree to assist the Buyer on the conditions that the Seller is not be blamed
for any liabilities or consequences produced by the Seller agreeing to assist the Buyer,
beyond the scope of normal business. The Buyer agrees on the same aspect from his/her
perspective.
19.04 Delays caused by the Carrier are the fault of the Carrier. Delays in not being ready to
accept the goods and other charges and obligations imposed therein are for the account of
the Buyer. Should good not be ready for loading when the ship norths, such is delays is for the
seller to bear. Once the goods pass the ‘ship’s rail’ at port of loading, the cost and
responsibilities, ands risk of the goods therein pass to the Buyer. Incoterms 2010 dictates
operational aspect accordingly.
19.05 The Seller will advise an estimated ship arrival date and time at loading port, 14 days
before its arrival or earlier. Once advised a second arrival date shall be advised once the ship is
48 hours from berthing at the said loading port or earlier, to the Seller to which the Seller shall
make ready the said goods, alongside ship ready for loading, once customs has cleared the
vessel for lay can.
19.06 As such, the entity causing and/ or being at fault, as it pertains to matters of shipping,
bears consequences, in accordance with the terms and conditions of the said Bill of Lading
and/ or Incoterms 2010 as appropriate, once goods are on board ship.
20.0 NAME OF SHIP ARRIVAL DAY

20.01 The contract of sale and purchase has a schedule applied for delivery. The date of
delivery shall imply the earliest date the goods will be available for loading. The Buyer shall
notify the Seller within 14 days of the arrival date of such ship at loading port, and the name of
carrier. The Buyer and Seller agree that such a notification date applies from the said delivery
date, less 14 days before or more.
20.02 Regardless of any other concurrently applicable matters of scheduling being apparent,
the above minimum stipulation shall apply to mean that the Seller is required to initiate the
processes needed to ensure that the carrier will be at the loading port on or within the
required timeframe and that the Seller is to start initiating such a process of securing the
required carrier, immediately upon this contract is returned to the Seller as being signed and
formally accepted as being enforceable.
20.03 Any consequence, liabilities and expenses applied to the seller, conclusively due Buyer
signing the contract and not performing thereafter, shall be an expense of the Buyer to bear
unconditionally, which must be settled within 7 days of serving notice of such liabilities and
expenses incurred by the Seller as served by email. As it applies time the buyer so shall it apply
the same, to the Seller as taken form his perspective is servicing his own default to the Buyer.
20.04 Should such said expenses incurred, due to the Buyer failure to perform, not be
settled in and manner advised, the seller has the right to seeks full compensation for buyers
breach of contract, by any legal means it sees fit. As it applies time the buyer so shall it apply
the same, to the Seller as taken from his perspective is servicing his own default to the Buyer.
21.0 ARBITRATION
21.01 All matters pertaining to contract dispute(s) shall be settled amicably in the first
instance. Where in the first instance such matters have failed to be resolved amicably, the
arbitration rules as applied under the London Court of International Arbitration (LCIA) shall be
the doctrine of application that shall be used for settling any prevailing dispute(s) with the
seller, where the parties to a contract obligation(s) have not been met.
21.02 Such doctrine of application shall be enforced in the appropriate venue in the Seller’s
country and state, as defined on this contract. Should the matter of the goods in possession be
the issue of dispute, such matters shall be answerable in the Supplier’s country and state, to
which the Seller’s obligation in defending the Buyer’s claim on behalf of the buyers shall
become apparent if such claims are justified, in said country.
21.03 To which, any disputes in relation to the Seller’s obligations as they pertain to these
matters as defined in this contract and offer supporting this contract, shall be arbitrated upon
in the following country and city: - Melbourne City, State of Victoria, Australia.
21.04 English language shall apply for all matters as it pertains to this contract. English
International trade laws shall define the ruling applicable edict applied to this contract.
21.05 Where the Seller is required to defend the claim made by the End Buyer, in the
Supplier’s country, the Seller shall be obligated to meet the End Buyer in the Supplier’s country
and attend any proceeding accordingly but only on the condition that the End Buyer agrees to
be physically present in such a country to litigate upon the matter in dispute.
22.0 FORCE MAJUERE

22.01 In the event of ‘Force Majuere’ defined to mean "unforeseeable course of events", the
transacting parties agree to indemnify each other for failure of deliveries and performance of
contract cause by strikes, lockouts, labour disturbances, anomalous working conditions,
accident to machinery, unforeseen delays en route, policies and restrictions of governments,
including restrictions on export or import or other licenses, war, whether declared or not, riot,
civil disturbances, serious fire, an implied severe act of nature, acts of terrorism or any other
acceptably defined contingency whatsoever beyond the control of either party, to be sufficient
excuse for any delay or non-performance traceable to any of these specific events, including
where delay to the transaction is a result of the untimely death or serious sickness or injury to
any of the principal contract signatories.
23.0 FRUSTRATION
23.01 This contract has procedures and obligations defined as they pertain to a particular
transacting timeframe, as defined under ‘Validity Date’. Should such stated contracting period
not be maintained then the contract shall automatically be implied as being invalid and not
legally binding, before the said signatures of both parties are applied.
23.02 Once the signatures of both parties have been applied on this contract, within the set
timeframe period indicated, the contract shall be deemed to be legally binding.
23.03 Issues of ‘Frustration’ allow the offended party to take legal action against the
offending party causing said “Frustration”. The buyer has no permission to make contact with
the Supplier, Owner or Manufacturer of the goods being offered, once such has been
disclosed, other than in a manner as advised in the ‘PPI’ Certificate.
23.04 Breaching of this specific condition shall imply an immediate breach of contract
condition to which at Seller’s discretion, the Seller shall bear the right to not continue with the
application of this contract, and take legal action for remedy of the buyer’s breach and implied
lack of honourable intent as implied with the acceptance of the offer.
23.05 Once the transaction is finalised as per the nature of business at hand the said
condition of contacting the Supplier shall not apply to which no frustration shall said to have
occurred, once six clear months have passed from when the last successful delivery was
initiated, or when the PPI Certificate was issued to the buyer, whichever comes first. The Seller
is the only person allowed to direct the producer or manufacturer of the goods being offered
at all times accordingly so as to avoid all matters of frustration associated with successful
delivery.
24.0 MATTER OF LEGALITY

24.01 This contract once signed by all parties involved shall become the legally ruling
document, to which the draft negotiable status of the contract shall cease to favour a formal
application, to which;
24.02 All parties signing this document are over 18 years of age, and mentally competent.
All parties signing this contract have not be charged or imprisoned for acts of fraud.
24.03 All parties to this contract are not declared bankrupts.
24.04 This contract cannot be entered into without a signed offer being accepted first. The
contract is returned to reach the seller via facsimile, and for clarity a Portable Document
Format (PDF) document shall also be advised via electronic mail and computer via the Internet.
24.05 At the point where the facsimile and PDF document leaves the realm of the Buyer’s
machine, to travel into the realm of electronically transmitted signals, (also referred to mean
“In Limbo”) shall cause to infer that a legally binding situation is in force between the Buyer
and Seller.
24.06 The arrival of either the facsimile copy, bearing hand applied signatures and/ or the PDF
format copy bearing the term ‘original' shall define to mean that the intent of the buyer is to
proceed, as being legally bound by the terms and conditions of this contract, and offer
supporting this contract. Good and honourable intent shall govern the parties applied to this
contract at all times unconditionally.
25.0 SUMMARY OF PROCEDURES

25.01 The Buyer had ask for an offer which was accepted.This act instigated the issuance of
this draft contract, of which the following procedures in the matter of scheduling shall apply.
(1) Draft contract produced by the Seller is signed and returned to the Seller from the Buyer to
imply a formal legal contracting situation. Once copy is served by courier postal services in
hardcopy form. One copy is serviced by email in the form of a PDF copy. The PDF copy is the
ruling copy until courier delivered hardcopy arrives.
(2) Financial instrument issued within contracted days to initiate acceptance of such. No more
than 7 (Seven) days is allowed for the issuance of the financial instrument is allowed.
(3) PPI Certificate defining “Proof of interests in Goods” is advised by the Seller, once the
financial instrument has been accepted. The Buyer acknowledges such by email.
(4) Performance Guarantee is advised if applicable within 7 days of the financial instrument
from the Buyer was accepted.
(5) Ship arrival date and details of the vessel at loading port is relayed to Buyer by email.
(6) Goods are proven as being loaded on board the Sellers ordered Carrier
with the issuance of the leading delivery document.
(7) Remaining documents advised within 21 days of BOL date.
(8) Delivery completed, collection made at sight of the delivery documents.
(9) Next shipment loaded if revolving shipments have been ordered.
(10) ‘Days’ shall mean normal 24 hours per day.
(11) Defective goods are called within 90 days of goods being delivered port of destination
Internet references to be used by all parties to the Contract:

(a) In matters of identifying an acceptable Top Class World Bank.
"http://www.forbes.com/2006/03/29/06f2k_worlds-largest-public-companies_land.html"
(b) In matters of distances assuming ship is travelling at 14 knots per hour.

(c) In matters of Weights and Measures.

"http://www.onlineconversion.com/"
(d) In matters of identifying loading and unloading ports.
(f) In the event such website offered not longer exist or are functioning manner in not
producing the correct information sought, the Seller and Buyer agree to use an alternative
website should a dispute become evident as relevant to the website being used.
26.0 POLICY PROOF OF INTEREST CERTIFICATE (PPI)

26.01 In relation to the "Policy Proof of Interest Certificate”, a copy is hereby exposed to the
buyer as a “Blank Model (A)” document bearing no information other than depicted.
26.02 The Seller shall cause the said model document to be fully filled in with the said
required information, to which a copy will be made and returned to the Buyer, upon
acceptance of the Buyer’s financial instrument within 3 days of such occurring. The said
information once provided is said to be genuine and real as secured directly from the owner of
the goods being offered to the Seller, which is consequently being resold to the Buyer, and
unless otherwise proven differently, the Buyer accepts the information unconditionally as being
genuine, in meeting with the Seller’s obligation in accordance with Article (25.0) Paragraph (3)
of procedures as to the timeframe and scheduling applied for the performance of the contract.
The Seller's "Proof of Interest" in the goods being offered is officially declared and disclosed
once the information regarding the owner in possession of such goods has been exposed. The
Buyer has 72 hours or less to verify the confidential disclosed information provided. Whether
verified or not, the surrendering of such information is the only obligation the Seller is required
to provide which allows the pre advised credit to become formally active and not bearing the
pre-advised status within 72 hours or less of issuing the PPI Certificate electronically to arrive
at the Buyer’s issuing bank.
26.03 PPI Certificate (Blank Model “A”)

IMPORTANT BANK PRESENTATION DELIVERY DOCUMENT
Advised By: FTN Exporting defined as “Client”
Address
Contact Number
Advising bank:
Applicant’s Issuing bank.
Date PPI advised:
Issued by Facsimile and/ or PDF:
Dear Sir or Madam,

Please be advised that the applicant named below has issued a UCP600 pre-advised credit
from your bank to our advising bank. We are required to present details in identifying the
Supplier of the goods we are reselling to the applicant of the credit, of which this Proof of
Interests Certificate (PPI) is hereby offered as per our contracting conditions, in meeting with
the Pre-advised credit condition. The supplying and disclosing of such meets our obligation,
regardless of whether the applicant confirms the information provided.
In accordance of such, please apply to make the Pre-advice credit to formally apply without the
“Pre advised” status being applicable, to which a normal UCP600 irrevocable transferable
documentary letter of credit is now required to be applied as being the apparent operational
credit.
Thank you.
Print Name:
Signed:
Dated:
PROOF OF POLICY CERTIFICATE (PPI)

To the Bank of the Applicant referred to as a “Third Party”
Name of the Applicant of the issued credit
Name of issuing Bank
Address
Contact details
Name of Bank officer:
Document presentation supporting pre advised credit Number:
Supporting Transaction code:
Name of person selling goods to the Applicant and End Buyer: FTN EXPORTING
Supplier’s Confirmation.
Our client ____________________________ is or has purchased the goods from us, the below
defined Owner and/ or Supplier of such named goods in possession.
Our client has asked us to confirm any request made by a third party, to confirm the interests
of the said named client of the following said goods being purchased by such. The said third
party making an enquiry to verify our said Buyer’s interests, shall be required to send by
facsimile, once filled in by our client, this document to the contact detailed below within 72
hours of the said third party obtaining this document from his bank or office. We shall read the
filled in information provided and if correct we will sign this PPI Certificate adding to confirm
that we have verified that the information on this document is true and correct and return it as
such to the Third Party via facsimile or e-mail only once. No other information as to our client
or the goods shall be provided. No verbal communication accepted.
Third Party Facsimile Number:

Third Party E-mail Address:
Supplier’s Details:
The Supplier and owner of the goods are:
The name of the person representing the Supplier and owner is:
Address:
E-mail:
Facsimile
Phone Number
Business Number
Supplier’s Website, if any
Description of Goods:
Quantity:
Supplier’s Authentication and Verification:

I, We the said Supplier and owner of the goods have received the following enquiry from a
third party, and client of FTN Exporting and that such goods and supporting information
applied are hereby verified as being genuine and that our client has interest in such goods as
described accordingly of who we are serving applying the said nature of business with the
above attached transaction code. We have signed this document and returned as such to the
third party making the enquiry on behalf of our said client and being authenticated and
verified.
Name of Supplier:
Signed:
Date:
Sealed:
Copy sent to the Third Party and client of FTN Exporting and within 30 minutes of sending, an
e-mail has been advised to FTN Exporting that his client has asked for such a document to be
verified, if such event occurs.
27.0 SELLER’S DETAILS

Name of the Seller: FTN Exporting
Name of person offering the goods: Davide Papa
Business Address:
Mailing Address:
E-mail:
Phone(s):
Facsimile:
Name of Bank:
Name apparent on Account: David J. Papa
Address:
Account Number:
SWIFT CODE:
Phone/ Facsimile:
28.0 SELLER’S DECLARATION

I, Davide Giovanni Papa C/o 37 Lee Street, Carlton Nth, Victoria, 3054 Citizen of Melbourne
Australia, as an Independent private commodity trader using the registered trading name of
FTN Exporting, do hereby sign and/ or sign and seal this contract with good and honourable
intent as Seller acting on behalf of an undisclosed principal or various principals in the first
instance, to which such Principal(s) shall become disclosed, in the second instance upon the
acceptance of the Buyer’s financial instrument, in accordance with the terms, conditions and
scope of this contract.
Print Name:
Date:
Seal
Signature:
29.0 BUYER’S DETAILS

Name of the Buyer:
Person taking possession of goods the goods:
Business Address:
Mailing Address:
E-mail:
Phone(s):
Facsimile:
Name of Bank:
Address:
Name apparent on Account:
Account Number:
SWIFT CODE:
Phone/Facsimile:
30.0 BUYER’S DECLARATION

I, ___________________________________________________ Citizen of _____________________, as an
Independent commodity trader using the registered trading name of ________________________,
do hereby sign and/ or sign and seal this contract with good and honourable intent as Buyer
taking both title and possession of offered goods. I the said Buyer accordingly agree with all
the terms, scope and conditions of this contract.
Print Name:
Date:
Seal
Signature:
End of Contract:
Pages: 53
Words: 21620
Lines: 2143
Paragraph:: 669
Feb 3 2018
———————————————————————————————————————

Sales Contract UCP600 ICC FOB Incoterms 2010 Advised by David Papa

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Master Contract © FTNX 2019 Page 1 of 53

Sales Contract UCP600 ICC FOB Incoterms 2010 defined:

START Outline FOB contract

Details of the Buyer

CONTRACT ISSUE DATE

Date: The day of in the year 2019

2.0 ACRONYMS AND DEFINITIONS

4.0 LETTER OF INDEMNITY: (L.O.I)

The L.O.I. is simply a statement to reinforce to the buyer that

5.0 PRODUCT ON OFFER

7.0 SPECIFICATIONS, GRADE, PACKAGING

The total per monthly minimum shipment delivery range offered.

The total minimum shipment per year offered;

Name of Port and country of loading said goods;

(e): Price of Goods

12.0 PERFORMANCE GUARANTEE

13.0 PERFORMANCE GUARANTEE VALUE.

14.0 SELLER’S WARRANTY OBLIGATIONS

15.0 PAYMENT OF GOODS

Bank issued Payment Required: An Irrevocable Transferable UCP 600 pre-advised

So the DLC Total value is dictated by it contact period.

16.0 DELIVERY DOCUMENTS "F.O.B. Named Port of Shipment"

Leading Primary Delivery Document applied as a financial instrument presentation condition. A

Know your Certificates?

17.0 SPECIAL DOCUMENT PRESENTATIONS

18.0 E-MAIL AND INTERNET PROTOCOL

19.0 SHIPPING MATTERS

20.0 NAME OF SHIP ARRIVAL DAY

22.0 FORCE MAJUERE

24.0 MATTER OF LEGALITY

All parties to this contract are not declared bankrupts.

25.0 SUMMARY OF PROCEDURES

(4) Performance Guarantee is advised if applicable.

(5) Ship arrival date at loading port advised to Seller.

(7) Remaining documents advised within contracted days.

(8) Delivery completed, collection made at sight of the delivery documents.

(9) Next shipment loaded if revolving shipments have been ordered.

(10) ’Days’ shall mean normal 24 hours per day.

Internet references to be used by all parties to the Contract:

(b) In matters of distances assuming ship is travelling at 14 knots per hour.

(c) In matters of Weights and Measures.

(d) In matters of identifying loading and unloading ports.

26.0 POLICY PROOF OF INTEREST CERTIFICATE (PPI)

PPI Certificate (Blank Model “A”)

Dear Sir or Madam,

PROOF OF POLICY CERTIFICATE (PPI)

Third Party Facsimile Number:

Supplier’s Authentication and Verification:

27.0 SELLER’S DETAILS

28.0 SELLER’S DECLARATION

Print Name: Davide Andrew Giovanni PAPA

29.0 BUYER’S DETAILS

30.0 BUYER’S DECLARATION

Sales Contract UCP600 ICC CIF defined: Basic Aspect

In effect once matters of

Supporting UCP 600 Incoterms 2010 ‘CIF’ Named Port of Shipment

Details of the Buyer

CONTRACT ISSUE DATE

Date: Monday, 10th day of September in the year 2019

2.0 ACRONYMS AND DEFINITIONS

4.0 LETTER OF INDEMNITY: (L.O.I)

5.0 PRODUCT ON OFFER

9.0 SHIPMENT OF GOODS DETAILS