FECO Exporting Services 

Our Engagement with Suppliers

We partner with suppliers to secure "lots," meaning we seek guaranteed supply of goods that a supplier can produce and deliver over one or more years. Once this assurance of supply is provided, FECO EXPORTING formally contacts the port of loading to confirm loading depths.

For example, if a supplier offers FECO EXPORTING 1 million MT of white cane sugar as a "lot," and the loading port accommodates 100,000 MT carriers, FECO EXPORTING will then offer to buy and sell these goods on a revolving basis of 80,000 MT per month for 12 months at FOB Incoterms.

If an end buyer requires additional carriage under CFR or CIF Incoterms and the supplier is unable to provide this, FECO EXPORTING will arrange the necessary carriage.

Consider a scenario where the sugar has an international indexed value of, for instance, US$700.00 per MT at FOB. Since FECO EXPORTING is transacting in very large lots, what incentive is there for a supplier to secure sales of 1 million MT of sugar? In other words, what discount will FECO EXPORTING obtain from the supplier as an incentive to purchase such a large, export-ready product under FAS or FOB Incoterms?

Any discount FECO EXPORTING receives when purchasing such goods serves as an incentive for our potential end buyers. Over 90% of any secured discount is passed on for the direct benefit of our end buyers. Even if a highly sought-after product has no discount, and the supplier requires a premium over the international price basis due to its scarcity, FECO EXPORTING will still consider such offers.

FECO EXPORTING exclusively transacts in future offers, not "spot" offers. This means a farmer looking to gauge a price for crops due for harvest in six months can make an offer to FECO EXPORTING based on the desired price for most or all of their crop. This allows the farmer to test if a better gate price can be secured early. The farmer will still be responsible for delivering the goods at FAS terms, with these expenses factored into the "gate" (EXW) price sought.

Offers from Suppliers and Buyers

Suppliers and end buyers worldwide seeking secure export/import transactions should thoroughly review our website before contacting us. Upon receiving a relevant inquiry, FECO EXPORTING will provide an immediate response. If we do not respond to an email, please presume the inquiry was not of interest or not relevant to our business.

Similarly, an end buyer seeking a specific product may contact FECO EXPORTING to inquire about current stock or our ability to quickly source goods from our established suppliers. Inquiries lacking professionalism or correct trading aspects will be disregarded.

While we consider offers and contracts advised by suppliers, the majority of such documents are often rejected by FECO EXPORTING for not conforming to our strict procedures or for containing risk-laden clauses. By presenting our own offer and contract model, we save significant time, as most suppliers readily accept our strict but easily understood model documents, which protect the interests of both FECO EXPORTING and our suppliers. The added benefit of working with FECO EXPORTING, a leading global expert, is clear.

Our Procedures

1. The supplier provides a quote as a PDF.

2. The quote must include email text describing the quoted goods.

3. Specifications must be attached to the quote.

4. The quote must be in Euro, USD, BPD (British Pounds Sterling), or CAD (Canadian Dollars).

5. Quotes are preferred to be valid for four months or more.

6. Once FECO EXPORTING is ready to make a purchase, an Offer to Procure (OTP) will be advised by FECO EXPORTING.

7. The supplier signs and accepts the OTP.

8. FECO EXPORTING becomes legally bound at this time.

9. The supplier prepares goods for export.

10. FECO EXPORTING forwards a draft contract to the supplier.

11. The signed contract is returned as a PDF.

12. The hardcopy of the contract is dispatched by courier.

13. The PDF contract allows the transaction to proceed.

14. FECO EXPORTING advises the payment instrument within seven days of contract signing.

15. The supplier advises a Performance Guarantee (SLC) as specified in the offer within seven days thereafter.

16. The first delivery is 35 days from the contract return date.

17. Revolving deliveries apply monthly or as stated in the contract.

18. Once goods are loaded at the port of loading, clean transport documents are presented for collection against the "at sight" payment endorsed instrument.

19. Defective goods have a 90-day recourse period after offloading at the port of destination.

20. The next delivery is initiated.

Payments

All payments to suppliers are made via banks ranked among the top 100 safest banks globally. Payments are facilitated through non-cumulative revolving Documentary Letters of Credit (DLCs), valued for the entire contract.

Our Engagement with End Buyers

FECO EXPORTING only sells goods that have been secured from our undisclosed suppliers. We never make an offer unless we have firm assurance of supply in hand first. FECO EXPORTING is very active year-round, and end buyers can engage with us using our established processes.

An end buyer is an entity that takes direct possession of goods ordered from FECO EXPORTING. An end buyer with a poor credit rating or inability to open a DLC with their bank cannot conduct business with FECO EXPORTING.

An end buyer cannot purchase goods from FECO EXPORTING for reselling under the same Bill of Lading (BOL) in CIP, CIF, and CFR transactions. This is because the ship owner's BOL is endorsed in its blank area in the name of the end buyer, as required under UCP 600 DLC rules, which FECO EXPORTING strictly enforces in its sales contracts. This added security measure ensures that only genuine parties acting as principals to a transaction are involved. Due to security concerns, especially in these challenging times, FECO EXPORTING's strict procedures are a necessary aspect of doing business with us, ensuring both our interests and those of the end buyer are thoroughly protected.

Delivery Modes & Added Incentives

FECO EXPORTING utilizes CIF&C, CIF, CFR, or CIP ICC Incoterms® 2020 for its deliveries.

We offer an added incentive when indicated in the offer: subsidized freight for distances no more than 15,500 nautical miles. The seller is responsible for securing a seaworthy carrier on a time charter basis and for obtaining the freight and insurance rates.

Included in the Price: Insurance Coverage: 100% Class "A" Institute Cargo Clause at 110% of the value is offered by the seller to the end buyer, as relevant to the chosen delivery mode.

Due to the higher level of security we apply, FECO EXPORTING must provide a Shipowner's Bill of Lading (BOL) rather than a Charter Party BOL. This means FECO EXPORTING's freight rates might be slightly higher compared to what an end buyer could secure under a Charter Party BOL. It can be assumed that an end buyer might secure a better carriage rate than FECO EXPORTING.

Required Documents

All documents must be presented in accordance with UCP 600 banking rules.

For CIF&C, CIF, and CFR with variables, the following documents are required:

• One original set of documents.

• Shipowner's Bill of Lading: A freight prepaid Shipowner's BOL is provided for added security, not a Charter Party endorsed BOL. (No BOL is served with basic FOB delivery mode).

• Ship's Mate's Receipt

• SGS PSI (Pre-Shipment Inspection) certificate

• Export Permit, License, and Authority

• Customs Endorsed SED (Shipper's Export Declaration)

• Seller's Invoice (applying debits/credits)

• Certificate of Origin

• Insurance Policy: All Risks Coverage and Policy Proof of Interest Certificate (PPIC) are provided when the DLC is advised.

• Any additional documents required and presented under the terms of the contract.