Sales Protocol for End Buyers
An end buyer can ask FECO EXPORTING to source goods by sending a well-defined email.
If FECO EXPORTING has already secured the goods, an offer will be advised within 3 days.
If goods need to be sourced from one of our established suppliers, an offer will be advised within 7 days.
If we are unable to secure the goods requested, the end buyer will be advised within 7 days, stating, "We were unable to secure the goods sought." No reply means we are not interested in the goods offered at that time.
Once the offer is signed and returned to FECO EXPORTING, a legally binding agreement is established. FECO EXPORTING will then issue a contract. After the contract is signed and returned as instructed, a bank-issued financial instrument (DLC) to pay for the ordered goods will be advised to FECO EXPORTING within 7 days.
Delivery of Ordered Goods
First delivery, under FOB or FCA Incoterms, is initiated within 35 days of the contract signing date (or as otherwise agreed upon). Subsequent revolving deliveries occur every 30 days thereafter. All such details will be fully prescribed in the offer and subsequent contract.
CIF, CFR, and CIP delivery modes may be discussed when the offer is made, once the destination port is known. However, FOB and FCA Incoterms will be the primary delivery modes considered by FECO EXPORTING. Due to our strict security procedures, FECO EXPORTING cannot use a Charter Party Bill of Lading (BOL) as a presentation document. Instead, we are required to provide a more expensive Shipowner's BOL, as specified under UCP International banking rules (an added security measure). Therefore, it can be assumed that an end buyer purchasing goods at FOB or FCA terms may be able to obtain a better freight rate than FECO EXPORTING can offer.
FECO EXPORTING guarantees the goods it sells and offers a Performance Guarantee (PG) or Late Delivery Discount (LDD) if we are late with deliveries. FECO EXPORTING will not hesitate to cancel a contract of supply or pay compensation via Transparent Cash Rebates (TCR) if an end buyer is placed in a precarious financial situation through no fault of their own. When dealing with FECO EXPORTING, strict, formidable, and very safe trading processes apply.
We regularly trade a diverse range of commodities, including:
Sweet Crude Oil
ULSD2
Soybeans
Sugar
Copper Cathodes
Iron Ore
Manganese Ore
Low Sulphur Thermal Coal
Coking Coal
Scrap Copper
Aluminum/Zinc Ingots
Wheat
Flour
Rice
Low Fat Milk Powders
Canola Oil
Whole Frozen Chickens
Cassava
REO Bars
Rolled Steel Coils
Payment Instrument: UCP 600 DLC Issuance Rules
The disclosed buyer, or their disclosed representative, who pays for and accepts delivery of ordered goods, is the entity that takes possession of the goods and signs the offer.
Types of DLCs Accepted by FECOEX
As defined in the offer or contract, buyers may pay for goods with the following types of Documentary Letters of Credit (DLCs), as per ICC UCP 600:
Pre-advised Irrevocable Documentary Letter of Credit: Requires a precondition to be met by the Seller to remove its pre-advised status.
Pre-advised Confirmed Irrevocable Documentary Letter of Credit: Requires a precondition to be met by the Seller to remove its pre-advised status.
Irrevocable Documentary Letter of Credit.
Irrevocable and Confirmed Documentary Letter of Credit.
Irrevocable and Confirmed Documentary Letter of Credit (Deferred Payment): Available at 60, 90, or 120 days. Please note, longer deferment periods may result in higher goods prices.
Non-Cumulative Revolving DLC: In a revolving transaction, the DLC is advised bearing the value for the entire contract on a non-cumulative revolving basis.
The terms and conditions of the credit instrument (DLC) apply, not solely the sales contract, concerning the purchase of goods.
Where a Bill of Lading (BOL) is provided under a delivery term (ICC Incoterms), FECOEX can only provide a more secure, albeit more expensive, Shipowner's Endorsed BOL.
All credits are made transferable unless otherwise agreed upon.
A non-transferable credit must be advised as confirmed and may incur a higher price for goods.
Unless otherwise stated in the offer as an added security measure, the end buyer pays the transfer fee to FECOEX's bank.
FECOEX, at its discretion, may consider rebating the transfer fee after each delivery has been cleared.
Note: An end buyer unable to secure a DLC from their bank is considered potentially not creditworthy and deemed a high-risk applicant. FECOEX cannot conduct business with such an entity.
Rules, Terms, and Conditions of Trade and Sale
UCP 600: Uniform Customs and Practice for Documentary Credit issuance, as per ICC publication 600.
Incoterms® 2020: Rules of Delivery, in accordance with ICC Paris, France, trademark application.
URC 522: Uniform Rules for Collection, ICC publication numbered 522 or the latest version.
International Agency and Foreign Law Governance: Rules applied via English law.
English Language: English language applies, as do contract formation rules.
Binding Offers: Offers, once accepted, are legally binding or are made subject to contract signatures.
Dispute Resolution: LCIA (London Court of International Arbitration) arbitration rules apply in the seller's country.
Document Submission: Internet PDF and/or facsimile documents are permissible up to the buyer's contract signing time. Hardcopy of the contract is required for finalization.
Established Precedence: Precedence is already established under UNCITRAL (United Nations Commission on International Trade Law).
