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TO END BUYERS

Hakim Trading and Services Group’s Non-Negotiable CIF Procedure

 PAYMENT TERMS:

1. For the whole Trial Shipment of the quantity of the Commodity. Payment will be by 100% by MT103 Guaranteed by Irrevocable, Transferable or Non-transferable, Assignable, Divisible, Confirmed and Operative Documented Letter of Credit (DLC) MT700 of validity of Ninety days from only any World’s Prime Bank or Confirmed by one of Prime World’s Banks, and covering the Trial Shipment value, and the confirmation must be written in the Clause 49 in the Verbiage. And Value that will act as a collateral security guarantee towards successful completion and lifting of the Trial quantity with a maturity date of three (03) months. This DLC will serve as payment for the Trial shipment of the Commodity, and payment of the shipment will be made by SWIFT MT 103, this payment is 100% guaranteed payable directly into the Seller’s Bank, payable immediately 100% at Destination, for the whole Trial shipment loaded with the delivery of documents and SGS Inspection documents.
2. For the Contract Monthly Shipments of quantities of the Commodity. payment will be by 100% by MT103 Guaranteed by Irrevocable, Transferable or Non-transferable, Assignable, Confirmed and Revolving Operative Documented Letter of Credit (DLC) MT700), from only any World’s Prime Bank or Confirmed by one of Prime World’s Banks, validity of One year One month Revolving until the end of the contract until final delivery; covering one (1) monthly shipments’ quantity of the Commodity, and the confirmation must be written in the Clause 49 in the Verbiage. And Value that will act as a collateral security guarantee towards successful completion and lifting of the contracted quantity with a maturity date of Twelve (12) months. This DLC will serve as payment for the last month shipment of the Commodity, and payment of the shipment will be made by SWIFT MT 103, this payment is 100% guaranteed payable directly into the Seller’s Bank, payable immediately 100% at Destination, for the whole of each monthly shipments loaded with the delivery of documents and SGS Inspection documents.
3. (The DLCs MT700 for the Commodity subjects to Seller’s Bank acceptance). And The Contract DLC shall be for the whole period of the contract plus any Rollovers or extensions.
4. Face value of MT103 Guaranteed by previous mentioned Documented Letter of Credits (DLCs) MT700; shall be sufficient to cover the amount in USD for the value of Trial Shipment or for the value of each monthly consecutive shipments for the Commodity. The seller is entitled only to take the shipment value in case of default and non-obligation of the buyer to pay the shipment value.
5. The DLCs MT700 must be sent to Seller’s Bank after Signing the Contract, and before Loading.
6. For any reason; should the Buyer or the Seller wish to terminate the signed contract by the two parties at any time before executing the Contract or prior to its end, the Buyer or the Seller should pay 5% (Five Percent) of the full amount of the Contract value to the other party.

 TRANSACTION PROCEDURES FOR CIF (INCOTERMS 2020)

1. End Buyer sends Official LOI
2. Authorized mandates of the End Buyer if present to be mentioned in LOI, ICPO and SPA.
3. Negotiations are conducted between the Authorized Representative of the End Buyer with the Commercial Manager of Hakim Trading and Services Group Ltd. for initial agreement on the Procedures, Conditions and Prices.
4. Seller sends to the Buyer; “Buyer’s Approval Document for Hakim CIF Non-negotiable Procedure”. Of the Pre-agreed Procedure, Conditions and prices.
5. Buyers Signs and Seals the Approval document and Returns it back within 48/72 hours; with a new updated LOI according to the Seller’s Approved Procedures Document; Signing and stamping the Document; means your Approval for all Terms and conditions. Then the FCO will be send to your address.
6. Seller Issues FCO according to the Seller’s Approved Procedures document and send to Buyer
7. Buyer fills up Buyer’s details, sign/stamp the FCO & sends it with the Passport Copy to Seller along with ICPO with the approved seller’s procedure.
8. Seller Issues Draft Contract or SPA, then Buyers Signs and Seals and Returns it back within 48/72 hours.
9. Seller issues and sign and seals the final Contract or SPA, and send it to the Buyer. Then Buyer Signs and Seals and Returns it back within 24/48 hours.
10. Seller issues the COMMERCIAL INVOICE (CI), while the Buyer signs, and seals the (CI) Invoice, and returns within 24/48 hours.
11. Buyer issues SWIFT MT199 bank to bank, and sends draft DLC copy.
12. After Accepting the SWIFT MT199 by the Seller’s bank.
13. FOR THE TRIAL SHIPMENT Buyer issues Swift MT700 Irrevocable, Transferable or Non-transferable, Assignable, Divisible, Confirmed and Operative Documented Letter of Credit (DLC) MT700 of validity of Ninety days from any World’s Prime Bank or Confirmed by one of Prime World’s Banks; covering the Trial Shipment’s value and the confirmation must be written in the Clause 49 in the Verbiage.
14. FOR THE CONTRACT MONTHLY SHIPMENTS Buyer issues Swift MT700 Irrevocable, Transferable or Non-transferable, Assignable, Divisible, Confirmed and Revolving Operative Documented Letter of Credit (DLC) MT700) to be Revolving until the end of the contract until final delivery (from prime banks or confirmed by World’s Prime Banks), and the confirmation must be written in the Clause 49 in the Verbiage.
15. Seller makes Confirmation of the DLC from the Seller’s bank.
16. Seller within 7 days issues 2% (PB) performance Bond.
17. Seller after confirmation of the DLC, within 10 to 15 days; sends Full POP to Buyer.
18. Buyer confirms shipping documents, with vessels captain while delivery commence to Buyer discharge port According to contract.
19. In case the Vessel arrives to the destination port within three days and Buyer no carry out SGS inspection, automatically the Seller entitled to consider (SGS of loading port as final inspection and confirmation of delivery of shipment in the discharge port).
20. Buyer’s bank will release the payment for the total value of each Shipment to Seller’s bank (MT103) within two (2) working days. The payment will be 100% guaranteed payable directly to Seller’s bank, payable immediately 100% at Destination, for the whole of each monthly shipments loaded with the delivery of documents and SGS Inspection documents from Discharge Port.

N.B.:

1. The DLC must be confirmed by prime World Bank or confirmed by a prime Bank, and the confirmation must be written in the Clause 49 in the Verbiage.
2. SWIFT CASH BACK (SBLC) Standby letter of Credit is acceptable in the same condition and all papers should be Bank to Bank.
3. We work only with CIF Procedure.
4. We don’t give any confidential documents from a third party.
5. The Buyer’s ICPO to be sent to Hakim Trading and Services Group should be issued exactly according to this document’s Terms and Conditions, and the approved document to be attached in combinatorial manner with the ICPO.