This procedure is paramount in regard to
SUGAR and GRAIN TRANSACTIONS
2. Seller provides quote;
3 Buyer approves quote;
4 Seller issues FCO;
5 Buyer accepts and signs FCO, including his Bank Coordinates and forwards to Seller. Seller countersigns including Bank Coordinates, and Copies thereof are forwarded to Seller, Seller's Bank and Buyer's Bank (if required at this stage);
6 Seller issues Contract for Buyer's signature and Buyer returns signed Contract to Seller by Facsimile. Seller signs contract and returns copy to Buyer by Facsimile. Buyer forwards signed originals by DHL or other Courier to Seller. Seller countersigns and returns copies of signed originals to Buyer by DHL or other Courier;
7 Buyer's Bank confirms POF and the availability of LC as well as their� readiness to issue LC to Seller's Bank;
8 Seller's Bank confirms POP and the availability of PB as well as their readiness to issue it, to Buyer's Bank;
9 Buyer's Bank and Seller's Bank approve the format/text/verbiage of Buyer's LC and Seller's PB;
10 Buyer's Bank issues non-operative Letter of Credit, in return Seller's Bank issues operative Performance Bond;
11 The Operative Performance Bond activates the Letter of Credit;
12 Shipment commences as per contract.
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