Our Trade Procedure & bank Procedure.

1. The buyer sends us the genuine LOI (Completely filled, dually signed & sealed) on our company format. Kindly be advised that an LOI is never a very important document. It's just an purchase information & must not be considered as a purchase order. You can have our LOI format at: http://www.bizscrap.com/loi.asp

2. Seller provides SOFT OFFER.
3. Buyer approves the Soft Offer  and submits freshly dated  BCL (On sellelr's format)
4. Seller issues FCO or "Draft Contract".
5. Buyer accepts the offer or make changes if required. Seller approves the changes and sends back to the buyer. The buyer signs and seals 6 hard copies of the contract and couriers to the agent of the Seller along with the original Bank Letter.
6. Seller signs, seals all 6 copies and couriers 3 copies back to the Buyer.
7. Banks exchange swift messages as mentioned below. We don’t accept any procedure other than our following irrevocable procedure.

MT 799 (Pre-Advice PB) from the Seller’s Bank guaranteeing the opening of a PB upon receipt of the Buyer’s LC can be issued upon receipt of an MT 799 (Pre-Advice LC) from an approved bank guaranteeing the opening of the Buyer’s LC upon receipt of the pre-advice PB. This is valid with annual contracts only – not on spots.

This mean that the buyer’s bank will send swift message to the seller’s bank as follows.

“We xxx Buyer’s bank xxx on behalf of our customer and reference to xxxxxxx, hereby state and confirm that we are ready to proceed an NON OPERATIVE L/C of the amount of xxxxxxxx USD$, and would like to receive your confirmation that upon the receipt of our payment instrument through your bank counter, you xxx Seller’s bank xxx shall issue the PB as per contract and endorse the IMFPA which document already has been provided to you by your customer”

Our buyers are 100% risk free: Hence the seller's bank will confirm/ guarantee the buyer's bank (On reciept of the about the availability of the PB & POP. And it's only then the buyer will open the non-operative LC or any other payment instrument. Hence any buyer's investment on opening the LC will never go in vain.

6. After the buyer & his bank's satisfaction….the buyer issues LC, BG, and SBLC as per the sales contract.
7. Seller issues 2% Performance Bond and counter BG (if applicable).
8. Seller commences shipping as per agreed schedule.

Any question, email us at: trade@bizscrap.com

Best Regards

BIZ SCRAP (INDIA) INTERNATIONAL