Overview of raw material prices
and different payment alternatives
Min. delivery 50MT x 12
month optional 100MT
SUCCESSFUL IN THE TEAM
4) Price US$ per MT at payment by irrevocable,
confirmed, non transferable,
revolving letter of
credit DL/C)
Price US$ per MT at payment by
irrevocable, confirmed, transferable, divisible letter of credit (DL/C)
3) Price USD by MT,
payable within 7 days after arrival of the goods at the unloading port
and handing over of the payment documents agreed
on. Prerequisite is the deposit of a
bank
guarantee (BG) or a Standby Letter of Credit (SBLC) in the amount of
three monthly deliveries1), with a running time
of 467 days.
2) Price
USD by MT, payable within 7 days after arrival of the goods at the
unloading port and handing over of the payment
documents agreed on.
Prerequisite is a bank
deposit in the amount of three monthly deliveries1), for the
duration of 467 days, against a bank confirmed
Promissory note in the same
amount as security.
1) Price USD by MT,
payable within 7 days after arrival of the goods at
at the unloading port and handing over of the
payment documents
agreed on. Prerequisite is a
bank deposit in the amount of four
monthly
deliveries1), for the duration of 467 days, against a bank
confirmed Promissory note in the same amount as
security.
Iron Ore Lumps 59% Fe FOB Indonesia / US$/MT
34,30 36,80 38,20 50,60
CIF Asia Seaport /
US$/MT 50,70 54,50 57,60 74,80
Iron Ore Fines 59% Fe FOB Indonesia / US$/MT
35,00 37,60 39,00 50,60
CIF Asia Seaport /
US$/MT 51,40 55,30 58,40 75,80
Iron Ore Lumps 62% Fe FOB Indonesia / US$/MT
37,20 39,90 41,40 53,60
CIF Asia Seaport /
US$/MT 53,60 57,60 60,80 78,80
Iron Ore Fines 62% Fe FOB Indonesia / US$/MT
37,90 40,70 42,20 54,60
CIF Asia Seaport /
US$/MT 54,30 58,40 61,60 79,80
Iron Ore Lumps 64,5% Fe FOB Indonesia / US$/MT
38,60 41,50 43,00 55,70
CIF Asia Seaport /
US$/MT 55,00 59,20 62,40 80,80
Iron Ore Fines 64,5% Fe FOB Indonesia / US$/MT
39,30 42,20 43,80 56,70
CIF Asia Seaport /
US$/MT 55,70 59,90 63,20 82,80
Manganese Ore FOB Indonesia / US$/MT 73,70 79,30
83,30 108,20
CIF Asia Seaport / US$/MT 91,50
98,60 103,30 134,40
Iron
Sand FOB Indoesia / US$/MT 28,60 30,70 31,80 44,50
CIF Asia Seaport / US$/MT 46,40 49,90 52,80
70,70
Remarks:
1) Minimum amount of the bank guarantee or SBLC
US$ 10,000,000, of the Cash Bank Deposit US$ 20,000,000.
2) Prices are net prices without commissions.
3) Iron-Ore-Price on wet-Basis
4) Selling price on inquiry
1. Payment Alternatives
1.1 Introduction
We
dealing with raw material with our financials partner offer flexible and
innovative financing
Systems and payment terms -
customized to our clients` individual requirements
- As follows:
+ Payment
via Telegraphic Transfer by SWIFT (TT)
+
Documentary Letter of Credit (DLC)
+ Standby
Letter of Credit (SBLC)
+ Bank guarantee (BG)
+ Cash Bank Deposit (CD)
2. Telegraphic Transfer by SWIFT (TT)
We accept this payment method only in connection
with a Standby Letter of
Credit, a Bank
guarantee or a Cash Bank Deposit.
3. Documentary Letter of Credit (DLC)
3.1 Non Transferable DLC
Only in particular cases we accept non transferable DLC as payment
instrument
in our raw material arrangements. In
the event of acting as trader or as ordering
party of the shipment we need to issue back-to-back DLC. This is an
extremely
complex and expensive procedure. Some
raw material groups do not allow any
payment via
non-transferable DLC. Please kindly ask us to get more details.
3.2 Transferable DLC
Paying via DLC the transferable and divisible DLC is the standard
payment
instrument we expect. Using that payment
instrument please see the
corresponding position
"transferable and divisible DLC in our price list.
However in any case please kindly agree the
prices with us before offering the
raw material
to your clients.
PAYMENT
ALTERNATIVES
DRAFT /
TEXT LETTER OF CREDIT
40A: FROM OF DOCUMENTARY
LETTER OF CREDIT
IRREVOCABLE, TRANSFERABLE,
DIVISIBLE
20: DOCUMENTARY CREDIT NUMBER
31C: DATE OF ISSUE
31D:
DATE AND PLACE OF EXPIRY
HONG KONG
51A: APPLICANT BANK
XXXXXXXXXX
50: APPLICANT
XXXXXXXXXX
59: BENEFICIARY
XXXXXXXXXX ASIA LTD
HONG
KONG
32B: CURRENCY CODE, AMOUNT
USD "MONTHLYVALUE"
41A:
CREDIT AVAILABLE WITH
HASE HKHH BY PAYMENT
42C: DRAFTS AT XXXXXXXXXX
DRAFT TO BE DRAWN AT SIGHT
43P: PARTIAL SHIPMENTS
ALLOWED
43T: TRANSSHIPMENTS
NOT ALLOWED
44A:
SHIPMENT FROM
XXXXXXXXXXX PORT
44B: SHIPMENT TO
XXXXXXXXXX PORT
44C: LATEST DATE OF SHIPMENT
90 DAYS AFTER THIS DL/C IS OPERATIVE
45A: DESCRIPTION OF GOODS AND / OR SERVICE
COVERING "QUANTITYMONTH" MT OF "GOODS" IN
ACCORDANCE
TO BENEFICIARY PRO-FORMA INVOICE
REFERENCE XXXXXXXXXX
DATED XXXXXXXXXX AT PRICE
OF USD XXXXXXXXXX PER MT CIF
XXXXXXXXXX PORT
DRAFT / TEXT LETTER OF
CREDIT:
46A: DOCUMENTS
REQUIRED
DOCUMENTS AS AGREED AND AS PER SALE /
PURCHASE
CONTRACT NUMBER XXXXXXXXXX
+ SIGNED COMMERCIAL INVOICE INDICATING THE TOTAL
AMOUNT OF VALUE OF THE DELIVERED COMMODITY,
3/3 ORIGINAL AND COPIES
+ CERTIFICATE OF ORIGIN IN ONE (1) ORIGINAL AND
THREE (3) COPIES ISSUED BY RELEVANT AUTHORITY
+
FULL SET OF ORIGINAL OF CLEAN SHIPPED ON BOARD
OCEAN BILL(S) OF LADING SIGNED BY MASTER OF
VESSEL MADE OUT TO ORDER OF ISSUING BANK AND
NOTIFY THE APPLICANT AS INDICATED IN RELEVANT
LETTER OF CREDIT, MARKED "FREIGHT PREPAID"
SHOWING TOTAL ACTUAL GROSS/NET WEIGHT SHIPPED,
THREE (3) ORIGINALS AND THREE (3) COPIES
+
QUALITY AND QUANTITY CERTIFICATES AND DRAFT
SURVEY REPORT FOR NON RADIOACTIVITY, NON-WOOD
SUBSTANCE, FOREIGN ATTACHMENT, PLASTIC, WOOD,
DUST, STONES, HEAVY RUSTY MATERIALS, WITHOUT
HARMFUL IMPURITIES AND TOTALLY FREE OF ANY TYPE
OF EXPLOSIVES, INCLUDING BUT NOT LIMITED TO BOMBS,
ARMS, AMMUNITIONS, TORPEDOES, MINES, SHELLS,
CARTRIDGES, SEALED CONTAINER OR ENVELOPES,
COMPRESSED GAS CYLINDERS, EXPLOSIVE MATERIALS
ETC., ISSUED BY SGS AT LOADING PORT - TWO (2)
ORIGINALS AND TWO (2)COPIES.
47A: ADDITIONAL CONDITIONS
+ SPELLING AND TYPOGRAPHICAL ERRORS / MISTAKES
ARE
NOT AND SHALL NOT TO BE CONSIDERED AS
DISCREPANCIES
+ THIS
CREDIT IS NON OPERATIVE AND SHALL BECOME
OPERATIVE BY FURTHER AMENDMENT FROM US UPON
RECEIPT OF A 2% OPERATIVE PERFORMANCE BOND
GUARANTEE AT OUR BANK COUNTER
+ THE LETTER OF
CREDIT IS SUBJECT TO UCP FOR DOC.
CREDITS ICC
PUBLICATION NUMBER 500(1993).
+ THIRD PARTY
DOCUMENTS INCLUDING SHIPPER
ACCEPTABLE
39A: VARIATIONS IN L/C AMOUNT
5% PLUS OR MINUS IN QUANTITY AND LC AMOUNT
ACCEPTABLE.
71B: CHARGES
+ ALL BANK CHARGES IN APPLICANT COUNTRY INCLUDING
ALL AMENDMENT CHARGES, IF ANY, ARE FOR THE
ACCOUNT OF THE APPLICANT.
+ ALL BANK CHARGES IN THE BENEFICIARY COUNTRY
ARE
FOR THE ACCOUNT OF THE BENEFICIARY ACCOUNT
EXCEPT
AMENDMENTS TO THE LC AS REQUIRED BY THE
DRAFT / TEXT LETTER OF CREDIT
+ ALL CHARGES OF SECOND BENEFICIARY`S BANK ARE
FOR
ACCOUNT OF SECOND BENEFICIARY.
48: PERIOD OF PRESENTATION
DOCUMENTS TO BE PRESENTED NOT LATER THAN 21
BANKING
DAYS AFTER THE DATE OF SHIPPING, BUT IN
ANY EVENT NOT
LATER THAT THE EXPIRY DATE OF THE
CREDIT.
49: CONFIRMATION INSTRUCTIONS
53A: REIMBURSING BANK
XXXXXXXXXX
XXXXXXXXXX
78: INSTRUCTIONS TO PAYING / ACCEPTING / NEGOTIATING BANK
UPON PRESENTATION OF CREDIT COMPLETE DOCUMENTS
AT
YOUR COUNTER, YOU ARE AUTHORISED TO EFFECT
PAYMENT TO
BENEFICIARY & CLAIM REIMBURSEMENT BY
SWIFT MESSAGE TO
US CONFIRMING THAT STRICTLY
CREDIT COMPLYING DOCUMENTS
HAVE BEEN COURIERED
TO OURSELVES, INDICATING COURIER
NO. & DATE.
57A: ADVICE THROUGH BANK - BIC
4. Standby Letter of Credit (SBLC)
The Standby Letter of Credit is the ordinary
US-Version of Bank Guarantee.
Validity of the
SBLC must be 467 days (60 days until the first shipment + 365
days + 21 days Shipping time + 21 days period
allowed for payment and arranging
documents). If
you prefer to pay via SBLC please see further details in the
corresponding position "Bank Guarantee / SBLC"
in our price list. Please find
our SBLC format
below. No other verbiage can be accepted.
Standby Letter of Credit
NAME OF ISSUING BANK : XXXXXXXXXX
NAME OF
BENEFICIARY'S BANK : XXXXXXXXXX
NAME OF
APPLICANT : XXXXXXXXXX
FOR VALUE RECEIVED, WE ….
(NAME OF ISSUING BANK) …. HEREBY ISSUE OUR
IRREVOCABLE, TRANSFERABLE, STANDBY LETTER OF CREDIT NUMBER XXXXXXXX
IN FAVOUR OF OUR PARTNER, AND UNDERTAKE TO PAY
YOU AT FIRST DEMAND AT OUR COUNTER'S AN
AGGREGATE AMOUNT OF USD
XX,XXX,XXX.XX (UNITED
STATES DOLLARS XXXXXXXXXX) UPON CERTIFICATE OF
REQUEST FOR PAYMENT ISSUED BY XXXXXXXXX ASIA LTD, HONG KONG,
STATING THAT THE AMOUNT CLAIMED HAS BECOME DUE
AND REMAINS UNPAID.
THIS STANDBY LETTER OF
CREDIT IS VALID FROM …. (DATE OF ISSUE) …. UNTIL ….
(DATE OF EXPIRY) …. AND WILL EXPIRE
AUTOMATICALLY. ANY CLAIMS UNDER THE
STANDBY
LETTER OF CREDIT CAN BE PRESENTED NOT EARLIER THAN FIFTEEN (15)
DAYS FROM THE DATE OF EXPIRY BUT WITHIN THE
VALIDITY OF THIS STANDBY LETTER
OF CREDIT.
SUCH PAYMENT SHALL BE MADE WITHOUT SETOFF AND
FREE AND CLEAR OF ANY
DEDUCTIONS OR CHARGES,
TAXES, LEVIES, DUTIES OR WITHHOLDING OF ANY NATURE
NOW OR HEREAFTER IMPOSED, LEVIED, COLLECTED,
WITHHELD OR ACCESSED BY THE
GOVERNMENT OF …
(NAME OF ISSUING COUNTRY) ….
WE HEREBY ENGAGE
WITH YOU THAT THE CLAIM DRAWN HEREUNDER IS STRICTLY
IN A COMPLIANCE WITH THE TERMS OF THIS STANDBY
LETTER OF CREDIT AS
EXPRESSLY STATED HEREIN
SHALL BE DULY HONOURED ON THE DUE PRESENTATION
OF THE ABOVE STATED STIPULATED HEREIN AT OUR COUNTER'S IN ACCORDANCE
WITH THE TERMS AND CONDITIONS STATED IN THIS
STANDBY LETTER OF CREDIT.
THIS STANDBY LETTER OF
CREDIT IS SUBJECT TO I.C.C. FOR DOCUMENTARY CREDITS
(1993) REVISION) ICC PUBLICATION 500 AND THE
JURISDICTION OF THE LAW OF
GERMANY.
STANDBY LETTER OF CREDIT
(SBLC)
5. Bank Guarantee
(BG)
An acceptable Bank Guarantee must have a
definite format. The Bank Guarantee
must be
valid 467 days (60 days until the first shipment + 365 days + 21 days
shipping time + 21 days period allowed for
payment and arranging documents).
If you decide
to go with a BG as payment document please see further details in
the corresponding position "Bank Guarantee /
SBLC" in our price list. Please
find our BG
format below. No other format can be accepted by us.
Bank Guarantee
REGISTRATION :
CURRENCY
: UNITED STATES DOLLARS.
AMOUNT : 100% FACE
VALUE.
MATURITY DATE :
ISSUED BY :
ISSUE DATE :
FOR VALUE RECEIVED, WE THE UNDERSIGNED --ISSUING BANK--HEREBY
IRREVOCABLY
AND UNCONDITIONALLY WITHOUT PROTEST
OR NOTIFICATION PROMISE TO PAY TO -
-BENEFICIARY-- AGAINST THIS IRREVOCABLE AND UNCONDITIONAL UNITED STATES
DOLLAR BACKED BANK GUARANTEE THE PRINCIPAL SUM
OF -100% OF FACE VALUEUNITED
STATES DOLLARS AT
MATURITY UPON PRESENTATION AND SURRENDER OF
THE
GUARANTEE AT THE OFFICES OF -NAME AND ADDRESS OF ISSUING BANK-FURTHER,
THE BENEFICIARY OF THIS, OUR BANK GUARANTEE
SHALL BE HELD HARMLESS
OF ANY LITIGATION WHICH
MAY ARISE.
SUCH PAYMENT SHALL BE MADE WITHOUT
SET OFF, FREE AND CLEAR Of ANY CHARGES,
FEES,
DEDUCTIONS OF WITH HOLDINGS OF ANY NATURE NOW OR HEREAFTER IMPOSED,
LEVIED, COLLECTED, WITHHELD OR ASSESSED BY THE
GOVERNMENT OF -COUNTRY OF
THE ISSUING BANK-- OR
ANY POLITICAL SUBDIVISION OR AUTHORITY THEREIN.
THIS IRREVOCABLE, UNCONDITIONAL BANK GUARANTEE IS NOT CALLABLE BY -THE
ISSUING BANK-UNTIL MATURITY AND IS FULLY
ASSIGNABLE, TRANSFERABLE AND
DIVISIBLE. THIS
GUARANTEE SHALL BE GOVERNED BY AND SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF -COUNTRY OF ISSUING
BANK-- .
THIS GUARANTEE IS AN OPERATIVE FULLY
CONFIRMED INSTRUMENT AND IS SUBJECT
TO THE
UNIFORM CUSTOM AND PRACTICES FOR DOCUMENTARY CREDITS OF THE
INTERNATIONAL CHAMBER OF COMMERCE (ICC)
PUBLICATIONS NUMBER 500 (1993 +
ULTIMATE
REVISIONS) AND ENGAGES US IN ACCORDANCE WITH TERMS THEREIN.
6. Cash Bank Deposit
(CBD)
The Cash Bank
deposit is the most interesting and safe payment alternative
for our clients. The buyer deposits the agreed
amount (usually to the value of 3
or 4 monthly
deliveries) in cash and in his own account at Hang Seng Bank in
Hong Kong or at another Top 10 Bank. In return
he receives a Bank confirmed
promissory note for
the full amount of the cash bank deposit DvP (delivery versus
payment). Please find detailed information
regarding that procedure as follows:
Bank-Deposit
THE
PROCEDURE IS AS FOLLOWS:
1. WE REACH AGREEMENT
WITH THE BUYER ON THE BANK WHERE THE BANK
DEPOSIT SHOULD BE PROCESSED. PREFERED BANKS ARE: HSBC HONGKONG, HANG
SENG BANK HONGKONG, STANDARD CHATERED HONGKONG,
CREDIT SUISSE HONGKONG
OR ANY OTHER TOP 10 BANK.
2. THE BUYER PROVIDES DOCUMENTS PROVING HIS
ABILITY TO DEPOSIT THE AGREED
AMOUNT WITHIN THE
AGREED TIME PERIOD.
3. WE REACH AGREEMENT WITH
THE BUYER IN THE PURCHASE AND SALES
CONTRACT OF
REQUIRED COMMODITIES (IRON ORE, SCRAP STEEL, STEAM COAL ETC.)
REGARDING THE DEPOSIT CONTRACT.
4. ………. OPENS ITS OWN ACCOUNT WITH THE AGREED
BANK IN ITS NAME.
5. THE BUYER TRANSFERS THE
AGREED DEPOSIT AMOUNT INITIALLY TO AN ESCROW
ACCOUNT AT THE AGREED BANK - ON CONDITION THAT THE DEPOSIT AMOUNT WILL
BE TRANSFERED DVP TO OUR PARTNER`S ACCOUNT
AGAINST THE STIPULATED BANK
CONFIRMED "COMPANY
PROMISSORY NOTE" TO THE TOTAL AMOUNT OF THE CASH
DEPOSIT.
6. ……….. PASSES OVER THE BANK CONFIRMED
PROMISSORY NOTE IN THE VALUE
OF THE AGREED
DEPOSIT AMOUNT TO THE AGREED BANK, PAYABLE AT THE END OF
TERM OF THE DEPOSIT VALIDITY RES. AT EXPIRATION
OF THE PURCHASE AND SALES
CONTRACT. AS THE
PROMISSORY NOTE IS BANK CONFIRMED THE BANK IS FULLY
LIABLE FOR DISCHARGE OF THE PROMISSORY NOTE AT
THE FIXED DATE AND IN FULL
DEPOSIT AMOUNT.
CASH BANK DEPOSIT (CBD)
7. THE BANK PASSES THE
PROMISSORY NOTE OVER TO THE BUYER AND TRANSFERS
IN RETURN THE DEPOSIT AMOUNT TO US PARTNER`S ACCOUNT.
8. THE PROMISSORY NOTE CAN ALSO BE USED BY THE
BUYER AS A BILL THAT CAN BE
LENT OR PASSED OVER
TO ANOTHER PARTY. AFTER HAVING PRESENTED THE
PROMISSORY NOTE AT THE BANK ON MATURITY THE BANK WILL PAY THE TOTAL
AMOUNT OF THE PROMISSORY NOTE TO THE PERSON THAT
SUBMITS IT.
9. THIS PROCEDURE IS ACCEPTABLE TO
BOTH PARTIES, TO BUYER AND SELLER, OFFERS
A 100%
SECURITY ESPECIALLY T OTHE BUYER. ADDITIONALLY THE PROMISSORY
NOTE CAN BE USED AS AN INSTRUMENT TO OPERATE AT
THE CAPITAL MARKE
Hans Klein HRM Consult
E-mail:hrmconsult@arcor.de |
ˇˇ |
