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Standard Operating Procedure (SOP)

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  2. Standard Operating Procedure (SOP)

Standard Operating Procedure for Export Operations:

This Standard Operating Procedure (SOP) outlines the step-by-step process for conducting FCA, FOB or CIF transactions involving goods (Copper cathodes, Copper concentrates, etc), ensuring a structured and transparent approach to the transaction.

1. Buyer Initiates the Process:

- The Buyer initiates the process by submitting an Irrevocable Corporate Purchase Order (ICPO) along with a Proof of Funds (POF) MT199 or Pre-Advice of Standby Letter of Credit (SBLC) MT799.

2. Signing the Sales and Purchase Agreement (SPA):

- The Buyer and Seller enter into a formal Sales and Purchase Agreement (SPA) and mutually agree to its terms and conditions.

- The Buyer reviews, amends (if necessary), or signs the SPA. If no amendments are required, the SPA is returned to the Seller for countersignature.

- The Seller countersigns and seals the SPA and provides the final signed contract to the Buyer along with the Pro-forma Invoice.

3. Draft Standby Letter of Credit (SBLC):

- The Seller provides the Buyer with a draft Standby Letter of Credit (SBLC) for review.

4. Operative Standby Letter of Credit (SBLC):

- The Buyer issues an operative cash-backed Standby Letter of Credit (SBLC) in favor of the Seller’s company.

5. Performance Bank Guarantee (For Contractual Exports):

- Within 10 banking days of receiving the operative Standby Letter of Credit (SBLC), the Seller provides the Buyer with a 2% Performance Bank Guarantee for contract shipments.

6. Delivery:

- The goods are delivered to the port of loading, or a customs-bonded warehouse, as specified by Delivery arragements.

7. Shipping and Trade Documents:

- A full set of digital shipping documents is also sent to the Buyer. The Seller sends a full set of original shipping documents directly to the Buyer’s bank for payment collection via bank transfer.

8. Payment Terms:

- Payment is 100% of the total value and must be made within five working days after receiving the cargo weight and quality certificate (issued by CCIC or Alfred H Knight) and transfer of ownership.

- If the Buyer fails to make the payment within the specified timeframe, the Seller has the right to claim payment through the SBLC by presenting a demand to the issuing bank.

9. Next Shipment:

- Subsequent shipments will proceed as per the shipping schedule outlined in the SPA.