We Commodity Brokers are using in trade: Bank Comfort Letter (BCL), Full Corporate Offer (FCO), IRREVOCABLE MASTER FEE PROTECTION AGREEMENT (IMFPA), Irrevocable Corporate Purchase Order (ICPO), Letter of Intend (LOI, BID), NON-CIRCUMVENTION NON-DISCLOSURE WORKING AGREEMENT (NCNDWA), Soft Corporate Offer (Offer, SCO). This Code of Practice is for the guidance of Brokers and their clients engaged Trades. It sets out the ideal procedures to follow and failure to comply with the Code does not in itself invalidate a contract or agreement between two contracting parties.
BCL - Bank Confirmation Letter. Also known as a Bank Capability Letter, or Bank Confirmation Letter, this is a letter from the Buyer's bank confirming his ability to meet a certain level payment requirements. This letter states that the Buyer has sufficient funds to cover the cost of the order. It should however be understood that this does not imply any guarantee of payment.
BCL from Buyers' bank
Bank Name: Bank Address: Bank Confirmation Letter (BCL) Dated:
This is to confirm our mutual client (company name) maintain a banking account with us.
At their instructions we, (bank name) with full authority and mandate hereby confirm that the said client are willing and financially able to initiate this process of goods of 000.000 metric tons (Litre, Cans, Bags etc.).
We understand payment is to by (please use correct one)
Contract for service: Place: Dated:
Principal: JV , Represented by Mr.__, Director, acting in accordance with Statute, on the one part, and
Executor: Mr. ___, acting on the basis of Certificate on the other hand, have concluded the present Contract as follows:
1. Under the present contract the Executor takes up obligations about rendering services on research market opportunities and a finding of the general opinion, as well as consultation in area of commercial activity of the enterprise of the Customer, and the Customer undertakes to give applications for performance of services and to pay the executed services.
2. The adopted Norm regulating performance of the contract.
2.1 Both parties know, using and accepted as part of the contact international documents for conclusion of the Trading Contract such as: GAFTA contacts, FOSFA contracts, Incoterms 2010, ICC rules, UCP600, UNO rules, Offer (O), Full Corporate Offer (FCO), Letter of Intent (LOI), Irrevocable Corporate Purchase Order (ICPO) Bank Confirmation Letter (BCL), Code of Practice and obligations of parties and so on.
This Code of Practice is for the guidance of Brokers and their clients engaged Trades. It sets out the ideal procedures to follow and failure to comply with the Code does not in itself invalidate a contract or agreement between two contracting parties.
This Code of Practice is for the use of Brokers who have negotiated the confirmation terms of a contract between sellers and buyers using as a basis and incorporating the appropriate standard contract terms.
Where there is one Broker to a transaction he is deemed to be acting on behalf of both sellers and buyers; referred to here as the 'Principals'. Where there are two Brokers to a transaction, they are each deemed to be acting for and on behalf of the principal to the contract by whom they were engaged.
Following upon the unconditional acceptance of an offer a contract exists between the Buyer and the Seller (Principals).
Trade Procedure for conclusion of contract.
Seller initiate contract.
1. The Seller sign NCNDA (Non-Circumvention, Non-Disclosure Working Agreement) of International Chamber Of Commerce (I.C.C.) with Agent.
2. The Seller issues (Soft Corporate Offer) SCO with full banking co-ordinates.
3. The Buyer sign NCNDA (Non-Circumvention, Non-Disclosure Working Agreement) of International Chamber Of Commerce (I.C.C.) with Agent.
4. The Buyer issues a Irrevocable Corporate Purchase Order (ICPO) with Bank Confirmation Letter (BCL) - to the Seller.
5. The Seller issue a Full Corporate Offer (FCO).
Buyer initiate contract.
1. The Buyer sign NCNDA (Non-Circumvention, Non-Disclosure Working Agreement) of International Chamber Of Commerce (I.C.C.) with Agent.
2. The Buyer issues (Letter of Intent) LOI with full banking co-ordinates.
3. The Seller sign NCNDA (Non-Circumvention, Non-Disclosure Working Agreement) of International Chamber Of Commerce (I.C.C.) with Agent.
Optional: Insert an image here that illustrates the nature of the business
Business Address; Postal Adress: Tel: Fax: Email: Website: VAT No (if applicable)
Company registration number (if applicable)
Main Members: Insert owner’s or members names here.
a. Company History. Include a short, concise history of the business in 2 paragraphs or less.
b. What we do. Include a short paragraph about what the company does and the market it serves.
2. Strategy & Vision
a. Vision statement. A vision statement emphasises what a company strives to be, it focuses on the future and is inspirational, and should never date.
b. Mission statement. A mission statement outlines what the company is in the present. It details how the company will get to where it wants to be. It mentions the purpose and primatry objectives of the company.
Commission payments will be made after the delivery and payment for each shipment, as agreed between the Seller and the beneficiary Paymaster. IRREVOCABLE MASTER FEE PROTECTION AGREEMENT (also known as FPA)
1. Seller and Contract Information: Contract №: Sellers name: Address:
Sellers Phone Number: _ Sellers Fax Number: _
Signatory: _ Title: _
Delivery: _ Price Basis: _
Total Contract Quantity: _ Total Contract Value:
FCO - Full Corporate Offer. Issued by the seller after the preliminary stages of negotiation are complete, such as a letter of intent having been issued by the buyer, and a soft probe having been conducted on their accounts by the Seller. A full corporate offer is a document which outlines the conditions of the sale.
Specimen. Company letter head. Date:
Company: Company Name. Address: Building, Name str, Office, Post code . City: City name . Country: Country name
Title: Position in company Mr. Name and Family name
Phone: Fax: e-mail:
Full Corporate Offer (FCO)
Dear Sirs/ Madam,
We are as Principal stated above legally represented by Position in company Mr. Name and Family name willing to place FCO valid until 31.03.201_, and we hereby confirm that we are ready, willing and able to sell the following commodity as per the specifications, in the quantity and for the price, as specified in the terms and conditions as stated below:
Irrevocable Corporate Purchase Order (ICPO). This is a document drawn up by commercial Buyers, and contains the quantities and type of commodity required, and other conditions that the buyer would like the sale to proceed under. Once submitted to the Seller, this is deemed to be binding and the corporation is obliged to complete the sale.
Specimen: Company letter head. Date:
Company: Company Name. Address: Building , Name str, Office , Post code . City: City name . Country: Country name
Title: Position in company Mr. Name and Family name
Phone: Fax: e-mail:
Irrevocable Corporate Purchase Order (ICPO).
Dear Sirs/ Madam,
We are as Principal stated above legally represented by Position in company Mr. Name and Family name willing to place ICPOvalid until 31.03.20__, and we hereby confirm that we are ready, willing and able to buy the commodity as per the specifications, in the quantity and for the price, as specified in the terms and conditions as stated below:
What Does Letter of Intent - LOI Mean? An agreement that describes in detail a corporation's intention to execute a corporate action. The letter of intent is created by the corporation with its management and legal council, among others, and outlines the details of the action. Explain of Letter of Intent - LOI. Letters of intent are used during the merger and acquisitions process to outlines a firm's plan to buy/take over another company. For example, the letter of intent will disclose the specific terms of the transaction (whether it is a cash or stock deal).
We are working with verified shippers, producers, customers, buyers, traders of agricultural commodities. In order to have any info from our side we need to know your company details such as:
- company name, profile, registered No (traded commodities and past performance)
- contact details (address, phone, e-mail, etc.,)
- name of the director
If you are going to trade please send BID with following details:
- Company Name
- Name of Commodity, Packing, Quality, Picture
- Quantity and Period of delivery
- Target Price on Destination (Incoterms 2010)
- Terms of payment
please find below for your guidance specimen of BID/ LOI
NCNDA of ICC INTERNATIONAL CHAMBER OF COMMERCE (I.C.C.) NON-CIRCUMVENTION, NON-DISCLOSURE WORKING AGREEMENT
WHEREAS, the undersigned wish to enter into this agreement to define certain parameters of the future legal obligations, are bound by a duty of confidentiality with respect to their sources and contacts.
WHEREAS, the undersigned desire to enter a working business relationship to the mutual and common benefit of the parties hereto, including their affiliates, subsidiaries, stockholders, partners, co-ventures, trading partners, and other associated organizations (herein after referred to as affiliates).
NOW THEREFORE in consideration of the mutual promises, assertions and covenants herein and other good and valuable considerations, the receipts of which is acknowledged hereby, the parties hereby agree as follows:
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