Procedure:
(End Buyer should strictly adhere to local imposed customs, export, civil and trade laws and INCOTERMS 2010 or latest)
1) The End Seller issues an SCO to the End Buyer for review.
2) The End Buyer submits an LOI / ICPO with copy of passport & ATV Letter (Only on End Buyer
Letterhead, LOI has to be include End Buyer’s Bank Account, Copy Pass, Certificate of company
Registration AND Seller’s Procedure, without ATV Letter LOI Rejected)
3) After mutual agreement at TTM (Due to the Covid-19 pandemic, electronics signature is acceptable), The End Buyer and the End Seller will sign and seal Sales and Purchase Agreement (SPA) with their full banking coordinates also sign separate NCNDA/IMFPA.
4) Both parties shall then each lodge one original copy of Sales and Purchase Agreement (SPA) with their respective banks.
5) Within three (3) banking days after submitted this Sales and Purchase Agreement (SPA) on both banks, the End Buyer’s bank issues a SWIFT MT199 RWA and advise readiness to issue a PAYMENT GUARANTEE (Optional); NON-OPERATIONAL, Irrevocable, Confirmed, Revolving, Non-Transferable and Non-assignable Letter of Credit (LC) 100% at Sight OR Irrevocable, Confirmed, Revolving, Non-Transferable and Non-assignable Blocked Funds via SWIFT MT799, OR Irrevocable, Confirmed, Revolving, Non-Transferable and Non-assignable Standby Letter of Credit (SBLC) via MT760.
6) Within one (1) banking day of receipt of SWIFT MT199 RWA from the End Buyer’s bank, and after authentication and confirmation by the End Seller’s bank and SWIFT’s head office in Brussels, Belgium, the bank of the End Seller issues the proof of product (POP) via SWIFT MT 600.
7) Within three (3) banking days of receiving the proof of product (POP) via SWIFT MT 600 from the End Seller, the End Buyer’s bank will issue a PAYMENT GUARANTEE (Optional); NON-OPERATIONAL, Irrevocable, Confirmed, Revolving, Non-Transferable and Non-assignable Letter of Credit (LC) 100% at Sight OR Irrevocable, Confirmed, Revolving, Non-Transferable and Non-assignable Blocked Funds via SWIFT MT799, OR Irrevocable, Confirmed, Revolving, Non-Transferable and Non-assignable Standby Letter of Credit (SBLC) via MT760.
8) Within three (3) banking days of receipt of a NON-OPERATIONAL PAYMENT GUARANTEE, the End Seller’s bank issues a 2% PERFORMANCE BOND (PB) TO ACTIVATE the NON-OPERATIONAL PAYMENT GUARANTEE of the End Buyer followed by a hard copy of the POP document sent to the End Buyer’s bank via DHL comprising;
THE INVITATION TO THE TTM, ISSUED BY THE DEPOSITORY, BASED ON THE DEPOSIT CONFIRMATION LETTER, TO INSPECT THE FIRST LIFT OF 400 Kg. ALTERNATIVELY, THIS INVITATION CAN BE SENT DIRECTLY FROM THE DEPOSITORY TO THE END BUYER.
SKR
CERTIFICATE OF OWNERSHIP
LOGISTICAL REPORTS
INSURANCE CONTRACT
8.1) The End Buyer has the option of not sending the MT199 and can issue a non-operational GUARANTEE OF PAYMENT to trigger and activate the End Seller’s proof of product via SWIFT MT600, a hard copy of the proof of product (POP) via DHL, a 2% performance bond (P.B.) including all documents relating to the POP.
9) The Buyer along with an assayer of his/her choice will then be invited to the End Seller’s security warehouse for a physical viewing/inspection of the amount of Precious Metal for the first tranche within three (3) banking days.
10) Within three (3) banking days of the physical inspection, the End Seller will transport the mutually agreed quantity to the refinery designated by the End Buyer at the End Seller’s expense DDP or CIF ASWP Airport or End Buyer’s gold refinery, [Country – Optional] and the precious metal refining in the refinery of the End Buyer will be at the End Buyer’s expense.
11) After refinement and the Refinery Final Assay Report issued by the End Buyer’s refinery, the End Buyer will settle payment in full for an equal amount of precious metals within five (5) banking days to the End Seller. The transfer of the Precious Metal Holder is made against final payment. Then the title deed of equal amount will be transferred to the End Buyer. Payment will be made by MT103 Cash Transfer without any delay within three (3) banking days after the issuance of the assay report by the XXX accredited refinery.
12) If the End Buyer does not wish to carry out a physical check in the end seller’s security warehouse, the End seller must ship the product within five (5) banking days following the bank confirmation of the payment guarantee that has become FULLY OPERATIONAL.
13) Simultaneously with the payment to the End Seller’s account, the End Seller is obligated to pay the commission of the intermediaries of both parties in accordance with the IMFPA which is incorporated as an important part of the agreement.