FTNX Buy Sell

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FYBR V DOCTIRNE IN PART: 

As defined on othr pages and in FYBR Publications: An intermediary cannot give POP because :

(1) They don't own the goods being sold. Even if the end buyer inspects loading . They are not experts. That's why independent experts are used in the first palce.Even if some kind of acceptable proof were given , can the intermediary assure that the same goods "proven"to exist are the same goods that will arrive at destination port.

(2) An intermediary acts on "Behalf of a Undisclosed principal"- Accordingly no disclosure of supplier is required to be given. If such is given to appaease the end buyer it's done so once the buyer proves RWA first. The only accptable RWA is the advising and accpetance of a financial instrument.

(3) An Intermediary cannot disclose hard earned supplier details upfront because they are not an authorised reseller of a principal- An Intermediary is the "seller " of goods in their own right once "ostensible authority" to buy is obtained.

(4) A DLC is usless to an intermediary and becomes valuable once such performs (delivery) But! unlike upfront hard to get supply of goods  and details of such , once such valuable information is surrendered the seller can easily lose the deal as the buyer can use such information directly to secure goods without the seller- That's not circumvention; that's bad procedures and fault of the intermediary giving up such valuable information too early.

(5) If an intermediary secures a quote or an offer for much wanted goods in an active market, cheaper than the rest of the world is offering for the same goods , then that's very valuable information to the right person. The intermediary can only attempt to "buy" such goods and do so for reselling to its own client.

So how do you appease  the End buyer? 

Your contract  issued to you end buyer will have a PPI certificate offered in blank form. You advise the buyer as a matter of contract that the PPI form and empty details  applied there in willl be advised  fully filled in, once a  Pre advised UCP600 Irrevocable DLC is issued .The PPI model becomes a matter of contract.The Buyer cannot make any excuses because he has already agreed to the PPI model on contract. Once the DLC is issued, the intermediary accepts it and issues the PPI model all filled in to the buyers bank. The Buyers bank acts on the PPI to take away the Pre advised status of the DLC - Leaving a fully active  more "valuable" DLC in its place. The Bank can only enact the instructions on the Pre advised credit- If the credit condition says " Pre advised status revoked on production of a document carrying the heading "PPI" as issued for the sellers bank", then that's a condition of the credit , not the contract. A Bank cannot get involved in matter of contract as defined under Article (4) UCP600 issuance  rules. If the information later proves to be fake , this is enough grounds for a bank to cancel the "Irrevocable" status of credit .A bank deals in finance not goods.  The PPI details  is not subject to verification or authentication.It needs only to be issued. (otherwise if a buyer on purpose fails to verify the infomation , the seller cannot proceed until he does)  The buyer has the option to make the one call to the supplier to only verify that the seller  has the goods he is claiming to hold "interest" in and nothing more - No other discussion is allowed to apply. The seller only needs to surrender the PPI certificate with "genuine" details of the person holding possession of goods and nothing more. Accordingly an intermediary MUST never offer to sell goods they have not secured first becomes an even more important  matter later at PPI issuance time.If the goods and PPI detaills are false, the seller can be charged with fraud and the DLC cancelled if its later found that the goods offered do not exist.The contract to buy the  goods from the supplier  proves the seller intrests in the goods he is offering to sell.The PPI information can be checked not just with the supplier direclty but via trade directories , government registration and consulates- If the buyer needs to prove that the goods and genuinely offered then the PPI has done its job.The Intermediary does not need to ask the supplier for PPI details , because if they have a full offer from a real  supplier to buy such goods  then he has the required PPI infomation on hand and required "ostensible authority " to sell such goods as "Seller" .

PPI model example below provided on all FTN Exporting contracts; added as required 

POLICY PROOF OF INTEREST CERTIFICATE (PPI)
The Seller shall cause the said model document to be fully filled in with the said required information, to which a copy will be made and returned to the Buyer, upon acceptance of the Buyer’s financial instrument within 3 days of such occurring. The said information once provided is said to be genuine and real as secured directly from the owner of the goods being offered to the Seller, which is consequently being resold to the Buyer, and unless otherwise proven differently, the Buyer accepts the information unconditionally as being genuine, in meeting with the Seller’s contract obligation as to the timeframe and scheduling applied for the performance of the contract. The Seller's "Proof of Interest" in the goods being offered is officially declared and disclosed once the information regarding the owner in possession of such goods has been exposed. The Buyer has 72 hours or less to verify the confidential disclosed information provided. Whether verified or not, the surrendering of such information is the only obligation the Seller is required to provide which allows the pre advised credit to become formally active and not bearing the pre-advised status within 72 hours or less of issuing the PPI Certificate electronically to arrive at the Buyer’s issuing bank.

Original Copy of blank PPI Certificate model that will be advised to the bank of the buyer or buyer direct or both, filled inafter the cceptance of the buyrs financial instrument has bene advised is hereby made apparent.

__________________ Start of “PPI” ____________________


Policy Proof of Interst “PPI” Certificate (Blank Model “A”)

IMPORTANT BANK PRESENTATION DELIVERY DOCUMENT
Here by marked as “ORIGINAL”

Advised By: FTN Exporting defined as “Client”
Address
Contact Number
Advising bank:
Applicant’s Issuing bank.
Date PPI advised:
Issued by Facsimile and/ or PDF:

Dear Sir or Madam,
Please be advised that the applicant named below has issued a UCP600 pre-advised credit from your bank to our advising bank. We are required to present details in identifying the Supplier of the goods we are reselling to the applicant of the credit, of which this Proof of Interests Certificate (PPI) is hereby offered as per our contracting conditions, in meeting with the Pre-advised credit condition. The supplying and disclosing of such meets our obligation, regardless of whether the applicant confirms the information provided.

In accordance of such, please apply to make the Pre-advice credit to formally apply without the “Pre advised” status being applicable, to which a normal UCP600 irrevocable transferable documentary letter of credit is now required to be applied as being the apparent operational credit.

Thank you.
Print Name:
Signed:
Dated:

PROOF OF POLICY CERTIFICATE (PPI)
To the Bank of the Applicant referred to as a “Third Party”

Name of the Applicant of the issued credit
Name of issuing Bank
Address
Contact details
Name of Bank officer:
Document presentation supporting pre advised credit Number:
Supporting Transaction code:
Name of person selling goods to the Applicant and end Buyer: FTN EXPORTING

Supplier’s Confirmation applied.

Our client (XXX Davd Papa of FTN exporting XXX ) is or has purchased the goods from us, the below defined Owner and/ or Supplier of such named goods in possession.

Our client has asked us to confirm any request made by a third party, to confirm the interests of the said named client of the following said goods being purchased by such. The said third party making an enquiry to verify our said Buyer’s interests, shall be required to send by facsimile, once filled in by our client, this document to the contact detailed below within 72 hours of the said third party obtaining this document from his bank or office. We shall read the filled in information provided and if correct we will sign this PPI Certificate adding to confirm that we have verified that the information on this document is true and correct and return it as such to the Third Party ( or his bank) via facsimile or e-mail only once. No other information as to our client or the goods shall be provided. No verbal communication accepted.

Third Party Facsimile Number:(xxx Name of end buyer xxx )
Third Party E-mail Address: ( xxxxx e-mail address of end buyer xxxx )

Supplier’s Details:
The Supplier and owner of the goods are:
The name of the person representing the Supplier and owner is:
Address:
E-mail:
Facsimile
Phone Number
Business Number
Supplier’s Web site, if any
Description of Goods:
Quantity:

Supplier’s Authentication and Verification:
I, We the said Supplier and owner of the goods have received the following enquiry from a third party, and client of FTN Exporting and that such goods and supporting information applied are hereby verified as being genuine and that our client has interest in such goods as described accordingly of who we are serving applying the said nature of business with the above attached transaction code. We have signed this document and returned as such to the third party making the enquiry on behalf of our said client and being authenticated and verified.

Name of Supplier:
Signed:
Date:
Sealed:

__________________ End of “PPI” ____________________