Also known as the (buyer/seller intermediary) will RFQ (Request for a Quote) from the Supplier on behalf of his undisclosed End Buyer for his consideration.

If the Supplier accepts the RFQ, the Supplier would send to the controlling Intermediary an “Offer” to sell his product with a quote of price, specification and a validity date.

The Controlling Intermediary will on his letterhead, rewrite “Offer/Quote” from supplier and add in commission to the price and send to End Buyer for his consideration.

If End Buyer accepts the price “Offer” from the Intermediary, the End Buyer will send a “Offer to Purchase” to the Controlling Intermediary. This is a binding commitment to the controlling intermediary (Not to the Supplier) The controlling intermediary is the Buyer/Seller.

NOTE: The End Buyer can call his Offer anything he wants but to you it is just an Offer to Purchase.

NOTE: The Controlling Intermediary is controlling two separate deals. One with the Supplier and one with the End Buyer. So the controlling intermediary is the Buyer and the Seller.

After receiving the (Offer to Purchase) from the End Buyer, the Intermediary writes an “Offer" (Not an ICPO or CPO or anything else) to purchase on his letterhead on behalf of his undisclosed End Buyer to the Supplier.

NOTE: The Intermediary can not issue a "CPO" (Corporate Purchase Offer) to the Supplier as he is not the Corporation purchasing the product. He is only issuing an "Offer" to purchase on behalf of his undisclosed principal.

If the Supplier accepts the "Offer" from the Intermediary, the Supplier would send a signed contract with his payment request and procedures. If the payment request and procedures are not workable for the controlling intermediary then he must negotiate until conditions fits his needs.

NOTE: The only payment method the controlling intermediary can deal with is a UCP600 bank issue Pre Advise Transferable Irrevocable Documentary Letter of Credit. Any other payment out side of the DLC is not workable for an Intermediary.

With this DLC payment method the End Buyer is protected and the Supplier is protected. If the Supplier does not fulfill the conditions of the Pre Advise DLC, the DLC can be cancelled. If the Supplier does fulfill the conditions of the Pre Advise DLC the End Buyer can not change his mind and cancel. The deal is financial secured. The intermediary is assured his commission and cannot be circumvented.

After receiving the final contract from the Supplier, the Intermediary would on his letterhead, rewrite, sign using the same procedures of the Supplier (changing the buying price to the selling price) and send his contract to End Buyer for his signature.

Please remember the commission has nothing to do with the End Buyer or the Supplier. Commission is the difference between the buying price and the selling price. It has all to do with the Controlling Intermediary.

NOTE: The Controlling Intermediary has a binding contract from the End Buyer and now a binding contract from the Supplier.

The End Buyer signs the contract and sends it back to the Intermediary. The End Buyer has 7 days to place the DLC into Intermediary bank account.

NOTE: It cost very little to apply and place a DLC in the Intermediary account. The large cost of the DLC is when it is being transferred from the Intermediary's account to the Suppliers account. It is important that the Intermediary ask for a UCP600 instrument to be applied on contract and that all bank charges and transfer/handling fee’s are for the account of the End Buyer.

NOTE: ICC Uniform Custom and Practice for Documentary Credit (UCP600) Article 38 (c) state: Unless otherwise agreed at the time of transfer, all charges (such as commission, fees, cost of expenses) incurred in respect of a transfer must be paid by the first beneficiary (the Controlling Intermediary is the first beneficiary of the DLC).

After the UCP600 DLC is placed in the bank account of the Intermediary, the Intermediary signs and sends back the contract he received from the Supplier to the Supplier and transfers the DLC.

NOTE: The controlling intermediary does not sign and send back the contract to the Supplier until the DLC is in his account and activated.

NOTE: One of the conditions of the Pre Advise, must be met by the Controlling Intermediary to active the DLC is (evidence of Supplier in possession of goods). Once the Controlling Intermediary provides all information of Supplier in possession of the goods to the bank the DLC is activated. The End Buyer can now verify the agreement the Controlling Intermediary has with the Supplier and the existence of the goods. The DLC for the price quoted by the Supplier can be transferred from the Intermediary's account to the Suppliers account. (The balance of the DLC is left in the Controlling Intermediary's account for commission for himself and the other intermediaries who assisted with the deal.)

NOTE: The DLC does not become money until the balance of the Pre Advise conditions are met by the Supplier.

The Supplier will within three days of the LC, issue a “PG” (Performance Guarantee) or LDD (Late Delivery Discount) as advised as per contract.

The arrival time is advised and goods are delivered on board vessel.

Presentation of SGS, Bill of lading, ship mate's receipt etc, etc documents to bank and collection of payment is applied for.

NOTE: First delivery date is usually 90 days or more from (date) schedule and every 30 days there after for every consecutive shipments.

NOTE: This is a basic outline of the proper procedures as it pertains to the controlling intermediary. Please know there is more complexities to the procedures then what is stated here.