You can read the email communication log.
Chongqing Foreign Trade Import Co., Ltd
Yong Zhang
19/F., Peninsula International Tower
50 Zourong Road, Yuzhong District
Chongqing, China.
cqdwmy@126.com
TEL: +86 23 63763546
FAX: +86 23 63763192
They issued the ICPO and then changed their minds. They started to change the Procedures after signing the ICPO. They need to look into the disctionary for "IRREVOCABLE."
This is the perfect example why we don't issue the PB first.
Show us the money (Non-Operative L/C) first, and then your L/C will be activated with 2% PB in 3-5 days.
| Here is the communication log between Chongqing Foreign Trade Import Co., Ltd. Yong Zhang 19/F., Peninsula International Tower 50 Zourong Road, Yuzhong District Chongqing, China. cqdwmy@126.com TEL: +86 23 63763546 FAX: +86 23 63763192 |
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| 1) They requsted to see the AQSIQ certificate. We rejected and replied as below. From: Shin Mitsuda [mailto:mitsuda@totalplanner.net] Sent: Tuesday, January 22, 2013 1:10 PM To: 'zy5307' Subject: RE: AQSIQ Regarding your AQSIQ, I just discussed with the Seller. Here is a reply. It is self-explanatory. 1. We have AQSIQ. Our partner has AQSIQ as well. My Korean and Japanese partner also has AQSIQ. We have never provide the cert at early stage. 2. We will use our AQSIQ if there is a room. There is a limitation on yearly basis. If we have no room, we will most likely to use our freight forwarders’ AQSIQ. 3. Most misunderstanding is the Seller can use other’s AQSIQ if needed. For example, many sellers use forwarding company’s AQSIQ to export materials to China. For this, we can do this by paying $2-3/mt to forwarding company. Many Chinese buyers think that if someone has AQSIQ, he is genuine seller. That is not true at all. Anyone can get the AQSIQ cert by paying $500 for an agent. There are many companies have AQSIQ but 99.99% of them have no Used Rails. 4. We have AQSIQ but cannot send at early stage. If required, it will be sent with POP. We have new orders at weekly basis. If we give you our AQSIQ cert now and use different cert when we ship, that is a misrepresentation. We will take care of a new buyer upon sending us L/C. You indicated that you want to pay “after inspection at the discharging port within 7 days.” We have no problem with that. For this payment term, YOU HAVE NO RISK. You are welcome to attend at the loading port in Russia. Without wasting any time, please kindly send us ICPO, NCNDA, and Passport Copy. We shall move on as per Procedures. Regards, Shin Mitsuda From: zy5307 [mailto:zy5307@163.com] Sent: Tuesday, January 22, 2013 10:51 AM To: Shin Mitsuda Subject: Re:AQSIQ Dear Mr.Mitsuda, The supplier should have AQSIQ certificate when exporting wasted rails to China. Otherwise,we cannot operate the customs importing procedure.The dirrerent length of wasted rails resulted the difference of import duty. If the length over 1.2m,the import duty will be much higher. AQSIQ is also one method to check the truth of supplier.In this case, please the supplier send us the AQSIQ before we sign the formal contract. Best Regard, zhang yong At 2013-01-21 18:04:52,"Shin Mitsuda" <mitsuda@totalplanner.net> wrote: Dear Zhang: Regarding your question about AQSIQ, we can send you the copy along with POP after your DLC. However, I noticed that your requirement is 1.0meter thus AQSIQ is not needed. Please explain why you need AQSIQ cert. - USED RAIL: Less than 1.0 meter --> AQSIQ is necessary. - Used rail : 1.0 meter and over --> AQSIQ is not necessary. - HMS : in any case AQSIQ certificate is necessary in order to pass the customs in China. You can check with AQSIQ office: TEL: 8610-80931967 FAX: 8610-60135703 Regards, Shin Mitsuda From: zy5307 [mailto:zy5307@163.com] Sent: Monday, January 21, 2013 1:01 PM To: mitsuda@totalplanner.net Subject: used rail Dear Mr.Mitsuda As per you request,we send you the used rail purchasing letter (attachment is the ICPO ) . Please give me the AQSIQ documents from the end supplier.We can carry on the later work only after we get the AQSIQ . Best Regard, zhang yong From: Shin Mitsuda/Total Planner [mailto:mitsuda@totalplanner.net] Sent: Tuesday, January 22, 2013 12:06 PM To: zy5307 Subject: Re:AQSIQ Your ICPO says 1m so we will sell you 1m rails. We have been exporting to China thus we are aware of the duties. You don't need AQSIQ for 1m length. Call AQSIQ office and verify rules. We have AQSIQ cert. We will provide you the copy when you sign the contract. Please send us full docs as per procedure no 1. Shin Mitsuda Sent by: XPERIA acro IS11S 2013/01/22 10:51 "zy5307" <zy5307@163.com>: Dear Mr.Mitsuda, The supplier should have AQSIQ certificate when exporting wasted rails to China. Otherwise,we cannot operate the customs importing procedure.The different length of wasted rails resulted the difference of import duty. If the length over 1.2m,the import duty will be much higher. AQSIQ is also one method to check the truth of supplier.In this case, please the supplier send us the AQSIQ before we sign the formal contract. Best Regard, zhang yong
2) After clarifying about the AQSIQ, On January 24, 2013, Mr. Zhang sent us signed ICPO.
  
3) After sending the Contract draft to the Buyer, Mr. Zhang tries to change the Procedures. Now, he wants 2% PB first or, yard visit before issuing the L/C. He does not understand what "Irrevocable" means.
From: zy5307 [mailto:zy5307@163.com]Sent: Friday, January 25, 2013 5:20 PM To: Shin Mitsuda Subject: Re:RE: Contract Draft Dear Mitsuda, Please undertand that our request is reasonable. We have met such case that the Seller failed to deliver cargo to us after we opened the L/C .And then,we had to wait for three months until the bank returned us the money. The contract value is big this time. We don’t want the same unhappy thing happen to us again. We promise that we will open L/C right after we proved the truth of cargo. If Seller insists carrying on as the former procedure, we request Seller open 2% P/B to us in advance. We will then open L/C after receiving the P/B. If Seller agrees to accept,we will go on;if Seller rejected, we will end the contract. Best Regard, zhang yong At 2013-01-25 15:46:55,"Shin Mitsuda" <mitsuda@totalplanner.net> wrote: Dear Yong: I just discussed with the Seller. Here is a reply from the Seller: --------------- 1) I thought we clarified about the AQSIQ certificate. I don’t understand why this Seller is asking the same question again. 2) This Buyer should read the SCO again. Also, this Buyer signed and submitted their ICPO. Now, they want to change the procedures? 3) Our yard is not a zoo. Why we spend our time to a Buyer without showing us their money? We will only take care of business once they show us money. 4) I have one simple question and need an answer for it. This Buyer is paying us with L/C “100% payable after inspection at the discharging port within 10 days.” WHY BOTHER CHANGING THE PROCEDURE IF YOU ARE PAYING AFTER YOU RECEIVE THE CARGO AND INSPECTION? --------------- Please answer above #4: WHY BOTHER CHANGING THE PROCEDURE IF YOU ARE PAYING AFTER YOU RECEIVE THE CARGO AND INSPECTION? Thanks, Shin Mitsuda From: zy5307 [mailto:zy5307@163.com] Sent: Friday, January 25, 2013 4:02 PM To: Shin Mitsuda/Total Planner Subject: Re:Contract Draft Dear Mitsuda, We need to adjust the opreation procedure as belows: 1.Seller shall supply AQSIQ documents to Buyer after both signed the contract. 2.In the same time, Seller send invitation letter to Buyer to inspect the cargo in the loading port. 3.After Buyer inspected the cargo and made sure of the documents for ownership ,Buyer will open 100% L/C to Seller immediately. 4. Other clauses kept unchanged. Best Regard, zhang yong
4) We explained about Non-Operational L/C. Now, Mr. Zhang is sayin "Chinese banks do not issue Non-Operative L/C.
From: zy5307 [mailto:zy5307@163.com]
Sent: Saturday, January 26, 2013 11:25 PM To: Shin Mitsuda Subject: Re:RE: RE: Contract Draft Dear Mr.Mitsuda, Thanks much for your detailed information. There is no Non-operative L/C in Chinese bank. It becomes valid and irrevocable since our bank opened the L/C . In this case ,we can open the L/C only after we took a look at the cargo and proved the truth of it. You mentioned that if Seller issue the 2% P/B, they should put money in bank. Equally, we also need to put money in our bank to open the L/C. If the Seller cannot supply to us after we opened L/C, it will affect us much because the bank return the money to us after 3 months ,though there is no loss for our money. Please understand our situation. Please give us the indicate feedback if the Seller agrees us to have a look at the cargo in advance before open L/C or if they accept to open 2% P/B to us? Best Regards, Zhang Yong At 2013-01-26 16:28:08,"Shin Mitsuda" <mitsuda@totalplanner.net> wrote: Dear Yong: Did you call your bank and ask regarding the Non-Operative L/C? Today is your last day to sign the Contract. If there is any amendment in the Contract, please indicate in RED. You already signed on your “Irrevocable Corporate Purchase Order” thus no change for the Procedures. Please keep you promise and follow through. Regards, Shin Mitsuda From: Shin Mitsuda [mailto:mitsuda@totalplanner.net] Sent: Friday, January 25, 2013 5:49 PM To: 'zy5307' Subject: RE: RE: Contract Draft Dear Yong: As for the 2% PB, do not worry about this issue. Please read the SCO once again. 5. The Buyer and the Seller lodge final contract to their respective Bank. And the Buyer issues Irrevocable, Transferable DLC as per contract (USD10,500,000.00= USD350/mt × 30,000mt/mo) to the Seller Bank within three (3) working days from receiving final Contract. ※ For 1st Trial Shipment, Buyer’s Transferable DLC should be issued “Non-Operative and 100% payable within seven (7) working days after arrival of goods at discharging port and CIQ/SGS”. This DLC will be activated by Seller’s 2% PB. This PB will be provided only for 1st shipment or Trial to prove performance ! ※ For rest months, Transferable DLC should be issued Operative because there is NO PB from the Seller. This Transferable DLC can be “100% payable within seven (7) days after arrival of goods at discharging port and CIQ/SGS”. 6. After receiving DLC from Buyer Bank, the Seller also sends “Invitation Letter” and POP to Buyer and allows Yard/Loading Visit. At this Yard/Loading Visit, Seller shows Used Rails in their Yard or Loading Port. The Seller returns NCNDA/IMFPA to Buyer and intermediaries with sign/seal. As you can see in the Procedure, the Seller will provide 2% PB against your NON-OPERATIVE L/C. NON-OPRERATIVE L/C is in your favor to protect your money. Your L/C will be ACTIVATED by 2% PB. If the Seller cannot provide you 2% PB first, nothing will happen thus no waiting period whatsoever. This is a security measure for the Buyer to get the PB first. If you provide us OPERATIVE L/C first, yes, you will have to wait for your bank to release the fund. Upon you provide a NON-OPERATIVE L/C, you receive 2% PB along with POP and Yard Visit Invitation Letter. Seller’s bank officers will sign (endorsement) and then lodge the Contract with Notary Public’s signature. You have to understand that the American business practice is very strict and well governed. You can go to the FBI and report to Interpol if there is anything wrong with the transaction. Regards, Shin Mitsuda 5) Chinese banks do not issue Non-Operative L/C? I don't think so since we have been receiving Non-Operative L/Cs from HSBC. Well, we adjusted the Procedure so that the Seller will issue the PB WITHIN 7 days. If PB is not issued within 7 days, the fund will become available on the 8th day so there will be no 2-3 months waiting period. From: Shin Mitsuda [mailto:mitsuda@totalplanner.net] Sent: Monday, January 28, 2013 1:06 PM To: 'zy5307' Subject: RE: RE: Amended Contract Draft 1) You said you can only open Operative L/C. If we do not put additional instruction “If the Seller does not provide 2% PB within 7 days, it will be cancelled automatically,” then you will have to wait for weeks. If we put such clause into our L/C, Seller’s and Buyer’s banks must obey this rule. Check with your bank about our L/C format and this special clause. Your fund will be available on the 8th day if you do not receive 2% PB. 2) There are too many fake brokers and buyers. Why do we have to waste our time to those? Show us your money. We will take care of business. 3) Where does it say “3 months?” Our L/C validity is “60 days” anyway. Please read the L/C instruction again. 4) It is not our fault or problem with L/C. It is your problem that you cannot provide NON-OPERATIVE L/C. 5) CALL YOUR BANK AND SHOW THE L/C INSTRUCTION. YOUR FUND WILL BE ONLY LOCKED FOR 7 DAYS. I PERSONALLY CHECKED WITH HSBC THIS MORNING AND VALIFIED. 6) Do not change the Procedures after giving us your ICPO, your “Purchase Order.” From: zy5307 [mailto:zy5307@163.com] Sent: Monday, January 28, 2013 12:30 PM To: Shin Mitsuda Subject: Re:RE: Amended Contract Draft Dear Mr.Mitsuda, 1. In Chinese bank, the L/C shall become effective since it’s been opened. It is not correct in China that you said the L/C will be automatically ineffective if Seller failed to issue 2% P/B to us within 7 days after receiving L/C. If the L/C is in its validity, it is effective. If we are going to cancel the L/C, we have to send telegram to the receiving bank through our bank, and the receiving bank can cancel it only after getting the approval from Seller. Otherwise, all we have to do is to wait another 3 months since the L/C out of its validity. Our bank will return the money for opening L/C to us after it confirmed that there will be no negotiation. The 3 months’ period is the international banking practice. You can prove it from your bank. 2. In my view, it is very normal that Buyer has right to see the cargo before opening L/C in the big deal with used rails. I just cannot understand why the Seller refused it. If Seller worry about our unable to open L/C to them after we saw the cargo, I suggest that we can open 2% P/B to Seller in advance. This P/B is to guarantee that Buyer must open L/C after Buyer proved the real existing of cargo. If Buyer failed to open L/C, the Seller can take this 2% P/B. On the other hand, the 2% P/B shall be ineffective immediately since Buyer opened the 100% L/C. 3. If Seller accept my suggestion (as item 2) ,we can carry on; If Seller still insists on the fomer method, we feel sorry that can only cancel this contract. Best Regards, Zhang Yong At 2013-01-27 16:56:12,"Shin Mitsuda" <mitsuda@totalplanner.net> wrote: Dear Yong: I received revised Contract. This is more straight forward and much clear. ----- Sorry for disturbing you. Find attached Draft Contract-Rev.2. This is more better and safer than previous Rev.1 Use this "Draft.Contract-C.F.T.I.Co.Ltd-DLC-Jan.27th.2013-Rev.2.docx" as Draft Contract. I made some correction and clearance on the terms in previous Draft Contract-Rev.1. You and Buyer can refer to Yellow Back-ground paragraph in the Contract Rev.2. And New Clause 16) is removed from Draft.Contract Rev. 1 because it is useless. See the changes as below. 1. Page 2 - Clause 8) I made two terms 8) - b), c) Especially, 8) - b) is required if Seller does not issue 2% PB. When Buyer wants to cancel his issued LC by Seller's fault, Buyer needs mutual agreement with Seller in order to cancel (or withdrawn) his LC. This 8) - b) can be considered as mutual agreement because both parties sign this contract by their agreement. And this will be co-work 47A-11, 12. 2. LC Expiration It is Same as before: 60days. 3. LC Format 47A-11, 12 It is more clear and simple. I got confirm from Seller. He told me that "Complex, Just go ahead with seven(7) banking days." So, if Seller does not issue PB, your Buyer can withdraw LC within eight(8) days after Seller receives LC. Is it clear and simple ? But this 47A-11, 12 will be removed from 2nd month when Buyer issues LC. Of course, I think it has no problem because your Buyer can receive Used Rails or will be in Yard before issuing 2nd LC. From this clarification + definition + new additional terms in this contract, there is no risk for your Buyer to lose money (already did) and also there is no risk to hold Buyer's money for a long time. Now, I think every your Buyer's worries clear and out. If there is problem, let me know if the things are not the request to change PROCEDURES and PAYMENT. ----- Now, this is much simpler to understand. If the Seller does not provide you the 2% PB in 7 days, your L/C will be automatically cancelled and you can get the money out on the 8th day. Regards, Shin Mitsuda From: Shin Mitsuda [mailto:mitsuda@totalplanner.net] Sent: Sunday, January 27, 2013 4:42 AM To: 'zy5307' Subject: Amended Contract Draft Dear Yong: I discussed with the Seller. Below is a reply which is self-explanatory. ---------- Our yard is always busy cutting rails and exporting. Obviously, our yard is not a zoo. Why do we have to take care of anyone without showing us money? Anyway, I made some changes to the Contract. Look at the 6 page in the contract. There is a LC Format. Look at the 31D in the format. You can find below ------------------------------- 31D: EXPIRY DATE/PLACE: 60 DAYS ISSUING BANK COUNTERS ------------------------------- For this transaction, LC Duration is 60 days and that is enough. So, amend LC format from 90 days to 60 days already in previous Draft Contract. I made other SAFE TERMS for your Buyer. Find attached revised Draft Contract. I insert 3 parts for your Buyer. 1. Go to Page 5. I made Title 15) and 16). “15)” is nothing more than numbering a clause. 16) is NEW ADDITIONAL CLAUSE for your buyer. Can you see this 16) ? Maybe, 16) can make your Buyer relax. Go to Page 7. And See 47A-11 & 12. I let you know 47A-11 already in my previous Mail. NOW, I MAKE 47A-12 FOR BUYER AND INSERT THIS IN THIS LC FORMAT. CAN YOU SEE IT? If both Seller and Buyer agree on terms, we can have any reasonable L/C terms/conditions. Banks will have to follow the rules on L/C format. Now, If Seller will not issue PB within seven (7) banking days after Seller receives LC from Buyer BANK OR If Seller will not issue PB within eleven (11) banking days after Buyer Bank issues LC, then this LC should be expired by Buyer BANK. NOW, your Buyer can relax because he can return his money max. eleven (11) days after his issuing LC. I will give you another 48hours to return the Contract. If they do not agree on this term, they are just wasting our time. I will terminate the deal at midnight on Jan. 29th. ---------- For almost all seller’s term is “100% at sight.” Instead, we wait until you finish the inspection at your port. The duration is about 30-40 days (20-30 days vessel + 7 days inspection) until we start negotiating with our bank. The Seller would have to wait much longer time than your 7 days. Do you have any problem with 7 days waiting period for the 2% PB? If you don’t get PB, your fund will be released in 11 days. Regards, Shin Mitsuda From: zy5307 [mailto:zy5307@163.com] Sent: Saturday, January 26, 2013 11:25 PM To: Shin Mitsuda Subject: Re:RE: RE: Contract Draft Dear Mr.Mitsuda, Thanks much for your detailed information. There is no Non-operative L/C in Chinese bank. It becomes valid and irrevocable since our bank opened the L/C . In this case ,we can open the L/C only after we took a look at the cargo and proved the truth of it. You mentioned that if Seller issue the 2% P/B, they should put money in bank. Equally, we also need to put money in our bank to open the L/C. If the Seller cannot supply to us after we opened L/C, it will affect us much because the bank return the money to us after 3 months ,though there is no loss for our money. Please understand our situation. Please give us the indicate feedback if the Seller agrees us to have a look at the cargo in advance before open L/C or if they accept to open 2% P/B to us? Best Regards, Zhang Yong At 2013-01-26 16:28:08,"Shin Mitsuda" <mitsuda@totalplanner.net> wrote: Dear Yong: Did you call your bank and ask regarding the Non-Operative L/C? Today is your last day to sign the Contract. If there is any amendment in the Contract, please indicate in RED. You already signed on your “Irrevocable Corporate Purchase Order” thus no change for the Procedures. Please keep you promise and follow through. Regards, Shin Mitsuda From: Shin Mitsuda [mailto:mitsuda@totalplanner.net] Sent: Friday, January 25, 2013 5:49 PM To: 'zy5307' Subject: RE: RE: Contract Draft Dear Yong: As for the 2% PB, do not worry about this issue. Please read the SCO again. 5. The Buyer and the Seller lodge final contract to their respective Bank. And the Buyer issues Irrevocable, Transferable DLC as per contract (USD10,500,000.00= USD350/mt × 30,000mt/mo) to the Seller Bank within three (3) working days from receiving final Contract. ※ For 1st Trial Shipment, Buyer’s Transferable DLC should be issued “Non-Operative and 100% payable within seven (7) working days after arrival of goods at discharging port and CIQ/SGS”. This DLC will be activated by Seller’s 2% PB. This PB will be provided only for 1st shipment or Trial to prove performance ! ※ For rest months, Transferable DLC should be issued Operative because there is NO PB from the Seller. This Transferable DLC can be “100% payable within seven (7) days after arrival of goods at discharging port and CIQ/SGS”. 6. After receiving DLC from Buyer Bank, the Seller also sends “Invitation Letter” and POP to Buyer and allows Yard/Loading Visit. At this Yard/Loading Visit, Seller shows Used Rails in their Yard or Loading Port. The Seller returns NCNDA/IMFPA to Buyer and intermediaries with sign/seal. As you can see in the Procedure, the Seller will provide 2% PB against your NON-OPERATIVE L/C. NON-OPRERATIVE L/C is in your favor to protect your money. Your L/C will be ACTIVATED by 2% PB. If the Seller cannot provide you 2% PB first, nothing will happen thus no waiting period whatsoever. This is a security measure for the Buyer to get the PB first. If you provide us OPERATIVE L/C first, yes, you will have to wait for your bank to release the fund. Upon you provide a NON-OPERATIVE L/C, you receive 2% PB along with POP and Yard Visit Invitation Letter. Seller’s bank officers will sign (endorsement) and then lodge the Contract with Notary Public’s signature. You have to understand that the American business practice is very strict and well governed. You can go to the FBI and report to Interpol if there is anything wrong with the transaction. Regards, Shin Mitsuda From: zy5307 [mailto:zy5307@163.com] Sent: Friday, January 25, 2013 5:20 PM To: Shin Mitsuda Subject: Re:RE: Contract Draft Dear Mitsuda, Please undertand that our request is reasonable. We have met such case that the Seller failed to deliver cargo to us after we opened the L/C .And then,we had to wait for three months until the bank returned us the money. The contract value is big this time. We don’t want the same unhappy thing happen to us again. We promise that we will open L/C right after we proved the truth of cargo. If Seller insists carrying on as the former procedure, we request Seller open 2% P/B to us in advance. We will then open L/C after receiving the P/B. If Seller agrees to accept,we will go on;if Seller rejected, we will end the contract. Best Regard, zhang yong At 2013-01-25 15:46:55,"Shin Mitsuda" <mitsuda@totalplanner.net> wrote: Dear Yong: I just discussed with the Seller. Here is a reply from the Seller: --------------- 1) I thought we clarified about the AQSIQ certificate. I don’t understand why this Seller is asking the same question again. 2) This Buyer should read the SCO again. Also, this Buyer signed and submitted their ICPO. Now, they want to change the procedures? 3) Our yard is not a zoo. Why we spend our time to a Buyer without showing us their money? We will only take care of business once they show us money. 4) I have one simple question and need an answer for it. This Buyer is paying us with L/C “100% payable after inspection at the discharging port within 10 days.” WHY BOTHER CHANGING THE PROCEDURE IF YOU ARE PAYING AFTER YOU RECEIVE THE CARGO AND INSPECTION? --------------- Please answer above #4: WHY BOTHER CHANGING THE PROCEDURE IF YOU ARE PAYING AFTER YOU RECEIVE THE CARGO AND INSPECTION? Thanks, Shin Mitsuda From: zy5307 [mailto:zy5307@163.com] Sent: Friday, January 25, 2013 4:02 PM To: Shin Mitsuda/Total Planner Subject: Re:Contract Draft Dear Mitsuda, We need to adjust the opreation procedure as belows: 1.Seller shall supply AQSIQ documents to Buyer after both signed the contract. 2.In the same time, Seller send invitation letter to Buyer to inspect the cargo in the loading port. 3.After Buyer inspected the cargo and made sure of the documents for ownership ,Buyer will open 100% L/C to Seller immediately. 4. Other clauses kept unchanged. Best Regard, zhang yong At 2013-01-25 02:51:05,"Shin Mitsuda/Total Planner" <mitsuda@totalplanner.net> wrote: Dear Yong: I just received a Contract draft from the Seller in the USA. Please find attached file and sign within 48 hours. Here is a message from the Seller. ------------------------------- Dear Shin, Please find attached Draft Contract for your Buyer. 1. All things will be proceeded by procedures. 2. NCNDA/IMFPA will be returned with Notary Public and Bank Endorsement after Buyer's 1st DLC. 3. For Seller's detail payment term is "Irrevocable, Confirmed, Transferable, Divisible DLC". But "Trans-Shipment" is Not allowed and "Partial Shipment" is Not Allowed also. Don't worry about it. Seller has used to deliver 30,000MT by 10,000MT x 3 vessels or 15,000MT x 2 vessels or 30,000MT x 1 vessel. 4. If Buyer worries about the fee for "Confirmed", DLC can be issued without "Confirmed" term. Of course, Seller prefers "Confirmed". 5. If Buyer Bank cannot issue Non-Operative DLC and only issues Operative DLC, then insert below paragraph as 11 in 47A of LC-Format. ============================================= 11. SELLER SHOULD ISSUE 2% PB. PB WILL BE ISSUED WITHIN 5 BANKING DAYS OF RECEIVING LC. ============================================= This is the case that Buyer Bank cannot issue Non-Operative but issues Operative direct. Seller never issues Upfront PB to the deal. This is for Buyer's safety. (※ This 47A-11 should be for 1st shipment only. For rest months, PB will not be issued. If Buyer wants, Seller can issues PB one more time for 2nd month. But No Seller issues PB for all contract period under “at discharging payment and CIQ/SGS”.) 6. From 46A-8, "SGS or CCIC at discharging Port", make "discharging payment term" possible. But Buyer should do SGS or CCIC at discharging port by Buyer expense and Buyer should submit this SGS or CCIC REPORT to Buyer Bank. This is for Buyer's safety. If Buyer need another agency, like "Alfred H Knight" or "Bureau VERITAS" or "Intertek", then Buyer can insert his ageny name in appropriate position in the contract and LC format. 7. If Buyer will not perform SGS or CCIC within ten (10) working days after arrival of goods at discharging port, then SGS at loading can be considered at final and Bank encash LC. I allow ten (10) working days for Buyer to submit his SGS or CCIC at discharging port. This is safety for Seller, if Buyer will not perform SGS or CCIC intentionally. Is there any questions to proceed contract, let me know. ------------------------- Best, Shin Mitsuda 6) KABOOOOOMMM! Miracle really happens! Now, his bank can issue the Non-Operative L/C! Mr. Zhang does not understand the banking procedure. He wants the L/C to be activated after his yard visit. From: zy5307 [mailto:zy5307@163.com] Sent: Tuesday, January 29, 2013 11:49 AM To: Shin Mitsuda Subject: Re:RE: RE: Amended Contract Draft Dear Mr.Mitsuda, I have discussed with our bank for the L/C. Our bank agreed to open the non-operative L/C and which will be activated by the 2% P/B from Seller’s bank. I need to make sure again with you about the follow business procedures: 1． Seller supply AQSIQ documents to Buyer after contract signed; 2． Buyer open the non-operative L/C; 3． Seller send POP documents and invitation letter to Buyer; 4． Buyer goes to the on-site to see the cargo and prove the ownership files for the cargo. 5． Seller open 2% P/B to Buyer to activate the L/C; I have modified the L/C clause in the contract which also need your confirmation. Best Regards, Zhang Yong 7) It is IMPOSSIBLE to activate the Non-Operative L/C with "buyer's yard visit." We explained as below. From: Shin Mitsuda [mailto:mitsuda@totalplanner.net] Sent: Tuesday, January 29, 2013 5:49 PM To: 'zy5307' Subject: RE: RE: RE: Amended Contract Draft Dear Yong: Here is a reply from the Seller. ---------- 1) I am not happy with your Buyer's progress. I thought he said his bank cannot open the Non-Operative L/C. Did he lie or wasted our time? 2) L/C instructions are governed by UCP600, "international banking law." Non-Operative L/C CANNOT be activated by "Buyer's yard visit." 3) It is an AUTOMATIC BANKING PROCEDURES. Buyer's Non-Operative L/C > Seller's bank activates L/C with 2% PB and provides POP > AUTOMATICALLY ACTIVATES THE L/C. 4) Once Non-Operative L/C is activated by PB and POP, the Buyer cannot change his mind. If the Buyer has the money, and Seller has the product, TRADING MUST BE DONE. 5) From banker's view, they will not let the Buyers and Sellers to change their mind after "yard visit." "Yard Visit" is optional and bankers do not care. 7) Buyer's yard visit is optional and bankers do not care. Buyer's bank cares about Seller's POP (Policy Proof of Interest - is the correct term). 8) If the Buyer sends us the Non-Operative L/C, we will have to provide 2% PB WITHIN 7 DAYS. Buyer wants us to wait until he finishes yard visit. I don't think everything can happen WITHIN 7 DYAS. What happens if the Buyer gets sick or relatives go to the hospital? Bankers really do not care about those “accidents.” 9) "Ownership files" and "AQSIQ" are WITHIN THE POP procedures. You will get it via SWIFT. Once again, "Yard Visit" is an OPTIONAL and we follow the international rules. I don't think your Buyer ever opened the L/C before.... I suggest they should talk to their bankers and learn about L/C. I will give you another 24hrs to AGREE on my procedures. Actually, HE ALREADY SIGNED ON HIS ICPO WITH BELOW PROCEDURES! I have 3 more buyers are waiting. I don’t need your Buyer’s business. He is wasting everyone's time. PROCEDURES: NON-NEGOTIABLE 1. Buyer sends ICPO, NCNDA/IMFPA, and Passport Copy to Seller. LOI is not needed. 2. Seller sends Contract draft to Buyer. 3. Buyer signs and returns the Contract to Seller within 2 working days with amendment (if any). 4. Seller signs/seals final Contract and returns to Buyer within 2 working days. 5. Buyer and Seller lodge the final contract to their respective bank. Within 3 working days from receiving the final Contract, the Buyer issues Irrevocable, Transferable DLC as per Seller’s approved format. *For 1st month, Buyer should issue “Non-Operative,” Irrevocable, Confirmed, Transferable DLC. This DLC will be activated by Seller’s 2% PB. *For the rest of 11 months, Buyer should issue “Operative,” Irrevocable, Confirmed, Transferable DLC. There is no PB because the Seller is already verified. *Payment can be “100% at sight at loading” or “100% payable within 7 working days after arrival of goods at discharging port and CIQ/SGS.” This is Buyer’s choice but there is price difference. 6. After receiving DLC from Buyer’s bank, the Seller sends “Invitation Letter” to Buyer. Seller’s bank will send POP to Buyer’s bank via SWIFT, and allows Yard/Loading Port visit. The Seller returns NCNDA/IMFPA to Buyer and intermediaries with signature/seal. 7. Seller commences loading and shipment. The Buyer can attend loading and SGS at the loading port. 8. Seller negotiates Transferable DLC as per contractual terms. (For “100% payable option,” Buyer should complete CIQ/SGS within 7 working days after arrival of goods at discharging port.) ---------- It is impossible to activate your L/C with your yard visit. You should talk to your bankers and learn how L/C works. It is automatic procedures: Your Non-Operative L/C will be activated with 2% PB and POP. It is automatic. Check with your bank again. Regards, Shin Mitsuda 8) Another excuse or problem again? Now, Mr. Zhang is saying he needs to wait for his license thus he cannot sign the Contract. If they are not ready to buy Used Rails, why did they contact us? Obviously, they never purchased the Used Rails before... From: zy5307 [mailto:zy5307@163.com] Sent: Thursday, January 31, 2013 12:30 AM To: Shin Mitsuda Subject: Re:Final Notice from Seller Dear Mr.Mitsuda, As our company is applicating the certificate of China receiver for used rails, it will take 1-2 months. We cannot sign this contract this time.We will contact you after we got the qualification certificate. Best Regard, zhang yong Conclusion: This is why the Seller NEVER provides 2% PB first. We only wasted our time, not cash. |
