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NEW PROCEDURESFOR SCRAP METAL DEALS (For Your Reference Only)
Attached are the new Procedure Document, the Chemical Composition Document, the (sample) Letter of Intent, and the (sample) Letter of Bank Funds Availability.
Procedure: The Procedure Document (first attachment) and the Chemical Composition Document (second attachment) MUST be sent to the end Buyer's decision maker who must review and initial each step, then sign and return the Procedure Document to us through the broker chain. Since the Buyer will be given a final price, confirmed by the Seller,once the Procedure Document has been signed off on by the Buyer and returned to the Seller,no “ballpark” prices will be given at any time. The reason for this is a simple one: We have been giving “ballpark” prices through broker chainsfrom whom we then do not hear anything for weeks and/or months. These brokers thencome back to us with an LOI, based on that “ballpark” price from months ago, and then getupset whenwe have to tell them the price has changed and is now higher (in most cases). Any Buyer is going to be upset when this happens and usually drops the deal. And who can blame them? This type of action (inaction?) also hurts the broker'scredibility with their Buyer.
Once we receive the ProcedureDocument back, wecan thenestablish the final price (including commissions). We will send an RWA offer (Ready-Willing-and Able) for the broker to offer the Buyer. If the Buyer accepts the price, they will then have to issue their LOI (third attachment) and Bank Funds Availability Letter (fourth attachment), no exceptions. Either they send both documents to us, the Seller; or nothing will happen on this end. (These two documents must contain all of the information as in the sample LOI and Bank Letter documents.)
Minimum orders: The Seller has a minimum order requirement of 30,000 MTs per month x 12 month contract for either HMS or Used Rails. Please note that we can only ship what the CIF destination port can handle per ship, so please keep this in mind when you have requests for quantities exceeding 60,000 to 90,000 MTs. Most ports can handle the 60- to 90,000 MTs but not more, so please check with the destination port if your Buyer is requesting quantities exceeding 60,000 to 90,000 MTs. If the port can handle it, we can and will ship it.
Any Buyer requesting multiple transactions MUST be able to prove funds availability, up front, to show that they are capable of paying for multiple transactions at the same time; otherwise, we will only accept and work on one transaction at a time.
Multiple ports: Shipments to multiple ports will require a separate contract and a separate LC for each port. We cannot do a transaction under one LC and split shipments to multiple ports. We can alternate shipments to different ports as long as the ports are in the same country.
Commissions: add on moniesto our price; Buyer office fees- All of these types of "monies"MUST be kept under $8 total for everyone involved and everyone will be on the Buyer side going forward, there is no Seller side for commissions. The Seller will no longerallow anyoneto "add any monies to their priceto besplitwith the Seller;and lastly,we will not knowingly pay any moremonies back to the Buyer's office. If everyone involved cannotaccept and behappy with sharing the maximum $8 in commissions, then don't bother to send it to us, as any deal where the commissions exceed $8will be rejected. We don't care who gets how much of the $8. That has to be worked out between the brokers. All commissions will be paid to one paymaster for distribution (typically, it is broker who contacts and deals with us).
Bank Funds Availability Letter -The Bank Funds Availability Letter is absolutely required for each deal. There are no exceptions. The Buyer has options as to how to send the letter: 1. Email the letter, 2. Fax the letter, 3. FedEx the letter, or 4. Mail it. We will no longer ask our banks to accept a SWIFT transaction as a means for the Buyer to send this BFA letter, when it can be accomplished by any one of the aforementioned four options. The simplest way is for the Buyer to email the letter direct to the Seller once they are ready to proceed.
Mandates: Any person using the term "mandate" must provide a copy of their mandate agreement from the Buyer if they are going to be the "decision maker" and have signatory and negotiating authority in behalf of the Buyer. If they don't provide a copy of their mandate agreement (which must include language that says they have signatory authority), then we will not accept the "procedure document being reviewed and signed off by the "mandate". If the “mandate holder” will not or cannot provide a copy of their mandate agreement, then the "procedure sign off document” must be sent onto the end Buyer.
Working Draft Contract: Once the LOI and Bank Letter are received, the working draft contract is issued and the Buyer is now in direct contact with the Seller and can then deal direct with the owners of the Seller Company for any questions and/or concerns they may have.
Product Origins: The product origin will be Seller's choice and will be: Asia, Europe, Former CIS State, or the Americas. We do not have African origin product. We also are no longer offering North American (US, Canada or Mexico) origin product only.
Information needed for price quote after the procedure document has been returned: We will need to know the name of the CIF destination port, the Buyer's target price, the product being requested, the quantity being requested, and the commission request. We do not quote prices for ASWP or Main Port India.
Everything a Buyer needs to know that is relevant to their making a decision to purchase scrap metal product(s) fromthis Selleris contained in the attached documents. The text is from the Seller's contract, sowe are basically providing the Buyer a partial sample contract to review at this time. Also, note that the Seller isnot interested in doing any kind of Joint Venture with anyone.
Please make your Buyer understand that they have no financial risk by submitting the completed Procedure Document back to us, the Seller. If they do not accept the offered price, there is no deal. If they choose not to send the LOI and Bank Funds Availability Letter, there is no deal. There is only a deal when they sign the offered formal contract and issue a letter of credit according to the terms of the formal contract. If there is no letter of credit issued, there is no deal – even if the formal contract has been signed. No money changes hands between Buyer and Seller until the Seller meets all terms of the formal contract and delivers the goods according to the terms of the formal contract and the letter of credit. Then and only then does the Buyer make payment under the terms of the formal contract and the letter of credit.
Hopefully, these procedures will get us only the serious Buyers.