STANDARD PROCEDURE CIF..

1. Buyer sends either a LOI or an ICPO mentioning all relevant details like the type of product, quantity required, duration of delivery, name of the destination port, Payment Terms LC MT 700 / Confirmed, Irrevocable, Auto- revolving DLC (MT 700).

2. Seller provides an official Full Corporate Offer (FCO).

3. The Buyer signs the FCO and also affixes their company's official stamp/ Seal.

4. Seller sends a draft SPA which will also contain the registration certificate and other such identification papers of the seller. Buyer and seller mutually agrees to carry out minor modifications to the SPA (if required). Buyer & Seller then signs & stamps the SPA.

5. Seller sends final Pro-forma Invoice to buyer.

6. Buyer opens either a DLC (MT700) in favour of the seller as per the terms of the SPA. The buyer also has the option of arranging to send a Pre-advice (MT 705) to the sellers bank , if he wishes to visit the warehouse of the seller in the Kingdom of Saudi Arabia to inspect the Steel, take Videos, and obtain a certificate of Analysis from the seller.

7. A performance guarantee is issued, covering a value ranging from 2.5% of the total quantities for both parties (the buyer and the seller).

8. Buyer opens Auto-revolving DLC ( FULL AMOUNT OR LC FOR SHIPMENT WITH BANK GRANTEE )

9. Seller starts the shipments as per the terms of the SPA.

Important note :
1) If the buyer is committed to a contract of 5 million tons or more, he can issue a bank credit for each million tons separately without bank guarantees on the remaining quantities.

2) Or the buyer can issue a letter of credit with the full bank amount of 5 million tons.