COMMODITIES

PROCEDURE FOR QUOTING COMMODITIES SEEKING ASSERTIVENESS

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1- PRODUCT. 

2- VOLUME. 

3- DESTINY. 

4- TARGET PRICE.

 

Target Price – is the price that the importer would like to pay for the product he will purchase. Configures a reference price for the exporter. If you can provide this price, closing the deal will be much easier.

 

5- PAYMENT TERMS, SBLC or DLC.

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SBLC – Stand By Letter of Credit – is a type of LC, issued by a bank that guarantees payment to the exporter, in the event of the importer's default. The exporter presents its demand for payment to the bank, together with the declaration attesting that the importer has not fulfilled its contractual payment obligation. It is an international guarantee that can be issued freely for different types of operations, and can support both commercial transactions and financial transactions. It ensures payment to the exporter, which must be honored by simply contacting the bank, as long as it is in accordance with the provisions established in the SBLC itself.

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DLC – Documentary Letter of Credit – is a type of LC that guarantees payment to the exporter, provided that the correct documents, specified in the terms and conditions contained in the DLC, are presented.

 

6- INCOTERMS: CIF, FOB, FAS, FCL, Ex WORKS.

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CIF: Cost, Insurance and Freight – (cost, insurance and freight). In this type of export, the exporter/supplier is responsible for paying all costs up to the port of destination, that is, transportation to the port of embarkation, loading of the goods on board the ship, freight and insurance of the transport.
 

FOB: Free on Board – in this type of export, the exporter/supplier is responsible for all expenses until the goods are loaded on the ship, including the shipment itself.
 

FAS: Free Along Sideship – in this type of export, the exporter/supplier is responsible for all expenses to place goods at the port of shipment, whether for immediate shipment or for storage.

 

FCL: Full Container Load - fully loaded container.
 

Ex WORKS -   It means that a seller has the goods ready for collection at their premises (works, factory, warehouse, factory) on the agreed date. The buyer pays all transportation costs and assumes the risks of getting the goods to their destination.