DOING BUSINESS WITH FTNX
The term ’Supplier’ is used by FTNX to ensure no confusion is apparent with the term ‘Seller.’ The Supplier is the entity in possession of ‘export ready’ goods (and the property in them) who sells such goods to the lawful ‘Buyer’ FTNX. Likewise the term ‘End Buyer’ and ‘Buyer’ where the former describes the person taking possession of goods from the ‘Seller’ FTNX. In essence FTNX buys and sells ‘title’ to the goods being transacted upon. We never take possession of goods ordered as we are not the ‘end user.’ The End Buyer holding ‘title’ when the ship arrives at port of destination (POD) is able to acquire possession of the goods ordered from FTNX. This is the very basic essence of most if not all commodities sold internationally were Interrnational delivery rules Incoterms 2020 apply. The end buyer ‘owns’ the goods when they are delivered on board ship in a good condition at port of loading, and pays for such accordingly, after all conditions of delivery have been met as stipulated on the financial instrument secured as agreed upon in the sales contract. We stress as much because FTNX only buys and sells export ready products on the very same basis. A Supplier or new Exporter approaching FTNX does so with the intent of selling goods to FTNX. The Buyer (FTNX) is able to legally consider buying such goods based on the following advice which includes the trading routine that must apply, regardless if the Supplier is conducting business with FTNX directly or one of its FTNX Licensed Brokers (FLB) who will often ask a Supplier to first read the advice on this website. A FLB services the supplier intently and amicably with advice as needed, therefore using a ‘FLB’ is a better option than coming directly to FTNX who often is unable service in depth advice due to time constraints. A FTNX endorsed FLB is an international trade specialists and PCT, in its own right. It takes ‘years’ to qualify as a FLB. Suppliers understanding the information served herein are welcomed to lodge their submission with FTNX directly.
- The Supplier provides a standing offer or MOU to FTNX. The offer is made for export ready sought after goods rather than novelty products. The offer once negotiated and agreed upon is placed with FTNX for 6 months or more. The offer must be for large NBC (Non Break Cargo) shipments of a wanted product at ICC FOB served monthly on a revolving basis for 12 months or ‘years’ especially for products likes crude oil, fuels, coal and ores. FTNX will also consider FCL at FCA Incoterms 2020 delivery rules, where a single shipment exceeding 400 MT and is able to be supplied on a revolving basis. Very large (VLCC/VLBC/FCL) single shipments of a wanted product are also considered.
- The offer or MOU once signed becomes the standing assurance of supply. Once the offer is accepted and returned to the Supplier, the Supplier issues its contract in where a legally binding aspect on the Buyer becomes apparent. The Buyer signs the contract and returns one copy as a PDF and another via courier post in hardcopy form. The buyer produces a trackable postal receipt to prove that the contract has been posted in where the PDF copy of the contract allows the deal to move forward. If a new supplier needs FTNX to produce a contract , we are able to accommodate such, on the condition that the Supplier takes our contract to their legal advisor for scrutiny.
- Once the contract is retuned to the Supplier, within 7 days thereafter the Buyer lodges the financial instrument (DLC) to pay for the order. FTNX will only issue a UCP 600 ruling financial instrument endorsed for collection ‘at sight’ on cleanly presented documents as specified on the DLC.
- The Supplier offers a Performance Guarantee (P.G) usually served as a SLC, once our DLC has been first accepted. Usually we ask for a low end P.G of under 2.0% of the first shipment value. This aspect assures us that the Supplier will be able to delivery ordered goods as stated. If goods are not delivered ‘on time’ on any delivery date the buyer has the unconditional right to collect on the P.G because late deliveries often incur added expenses to the buyer.
- Once the DLC is accepted by the supplier and their bank, and the P.G is advised, the DLC will carry the first delivery price. First delivery must be apparent within 30 days of contract signing date (CSD) and every 30 days there-after, whether a fixed or monthly variable prices basis is apparent. This aspect is necessary to place a value on the DLC so it can be issued early, as such matters take time and expense to initiate, and because FTNX does not conduct business applying ‘On the Spot’ basis. We deal in future prices and delivery. Since the first price is established 30 days prior to first delivery, then on the second delivery the price established 30 days prior is the price payable. This delivery and prices basis ‘in arrears’ continues for the life of the contract.
- Once goods are loaded and inspected POL, the Supplier produces the required delivery documents to their bank as stated on the contract, who advises our bank, except for the Invoice which is advised to FTNX by email. Under UCP Rules the Supplier must be paid within 5 banking days, if documents are presented ‘cleanly’ as stated on the credit, once sighted by the bank issuing the DLC.
- Goods arrive at port of destination (POD), in where Buyer exposes title to the Shipowner and pays all customs charges applied to import such goods, and collects the goods after paying the carrier ‘earned’ freight, if the delivery rules used state as much.
- If the goods within 90 days of unloading have proven to be defective, the supplier agrees to compensate the Buyer FTNX as agreed upon in the contract, once evidence of defective goods is served by the Buyer.
- Above describes the fundamental trading routine within an overall structure supported by rules and laws. Assume there is much more to the process than simply prescribed, also assume issues will arise with deliveries as this is the nature inherited to this business. In such a situation FTNX has always settled such matters confidentially and to the satisfaction of the supplier, even were the supplier was at fault, defines another reason why a Supplier should be using our unique and leading process.
FTNX does not sign forms, provide details on who we are dealing with now or have dealt with in the past, nor offer a BCL as a condition of doing business, as the Supplier is simply providing and offer for our ‘purchase considerations’ at the price dictated by the supplier, regardless what the speculative market place dictates. In 2020 entities offering goods where Sanction apply with the western banking system, a FLB located within a country not holding Sanction with the country of the Supplier shall conduct the transaction on our behalf. The large contract of supply often exceeding half as billion dollars in value will take months if not ‘years’ to close. A lot of work needs to take place when securing goods and when buying such goods, especially for some products I.e: A mine owner may open up an existing iron ore mine, if a good price can be secured first, an expected harvest in the future may indicate that too much stock may soon be apparent. It could be that existing stockpile and sales thereon have become sluggish; or an existing producer is entering the export market for the first time. FTNX takes the goods offered and tests the market place, by listing the goods on its Exchange, by offering the price that we ‘could expect’ in where the Supplier may receive a better price than offered or; it may be that a lower price will need to apply before a sale could be realised. A Supplier in possession of goods–is the entity we are interested to hear from. If there is interest in what is offered to the FTNX, well indicate as much quickly. If not, we’ll indicate as much quickly as well in where all discussion with FTNX will be held ain the strictest confidence at all times.