FTNX PROCEDURES 2021
Posted: Aug 3, 2020
In Australia our new business year commences July the first on any given year. Current FTNX 2021 procedures are in effect.
TO: SUPPLIER WORLD WIDE
- A supplier is deemed to be a manufacturer or owner of goods being offered to FTNX.
- FTNX is the legal buyer to the supplier ; as such FTNX pay for the goods long before they are delivered and does not need to ‘pre-qualify.’
- Company forms, comfort letters, and financial records are not a relevant aspect of doing business nor is ‘pre-qualifying’ aspects, which will not be entertained, if asked by a supplier.
A supplier not submitting a formal offer for goods that FTNX may consider purchasing, may submit the following aspect defined as a good quote in a restricted PDF form. Please advise password to open PDF in email text.
- Corporate header
- Full Details of the Supplier and Export manager
- Description of goods and basic specifications.
- Matter of packaging/units /quantities ( Products offered as per FCL’s )
- A fixed price or; variable price basis and fixed discount ( USD$ or Euro )
- If variable price basis is used , please specify preferred unrestricted website we can use to secure prices.
- How many deliveries over how many months and frequency
- Quantities per shipment and per whole contract.
- Entity conducting pre shipment inspection initiated by
- Delivery mode
- Name of supplier bank and city location
- Document is signed as “Full Quotation” is apparent.
A quote has no legally binding status. Once the quote has been received by FTNX, nothing will be heard from FTNX ( the buyer) until we are ready to make a purchase, which could take weeks, months or even years, to which the following formidable, safe and proper trading aspect will be applied. Supply of goods assured to FTNX must be valid for 3 months minimum ( 4 months or more preferred). All documents (PDF’s) once flowing shall be advised to each other with a common password used to open them. The contract may be advised by PDF but a hardcopy will need to be posted by courier mail as well. The PDF copy will allow the deal to continue without delay while awaiting a hardcopy of the contract. Slight variations to the below general standard application and routine may apply. The supplier located in the same country where an FTNX associate is present, shall transact on the below premise through the FTNX Associate, otherwise the process is directly with FTNX. In all cases, the following aspect are not open to negotiations as FTNX attempts to mitigate all risks by ensuring formidable safe practices are always used. ICC Incoterms delivery rule 2020 or 2010 must apply and all payment is honoured via the issuance of an ‘ICC UCP’ endorsed DLC for at sight collection processes per current ICC URC rules. There is no scope whatsoever every to complete a transaction to first delivery in under 65 days is assumed, as taken from the time FTNX attempts to buy such goods, and not from the time the offer or quote from the supplier was advised to FTNX. A short term offer of quote from a supplier of less than 3 months will not be considered and that a quote exceeding 6 months or more is preferred as are large single shipment or revolving shipments months. FTNX has no interest to conduct business on a purchase contract worth less that 2 million dollars. All disputes are settled among the parties to the contract amicably, is the first aspect which is always forcefully sought by FTNX. If this aspect breaks down, arbitration is applied in the country of the supplier. Please Note : On general standard application: Supplier may expect longer transactional periods and delays in over 50 percent of cases due to the COVID SARS II Pandemic.The supplier and buyer shall work together in a ‘fair, just and reasonable manner’ to resolve such issues if /when such delays arise.
WHEN FTNX IS READY TO BUY
- Day (1) : An email is advised to the supplier that the quote advised months earlier is now provisionally confirmed.
- Day (3) : Email from supplier confirms if price is still valid; or confirms if prices has changed in where current price is served.
- Day (5) : FTNX issues an Offer to Procure ( OTP) to the Supplier if new price is accepted.
- Day (12): The OTP is finalised and returned as accepted by the supplier via email PDF.
- Day (12): Once an OTP is returned as signed, a legally binding aspect is in force on both parties unless stated otherwise on the OTP
- Day (15): The supplier issues its draft contract via PDF to the buyer FTNX, unless supplier asks FTNX to produce the contract.
- Day (25): Signed copy of contract is retuned by email marked as original
- Day (25): A signed hardcopy of contract also marked as original is sent by courier post
- Dat (25): A postal receipt is produced proving contract has been posted.
- Day (25): PDF contract now allows deal to continue without delay while awaiting hardcopy contract.
- Day (30): FTNX advises financial instrument to the bank of the supplier; used to pay for goods ordered.
- Day (37): Supplier has up to 5 banking days to accept the financial instrument. (ICC UCP Rule)
- Day (40): Supplier advices Performance Guarantee instrument to FTNX within 3 days of payment for goods being accepted.
- Day (43): Supplier keeps in liaison with FTNX as first delivery is made at 30 days after Paragraph (12) has cleared.
- Day (67): First delivery has been completed. Ship slips it first mooring line and heads for port destination port.
- Day (67): All presentation / transport document as per contract, collected and submitted to bank of the buyer for at sight collection process to apply.
- Day (72): Within 5 banking days ( ICC UCP Banking Rules) If all document cleanly presented ( complies) buyer honours payment to the supplier (Bank account via its bank)
- Day (73) : Revolving deliveries monthly: Next delivery is being loaded for the same collection process 30 days from the first delivery
- Day (90) : The carrier at first delivery arrives at destination port (assume).
- Day (95): Supplier has assured goods free from defects. Buyer has 90 days to report verifiable defects.
If a supplier needs to know more , please do not hesitate to send us an email. All information served to us is privately served and confidentially held.