PROCEDURE FOR QUOTING COMMODITIES SEEKING ASSERTIVENESS

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1 - PRODUCT.

2 - VOLUME.

3 - DESTINATION.

4 - TARGET PRICE.

 

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

 

5- PAYMENT TERMS, SBLC or DLC.

 

SBLC – Stand By Letter of Credit – is a form of LC, issued by a bank that guarantees payment to the exporter, in the event of default by the importer. The exporter submits its demand for payment to the bank, together with a 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, being able to support both commercial and financial transactions. Ensures payment to the exporter, which must be honored by simply calling the bank, provided that it complies with the provisions established in the SBLC itself.

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DLC – Documentary Letter of Credit – is a form of LC that guarantees payment to the exporter, as long as 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 – In this mode of export, the exporter/supplier is responsible for paying all costs to the port of destination, that is, transport to the port of shipment, shipment of the goods on board the ship, freight and insurance of the transport.

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

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FAS: Free Along Sideship – In this mode 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.

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