Procedure and Terms
Important Information for Buyers !
For buyers, we suggest evaluating the seller procedures before requesting a quote. This ensures that your company can comply with the procedures within the agreed deadlines.
1. Define your demand (Product Type, Minimum Order Quantity, Terms of Payment, Total Quantity, Port of Destination, Target price)
2. Check if your company is ready to issue a financial instrument (SBLC, DLC, LC) through one of the 50 Top Bank in the world
3. Past Performance Gulain Indonesia does not provide past performance or product proof at any time before signing the contract, only after the financial instrument is issued and confirmed by the bank (See: Working Procedure)
4. Request a quote
Market Research
First and foremost, consult the global market as it dictates prices. Utilize the following sources:
1. Trading Economics: Trading Economics is a website that provides economic data, including commodity prices
2. ICE Futures: Commodity exchanges like the Intercontinental Exchange (ICE) provide information on futures contract
3. List Top 50 Bank: A list of banks accepted by the seller as issuers of bank guarantees for SBLC/DLC.
Working Procedures
1. Buyer Initiates LOI to Gulain Indonesia, Seller Representative
2. Gulain provides FCO.
3. Buyer Provides ICPO in the name of Seller for drafting of SPA:
– Company registration certificate
– Complete contact information
– Banking information
– Passport copy of authorized signatory
4. Seller Sends Draft SPA to Buyer for Comments
5. Buyer signs agreed SPA. Seller counter signs
6. Buyer provides draft DLC MT700 + Buyer’s draft DLC verbiage must be approved by Seller’s bank. If verbiage is not approved, the Buyer must arrange to have the verbiage modified to be approved by Seller’s bank
7. With Buyer’s DLC MT700 verified and operational funding in place, Seller provides a 2% Performance Bond to Buyer’s account within 7 days after DLC/SBLC activated
8. Buyer’s visit to inspect at loading port
9. After finishing the loading, Seller will provide B/L, SGS and Shipping documents from Seller’s bank to Buyer’s bank for verification. Upon verification by Buyer, the payment will be released from buyer’s bank to seller’s bank.
10. Title of ownership of the goods will be transferred to buyer and vessel departs to destination port
Payment Terms
Payment of 30% against pro forma invoice and 70% after sending shipping documents
DLC Transferable from top rated bank full-face value
SBLC Transferable Issued by the TOP 50 bank and payment for boarding the MT 103
LC At Sight at 2 month purchase value payable at loading port against SGS inspection
Payment is possible at the loading port and the destination port
1. Buyer can provide POF
2. Ready with SBLC/DLC Draft ( Bank instruments)
3. Agree to follow the Seller’s procedure sequence
4. And payment at loading port
Our seller will make the buyers who can do these things as priority.
Download
LOI
The buyer is required to send the original signed and sealed Letter of Intent (LOI) to Gulain’s official email. The LOI template can be downloaded by clicking the link below
Pre-Advice mT799
An MT799 Pre-Advice is a mandatory bank message that confirms readiness to proceed with a transaction. It ensures both parties are aligned and is required for deals involving financial instruments. The template can be downloaded by clicking the link below
DLC Transferable
A DLC (Documentary Letter of Credit) is a payment guarantee that ensures the seller gets paid once they meet the terms and provide the right documents. It reduces risk, builds trust, prevents fraud, and is commonly used in international trade for secure transactions
SBLC Transferable
An SBLC is a commitment from a bank, acting for a client, to guarantee payment in case the client is unable to fulfill their payment obligations. The SBLC template can be downloaded by clicking the link below