OUR TERMS

 

Agrilinkage applies only the safest international trade procedures, rules, and regulations as defined in UCP600 Banking Rules, Incoterms 2020 Delivery Rules, and URC522 Collections Rules.

Agrilinkage sources and enters contract to buy products only from undisclosed ‘suppliers in possession of export ready products’ directly. Agrilinkage sells such goods to our clients defined as ‘undisclosed end buyers’ taking title and possession of purchased goods from Agrilinkage.

We do not take inquiries from intermediaries.

 

We do not conduct business in small shipments as we specialize in very large revolving transactions for FCL type of deliveries.

Suppliers looking to increase sales, end buyers looking for high-quality agricultural products, new exporters and importers entering the market place, etc, are the type of customers we service. Principals looking for a safe and secure transaction are recommended to use our service.

For a supplier to take advantage of our services, the offer and price basis made to Agrilinkage must be clearly discounted when compared to speculative prices which only reflect prices in Metric Tons /Barrels rather than contract value. 

We only conduct business on future revolving sales based on products we have secured and not what speculative market dictates.

We  ensure and guarantee that the ‘title’ and ultimate possession of purchased goods are delivered to our clients, in support of standing trade rules and laws. We are specialist traders trading only in revolving shipments or VLCC/VLBC single shipments. We also consider large lots/revolving FCL sales.

PROCEDURES

BUYERS

Quotation is issued then returned filled as accepted. Detailed offer is advised. We allow 7 days (not banking days) for the offer to be returned; signed and accepted. 

Draft Contract is issued / negotiated, agreed, signed and returned. We allow 11 days for signing of the contract. The hard copy of the signed contract is posted by courier mail to Agrilinkage as per contract postal address. A courier postal and tracking receipt is secured as well.

A copy of the postal receipt and contract is advised to Agrilinkage by email via PDF. This allows the transaction to continue without delays being apparent to first delivery date.

Within 7 normal days of PDF contract signing date, the end buyer advises the financial instrument. If a Policy Proof of Interest (PPI) is to be advised, the DLC is held but not accepted. The PPI is advised within 48 hours by email PDF.

As per contract, the buyer has 72 hours to verify the supplier information given on the PPI and Agrilinkage supply capability at which time as per UCP rules we must accept the credit. 

Goods are loaded as per first delivery date (Allow up to 3 days). Clean transport documents to be presented as indicated on the credit and contract to the end buyer. (Issuing bank allow no more than 21 days from BOL endorsement issuance date). If all is in order, the issuing bank authorises collection proceedings on the Irrevocable Documentary Letter of Credit. (Allow 5 banking days under UCP rules or less). The payment values as arrived at offer stage above is payable and collectable as applied to the first delivery value of goods.

Goods arrive at destination port; the end buyer pays all import cost, pay freight and takes possession of such goods. Defective goods has a 90 days claim period as indicated on contract which Agrilinkage will remedy once appropriate evidence is provided. If a revolving transaction; next shipment is delivered on the same basis until final delivery.

 

SUPPLIERS

If a supplier is willing to provide a 18 , 36, or even 42 months assurance of supply and give us at least 6 month to make the 1st time purchase then the supplier simply sends us an offer based on below information so we can start preparing our own affairs in getting ready to initiate purchase quickly when the time comes.

  1. Corporate Name of Supplier

  2. Full contact /web site details

  3. Add a transaction code

  4. Date of issuance

  5. Postal address

  6. Name of export manager /person 

  7. Export manager/person contact details

  8. Name of Product

  9. Origin

  10. Port of Loading

  11. Grade and full Specifications

  12. Delivery Mode

  13. Opening Price as per bench mark as taken and recorded.

  14. Name and City of Bank accepting DLC.

  15. Name of inspection service offering quantity certification

  16. Document is to be signed

  17. Document to carry validity /supply assurance time period.

  18. Please indicate if CIF offer is also available if we ask for such at contracting time.

  19. Indicate amount of P.G offered.

  20. Indicate first delivery date from DLC acceptance time.

  • NOTE: Supplier will not hear from us once an offer or assurance is made unless we intend to buy.

  • Signed offer by Agrilinkage once returned is legally binding subject to contract issuance. We will then expect a contract within 3 days or less.

  • NOTE: Within 7 days of signing the purchase contract, Agrilinkage advises a fully operational Irrevocable Documentary Letter of Credit (IDLC) to the supplier, as supported under UCP 600 rules. Once the IDLC from Agrilinkage is accepted, the supplier may need to advice a Performance Guarantee (PG) SLC for 2.0% of each shipment value if such has been sought by us.

  • NOTE: Sometimes when sourcing and negotiating with a suppliers a demand for all kinds of financial records and other sensitive document are sought. Forms are being requested  to be filled in as well. Agrilinkage does not entertain such requests as a condition of securing a mere offer and will not serve such request because we are not the end users for the goods being purchased.

  • NOTE: The offer once made by the supplier is valid for 4 months or more as to supply, and that once the offer is signed as returned, parties to the offer are legally bound to perform at this time.The contract is then issued. If the goods have not been purchased within 4 months, the supplier has option to renew supply for another 4 months via a simple email, in support of the first offer made in where a new price or price basis may apply If an offer is served to Agrilinkage  by a genuine  supplier, for a wanted product, which is rejected, a counter offer will immediately be served  for consideration by the supplier.

 

DELIVERY MODES 

(INCOTERMS)

 

Agrilinkage will only transact in the following delivery modes; CPT, FOB, FCA, CFR, CIF and FAS.

Agrilinkage does not conduct transaction with any other delivery modes including  EXW or DAP.

PAYMENT

 

The only payment instrument that Agrilinkage will use to pay for goods purchased from a supplier is a bank issued ‘Documentary Letter of Credit’ that adheres to international banking rules as specified under ICC administered UCP 600 (Uniform Customs and Practice for Documentary Credits; Edition 600). 

 

The terms and conditions applied on the DLC applies ‘delivery’ as per  the ICC ruling  ‘incoterms’ used. Currently two set of incoterms may prevail in support of such rules; (a) Incoterms 2010 (b) Incoterms 2020.  The latter is used for all CIP and CIF delivery modes which includes insurance coverage. The former is applied mostly to FOB and FCA deliveries. In all cases, the supplier may opt out and  only use incoterms 2020 no matter the delivery mode used. In all cases.

 

All business is conducted by email up to the contract stage. The contract stage also involves issuing hardcopy contract by courier mail. The payment modes is applied  using SWIFT messaging service on a bank to bank basis except when a corporate issued DLC is advised. The DLC once issued by Agrilinkage has strict collection rules applying. These rules are designed to ensure that security measured inherited by using such payment instruments and rules attached remain intact. All financial instruments are served as irrevocable; which means, the DLC cannot be cancelled and payment will be honoured by the bank issuing such on the condition that all terms and conditions  applied on the credit have been cleanly met ‘on time.’ A DLC is a conditional instrument in that, the  terms and conditions of the credit MUST be met cleanly at the time of ‘sighting’ (at sight.) The bank issuing the credit  will need to ‘sight all documents being presented in where if no ambiguous aspects ( this refers to a ‘clean’ presentation ) are apparent, payment will be immediately honoured within 5 banking days or less after clean presentation  is made. Other main issues to do with the issuance of a DLC  are as follows.    

 

  1. Agrilinkage will never issue a SLC not ask for a SLC (Stand-by Credit) to pay for goods

  1. Payment via pro forma invoice / TT  cash depositsm bill of Exchange will not be entertained by Agrilinkage.   

  1. All  DLC’s advised to a supplier by Agrilinkage are issued from a top 100 bank of the world.

  1. All expenses of transferring the credit to the supplier is for us to bear; unless the supplier has made added demands that Agrilinkage has accepted, in where Agrilinkage has recourse in asking the supplier to bear the cost of transferring the credit when Agrilinkage operational margins are very low. This added security feature will ensure that the supplier obtains the DLC immediately upon paying for such a charge ‘bank to bank.’

  1. A confirmed credit will be issued by Agrilinkage if a top 100 bank has not issued the credit.

  1. Once the financial instrument of the buyer is accepted by the supplier, a Performance Guarantee in the form of a UCP 600 or ISBP 2013 Endorsed SLC is then advised by the supplier to the buyer. This is not  a ‘bond’ on goods but a  condition placed on the supplier in that ; if any delivery is late in any month , the buyer may unconditionally draw against the SLC for late delivery. 

The price offered to Agrilinkage is at ICC FOB. We may later seek a CIF price once destination is advised, otherwise assume Agrilinkage purchase will with at FOB ( or FCA) incoterms 2020

 

The main safe and proper aspect of issuing and serving a credit is specified. If a supplier wishes for another payment mode rather than a DLC, then unfortunately Agrilinkage cannot entertain  such a transaction with a first time supplier, as the risk are simply great. 

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