Step-by-Step Procedure

1. Issuance of LOI (Letter of Intention)

The buyer issues the Letter of Intention to the seller, formalizing their interest in acquiring the products or services.
Objective: Demonstrate the buyer’s initial intention and initiate formal negotiations.
Deadline: Immediate.

2. Receipt of FCO (Full Corporate Offer)

The seller reviews the LOI and issues the Full Corporate Offer (FCO) to the buyer, detailing the terms and conditions of the sale.
Objective: Present the commercial terms for validation by the buyer.
Deadline: Within 3 business days after receiving the LOI.

3. Signing of FCO and Submission of ICPO (Irrevocable Corporate Purchase Order)

The buyer reviews, signs, and returns the FCO to the seller, attaching the ICPO as an irrevocable confirmation of their intent to purchase.
Objective: Formalize the acceptance of terms and consolidate the intent to purchase.
Deadline: Within 5 business days after receiving the FCO.

4. Submission of SPA (Sales Purchase Agreement) with SBLC/DLC Verbiage

The seller prepares and sends the SPA for the buyer’s signature, including the suggested verbiage for the SBLC/DLC.
Objective: Provide the final agreement for signature and align financial terms.
Deadline: Within 5 business days after receiving the signed FCO and ICPO.

5. Review and Return of Signed SPA

The buyer reviews, signs, and returns the SPA to the seller in PDF format.
Objective: Finalize the contract and align commercial and financial terms.
Deadline: Within 3 business days after receiving the SPA.

6. Submission of Proforma Invoice by the Seller

After signing the SPA, the seller issues the Proforma Invoice to the buyer.
Objective: Formalize the transaction’s value and financial details.
Deadline: Within 2 business days after signing the SPA.

7. Submission of SBLC/DLC Draft by the Buyer

The buyer prepares and sends the SBLC/DLC draft for the seller’s approval.
Objective: Ensure the financial terms meet the seller’s expectations.
Deadline: Within 5 business days after receiving the Proforma Invoice.

8. Approval of SBLC/DLC Draft by the Seller

The seller reviews and approves the SBLC/DLC draft submitted by the buyer.
Objective: Validate the financial instrument terms before official issuance.
Deadline: Within 3 business days after receiving the draft.

9. Submission of MT199/MT799 by the Buyer to the Seller’s Bank

The buyer sends a banking message (MT199/MT799) to the seller’s financier bank.
Objective: Confirm fund availability and intent to issue the SBLC/DLC.
Deadline: Within 5 business days after approving the draft.

10. RWA Submission by the Seller’s Bank to the Buyer’s Bank

The seller’s bank responds with an RWA (Ready, Willing, and Able) message to the buyer’s bank, confirming its capacity to honor the contract.
Objective: Establish trust between the parties and their respective banks.
Deadline: Within 2 business days after receiving the MT199/MT799.

11. Issuance of SBLC/DLC (MT760) by the Buyer’s Bank

The buyer’s bank issues the SBLC/DLC (MT760) to the seller’s bank.
Objective: Secure payment to the seller as per the contract terms.
Deadline: Within 7 business days after receiving the RWA.

12. Issuance of Performance Bond (PB) by the Seller’s Bank

The seller’s bank issues a Performance Bond (PB) valued at 2% of the monthly commercial invoice in favor of the buyer.
Objective: Protect the buyer against contract execution failures.
Deadline: Within 10-14 business days after the issuance of the SBLC/DLC.

13. Initiation of Export Process

The seller begins the export process after confirmation of the SBLC/DLC by the bank.
Objective: Ensure products are shipped within the agreed timeline in the SPA.
Deadline: As stipulated in the SPA.

14. Payment at Port of Origin Against Shipping Documents

The buyer makes full payment via bank transfer (MT103) to the seller’s bank. Payment is made against the presentation of shipping documents, including the Bill of Lading (BL) and SGS inspection report.
Objective: Finalize the process by releasing payment upon proof of shipment.
Deadline: Within 3 business days after loading at the port of origin.

NON-NEGOTIABLE TERMS

1. Any kind of proof or past records is strictly prohibited before the instrument is opened.
   – Any request for proof of capability or past records will be declined until the financial instrument is issued.

2. Refinery visits are strictly prohibited.
   – Buyers will not be allowed to visit the supplier’s facilities at any point during the negotiation or contract execution.

    

3. Instrument must be opened within 10 days.
   – If the buyer fails to open the financial instrument within 10 days, the contract may be considered null and void.

    

4. No special sanction will be provided for exports to Indonesia.
   – All applicable procedures and terms will follow standard guidelines without special concessions for this destination.

    

5. Subsequent shipments will follow the same procedure.
   – For all future shipments, the same process, timelines, and routine will apply as described in this procedure.