ALL ABOUT FTNX Australia Dec 8 2018
ALL ABOUT FTNX Australia Dec 8 2018
ALL ABOUT FTNX Australia Dec 8 2018
Hours of Business:
No postal or phone contact online until contracts are served.
Primary ISP Email: ftn_smice@bigpond.com
Secondary Generic Email: ftnexporting@yahoo.com
ABOUT SMICE
SMICE Commodity Exchange is the trading division of registered business entity FTN Exporting Australia. SMICE CEO
and Founder Davide Giovanni Papa has been conducting the nature of business prescribed since 1988. SMICE buys
and sell commodities as a leading, highly respected and globally recognized expert and bestselling Author.
We source and secure large single or revolving VLCC, VLBC Non Break Cargo (NBC) and FCL shipments of sought
after products as buyers, using the world’s leading and safest international trade practices endorsed by rules and laws.
SMICE also sell purchased commodities to its own clients a sellers. We do not own goods offered to SMICE nor have
goods stored locally as we ship directly from country of origin to our clients taking possessions of goods in accordance
with current ICC ‘Incoterms’ endorsed delivery rules.
In matters of payment, SMICE only applies ICC UCP 600 DLC (Documentary Letters of Credit) universally accepted
banking rules as lodged with the supplier within 7 days of any contract being signed with SMICE. Our business model
requires the universal business language of English to apply. Our commercial procedures and contract formation rules,
applies English laws and foreign governance therein. As for entities doing business with SMICE ? We protect the
transaction looking after not just our own interests, but that of at the supplier and end buyer we engage with at all times
as the international arena is a precarious area to conduct business in, by those not familiar of the many traps this
business attracts. Legal literature about international court cases are easily sourced online. Small simple mistakes in this
business could often mean huge loses–now serves added caution on why suppliers and end buyers worldwide should be
using the expertise of SMICE.
SMICE does not conduct business with intermediaries, trading houses and Government supported import export
agencies. SMICE does not conduct business or serves advice to entities situated in a country where current Sanctions
are in force with Australia, and / or USA, Canada and U.K. When conducting business with SMICE formidable safe and
proper procedures apply at all times in the strictest confidence. All suppliers worldwide looking to secure a very large
contract of supply in 2019, able to service our criteria may submit offers for our purchase consideration as explained in
these site pages. Suppliers and end buyers contemplating to enter into exports / imports for the first time, looking for
advice and assistance should also consider our services intently. We are SMICE and we lead the way at what we do
best – buying and selling commodities.
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The emerging profession of the ‘Professional Commodity Trader,’ (PCT) as developed by FTN Exporting founder and
bestselling academic author, Davide Giovanni Papa has taken over 30 years to create under the FTN Exporting name.
As part of the educational platform, SMICE was incepted online in 2010 as part of a long term business strategy. The
SMICE Exchange has taken all that was learned from this venture to formally incept SMICE as a formidable trading
entity outright, in its own name. The price of export ready goods should not be only offered under a fixed price
application, with disregard on how many Tonnes or Barrels are taken. In the real world of business and commerce, as
it relates to large scale sales, the more one orders, the better the unit buy price can be expected–is a universal
understanding, that current speculative market indices don’t even consider as having any ‘value.’ This is where SMICE
intently comes into the fray. A supplier does not ‘close its operations’ when prices of raw materials are low. End buyers
don’t stop operations when the price of the raw materials are high. On the contrary, when business is quiet, suppliers
are always looking to secure large sales, and end buyers are always looking for a better deal on prices. SMICE
navigates the commodity market place. SMICE creates it own prices and we test the market place continually, not by
issuing shares, but by continually and personally conferring with suppliers and end buyers. We know what the real
market place demands, because we have been ‘behind the scenes’ for decades.
Applying matters of due diligence is an important part of our business as well. The nature of our business is about
buying or selling large revolving or single NBC (Non Break Cargo) shipments of desired commodities. We do not have
possession of the goods we trade in for most of the time, and ship such goods from the country of origin, by transferring
documentary title, using a sophisticated complex and legally defined routine to do so. We take care of the interests of our
buyers as we do our suppliers. 'Our job when trading is to look after our own interests as well as that of the supplier and
end buyer, is a virtue that we have practised and proclaimed for decades and of which major institutions around the
world are only now applying. In being able to trade ‘in the best interest of the clients' we deal with, means knowing all
about the business being practised as highly informed specialists.’
SMICE guys buy and sell wanted commodities on a legally defined platform; and we train our own agents to
represent us, who are all deemed to be “Unified Society of Commodity Traders” (USCT) members. One may trade as
they wish and bear the results accordingly, or one may tenure the services of specialist and expert to mitigate such risks
and secure new markets and products. Whether buying, sourcing or selling commodities in large quantities,
SMICE SOURCING NOW FOR 2019
1…………………………… 2………………………
3……………………
COPPER… …………………………… ………………………… 4………………
………………
……………… ……………………..
OFFER
QUANTITY SOUGHT -/+ PREMIUM AND SMICE DISCOUNT ON TIME DELIVERY
NUMBER : CC-
50% MT BASIS MT SOUGHT MT REBATE
DGP-0119
DATE OF
REV: 500 MT PER LME CASH PRICE +
POSTING: 07
MONTH X 12 FIXED 2.0% PER MT 8.90% MT 1.00% MT
NOVEMBER
MONTHS (or more) PREMIUM
2018
PRICE
PURCHASE EXPECTED
DELIVERY MODE FIRST DELIVERY TRANSPORT
BASIS : INDEX GRADE
(C)
30 DAYS AFTER
VALIDITY: 4-6 ICC FCA INCOTERMS 99.90% or
CONTRACT SIGNING INTERMODAL FCL 20FT
MONTHS 2010 Better CATHODES
DATE (CSD)
COMMENTS:PRICE BASIS GUIDANCE:
IF PURCHASE CONTRACT WERE SIGNED ‘TODAY’ ( AT LME + PREM – DISCOUNT ) SMICE PAYABLE
ON FIRST DELIVERY IN 30 DAYS AT FCA WOULD HAVE BEEN : US$5,797.40 MT ICC FCA
Incoterms PLUS SUPPLIERS CASH REBATE AFTER EACH ’ON TIME’ DELIVERY IS CONCLUDED.
1…………………………… 2………………………
3……………………
ALUMINIUM… …………………………… ………………………… 4………………
……………….....
……………… ……………………..
OFFER
Page 2
SMICE SOURCING NOW FOR 2019
1…………………………… 2………………………
NICKEL………... 3……………………
…………………………… ………………………… 4………………
..... ………………........
……………… ……………………..
OFFER
QUANTITY SOUGHT -/+ PREMIUM AND SMICE DISCOUNT ON TIME DELIVERY
NUMBER : NK-
50% MT BASIS MT SOUGHT MT REBATE
DGP-1128
DATE OF
REV: 500 MT PER LME CASH PRICE +
POSTING: 07
MONTH X 12 FIXED 5.0 % PER MT 10.00% MT 1.00% MT
NOVEMBER
MONTHS (or more) PREMIUM
2018
PRICE
PURCHASE EXPECTED
DELIVERY MODE FIRST DELIVERY TRANSPORT
BASIS : INDEX GRADE
(C)
30 DAYS AFTER
VALIDITY: 4-6 ICC FCA INCOTERMS 99.90% or
CONTRACT SIGNING INTERMODAL FCL 20FT
MONTHS 2010 Better CATHODES
DATE (CSD)
COMMENTS:PRICE BASIS GUIDANCE:
IF PURCHASE CONTRACT WERE SIGNED ‘TODAY’ ( AT LME + PREM – DISCOUNT ) SMICE PAYABLE ON
FIRST DELIVERY IN 30 DAYS AT FCA WOULD HAVE BEEN : US$11,037.60 MT ICC FCA Incoterms PLUS
SUPPLIERS CASH REBATE AFTER EACH ’ON TIME’ DELIVERY IS CONCLUDED.
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DATE OF
POSTING: BRENT PRICE +
REV: 140000 MT PER 1.25%
07 FIXED 1.20% PER 8.60% MT
MTH X 12 MTHS (or more) MT
NOVEMBER MT PREMIUM
2018
PRICE
PURCHASE EXPECTED
DELIVERY MODE FIRST DELIVERY TRANSPORT
BASIS : IND GRADE
EX (C)
30 DAYS AFTER BBL/MT :7.55 API:
VALIDITY: 4-
ICC FAS INCOTERMS 2010 CONTRACT SIGNING 38.3 -/+ 2.0 S: 0.37% NBC
6 MONTHS
DATE (CSD) -/+0.10%
COMMENTS:PRICE BASIS GUIDANCE:
IF PURCHASE CONTRACT WERE SIGNED ‘TODAY’ ( AT BRENT + PREM – DISCOUNT ) SMICE PAYABLE ON
FIRST DELIVERY IN 30 DAYS AT FAS WOULD HAVE BEEN : US$500.23 MT ICC FAS Incoterms PLUS
SUPPLIERS CASH REBATE AFTER EACH ’ON TIME’ DELIVERY IS CONCLUDED.
SMICE SOURCING NOW FOR 2019
1………………………………… 2………………………
SUGAR 3…………………… 4………………...................
………………………………… …………………………
WHITE …... ………………... ..........
…… ……………………..
OFFER
NUMBER : QUANTITY SOUGHT -/+ PREMIUM AND SMICE DISCOUNT ON TIME DELIVERY
CC-DGP- 25% MT BASIS MT SOUGHT MT REBATE
9991
DATE OF
POSTING:07 REV: 5,000,000 MT TAKEN CEPEA ESALQ SP
15.0% MT 2.00% MT
NOVEMBER OVER 36 MONTHS +/- PRICE
2018
PRICE
PURCHASE EXPECTED
DELIVERY MODE FIRST DELIVERY TRANSPORT
BASIS : IND GRADE
EX (C)
VALIDITY: 4- ICC FCA INCOTERMS 2010 30 DAYS AFTER 44-50 ICUMSA 50 INTERMODAL FCL 20FT
Page 2
SMICE BUYING NOW FOR 2019
ORE: 1………………………………… 2………………………
3…………………… 4………………...................
PELLETS …. ………………………………… …………………………
………………... ..........
.. …… ……………………..
OFFER
NUMBER : QUANTITY SOUGHT -/+ 10% SMICE DISCOUNT
BASIS MT DELIVERY MODE
CC-DPRMA- MT SOUGHT MT
002
DATE OF
POSTING:17 REV: 100,000 MT MTH 36/60 SUPPLIER TO
5.0%% MT FOB,CFR or CIF MT
NOVEMBER MONTHS +/- ADVISE
2018
PRICE
PURCHASE EXPECTED
DELIVERY MODE FIRST DELIVERY TRANSPORT
BASIS : IND GRADE
EX (C)
30 DAYS AFTER
VALIDITY: 3 67.5% FE 16mm
ICC FOB INCOTERMS 2010 CONTRACT SIGNING NBC
0 DAYS pellets -/+
DATE (CSD)
COMMENTS:PRICE BASIS GUIDANCE:
USCT member may source on behalf of Buyer SMICE for 10 Jan or 10 Feb 2019 delivery. IRON ORE PELLETS At
CIF supplier to provide Ins coverage Cargo C @ 115% and Freight to Dubai ( Freight @ Ship-owners BOL)
COAL AVAILABLE BUT OFFER IS NO LONGER VALID: WITH NEW QUANTITIES AND PRICE OFFER WILL BE
ADVISED BY MID DECEMBER @)!^
FTNX SMICE
FIXED PRICE COAL OFFER: LOT (3)
ON LINE DRAFT PRESENTATION SUBJECT TO FINAL CONTRACT
This offer must be retuned the above SMICE Primary Agent (P.A) and not to FTN Exporting. Agents verification found
www.smice.net via SMICE Registered Agents (SRA) registry .
This offer supersedes all posted offers bearing ‘Lot 3’ status, apparent by the issuance date and transaction code
Seller : FTN Exporting C/o: Davide Giovanni Papa
Email: ftnexportingceo@bigpond.com
Validity of this basis: 12 December 2018 12.01 PM AEST (Unless canceled sooner) Seller may revoke the
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validity date without notice if no buyers are considering the offer at such a time.
New Transaction Code: FTNX-DPJGREDM-CLLOT3
Quantity: 6,750,000 min order up to 11,250,000 MT Max -/+ 10%
Term: 60 months/ 5 year contract
Origin: USA Denver
Delivery Mode: ICC FOB incoterms 2010
Pre-shipment Inspection (PSI): SGS and / or Veritas (BOV) Denver USA
Grade of Coal: As per latest test results in hand conducted by SGS.
This new coal offer at lot (3) shall reflect the following aspects as to quality. Preliminary specifications as per tests
conducted by SGS Denver are as follows. Final contract dictates final aspects of grade, which shall fall within reasonable
bounds indicated on this offer.
Note:
At the discretion of SMICE wth plenty notice in advance served.
Should the seller SMICE face delays at loading port offered, SMICE may redirect a ship heading
towards Mexico to another port located in the USA, where a secondary supply of coal is stored, as a means to
ensure no delays occur with delivery.
The buyer must reserve the minimum purchase of coal totalling 6,750,000 MT over 5 years, in where the added
2nd shipment per month from the Port of Oakland,( or other local Port) may be taken with this offer; or taken by
the year 2021 if goods are not sold at such a time (as per price made at such a time.)
Seller has discretion to allow 30 Days earlier or later delivery aspect, to form same delivery aspect indicated above .
PRICE REVEIW
On the completion of the 6th delivery, and each six shipment thereafter for the life of the contract, SMICE shall take the
last 6 prices posted monthly, in any given period, as posted on the reference website state further below, and add up all
posted spot prices found on such a reference index as per those falling on the same day as per deliveries offered by
SMICE, at 12.01 PM AEST to form an average delivery price as tested against the last 6 shipments sold by SMICE. This
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average price then forms basis in relation to the price escalation clause below and rebate payable thereafter as relevant.
This aspect provides assurances to the end buyer that the base fixed price remain within a base tolerance factor of
5.0%.
PERFORMANCE GUARANTEE
The seller assures that ordered goods will be ready for loading every time the buyers vessel arrives on time at port of
loading. Should the seller fail to have allotted goods ready for loading, the seller shall deduct the following amount from
the invoice value of actual good, for each end every late delivery.
Deduct price of goods for late delivery : Credit Value US$1.00 per MT
REJECTION CLAUSE
The seller is highly confident at the quality of coal on offer. The buyer either accepts the goods, or rejects the shipment
upon arrival due to matter of grade.If rejected strictly because BTU rating , Ash or Sulphur where not within the
parameters offered, compensation per MT will be offered to the end buyer to accept the coal at such a time. If
compensation not accepted,seller has right to offload coal to another waiting buyer, and seller has the right to make up
the effected shipment(s) at the end of the contract after final delivery has eventuated at the same fixed price less
US$3.00 per MT
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Notes:
1. SMICE has discretion to advise the buyer at least 35 days in advance if first delivery is available /able to be
conducted 10 March 2019 as the earliest aspect, and 10 June 2019 as the latest aspect .
2. Proof of Policy Certificate (PPIC) A document produced by the seller to the buyers titled as ‘PPIC’ which states
the name and contact details of our Supplier in possession of goods being offered to the end buyer, which the
end buyer may verify once only directly with the supplier as instructed on the PPIC to appease any concerns the
end buyer may have, about our ability to offer such goods.
3. The deposit is held in the account of FTNX-SMICE. Should the buyer sign the contract and fail to perform later
in advising the IDLC, the deposit is forfeited to SMICE unconditionally without recourse.
4. Should the buyer perform, the deposit is not collected upon or if collected, the full amount is applied as a credit to
favour the buyer as marked on the sellers invoice on first delivery.
FREIGHT /CARRIAGE
Once the FOB price is accepted matter of carriage then may apply if later offered. It is assumed the end buyer is taking
the FOB aspect. For matters of added security SMICE is unable to secure Charter Party BOL and will need to
secure more expensive shipowners BOL. It may be assumed that the buyer is able to secure a better freight rate than
SMICE. Provisional early freight rate is indicated, subject to final contract. In all cases SMICE reimburses the difference
between provisional rate offered herein and actual rate secured when ship is booked; as clearly marked on the sellers
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invoice; in return for the following understanding. Should the cost of carriage offered by SMICE rises at the time of after
the contract is signed, the buyer agrees to pay the difference. SMICE only charges the end buyer freight rate as secured
at that time.SMICE does not secure any commission payment if carriage rates are secured by us.
SELLERS DECLARATION
I/We of FTN Exporting do hereby offer goods indicated as seller acting on behalf of an undisclosed principal, with good
and honourable intent subject to final contract.
Signed
D.G.A Papa
CEO: FTN Exporting
Dated: 27 November 2018 PM AEST
DETAILS OF BUYER
End Buyer taking possession of goods being ordered.
Please make space as required.
Please mark with (X) were sought. Information cannot be altered or changed as the information served will be applied on
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the contract.
Corporate Name of Buyer :
Postal Address:
Import Manager Name:
Email/Website Address:
Phone Number(s):
Please Note: In the past end buyers have paid a deposit to reserve goods, with the pre idea of going directly to
our supplier in possession of goods being offered, once the PPIC is advised, which is a dishonourable act. A
SMICE endorsed supplier will not transact with dishonourable traders once such is identified by FTNX.The PPIC is simply
released earlier once the contract is signed and deposit has been paid, only to appease any apprehensions that the end
buyer may have, with the ability of FTNX-SMICE to service supply of a product we are offering.If no deposit is offered,
the buyer must wait for a new offer when a closer delivery time is apparent (February /March 2019) if product is still
available.This offer is for buyers who want to reserve the offered goods ASAP and is prepared to hold such goods with a
small deposit.
Buyers Declaration
I/We the above buyer do here declare that the information placed on this offer, is true and accurate, and served with good
and honourable intent .Please issue the contract for our immediate consideration.
Print Name
Signed
Dated
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Notes:
• Please return as a PDF once completed.
• If USCT member is forwarding this offer please ensure USCT details are applied as well as any other detail of
person(s) assisting the USCT member with this transaction is made apparent under the USCT members entry.
The Quotation
23 SEPTEMBER 2018
Negotiation
SMICE via its founder is acting as a PCT when sourcing goods from a supplier. SMICE is actually acting as the
lawful ‘buyer’ in this instance. There is no business between clients of SMICE and the supplier and non will
be disclosed as a basis of doing business ‘on behalf of undisclosed’ others. The Professional Commodity
Trader (PCT) and Foreign Trade Negotiator (FTN) spends a great deal of time and effort to source one
reliable verifiable supplier holding possession of a large quantity of goods being sought. This aspect could take
many weeks or many months to bear fruit. It’s a time consuming aspect pertaining the the nature of business being
applied, because the PCT has to be 100% sure above all else that it is dealing only with a legitimate ‘supplier or
producer’ holding possession of goods being offered. SMICE cannot negotiated with the private trader or
intermediaries on such matters, as this effect could leave SMICE legally exposed to litigation. It is not an easy
feat to secure one reliable supplier as it may sound, because the market place is full of ill informed, undisciplined
and unreliable traders, who make claims of supply which really don’t exist– some do so honestly as a matter being ill
informed, and some do so dishonourably. Suppliers have become very wary in engaging with private traders for this
reason, as many such ill informed private traders have no idea what they are doing. SMICE needs to also wary
of the actual supplier, once secured, who may be also applying business incorrectly. In this aspect matter of
conducting due diligence is an intergral part to the sourcing aspect applied by the PCT. Phone calls are not
allowed and all business but be expressed in writing up to contract stage. In all cases SMICE has no choice but
only attract the attention of the supplier who owns the goods being sought and must dismiss all quotes or
offers made by any other person, unless the details of the supplier are readily served in a disclosed fashion, from
the very start. The level of negotiations is not so much to do with actual procedures, as such procedures that the
PCT needs to apply is mostly un-changeable and set as a formidable routine. The term ‘negotiations’ in this sense
refers to the period of time prior to the event which leads to the securing of an offer or agreement of supply such as
a MOU (Memorandum of Understanding) from the supplier. The PCT may need to guide, direct and spend time
via email to explain processes used in appeasing any concerns the supplier may have. In fact, this is the most
crucial time of any deal, because getting the start right, will often lead to a good deal eventuating. An
enquiry arriving into the inbox of SMICE which is bearing incorrect or improper terms of reference is instantly
trashed for this reason. If a person does not know what the proper procedures are, then how could an offer made
by such a person be treated seriously? It cant! Once negotiations are over, two effect become apparent; (a) the
PCT has rejected the suppliers demands or (b) the PCT has negotiated its own well suited demands and
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understanding with the supplier which leads to the production an ‘offer of supply’, regardless if it’s in the form of an
MOU or ‘Assurance of Supply’ (AOS), the PCT once securing and offer from a supplier; its legally defined position
becomes validated–an aspect that a quote alone cannot readily satisfy. The term ‘suited demands’ is
not simply defining terms that the supplier must abide with, it’s defining the very best and safest terms that the
PCT will only accept; accordingly anyone sealing a contract with SMICE will be doing so at the highest level
possible.This is just one of the reasons on why using an expert or specialist trader makes sense. Besides the
skill,needed to secure large contract, the procedures applied when doing so are formidable when it comes to
protecting the interests of not just SMICE but the supplier as well.
Quotation
There is no point for a supplier in only providing SMICE with a quotation. A quotation once advised, is signed and
retuned as ‘confirmed.’A confirmed quotation has no legally binding effect, because of the nature of business
SMICE applies; and because we only conduct business of buying and selling large quantities of export ready
products ‘in the future.’ The auspices of a mere ‘quotation’ simply serves no purpose in that a quote is only
effective on the short term or immediate purchase basis wheres the PCT needs continual long term supply. If a
SPOT or immediate transaction were in place especially for very small orders, then issuance of a quote could be
applied, in that– the issuance of a quote is advised by the supplier to the PCT in where the deal continues to move
forward thereafter. This is the aspect where a quote could be effectively used.
Summary
SMICE needs long term assurance of supply, because large quantity of goods sought on a monthly revolving
basis cannot be easily or readily purchased by the PCT over the short term. The supplier is basically providing the
PCT an opportunity to buy goods over the longer term, in where the supplier would have made a sale , that rarely
comes his way thanks to the efforts of SMICE. A supplier may issue an offer, to SMICE but should refrain from
issuing only quote, which is simply describing mostly a price basis. Once SMICE has a good ‘assurance of supply’
in hand as well as a price basis, the supplier will not hear from SMICE until a purchase is to take place. The deal
commences when SMICE signs the offer and returns it to the supplier as legally binding.
The Offer
23 SEPTEMBER 2018
created. In this instance, a new offer carrying a new transaction codes must prevail, as the whole process is
restarted. If an offer is signed and the supplier fails to issue a contract, the supplier could still be legally bound to
perform . In effect, unless stated to the contrary, if SMICE signs the offer and fails to signed the contract, then this
to can bring on a dispute due to SMICE ‘failing to perform.’ The offer one returned and signed is actually a
document that show that the parties are intending to enter into a contract, and are prepared to become legally
bound in doing so. The moment SMICE approaches it bank to finance the purchase, expenses are generated. The
moment the supplier has the signed offer, it announces that the suppliers may need to initiate supply process
which will also attract expenses. The signing of the offer therefore is a critical stage of the process, perhaps even
more important than the contract itself. The signing of the offer must never be taken lightly.
Summary
SMICE needs long term assurance of supply and thus needs a long term ‘offer’ denoting that SMICE is able to buy
the goods offered ‘when needed’ in any given year. The offer stage of the deal, once signed as
accepted, is a critical stage of the whole deal being formed. An offer can be accepted or rejected.An offer must
have a price otherwise no effective offer has been made. Without a proper offer no contract can be entered into.
The Contract
23 SEPTEMBER 2018
Summary
SMICE has no issues in signing a contract with a supplier if the conditions sought are reasonably applied and
sound. Added material not relevant to SMICE creates no issue. An informed specialist trader , will know which parts
of a supplier contract ‘may need changing’ and which parts do not effect them at all.The contract issued by SMICE
to its end buyers will only have relevant matters applied and usually the size of the contract is under 25 A4 size
pages. A supplier may ask to use a contract format as served by SMICE but this is an unusual request and not often
sought. Signing a contract where the deal ‘dies’ there after is a very serious matter for the entity failing to perform.
The effected party could issue legal action, for breach of contract, and even claim the loss of any anticipated profits
therein. A PDF issued contract alone is deemed by SMICE as ’not being valid.’ A hardcopy contract however, once
posted and evidence of posting is provided, triggers the PDF contract as at the legally binding document at that
time. This PDF aspect allow the deal to continue without delay, while awaiting for the hard copy contract to arrive.
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The Payment
24 SEPTEMBER 2018
The buyer ‘FTNX SMICE,’ to lodge a financial instrument as advised from a top 100 world ranked bank
of the world. A Bank issued DLC supporting UCP 600 issuance banking rules advised as an Irrevocable
Documentary Letter of Credit (DLC), bearing a non cumulative revolving status, in support of whole
contract value, (2) single shipment values in advance at all times. Credit shall be made for ‘at sight’
collection on presentation of clean delivery documents to the buyers bank. The credit shall be effective
from date of contract return plus 5 banking days in where the revolving status of the DLC ceases on last
contracted shipment delivery plus an added 36 days. Should the buyer not open the required credit from a
top 100 ranked bank of the world, the buyer will advise a confirmed credit .
No other method of payment is available because the above payment instrument ostensibly offers the best and
safest method to pay for exported goods. The DLC is open supporting the whole value of the contract in where, as
one payment is taken for one shipment value in any given consecutive month, another shipment value(s) fills its
place. If the buyer is paying lets say US$5,000,000.00 per each delivery over a 12 month period, then the whole
supporting value of the DLC while ‘revolving’ monthly is 60 million dollars. The value of the DLC is not opened at
’60 million’ dollars, it’s opened supporting ’60 million’ dollar contract value. Universally applied UCP 600 (Uniform
Custom and Practice for the Issuance of a Documentary Credit – ICC Paris France, Publication Edition
600) banking rules apply with the lodgement of a IDLC, said rules, which is mainly to do with matters of payment
values and the letter of credit issuance protocol. Even Russian banks are able to accept a UCP endorsed DLC.
Once the DLC is ready to be collected, Uniform Rules of Collection (URC) rules apply. The ‘transport’ documents
are presented to SMICE or if eUCP / EDI application applies, to our bank, as advised by the supplier or the
suppliers bank to our bank, except for the ‘suppliers invoice’ which is posted to the buyer via courier mail. The offer
states which routine is applicable. The bank of the supplier now interacts with the bank used by SMICE in where
the bank of the supplier has 5 banking to secure payment once the delivery documents are cleanly presented. This
is why UCP rules are important, it governs every aspect of payment and collection. In effect the DLC issuing bank
is acting as an agent for the buyer, while the sellers bank is acting for the supplier. At ‘sight’ means the bank of
buyer visually looks at the documents presented to see that they comply fully with the terms of credit. feb Issuing
Page 2
bank only needs one single copy of document marked as original, for the ‘presentation aspect’ to be
activated. Even here the document must be presented within a certain time limit after delivery has been completed,
otherwise the buyers bank will deem the presented documents to be ‘stale. ‘ Any marks, alterations anything that
suggests that the documents being presented have become qualified or compromised, means payment will be
delayed until a waiver is advised, or the discrepancy is resolved. Two single shipment values means
that 2 ‘payments’ is advance applies in any given months in where, if by ‘likely’ chance two ship arrive at port in
the same month, no delays in unloading will occur, in where not delays in matter of payment will occur either.
Under UCP rules, the value of the credit has a 5.0% tolerance factor which means if the value of the goods fall or
rise by less than 5.0%, the bank will honour the final payment values falling within the tolerance factor, without the
need to ask the buyer to raise the value of the credit. In all the ‘Irrevocable’ status of the credit is the security feature
( amongst other) inherited by using such an instrument. If any inclination of a verifiable fraud is apparent ,
then under UCP, the irrevocable status of a credit can be instantly revoked by the buyers bank. Because a deal
takes a long time to finally close, and because, once the credit is advised, first delivery is 30 days thereafter ( under
SMICE General Index use) , then there is a great deal of time available to the supplier, the buyer and their bank
involved to discover if ‘something’ is not right, right up to the minute, when collection on the DLC is applied for.
With so many people involved and improper or unlawful activities are easily discovered. Payment for export ready
forward ordered goods using a UCP 600 DLC is the only safe and practical way to pay for such goods when
applied, not just to the nature of our business specifically- but also to the business of any supplier or end Buyer. A
DLC is not a ‘guarantee of payment’ like a SLC is, because each delivery is open to scrutiny before payment will
be ‘honoured.’ This is why a buyer must NEVER pay for goods using a ‘SLC’ and why a supplier must never seek a
SLC as payment– as it breeds suspicion of the suppliers intent. Banks don’t like their credit status to be demeaned
as disclosed to another leading bank. A ‘top 100 ranked bank’ of the world does not need to ‘confirm its credit.’ This
aspect could even mean ‘top 200 bank’ if such a bank emanates from a leading economy. If confirmation is not
needed than asking for one will make the goods ordered goods considerably more expensive. In any case
the ‘confirmation’ once applied does not guarantee payment either, it only confers a closer collection period of time,
at an added expense. If a supplier insists on a confirmed credit when its not needed, then the supplier could pay for
and instruct their bank to have the credit confirmed by the issuer or another corresponding bank of the supplier. A
confirmed credit simply means that once the document are presented to the suppliers bank, the supplier bank will
pay the supplier, and collect on such a payment themselves. The supplier may not receives the full value-must also
be considered.
In Summary
We have seen some very strange ‘payments advice’ from private ( ill informed) traders offering goods, especially
those offering petroleum based products. It becomes very obvious to a specialist trader that such entities have no
idea what they are doing and most likely are offering ‘ fake’ goods. Why do they trade in such a manner ? We have
not idea! If would have to be a very stupid ‘ buyer’ to send payment is advance for such goods based some
improper payment method. There are other legitimate ways that importer and exporters interact in matters of
payment, but not for first times association, and first time deliveries. SMICE does not apply using a ‘Bill of
Exchange’ to collect on payments, because rules governing such differ form country to country, and because we do
not have possession of goods we trade in. All buyers and suppliers should be using the virtues of a UCP 600 DLC,
but because of the fess involved and because many suppliers are ‘ill informed’ about such matters, many supplier
still prefer to stick with current payment methods being applied of another era, with its long standing clients. But
such fees are often mitigated, by the supplier offering SMICE are large assurance of supply , in where perhaps a
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‘dollar or less’ than the usual discount on offer may offset any such fees. This ‘fee’ aspect and lack of understanding
on how a DLC is effectively applied, is itself is why some suppliers are hesitant to shift their payment methods to the
conventional aspect of using a DLC. Offers carrying terms like ‘Dip test in where once confirmed, buyer pays by
MT 799 etc.etc’ shows intently that a fake deal in in hand–may be immediately assumed. SMICE pays by ‘IDLC’ is
the safest guiding application, protecting not just the intent of SMICE but that of the supplier as well. A buyer who is
able to open a revolving DLC also shows that the buyer is ‘financially able to do so with the support of its bankers.’
This aspect alone show that a ‘credit worthy’ customer has ‘successfully presented’ themselves to their bank. This
aspect alone now nullifies any need for a BLC (Bank Comfort Letter). A supplier needs only to assure goods to
SMICE.When SMICE is ready to buy such goods , then this signifies that the payment instrument is already secured
or arrangement have been made to secure such at that time. The DLC has no value and cannot be drawn
against, or even be used in a ‘back to back’ transaction. The supplier can ’t even use it as security against
the issuance of a P.G. The DLC in essence only becomes valuable once the transport documents have been
cleanly presented. An end buyer who cannot open a DLC is quickly discovered, and is the type of end buyer who
is quickly dismissed by SMICE. A supplier who is not prepared to accept a DLC also raises concerns about the
supplier who is also quickly dismissed by SMICE.
being made. Late delivery means added expenses to the buyer ( or Principal) in having a ship wait at lay can ,
which may turn into a situation pertaining to ‘demurrage.’ The buyer also may suffer delays in it own business
application because of such ‘late deliveries.’ Therefore the P.G serves a specific purpose. It serves notice to the
supplier that they MUST have the goods at port ready for loading as specified on there contract ‘on time’ under the
threat of losing the P.G.
In Summary
A P. G is sought when the supplier has assured goods in where a ‘lower than normal anticipated discount’ is
apparent , when assessed against of the revolving aspect of the whole contract value. Even if a P.G is not sought
by SMICE an SIPG or LDD will still need to be served with ‘good and honourable intent’ as specified on an offer
(OTP) or contract. If a good discount is apparent, the P.G may be waived by SMICE in where the issue of a P.G is
settled between the end buyer and SMICE. Being that SMICE discount secured on the supply; the majority of
which favours the end buyer, SMICE needs to decide who a P.G will be issued to, or sought from , when our
‘small and tight’ margins are formulated. For SMICE to offer the ‘best prices’ to our clients, whether such is located
on the supply side or end buyers side, the matter of the P.G is never considered lightly. Under this rationale, is may
be better for a end buyer to bare ‘a few late deliveries’ and secure the best price, rather than have such a best
price base eroded due to the extra demands made, including those made pertaining to the issuance of a P.G. It
must n be remembered that if a P.G or any other demand is met by a PCT, the original price of good ordered is
allowed to change once an offer is rejected to accommodate the new demands being made. A P.G can also apply
the use of a SLC isn matter of paying commission to supporting agents or even where and unusual demand is
made where end buyer ensures that the deal will closes if the supplier is revealed before the payment
instrument is lodged. In such a case , the end buyer issues to SMICE a i.e; 1.75% SLC in retuned for the PPIC
( Policy Proof of Interest Certificate) in where if the supplier fails to conclude on the the transaction , the SLC is
called and claimed . If the payment is lodged ‘on time’ SMICE will not be able to claim on the SLC. Such
matters are added to the contract, in where once signed, the aspect of ‘performance’ is then formally tested. Only
very experienced traders can apply such advanced trading procedures.
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Delivery
26 SEPTEMBER 2018
The term ‘delivery’ in this business refers to ‘delivery at port of loading’ and not ‘physical delivery’ of goods as it
applies to such goods reaching destination port. If an end buyer were to personally import goods from another
country, the same ‘ delivery protocol’ applies. It’s no different when an end buyer buys goods from SMICE. The
‘title’ document or supporting transport documents as per the delivery mode used have to be produced in a clean
state’ before collection on the financial instrument can take place. In FCL orders these ‘Intermodal
transport documents’ are combined and produced at the one time. In NBC transaction, the retired document often
will arrive is a staggered stage, but must arrive with-in 21 days of the BOL date. These aspect of delivery is clearly
understood by informed traders located is countries like India , Canada, EC,Africa, China, USA and the
likes. However there are countries notably Russia that do not have many localised business application where ‘title’
denotes possession of property therein. Therefore Russian commodity traders may have problem with
understanding trading maters of ‘ title’ and thus the concept of documentary ‘delivery.’ This aspect does not
preclude on the idea that Russian traders cannot act on such matters ‘like the rest of world does.’ Where
understood or not, these are the delivery rules applied or which are inferred under Incoterms delivery rules and of
matter pertaining to the DLC collection process as per its rules ( and of which Russian commerce played a part in
incepting in 2008). SMICE does not make up rules and procedures at will. SMICE actually forcibly applies the
very interpretation of the ICC governing rules, that must apply if one is looking for ‘very safe dealings.’ The base
procedures of the FTNX Doctrine of Trade must still be followed, ( even by Russian traders) and the
incoterms used, must be observed. In an FOB, CFR and CIF transaction , the good must pass over the ships rails
and be placed on board ‘in good’ condition.When this event happens, the goods on board ship belongs to
the buyer and not the supplier once each shipment is loaded. This means the supplier is now entitled to be paid,
once the ‘risk transfer to the end buyer.’ If the good don’t arrive due to ‘perils of the sea’ misadventure, then
insurance coverage taken out by the end buyer covers their loss (unless the delivery mode used requires the
supplier to secure such coverage.) The supplier is expected to be paid in advance, and have payment clear once
the goods are loaded port of destination, or a short time thereafter once the ship has commenced its voyage to
designation port. Once the ship drives at destination port, the end buyer hands over the ‘transport documents’
especially the ‘title’ document, and pays for all import costs to Customs. The end buyer is then able to
take possession of goods thereon. The title document at CFR, CIF will include the BOL. In FOB the Ships Mate’s
receipt and /or the sellers normal invoice applies. At FCA FCL the received BOL is used or at CIP FCL
Incoterms, a shipped BOL is used. At FAS, the point when the risk passes to the end buyer occurs along side
ship, at the moment goods are attached to the lifting crane, conveyor belt or inlet manifold,etc.etc; in where the
actual connection point once made becomes the ‘delivery aspect point.’ At CPT the goods are delivered to port of
destination designated place i.e: Gold bullion smelter London. At DAP ( which we do not apply) the goods must
actually reach the designated place of the end buyer inside the end buyers country , before payment can be
collected. At EXW which we also do not use, the delivery takes pace within the bounds of the suppliers warehouse,
pipeline or factory. Other Incoterms such as DAT, DAP, DDP, etc..cannot be used by SMICE
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Rejection & Compensation
When goods are ‘delivered’ then this is the time when goods are also analysed by an independent inspection
agency. Past Inspection processes uses, as served to other clients and shipments cannot be used as the goods
are inspected at tat time as per the each order being applied. The goods must arrive ‘as ordered’ and within the
limits of the offered tolerance factors as indicated on the contract. The independent inspectors role is to verify what
is being shipped. For trivial but reasonably made claims, SMICE would often settle any rejection claims by offering
compensation to the end buyer in the form of a cash rebate. Whether a seller like SMICE is able to recoup such a
loss from it own supplier, has nothing to do with the obligations SMICE has to its buyer which is ‘to deliver goods as
ordered.’ If the supplier has technically offered SMICE goods which have been rejected, even though its the end
buyer of SMICE ‘who is the entity actually rejecting the goods’ then the supplier is answerable to SMICE whereas
SMICE is answerable to is end buyer. The rejection clause is there to serve the more serious claim of rejection
being made. In this light the end buyer provides the photographic evidence which SMICE may need to verify as
much by sending and independent inspector (at our cost) to port of destination to test and verify the claims made in
where SMICE may rightly accept the rejection claims made, within the time period suggested on the contract; while
ensuring the remaining revolving shipments continue to be serviced.
In Summary
The general ‘all round’ buying procedures with SMICE (as the Buyer) and the supplier are; ( which mirrors the
same with SMICE the seller, and its end buyers) ;
Negotiation, Quote, Offer, Contract, Payment , P.G, Delivery, Rejection, Compensation, Next delivery
When the goods are assured, that’s one aspects. When SMICE is ready to actually buy such goods that’s another
aspect. It’s the latter aspect which dictates when a deal to buy such goods starts. The transaction must apply a 21
day of less transactional period, leading to the signing of the contract. Once the contract is signed , the price
formulated at that time and applied on the contract. Once both parties have a signed contract in hand, SMICE as
buyer must initiated the lodgement process of the financial instrument within 24 hours thereafter in where the
supplier has 5 banking to accept the DLC. If the supplier remains silent on this matter the DLC is said to be
accepted– as per UCP rules. Once the DLC is accepted the supplier issues the P.G if sought as described on the
offer and contract. SMICE has 5 banking days to also accept the P.G. The Supplier has 30 days to initiate first
delivery from the date the contract was signed. The first delivery value is the price applied on the contract 30 days
before. Each month a new delivery is made in where this payment aspect as taken 30 days earlier, continues to
apply until the final shipment. This is the strict, safe and formidable routine SMICE applies in where all related
matters are legally covered as per the closing procedures offered by SMICE. Any delays once a routine
commences, will hinder the course of the deal. This is why it is imperative that a reliable supplier or end buyer only
interact with SMICE if they are capable in doing so. A supplier provides assurance of supply because they have a
large amount of stock ‘all year around’ and is looking to close on a very large contract, that an entity like SMICE is
able to offer. The end buyer obtains goods from SMICE only as ordered at a very good price in a strict
atmosphere supported under the auspice of secure and safe dealings. The supplier is always paid ‘as agreed’
upon. The end buyer obtains the ordered goods ‘as agreed upon.’ SMICE places it considerable expertise on all
deals to ensure that all parties acting with SMICE do so in a honourable manner with real intent. We act in the best
interests of our clients all all times.
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FTNX SMICE: GOOD & BAD TERMS OF TRADE
Even with FTNX long standing efforts to ‘clean up the global market place,’ such efforts can only be successfully
applied up to a certain level. As one group of ill informed intermediaries and traders leave the market place in any
given year, after crossing paths with the increasing numbers of FTNX SMICE informed traders, a new ill informed
group appear, year in, year out. The industry is simply full of ill informed people who have no idea what they are
doing. Being a Professional Commodity Trader (PCT), is one of the most difficult business applications on the
planet to apply and master, and one of the most exciting and most lucrative one at that- for those who succeed. To
close upon a huge contract to for applying real skill, experience and knowledge is a practice reserved for the few;
all others thinking differently are wasting their time. Here are terms proper trading used by SMICE. We have
included our own *in-house trading applications ( or *opinion / advice) as well. We are not going to explain intently
matters described below, as we simply apply the advice while serving ‘hints’ as to the right aspect that should be
applied, by anyone trading in commodities, or when applying business at an international level.
‘guarantee’ per say. A UCP endorsed DLC employs a universal payment system. It will only ‘pay out’ once
certain conditions are met. A Bank Guarantee therefore also has local jurisdiction issues wheres a DLC does not.
This means Payments may be made under a bank issued Guarantee, regardless if the goods are delivered as
ordered or ‘even delivered’ at all. One could readily cancel a contract intentionally and still collect on an guarantee
for this reason anyone asking for a SLC or actual BG are avoided at all times. Such offers are trashed
immediately. In effect the DLC is about ‘performance,’ while the guarantee is about honouring ’payment on first
demand. ’ A supplier asking for a person to open a billion dollar revolving DLC and another billion dollars as a
guarantee is not thinking correctly. A bank is not involved with matters of the sales contract, and thus any
dispute cannot be presented as a way for stopping the bank ‘serving its guarantee.’ The issuing bank will not even
attempt to dishonour its guarantee;to do so would lead to other international banks to avoid doing business with
such a bank.A DLC issued by a top 200 ranking bank of the world, already doing business amongst themselves, is
the best payment methods to apply for payments of exports by far. The commission they charges in done so for
‘taking over the buyers role’ to become the ‘payee referee’ for goods ordered from an overseas supplier. This
means the Bank issuing the credit is going to honour its commitments to pay the supplier so long as it can sight the
delivery documents. The ICC FRANCE who administers UCP Rules had made such rules WORK extremely
well when applied with the ICC INCOTERMS delivery mode.This aspect alone provides an extremely
powerful platform is ensuring payments are received by a supplier, as initiated from an end buyer, before goods are
delivered, in where collection on such payments are honoured , once delivery is completed. If the end buyer is not
happy with the goods, then that’s a matter of contract not finance.
CHARTY PARTY BOL
SMICE does not charter ships in a CFR or CIF deal is the standard trading protocol. If books freight just like any
other entity except if SMICE is required ; has offered to do so , a more expensive Shipowners BOL must be
secured as an added security feature of using a UCP endorsed DLC.In essence we are unable to use charter
Party BOL , and can only secure a shipowners BOL as secured from the suppliers offering freight.
MANDATE
The terms ‘mandate’ is an incorrect term to use when trading in commodities. It is actually meant to define the
position not of the ‘intermediary’ but of a skilled broker acting on ‘behalf of a disclosed principals’ or agent doing
as much. No supplier nor principal, sound of mind , would every confer such a status to a commodity trader
less they have long experience and are highly informed and skilled at what they do, as the principal could suffer
damage to its reputation, by using ‘ill informed others.’ We have hardly ever seen a genuine mandated entity in 30
years of trade.
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SUPPLIERS SIDE
SUPPLIER (Principal) - ISS-ISS- PTE ( i.e: SMICE)-ISS-ISS-ISS-ISS- ISS- END BUYER (Principal) END
BUYERS SIDE:
The entity next to the supplier defined as the ‘International Sourcing Specialist (ISS)’ likewise for the entity next
to the end buyer in the same string; as demonstrated above, who has no special position or authority to represent
the supplier or end buyer, simply because they are located next to such principals. Such entities may attempt to
claim mandated position when in fact not such status is apparent.
ICPO NONSENSE
If I were a business person in USA , issuing an ICPO to another entity in the same state or interstate, and I failed to
act on such a document as a buyer, I could be readily sued. A lawful and legal application used internally in one
country, does not mean that such a application is accepted as international aspect of doing business. Even the ICC
Paris, France had written about such matter in that; ‘extraterritorial’ use of localised business practices should not
be used in the international Trade area. NO ICPO ALLOWED. An ICPO is typically advised by a buyer in USA
when dealing with its usual local supplier. It’s not used in ‘international trade.’ While incoterms could be used
inside USA it has a great set of commercial rules when doing business internally as specified under UCC. For
externally applied safe business practices, UCP Banking rules and Incoterms delivery rules apply. Localise
procedure cannot be used. A Russian trader offering /seeking an ICPO? You know immediately that such a
demand can only head towards the trash can.
SANCTIONED COUNTRIES
An Intermediary or Principal from Russia trying to conduct business wth a USA buyer for lets say
petroleum products in where USA sanctioned are in place with Russia– are wasting their time conducting such
business. First of all USA banks are not allowed to issue payments Instruments on such a deal ; but lets say a
trader found a way around this aspect- It could , 5 or even 10 years later find when going for a holiday, the trader is
arrested at the airport under a standing Warrant issued many years earlier. FTNX has served VIP opinions on this
matter and have seen first hand such aspects. Even serving advice, on sanctioned deals could land a trader in
prison. This does not mean that FTNX doctrine of trade is set aside. The informed trader in Russia will still use
the FTNX procedures if it were dealing with a buyer from a country where sanction don’t apply. One aspect has to
do with law, the other has to do with proper safe practices.
BROKER
A person acting on behalf a ‘disclosed principal’ is a broker. A person who is acting as a Buyer or Seller and thus
principal trader in their own name is acting ‘on behalf of undisclosed others.’ A broker can only act within the scope
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of tenure and only within the bounds as instructed by its principal. All Inform traders under the FTNX doctrine, can
act as an informed broker or agent; all ill informed or informed brokers and agents cannot act like an
informed principal. Two very different practices apply, the first of which is that ‘One is acting, and must only act as
instructed, for a disclosed other .’ The other is able to close deals and signs contracts as Principal. A Broker who
leaves the environment of the office, to physically be present at the place the the transaction needs to be
concluded, is best defined as a ‘Agent acting for a disclosed principal’ in that; the Real-estate ‘agent’ or stock
‘agent’, needs to be physically present in representing what the principal is offering, at the principals expenses.
*AN ILL INFORMED INTERMEDIARY (iii)
An (ill informed) intermediary in general is neither an Agent, Broker or Principal. An ‘iii’ is a person who acts as a
third party in a TWO party deal in where a reward or commission is offered to person who surrenders vital
information to a principal or others in return for a payment should a deal eventuates to the closing stage. An
opportunistic person has become involved in the deal. The intermediary has no further obligations or bears any
legal consequences for his part of the deal, once valuable information is surrendered to its principal. Hence the little
efforts made by an intermediary can only attract a small commission rate where a good commission payment is
total may still be secured if a very large deals has closes because of what was surrendered. In essence such ill
formed trader don’t earn anything because in the international playing field such have no protection to ensure
commission once earned is paid. If you are not inform and trader a is not attached to a informed PCT, the ill
informed intermediary cannot earn a commission legally is best assumed. SMICE does not accept nor consider
any any offers from ill informed intermediaries.
MT799
A device/machine generated ‘Message Text’ (MT) were the open aspect of such, allows one bank using Internal
secure means ,to send a message to the another participating bank world wide. MT 799 It’s not a text related to the
issuance of a DLC ( and yet we see this mistake the most often) but merely an advice being served from one
bank to another. I.e: “We are pleased to advise and confirm , with no bearing on our part, that FTN Exporting is
ready willing and able to fund the purchase of crude oil carrying a value of up to US$500,000 Million dollars,’ Thus
using a MT is this aspect, delivers the idea that a ‘Bank Comfort Letter’ is being electronically advised stating that
the Buyer is RWA to the bank of the supplier . It does not mean that the Buyer will ‘buy’ anything, nor does it bind
the buyer to perform.
LOI
In international trade business ‘LOI’ stands for ‘Letter of Indemnity’ and not ‘letter of intent.’ The LOI serves no
value in this business.
ASWP
“We are able to sell you goods offered at US$500.00 per MT CIF ASWP.” Incoterms requires that the name
port of destination must be indicated so that an accurate assessment of carriage rate can be served. We have seen
leading exchanges offer goods at CIF without naming a destination or when naming a destination, its usually a very
short distance away (a few days away or as per delivery over a nearby border of another country ) giving the
impression of a great price, until the purchase is further tested against a distance taking 20 or
25 days ocean carriage times. Offers carrying ASWP may also indicate that the goods have been ‘marked up’
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dramatically as well. What is indicated when such a terms is applied is that the trader is ill informed. A
Mexican supplier may say “ we only offer CIF ASWP” because ewe have your own ship and ‘cannot give a
FOB price.’ But thats an improper practice open to a whole lot of other issues. we asked for an FOB rope just like
all the changes around the world are offering. the price is served. if we want to go further and asked for a CIF price ,
then thats added on top of the FOB price dependent upon the distance and the typo of insurance coverage taken.
It may be that a supplier may have their own ships but if a supplier is offering CIF ASWP this means the end
buyers is going to be hit with huge unsuspecting fees not just by the supplier but customs ay import, because
customs will take the whole, value of the invoice and apply import tariffs rates accordingly. Anything to do with
ASAP delivery means trouble.
30% DEPOSIT
No funds must ever be presented up front in any form whatsoever under any circumstances. If anyone asks for any
money upfront, being it a deposit, fees, charges or the likes; RF the deal immediately. Having said that Chinese
‘Traders’ will often ask for a deposit up front; but after a first challenge and serving them a quick lesson on
acceptable safe procedures , they soon come to their senses in understanding, that their requests is one that a
scam artist would make. Nearly all Chinese suppliers will accept a DLC outright.
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SLC
A SLC is never used to pay for goods. An SLC can be transferred many times or not transferable at all,
depending on the rules supporting its issuance. An SLC is ideal for using in support of a P.G or when paying
rebates, fees and and commissions. A DLC is a conditional instrument meaning that certain conditions must be met
before collection can apply. This make the DLC a deferred payment application. An SLC however bears an
unconditional aspect where the production of a drivers license proving I.D may be all that is required to initiate
collection- instantly.
DICTATING TERMS OF TRADE
A seller dictates it terms to the end buyer, and not the other way around. An end buyer may think otherwise. A
busy supplier with contracts to service years in advance, will pay very little interest to what any end buyer has to
offer, especially primary market players. Indifferences are negotiated upon until the seller is prepared to
accept fully or in part, in meeting to appease the end buyers requests. A deal is made or it fails. A seller can only
‘consider’ a buyers demands or buying process or reject such demands outright, which in this business is the proper
way of conducting such business.The ideal of ‘supply and demand’ in our opinion is a fictitious one. Restricting
supply is a simple term to describe that a person has no interest to sell wanted goods unless their price is met or is
a means where by restricting supply, the price for a wanted products escalates regardless if buyer are present or
not.
PERFORMANCE GUARANTEE(PG)
Not matter what ‘stories’ you have read elsewhere, long experience dictates that the final price of goods offered by a
supplier where a P.G is sought by the buyer, will always be higher, in part of fully as per the type and value of P.G
being offered. The buyer must always issue the financial instrument to pay for goods first. In our case its a DLC.
The supplier counters this act with the issuance of a SLC in support of a performance guarantee or P.G . This
aspect MUST never be applied the other way, useless one is keen to lose their money and the deal. We won’t
elaborate more on this part in case scam artist are reading this site. A supplier must never offer a P.G first on the
lure of a lucrative deal, is our clear advice. From 2016 SMICE has returned to seeking a P.G from its suppliers
most of time, after a few years of not demanding as much. Its at the discretion for SMICE whether or not to ask for
P.G.A P.G is only collected is the supplier is late with any delivery.
OTP
Offer to Procure (OTP) is provided by the ‘skilled ‘ principal when sourcing goods, alone or when very experienced
string members are assisting the principal . It’s a formal document in where once signed a legally binding status is
in place. Only the principal can issues OTP to a supplier . Whereas an ‘Offer’ is served to an end buyer, mirrors the
same aspect.
*LDD
Late delivery Discount. instead of SLC P.G being sought for a Supplier observed to an end buyer, the PCT can
offer or payout on a LDD instead.FTNX SMICE created in-house aspect is often used when making offers to end
buyers at sellers discretion.In short if the supplier is late with any delivery to the buyer come sellers (PCT), the
supplier make one arrangement to compensate the seller i.e SMICE, wheres SMICE may make a different
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arrangement to compensate its own end buyer.If the buyer /seller anticipators it could make lets say $6.00 per
MT on the sale of NBC goods, it may surrender $2.00 per MT of such a potential gains as a supporting LDD
payable as nominated at that time to any account by SWIFT for each and every delivery deemed late. Such
matters are made on any offer served to an end buyers in the form of a ‘promise.’The seller will NOT jeopardise the
whole revolving deal , all because it failed to pay a LDD on i..e: second delivery.
*SIPG
A self imposed P.G (SIPG) is explained further as created by FTNX. Supplier does not like opening a SLC kind of
P.G .It gives the suppliers angst because the instrument is easily cashed even if a good reason to do so is not
apparent. In an advanced trading aspect, lets say SMICE offers a supplier an INCENTIVE to assure supply–
a $6.00 per MT added premium for FIRST DELIVERY ONLY-for the suppliers goods, than what international
market prices dictate that such goods are worth. The $6.00 per MT offered ’PREMIUM’ is ‘retained’ when the DLC
is opened by SMICE. The retaining of the US$6.00 per MT premium, therefore supports the idea that over 12
months, on 12 shipments being delivered, 50 cents per MT is held as a performance guarantee. Then if all
deliveries up to the 6th delivery are on time, SMICE could rebate US$3.00 per MT of the withheld incentive on the
6th delivery, and another $3.00 per MT of the final 12th delivery.In essences if SMICE is able to earn lets say 60
dollars gross profits once all 12 deliveries have been completed in one year, in where SMICE now surrenders lets
say 30 dollars per MT back to the supplier and end buyers ‘as formulated on paper’ then in effect SMICE will only
collect $30.00 p gross profit over the same 12 month period. SMICE is simply ‘shaving’ and sacrificing its own
potential earning in advance as means to secure wanted products while being able to offer its end buyer a good
low price. The’ retained money ’ part is actually repaid from SMICE earned gross profits as generated i.e not as
generated from the first few deliveries but as generated from lets say 5th delivery onward.To do as much a very
exacting formulation needs to apply and only by those traders experienced enough to apply as much. The loss
generated by SMICE is met at a ‘ crossroad’ of an active deal, whatever such is formulated to be, when the
losses eventually stop and actual gross profits begin to be actually earned.
*IPG
Irrevocable Payment Guarantee IPG) is sued to pay commission to brokers, or even matters of LDD and
rebates.The IPG as created by FTNX is in effect a ‘Promissory Note.’ This is just one ‘universal’ aspect of
many within the doctrine that traverse the international barrier where local laws in many leading countries has
force in upholding matters offered in a ‘Promissory Note.’
waste weeks trying to follow up via it string members, on matter missing on an submitted transparent offer. Today,
when a OTS is submitted to a principal heading a deal, its accurately served the first time around ‘without excuses.’
A supplier must never bye given a OTS to personally fill in, as its a SMICE created in-house aspect. A principal who
is woking alone with no string members cannot accept an OTS , as such a person is defined as buyer/seller and
musty secure the offer form the supplier and enact with such until a full signed offer is in hand.
*RFQ
Like an OTS , the RFQ is an in-house application designed to save time and angst. When a end buyer make a
REQUEST FOR A QUOTE (RFQ) for goods that the seller (SMICE) may have or is asked to source and secure .
All the vital information needed can be found on the RFQ.The end buyer contacts the representatives of the
principals and starts discussing by email or phone matters of buying a certain product. All details are
transferred onto an RFQ form and passed to the principal heading the string to consider further . A principal who
is woking alone with no strong members cannot accept an RFQ , as such a person is defined as buyer/seller and
must secure a full ‘offer to procure’ from the end buyer and enact with such until a full signed offer of supply is in
hand.
*ITB
Like an OTS , the ITB is an in-house application designed to save time and angst .An Inquiry to buy ( ITB) is
advised by brokers attached to a principal sourcing and testing suppliers . An ITB is a ‘letter of introduction ‘ sent
by email to a suppler letting them know what services are on offer and how business is conducted. The supplier
may trash such an ITB or they may keep on out on file for use at a later time. Anyone may use the virtues of an
ITB , however a principal (SMICE) looking to secure long terms ‘assurance of supply’ may initiate an iTB as an
opening statement attached to an MOU or ‘Offer to Procure’ is the common practice.
*BIF
Buyers Inquiry Form (BIF) A form which is r found as a downloadable document for buyers or end buyer to use in
making their job easier to apply. The endure simply fills in the required guided Parameters of an BIF and returns it
directly the principals and not to string members
*BQF
Buyers Query Form (BQF) SMICE and the informed principals also delve in other business aspects like, creating
investment type resources projects, dealing in specialised equipment, real estate, inventions , serving mediation,
opinions or advice, offering mentor ship programs and matters of educational services- or even offering to act as a
disclosed agent for a named principal supplier for a salary, etc,..etc.. The In-house BQF form serves this purpose
when an outline of services sought is advised to the principal to further consider. This is the
‘Entrepreneurial’ aspect advised in the FTNX Doctrine of Trade, which could best be described as a set of
principles , built upon universally accepted laws and rules which all people may use and apply safely world
wide. Trading in commodities correctly ‘offers much more’ than meets the eye.
*AOS
Assurance of supply(AOS) is an informal document in where the supplier with a large quantities of goods all year
around’ rests’ a long term ‘assurance of supply’ to a principal, based on preconditions in place.An AOS is not legally
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binding the served by a supplier . An ‘Offer’ is a formal document to do more about immediate purchase
considerations and is legally binding once signed ( unless stated differently on the offer) The supplier issues the
AOS.
BOL
If SMICE takes on to offer a BOL then only the more expensive Shipowners BOL will be secured. It cannot offer a
charter party BOL. This is simply another added unseen feature pertaining to matters of SMICE applying added
security. It’s also a requirement of a bank applying collection proceedings to a UCP 600 DLC. A BOL served by
SMICE will not be served as ’NOT endorsed’ in blank, thus the goods offered by SMICE can only be sold to an end
buyer ‘ taking possession of such goods,’ who then will not be able to ‘transfer such goods’ to another ‘buyer’s
another unseen added security feature unseen by most.
NOR
Notice of Readiness (Nor) is applied when the ship is making an approach to berth at a custom wharf.The ship must
first be boarded and inspected against the manifest, and to ensure no contagion is on board. Once ‘Pratique’ is
over, the pilot then boards and guides the ship to its nominated berth.
LAY CAN
All major ports have lay can (lay time) hours; that is, a designated period of time that a ship may berth and
commence loading or unloading operations. It may be that if a ship drives on lets say the 25th of the moth , 4 days
lay can may be served, wheres a ship arriving on the 5th day of the same month may only have 2 days lay can
time.
DEMURRAGE
The a ship arrives too early or arrives outside lay time hours, it sits at demurrage ( it lingers around ) in where
expense of keeping the ship manned and active is ongoing. If a ship can completed operations in advance of
allocated lay time , the shipowner pays a despatch fee to the charterer.
*PPIC
The Policy Proof of Interests Certificate (PPIC) is one of those very important documents created by FTNX as a
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matter of necessity.Once the contract is signed , the DLC is advised. Once SMICE (PCT) accept the DLC as seller ,
it must issue a PPIC within 24 hours thereafter valid for 3 days only- if the offer or contract has offered it. The PPIC
discloses form whom SMICE has secured or purchase goods being offered to the it ends buyer and nothing more.
The end buyer has 3 days to verify from any outside source (I.e: Consulate) if the disclosed supplier is genuine. If
the PPIC terms of reference allows the end buyer to also send one email to the supplier to confirm if the PCT has
the ability to sell the goods it has offered. One email if allowed, may be made once only, within the there days
period .The endure may not contact the supplier again.The buy price the PCT is paying will not be discussed nor
any part of the deal itself.The confirmation sought is strictly applied to the PCT claimed ability to supply such goods
as to appease and anxiety the end buyer may be having about the order. The PPIC not not important because is
confirms ’supply capability’ it important because if the offered advise on the PPIC proves to be ‘fake’ then this
aspect alone could render the irrevocable status of a credit to become ‘revocable.’ Under UCP rules any
confirmed notice served to the bank issuing the credit, as served by the end buyer that implies a fraudulent aspect
may be in play, is the only aspect that may cause a irrevocable letter of credit to become revoked. A PPIC may be
provided to the end buyer before the DLC is ready to be issued, but after the contract has been signed, upon the
lodgement of negotiated deposit. If the intent of the end buyer is a dishonourable one in where after finding out our
supply capability, it tries to ‘pull out for there contract’ ( tries to circumvent the PCT) the end buyer forfeits the
deposit. A PPIC is a formidable document.
REBATE
A PCT is able to offset some of it anticipated gains it could earn on a deal, by provided incentives in the form of a
rebate. Example: SMICE offer the end buyer an IPG for $ 20.00 per MT rebate to offset the recent increase in
import Tariffs. Since the PCT is offering it own ’money yet to be earned ‘ on a deal ‘yet to be closed’ then in effect
this rebate is offered outside the bounds of the contract as supported by some statement made on the offer in the
form of a cash rebate; paid directly by SWIFT into an account nominated at that time. These lawful and legal
disclosed and transparent rebates can only be be applied by a very experience trader looking to seal a difficult deal
by leveraging some of its potential gross profits that would have been earned on the deal. There is a very ‘thin
line’ between offering a bribe and offering of a genuine incentive.
*CERC
Another FTNX innovation: Carbon Emission Rebate Certificate; So lets say SMICE is offering high quality, low
Sulphur Coal, and as an incentive, issues a CERC to the end buyer (or at times its supplier) carrying a value at 80
cent per MT (1.0%).The end buyer can ‘cash in the CERC’ anytime with SMICE at the value arrived
at, after issuance as per the terms applied on the CERC, as a reward for reducing carbon emissions. In
this aspect, getting rid of higher polluting coals to favour lower polluting coals ( fuel, crude oil) will in effect
indirectly bring down carbon emissions not as an imaginary aspect, but in the real time physical aspect.
*CSD
Contract Signing Date : This is an important time as it incepts may aspect of the deal itself to include price, and
delivery times.
PROCEDURES
Quote, Offer, Contract, Payment, P.G Delivery, Rejection, Remedy , Next delivery
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Above is the proper lawfully and legally defined and acceptable universal trading procedures when buying from a
supplier
Quote, Offer, Contract, Payment, P.G Delivery, Rejection, Remedy , Next delivery
Above is the proper lawfully and legally defined and acceptable universal trading procedures when
selling goods an end buyer.
Quote, Offer, Contract, Payment, P.G Delivery, Rejection, Remedy , Next delivery
Above are the proper lawfully and legally defined and acceptable universal trading procedures regardless if you
Come for Europe , Russia, Sth America USA , China, or the planet Jupiter.
This is so because its the universal delivery mode Incoterms and UCP Banking rule are literally ’bound ’ into the
the basis of the contract. This is the safest aspect of trading in commodities today.if a supplier/end buyer wants to
enact in another ways, that’s their business - law book are ‘full to the top’ with supplier and end buyers ‘doing it their
way.’ SMICE can only trade to the safest level possible; for us there is nothing in-between. When a string is involved
, a set of procedures apply which included in-house process which are all tied into to the above procedural matters.
When trading alone a PCT also applies the same above orthodox trading process , in where no in house process
apply. Therefore as far as the PCT is concerned, with the in-house and lone trading process needs to apply at
dictation of the PCT. For this reason trading lone is the superior option , but will produce slower trading periods
FTNX SMICE EXCHANGE RULES
Operational Rules Understandings and Guiding Advice.
Secondary Market International Commodity Exchange
Rules of the SMICE Exchange is also in part inferred.
Last Updated :10 October 2018: 12.01 PM AEST
Subject to final Grammar / spell check in due course.
expressed herein are defined as ‘acceptable and expected matters’ for purpose of serving guidance, which may
only be overridden when expressly stated so, in the offer and subsequent contract served by ’FTNX SMICE.’
SMICE Registered Agents (SRA) use their own in-house rules named ‘TRIBE’ which is closely aligned with matters
herein. The actual Rules of Trade applicable to end buyers and Supplier doing business with SMICE are specified
below. Doing business with SMICE means conducting very safe business while enacting on very large deals, under
a formidable set of strict rules, laws and procedures which have become a mainstream application on its own, in
this emerging profession we have created, thanks to the many FTN Exporting attached students, as attached over
decades, who have taken up and completed our much needed study. Structure and uniformity is what allows a set
of rules and procedures to be used world wide. English formation laws and foreign governance therein allows our
practice to exist.Ostensibly or otherwise over a third of the world population is still directly influenced by English law
today, whereas indirectly its 100%, when counting countries like USA and past Commonwealth member Hong
Kong. English language is universally applied by air traffic controllers, ships and planes accordingly the
‘International’ language of big business and trade is also attributed to English language use. English court
verdicts are respected by many countries and judiciary therein–add around 1000 years of legal precedence to the
aspect and one can quickly arrive at the idea the a ‘rule based order’ in matter of international trade is strongly
supported by long standing practices and ‘misadventures at sea’ thanks to the contribution of English law.
1.0 Definitions
1. The term ‘supplier’ shall mean ‘disclosed supplier in possession of goods, or owner of goods’ being offered
for selling to the ‘buyer.’
2. The term ‘buyer’ refers to a Professional Commodity Trader ( PCT)
3. SMICE herein refers to the role of a PCT.
4. The term ‘end buyer’ shall refer to the entity buying goods from a PCT
5. The PCT buys goods from a supplier without obtaining possession of said goods being considered, then
sells such goods as seller to it own sourced end buyers.
6. The term ‘seller’ also refers to the PCT.
7. End buyer(s) and Supplier(s) as specified are ‘Principals’ in their own right.
8. A PCT is also a ‘Principal’ of Agency as well as ‘Buyer’ or ‘Seller,’ when interacting with an an end buyer or
supplier.
9. All parties to a contract on one side of a deal when dealing with a PCT are also dealing with a principal of
trade (POT)
10. A POT is an entity that understand all aspects of the nature of business being applied intently as a
‘Specialist.’
11. The owner of SMICE is the person personally signing all contract entered into with a supplier or end buyer.
12. All contract are officially signed by FTN Exporting. SMICE and FTN Exporting for this purpose are the same
entity.
13. Dates used on the SMICE index applies the Australian Eastern Standard Time (AEST) as taken form the
perspective of SMICE and the country it is located in.
14. All days are expressed as ‘normal days’ with no reference to the term ‘banking days’ are given.
15. Should a reference be given in matters ‘banking days’ SMICE take this to mean ‘Seven’ normal days.
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16. All times are expressed daily on the SMICE index being set at a general time of
17. 12.01 PM AEST, regardless of actual time the offer, or contract is signed.
18. All delivery modes and terms that SMICE is able to apply are; FAS, FOB, CFR, CIF, FCA, CPT or CIP
Incoterms.(and in-house variants therein).
19. Delivery mode as defined under governing body, the ICC Paris, France as per the current delivery rules
‘Incoterms.’
20. Payment instrument as defined under governing body, the ICC Paris, France as per latest edition
of banking rules as specified under ‘UCP’
21. Collection process on any financial instrument shall apply ‘URC’ Collection Rules, as currently applied as
defined under governing body, the ICC Paris, France.
22. All disputes with the supplier are settled amicably.
23. In where arbitration needs to take place to settled any dispute;venue for arbitration shall take place in the
country of the supplier.
24. All disputes with an end buyer are settled amicably.
25. In where arbitration needs to take place to settled any dispute;venue for arbitration shall take place in the
country of the seller.
26. Arbitration proceedings in the sellers (SMICE) country, unless agreed differently on contract, shall be
conducted as per LCIA (London Court of International Arbitration) rules or The Victorian Civil and
Administrative Tribunal (VCAT)situated in the state of Victoria, Melbourne Australia.
27. International agency and contract formation rules are applied in accordance with the laws of England and
foreign governance world wide therein.
28. Acceptable ‘hybrid’ rules as found in ‘SMICE’ procedures; as per those extrapolated from laws of Australia,
USA and European laws, may also apply, or may be added where necessary.
29. Extra territorial use of localised laws and rules may not be used in international trades business and
contracts therein.
30. Countries who have economic sanctions applied against them by Australia, England, or USA cannot
participate in any business with SMICE until sanctions are lifted.
31. A SMICE Registered Agent (SRA) located in a country where no sanctions are apparent may trade ‘as
usual.’
32. An international SRA being tutored or mentored by SMICE on international trade matters may continue
to tutor or mentor a SRA who may be enacting with a country bearing sanctions, with the country of the
tutor, so along the tutor or mentor does not actually ‘assist or advise’ upon specifically, the nature
of business associated with goods emanating from the sanctioned country.
33.
2.0 Matter of the Transaction Code
1. The Transaction codes that appears on the goods that the end buyer is interested to buy from SMICE is
used, as cited on the SMICE index or on the offer made.
2. The transaction codes once listed and used on the index/offer, cannot be changed until failure or success
of the deals is recorded.
4.0 Description of Goods
1. In NBC (Non Break Cargo) deliveries, description of goods are stated as ‘in hold’ or ‘on deck’ as specified
in the offer or specifications provided.
2. In FCL orders quantity held in a 20Ft FCL, including all descriptive matters of packing, pallets, bags,
markings on bags, or per unit and unit weight, must be described correctly.
3. Dense product apply 20Ft FCL.
4. Less dense products taking up large area (Volumetric aspect) apply 40 Ft FCL.
5. Port of loading / handling FCL weight limits per FCL must be ascertained prior to offer being made.
6. FCL Delivery at FAS of FCA incoterms applies that ordered goods are prepared be ‘made ready’ for
loading or ‘are ready’ for loading at designated container freight station (CFS).
7. In the case of FCL at FCA Incoterms delivery mode, if asked for; the BOL marked as ‘received’ applies
once the shipowners carriers obtains possession of ordered goods at CFS.
5.0 Origin of Goods
1. Origin of goods must be correctly stipulated on the offer, even if goods are located in another country.
2. As per Incoterms, the Certificate of Origin(COO) shall be be provided by the supplier, but the expense
incurred in doing so may be applied on the suppliers invoices a debit; when such is issued to the buyer.
6.0 Weights and Tolerance factors
1. All goods offered to SMICE including petroleum products and ‘gases’ are converted to reflect an on board
weight measured in Tonnes.
2. SMICE at its discretion will consider buying any single NBC offer for goods at 125,000 MT or more as
carried by a VLBC or VLCC.
3. SMICE will not accept to list any goods offered using a ULCC or ULBC.
4. SMICE will consider buying any single FCL shipments of wanted products carrying a total on board weight
of 1000 MT or more.
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5. SMICE specialises in large revolving order and supporting contract of 8 months or more. Long term
contract per ‘year’ are always preferred.
6. SMICE prefers monthly revolving contracts for NBC of 25,000 MT or more.
7. Offers supporting 80,000 MT NBC or more, as a revolving monthly delivery aspect, are considered intently
by SMICE.
8. SMICE prefers monthly revolving contracts for FCL cargo of 400 MT or more.
9. Offers supporting 800 MT FCL or more, as a revolving monthly delivery aspect, are considered intently by
SMICE.
10. Tolerance factors pertaining to weights the following aspect applies: -/+ 10%.
11. All matters of payments instrument used, shall apply a -/+5% tolerance factor, before amendments need to
be sought
12. All matter of currency:United Stated Dollars is applied in the first instance. British Pounds or Euro dollars
may also be considered.
13. A Supplier should not offer goods to SMICE if they do not have long terms stockpile to compete a
purchase by SMICE when such a purchase is enacted upon.
14. Trans-shipped goods not allowed.
8.0 Document Presentation
1. The DLC defines what documents must be presented to comply with both terms of the credit when
issued and subsequent collection proceedings there after.
2. The supplier offering long term supply of goods must be ‘ready willing and financially able’ (RWA) to export
such goods when an order is placed by SMICE.
3. Delivery documents must be produced, once a delivery is completed.
4. The supplier shall be required to secure export permits, and secure finances to buy good ordered, prior to
signing the purchase contract with SMICE .
5. The matter of the sales contact has no bearing in matters of securing finance to pay for ordered goods.
6. Any request to submit our contract to the end buyers bank, or suppliers bank as part of the process will
not be entertained.
7. If an end buyer is factoring a draft or unsigned contract issued by SMICE to secure finance of a DLC, such
matters are between the bank and the applicant.
8. All delivery documents must be presented in a ‘clean state’ to SMICE as instructed for ‘at sight’ scrutiny
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by it bank.
9. Part payment, for partly produced documents, cannot be used to draw funds on a DLC advised by SMICE.
10. The offer dictates full documentation that need to be produced.
11. The terms and conditions of the credit are the only terms and conditions the buyers bank will comply with.
12. Documents not addressed in an offer such as a ‘Carbon Emission Rebate’ (CER)’ or ‘Irrevocable Payment
Guarantee’ (IPG) and all other ‘promissory notes’ are confidentially served.
13. A rebate when offered is done so at the expense of SMICE, and is openly declared in a transparent
matter on the offer.
14. Any such rebate(s), if offered, as prescribed on an offer, may not necessarily be declared on the
contract.
9.0 Payment Mode
1. The end buyer buying goods from SMICE, must be ready to issue the required financial instrument, within
24 hour after contract is signed.
2. Contract as per the PDF aspect is signed and submitted.
3. If the day of DLC lodgement falls on a day that the bank advising such is closed, then ‘ the next available
day’ applies.
4. The end buyer must have ascertained or established finances to pay for goods ordered, long before
contract is signed.
5. The supplier shall not ask for a confirmed credit.
6. The buyer shall automatically apply that the credit be advised as confirmed if a low ranking bank is
being used, to issue the credit.
7. SMICE must cause to issue all credits from a bank carrying a top 200 bank of the world ranking.
8. SMICE must have all documentary credits being advised to supplier, as advised from a top 100 bank for
the world.
9. All credits issued or advised by SMICE to a supplier must carry an irrevocable understanding in
where current UCP rules apply to the credit.
10. All credits for multi shipment shall be advised as non cumulative revolving.
11. A DLC advised to the suppliers, must be accepted within 5 banking days
12. banking rules. Silence on this matter means DLC has been accepted.
13. In matter of the credit and status ranking therein. As it applies to the supplier ‘doing business’ with the
buyer SMICE, so shall it apply to the end buyer doing business with the seller SMICE.
14. If a end buyer located in a smaller less economically powerful country, is issuing a credit, such a credit
must be supported by the confirmation of a leading bank, or the actual bank of the seller.
1. In all transactions the supplier must provide a performance guarantee (P.G) to the buyer in the form of a
‘SLC’ unless specifically waived in support of another kind of P.G.
2. If an alternative P.G is sought by SMICE such as a LDD or Self Imposed P.G (SIPG) such an aspect will
be fully prescribed on any SMICE issued offer or OTP
3. As per the servicing of a SIPG a percentage of the first delivery price offered to a supplier may
be retained by SMICE.
4. The portion of funds retained by SMICE is teated as a Self Imposed ‘Performance Guarantee.’
5. The supplier will not need to issues a separate performance guarantee once a SIPG is apparent.
6. An SIPG applies that when a certain delivery point as been reached part of the retained SIPG is
treated as a rebate and reimbursed ‘ as agreed upon on the offer’
7. If a delivery has failed to be applied on time, part of the SIPIG is forfeited for late delivery and not
reimbursed as stated in the offer.
amended as required, but only if parties to the contract cannot reconcile the difference amicably ’amongst
themselves within the the next (2) consecutive deliveries.
9. Once first delivery has been completed, at port of loading, the supplier is entitled to collect on the financial
instrument (DLC)
10. All subsequent revolving monthly deliveries take place on same date as the first.
11. Supplier produces the transport documents as indicated on the DLC in a clean state.
12. The buyer/ bank checks the documents ‘at sight’ at the one time.
13. If all document are cleanly presented as expected, supplier successfully collects on payment, within 5
banking days of such presentation.
14. The deliver process between the buyer SMICE and thew supplier is over.
15. Ship leaves loading port to arrive at destination port
16. Goods are collected by the ‘end buyer’ and client of SMICE
17. If goods are rejected/defective, end buyer settles the matter with SMICE.
18. SMICE seek reimbursement from suppler, before next shipment due is delivered.
19.
Note: Part (3) of the transactional and payment process is successfully closed once all deliveries have
been completed. End buyer buying goods from the seller SMICE shall incur a similar process as specified on any
offer made by the seller SMICE.
formulation offered and advised by SMICE on the MOU in where SMICE operational gains and expenses
(OPX) are collected later as the deal progress eventuates to final delivery.
12. The SFS basis attracts no SLC P.G, instead such a P.G is served with a LDD ( Late Delivery Discount) or
SIPG.
13. A supplier must ask to use the SMICE FAS SPOT basis when assuring good.
In Summary
The supplier does not need to concern themselves about the operational aspect of SMICE in where the following
advice, will guide the considerations made fully.
The supplier, agrees to submit a ‘General Assurance of Supply’ (AOS) or offer, for goods held, to ‘SMICE’ as per
those listed on its index, or which may be considered for listing, for our purchase consideration in trading year 2019.
Crops yet to be harvested may also be offered well in advance of actual harvest. Offer or ‘AOS’ supporting ‘fixed
price’ or ‘variable price’ basis at FOB or FCA Incoterms is the delivery basis. Only 12 months or more revolving
monthly contract of supply shall be considered. Larger single shipment are also considered.All otter products of
smaller quantities are considered on merit. Long term supply period is required. The rationale here is a simple one.
If a supplier has a large supply capability all year round , then leaving a large offer or ‘assurance of supply’ with
SMICE for 6 month to more will have no effect on the supplier own standing business, but may cause the supplier
to generate an unexpected very large sale, the type that the supplier would not have secured alone. The quantity
of a product being assured to SMICE being so large attracts a far better price basis favouring SMICE, then one
would obtain buying a much smaller shipment of the same goods only. The ‘offer’ or ‘AOS’ must include
a ‘EXW, Cash, FAS or FOB’ benchmark, and website address to be used if variable monthly price is sought in
where against the benchmark used, SMICE receives a fixed discount, is the base trading aspect used by
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SMICE. In all cases, offer submitted must support large revolving quantities of product, as this is our specialised
area of trade. All goods offer must have a discount favouring SMICE indicated per ‘Metric Ton’ only applied, if
SMICE purchases the total quality offered. An ‘AOS’ form will be found in the SMICE library for downloading in
a guided manner that a supplier may use if they are contemplating to offer goods for SMICE purchase; or
supplier may contact a listed SMICE Registered Agent (SRA), who will answer all questions, and submit their own
in-house form (OTS) to SMICE on your behalf. Once the submission is completed, the supplier will not hear from
SMICE unless a purchase by SMICE is to proceed. The supplier submits a general offer, SMICE does the rest. The
exception to this ‘general’ aspect is when the supplier asks for a SFS basis to apply.
SMICE uses the services of FTN Exporting trained and highly educated Agents and Brokers to assist in
its business activities from time to time. This means anyone who may have business that will interest SMICE may
approach a registered SMICE agent. Such entities are endorsed by carrying a USCT Registered Number (USCT
®) with a P.A status being apparent. A USCT® Primary Agent (P.A) is deemed the best informed Agent of their
kind world wide. In every aspect, any listed USCT Registered Agent are also private Professional Commodity
Traders (PCT) in their own right, in where the USCT ® P.A status also defines the position of a Principal of Trade
(POT) when engaging with other peer minded entities and outsiders in a string deal. As such; any USCT Registered
P.A Agent must stipulate their intention to be representing the SMICE Exchange (www.smice.net ) when sourcing
or engaging with the principal, from the very first contact made. Should no disclosure of the principal SMICE is
apparent, the highly informed USCT member is conducting business in its own name and not SMICE. A USCT ®
P.A member who is also conferred ‘Territory’ may now prompted their activities as being a SMICE Member
specifically to importers/exporters in their own country. SMICE encourages all suppliers in the same country as a
USCT® P.A Registered Agent to seek advice and support their local Territorial Agent, if they have very large stock
and want to test securing a large contract of sale; or in where a end buyers are located in such a territory looking
to secure a large volume of revolving goods at a great price. The advantage of having SMICE Agent supervising a
deal and assisting SMICE where the Agent is located in the same country as the supplier or end buyer is that all
banking and payment aspects become localised. Suppliers or end buyers may call upon SMICE directly, only if they
have not communicated matters of the transaction or enquiry with a USCT P.A member. Please be advised that
suppliers or end buyers coming directly to SMICE will be served strictly on merit, for this reason it is recommended
that any enquiries made world wide be advised to one selected USCT P.A Registered member. Such a member is
much more tolerable in serving advice and guidance. A P.A has discretion whether on not to engage on any deal
/inquiry being presented on merit .
USCT
NAME …………………… STATUS ………… TERRITORY……………EMIAL……………………………
NUMBER……
…………… …………………… …………… ……
………………
Australia / New
DAVIDE G.PAPA USCT - 0001 POT /PCT/P.A ftn_smice@bigpond.com
Zealand
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Note: As for alternative energy and the lies it bears. If we do not get rid of planes, trains , trucks and ships and only
concentrate on making cars ‘greener’ then the whole exercise is a futile one. As for the experts looking for a juicy
Page 2
Government hand out; you don’t need much money to work out the following. Here is the SMICE
created scientific maths problem;
(a) If on average six thousand planes do take off and land in USA alone everyday, in where the average ‘Kerosene
driven’ flying time in said be 4 hours between such event. What is the amount of carbon emission (MT) being created
in one 24 hour day by such planes ?
(b) How many cars running a 2 litre motor, burning gasoline are needed to produce the same about of emissions, over a
four hour period?
My numbers ostensibly suggest 40,000,000 cars in one day.
(c) Thus; How long will it take to arrive at the idea that 40,000,000 million electrically driven cars will be on the road in the
future. How much carbon emission in MT will emitted by the time such car are produced, if the population
increases while industry , shipping and aircraft pollution increases in the same length of time.
Even if I’m out by 50% We have a serious problem Houston?
As for ‘Scientists’ and their claims. It is impossible to determine climate change using accumulated date based on daily
weather reports. It’s just not possible to make such predications, beyond the realm of fantasy. In the last 50 years, our
ability to use increasingly powerful computers has dramatically risen; this is the one aspect that has created climate
change models. Adverse weather conditions are not extreme weather conditions when measured against Planet Earth–
which by the way, has taken over 6 Billion years( Not 4 billion years) to arrive at where we are today, the precursor of
which is an extinction level event, now describes the folly of all such ‘climate change’ predictions. The ‘ huge’ well thought
out ‘scam’ that is climate change and alternative power, is nothing more than a grab for money. With all the so called
‘technology’ in place today ; nobody has come up with a way to burn fossil fuel cleanly, and collect the the nitrogen
rich carbon emissions produced, as a valuable and natural agricultural fertiliser–is difficult to comprehend. As for those
who say different? Those medicines we are taking, road surfaces we are driving on, all those plastic products we have
become reliant upon, the business of International Trade, and much more.. are all born of the petroleum Industry. An
electric car also uses 4 time more copper than a conventional petrol driven vehicle. A future built upon ‘Copper, Solar
panels , Wind turbines, and Lithium’ cannot survive without road surfaces, degradation of land through mining, added
emission through recycling, heavy industry, and plastics–just to name a few. The end result will lead the human race to
an even more precarious situation, unseen at this time because that what cash and piles of money and greed does ; it
blinds people. Lets move into new technology in an orderly way, by addressing the basic premise that having cleaner air
is always a better proposition and keep climate change discussions alive, as it pertains to when the Dinosaurs roamed
the Earth,.
Educating Suppliers:
One of the quickest way to spot a ill inform supplier, is when an offer for FCL goods is advised at the incorrect ‘CIF’
delivery mode ( said FCL offer should have been offered at CIP). The universal governing Rules of Delivery as
established by the ICC Paris, France is approaching 90 years of established use.We don’t make the rules, alas that
does not mean traders apply to use such rules in a informed manner. FTN Exporting has dramatically cleared up the
maligned intermediary industry of over a 30 year period with its first ever universal Doctrine of Trade as created in
Australia, as fist released online in 2005. A new emerging intermediary profession and application used by
such practitioners, is now a mainstream aspect , plying business under the FTNX USCT brand,- which is now fast
becoming a respected standard, by many suppliers and end buyer world wide, with many compliments being served,
over many years, on how a ‘structured’ high value commodity deal should be conducted. As from 2019, the SMICE
Exchange while trading, will now have it ‘sights set’ in educating ill informed Suppliers and End buyers from all over the
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world on correct, safe and proper export and import trading procedures as well as correct use of trading terms under the
USCT brand as well as our own TRIBE Rules of Association. The law book are literally ‘busting as at the seams’
because too many traders are simply taking ‘short cuts’ and apply trading terms incorrectly. SMICE efforts is to improve
trading condition for all Professional Commodity Trader (PCT) as SMICE expands to formally take on the
‘establishment.’ In large scale sales, a high end commodity deal could take up 3 months to formally close, or even
longer. In this aspect, it is crucial that the whole process from the very start commences correctly ( Just like it should in
any large commercial application) failing to do so often means failure will become evident ’later rather than sooner.’ ‘To
waste months on one single deal which fails at the last minute is also no longer tolerated by SMICE.’ In this business
small issues pertaining to a revolving NBC sales could become a very expensive issue. A legal issue arising from such
‘failings’ heading to litigation, could cost hundreds of millions of dollars to settle, taking many years to do so. It is simply
imperative that all traders are highly informed on the correct and safe methods when trading in large scale commodity
deals.
“In this sad world of ours sorrow comes to all and it often comes with bitter agony. Perfect relief is not possible except with
time. You cannot now believe that you will ever feel better. But this is not true. You are sure to be happy again. Knowing
this, truly believing it will make you less miserable now. I have had enough experience to make this statement.” Abraham
Lincoln
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Trump has no such experience, except in matters of making money and deals - for himself.
FOB and the Speculative Market
The speculative market place as we know it today in where shares are traded for profits and gains is an ‘illusionary
one.’ So called ‘Trillion’ dollar companies are those as incepted on paper using creative accountancy methods and in
where a ‘whole lot of people’ - the majority, are needed ‘to lose their money’ for the benefit of those in the minority ‘who
know how to harvest money’ and to deceptively do so under the auspices ‘of the greater good’ is the common
denominator used by such ‘harvesters.’ ‘I don’t believe that there are now 2 companies genuinely worth a trillion
dollars.’ Take the humble cattle framer, who takes his stock to some distant ‘market’ place where biddings for such cattle
takes place, to determine what the price per head ‘for such cattle’ is worth. This aspect makes sense, and is indeed
demonstrating the true virtues of the ‘on the spot’ price application. Somehow this basic aspect of doing business
is now applied to all wanted products. Lets now take a look at a few VLCC, floating offshore holding a ‘million barrels’
of crude oil, in were the world crude oil prices at ‘FOB’ is declared daily- because in fact ‘there are a few ships’ already
loaded capable to ‘deliver’ at FOB ‘Crude oil.’ This is how the daily price for crude oil, comes to be assessed and
declared at FOB Incoterms. Apparently a Brazilian or African worker getting paid $3.00 per hour to load a ship,
compared to the rates charged in first world economies, plays no role in the ‘FOB’ pricing aspect. Some ‘offers’ go further
by declaring a CIF price, for a product, as listed on some exchange ; as if ‘ offering goods delivered over a border’ a
few kilometres away, is the same CIF prices basis as per the same goods, serving a 15 day ocean travelling time, to be
delivered to a named destination Port. Masters of creating ‘Perceptions’ is a skill developed by a ‘few’ to control ‘the
many’ in making everyone believe that the price of a certain product is strictly ‘dictated’ by some kind of mysterious
Darth Vader like ‘market force.’ SMICE has handled some very large contract in its time, and we have never seen any
commodity supporting a speculative FOB price basis , as found on any Exchange. In a FOB Incoterms deal , the goods
are ordered, and when the goods ‘cross over the ships rails or manifold flange ’ such goods are deemed as being
‘delivered.’ The goods now belong the the end buyer as per a price dictated long before on some exchange in New York
or the likes has created one. When the goods are fully loaded, the period of time measured in loading vessel creates an
‘average price’ payable by the buyer, such a price as already deemed from elsewhere at FOB. A rusting (not ship
worthy) tanker sitting in a harbour, a Silo holding wheat harvested 6 months ago, or perhaps refinery holding in its
warehouse large quantities of unsold metal ingots or Cathodes, all have benefit of a price declared daily at FOB, all
because investors half way across the world, is holding an interest in such stock ‘on paper.’ SMICE has large supply of
coal secure for 2019 trading year; then it speaks for its self; its not yet at the FOB status, and yet ‘somehow’ the first
delivery price when formulated and extracted, the world index price of such coal will be also peaking at very same
time, further exposing the idea that speculative prices are simply ‘manipulated’ prices and nothing more. SRA
and SMICE sources products an secure prices as negotiated with disregards of speculative prices is a long proven
concept to apply- which will not change– is how we approach the market place. A suppliers wanting to secure billion
dollars sale, need to provide more than just a ‘peripatetic and uniformed price ‘ as found on some exchange. When
SMICE uses a speculative prices, then we do so with a large discount applying.
coal being exported, then the supplier has to meet such obligations as a condition of sale, and not as a condition imposed
by the exporters country. The ‘rejection clause’ of a contract is there for such specific purposes. If a country sells live
cattle to another, then the supplier may ask as a condition of sale; as a conditions applied on the contract, that the
importer treats the ‘slaughtering of such cattle’ in humane manner, where local laws pertaining to ‘cruelty to animals
‘ is addressed–on paper, to meet with the same laws that the supplier may need to apply in his own country when such
animals are slaughtered. Whether the buyer abides by such matters or not is irrelevant to the actual ‘sale.’ If the importer
country allows the slaughtering of imported animal to prevail ‘in a cruel manner’ to which the supplier has ‘found out.’ then
‘one government’ in one country cannot ‘impose its will’ on another by forcing it to abide by ‘cruelty to animal laws.’ The
supplier however has the right not sell any more cattle to such a buyer, and could even with just cause, break a
contract on such a basis, if it is later found that indeed the buyer did not abide by the suppliers terms of sale as it
pertains to matters of ‘cruelty.’ The buyer could counter the beach , by claiming a loss of profit. A court could indeed
take the side of an end buyer on the very same natter that cause the initial breach. But which supplier would ‘pull such a
contract’ where payment still need to be collected on a recent sale. The irony here is that, while the supplier may abide
by local laws on cruelty , the voyage itself is often cruel to such animals, in where the virtues and good intent made on
one demand, could readily be dismissed because the supplier has also demonstrated ‘acts or cruelty’ from his side of the
fence.So! The ‘importer’ is obligated to meet all statutory import laws, including those signed under a convention by
participating countries- i.e; the Paris climate change accord on emission targets. Even if the effect on a convention is
placed upon the shoulder of the supplier to bear- it must abide by such laws if it meets with the legal requirement of the
exporters country, as it applies to ‘Goods going over the ship rails’ at port of loading as per i.e: FOB delivery mode. But
lets say the supplier has agreed to a DAP delivery mode all the way to the end buyers factory , then in this instance, it
would be the supplier and exporter who would need to meet the statutory obligations of imports, because if the ‘Place of
Delivery’ is the ‘factory’ of the end buyer, then payment cannot be collected by the supplier until such deliveries takes
place under ‘DAP incoterms’ as intently stated ‘on the sales contract.’ Who would bear DAP delivery conditions? Perhaps
those involved inn intestate or gross boarder deal rather than a long distance ocean going deal. The ‘over the ships
rails’ being replaced by ‘Delivered to factory’ also replaces the time when payment can be collected; are conditions of the
sales contract and incoterms delivery rules.
ICPO Nonsense
A manufacturer in one American State, orders raw material from its usual supplier of such goods, as located in another
state in the same country. A brilliant set of ‘localised’ rules specified as the ‘Uniform Commercial Code’ (UCC) guides the
nature of such internal business.The end buyer furnishes a BCL tied to an Irrevocable Corporate Purchase Order or
‘ICPO.’ The irrevocable nature of this ‘instrument’ actually authorises the supplier to start making arrangements to
deliver the goods to the end buyer as per the terms and conditions specified on the ICPO, even though no financial
instrument has yet been served. This what the “irrevocable” status on the ICPO infers; in where brokers, agents and
informed intermediaries or otherwise, cannot enact upon to ‘assure’ such an ‘irrevocable’ basis. The supplier is now
applying operational expenses pertaining to the logistics of delivery and is incurring costs and expenses in doing so. The
goods are ready for delivery. The supplier now issues a pro forma invoice, as payable within 7 days. The end buyer can
now pay for the goods or take the invoice to a ‘factor’ who will advance payment for the goods to the end buyer. The
factor now own the ‘title’ to goods until the end buyer, reimburses the factor.This in its basic form, defines the
operational attributes of an ICPO. An ICPO cannot be used in international trade business because it is used as a
localised method of doing business. If the end buyer does not pay the supplier, legal action within the bounds of localised
or federal laws is a simple matter to apply for, in an action to recoup operational costs, cost of goods and even loss of
profit by a supplier, because an ‘acceptable ‘ manner of doing business was applied as it pertains to internal USA
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commercial practices, rules and laws. The issuance of ICPO is a not recognised practice in other countries and hence
judicial matters and matters of enforcing a judgement cannot be effectively applied once the nature of business is enacted
upon, using an ICPO. The ICC Paris, France has declared on a few occasions that the use of extra territorial practices
must not be plied in the international trade arena. The use of an ICPO extra territorially, and other localised practice is a
flawed and unworkable process.Once goods are delivered, if such goods are converted to become ‘something else’ or is
used until stock is depleted, the virtues of any liens placed upon the end buyer, evaporates with such an event. Suppliers
must secure a financial instrument, before delivering goods is now ostensibly the only safe process, of conducting such
business. A Buyer cannot take physical delivery on any goods unless payment in advance is first lodged and a “trader’
cannot apply to issue nor sign a ICPO unless the business is localised (USA) Note : ICPO is a term defining the
business of Interpol
another strict set of in universal bank rules under as defined under URC ( as current at any given time; Uniform Rules of
Collection ) the bank applying collection proceedings has no interest in the underlying sales contract but only the terms
and condition of the credit. No payment can be collect unless the required and verifiable presentation documents, needed
to be presented to the DLC advising bank, comply with URC rules as well as the terms and conditions of the credit. Once
all such documentation are presented without ambiguity ( presented cleanly) the credit is enacted upon for collection ‘at
sight.’ The term ‘ irrevocable’ as applied on a credit, is an important one. The issuing bank will irrevocably ‘honour’
payments unconditionally once all the required documents have been presented cleanly in complying with the credit. No
matter what the end buyers state, no matter what are excuse are presented, the credit cannot be canceled as the
‘irrevocable’ status is applied by the bank not by the end buyer. In this light a large bank- a very powerful financial entity
is actually supervising collection proceeding on behalf of its client the importer / end buyer. The ‘commission’ earned by
the bank for supervising a financial side of the transaction is therefore justified. With a DLC , you have a bank supervising
the financial side of the transaction. How good is that ! If the bank is not ‘satisfied ’ with the documents being
presented, nobody will get paid. There is only one way that the irrevocable status of a credit can be removed–if the
issuing bank has become specifically and formally aware that a fraudulent transaction is taking place. Being that
negotiations can often take months to conclude and that– a credit is advised thereafter in were it may take 30 days
or more before a transaction can close, to arrive at collection stage of the process, a fraudulent transaction can easily be
discovered, within a short period of time once the credit is advised. The other aspect than many don’t understand is
associated with delivery. An end buyer may pack up their bags, head for the suppliers country, order the goods, pay for
them in any form they like and come home to await arrival. There is no added assurance of collecting title at port of
destination, because the end buyer will not know if what was ordered , has arrived until the load has been taken. Under
CIF, CFR, FOB , CIP and FCA (Incoterms 2010) delivery rules, the supplier has the right to be paid for goods exported,
once the goods are loaded in good condition on board a named vessel at port of loading. Unlike what some may think, this
is the proper course of business. Furthermore an end buyer examining goods at port of loading may lose the right to
reject defective goods, as found once goods are unloaded at port of destination under the maxim ‘buyer beware’ (Caveat
Emptor) and that; this maxim is literally a universal once. If one examines the raw goods ordered, and pays for then
under overt market conditions, the right of rejection may be lost. Under the terms and conditions of DLC part of the
documents also apply, as per inspection and certification of goods ordered. Independent Experts assure the goods being
loaded are those as ordered by the end buyer. Note the term ‘Independent.’ The Bill of Laden , the document
therein, serves as title. If a DLC requires the issuance of BOL which if not cleanly presented, no collection on payment
will be allowed. The BOL allows the end buyer to take physical possession of goods ordered from custom wharf at
destination port, because it’s a document supporting the auspices of a natural legal aspect; “Who holds tile, may take
physical possession of the ordered goods, or the property in them.” The Certificate of Origin is issued and testified
by the commercial department of a localised Consulate, again here is another verifiable document which must comply
with the terms and conditions of the credit, and so forth and so on. Once can quickly come to the realisation that opening
or transferring a bank issued UCP endorsed DLC is really a very serious business and must never be taken lightly and
nor be easily dismissed, as some have done. Even a UCP endorsed bank issued pre advised credit is a fully irrevocable
once activated, if the pre advising aspect as detailed in the terms and conditions of the credit, are met. Suppliers must
become informed on the virtues of using a UCP endorsed credit likewise end buyers; as the rules binding such credits are
universally applied and are served in a manner in where safe dealing prevail at all times, unlike any other instrument. The
cost of doing business is slightly more using a UCP DLC, but the peace of mind it brings with its usage is second to
none, especially when handled by a highly informed specialist such as USCT member. In most cases the price of the
goods ordered would have accommodated to include such expenses in where a good base price would still prevail. When
dealing with FTNX a ‘rebate’ could be organised in where any ‘added’ expenses, are reimbursed by FTNX after the deal
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closes. Using a UCP endorsed DLC has so many layers of inherited security features unseen by most suppliers or end
buyers . Only real suppliers will accept a DLC and only real end buyers can issue one.
“One flea at the market said to the other flea, shall we walk or catch a dog” An informed leader no matter its form
directs other to reach a destination safely; an ill informed follower without a leader, direct others to nowhere.
Short Cuts !
SMICE traders over recent years have come cross an huge number of people in this business, who apply to do such
business using ‘short cuts’ which in itself may be reflective of times we live in. Soon, it may come to light ‘at the stroke of
the pen’ that child born in USA cannot no longer be conferred US citizenship, because the US President, Donald Trump,
knows better about such matters than the Supreme Court. The fact that most Democratic countries would find such an act
Illegal; no unlawful act is committed if the President exercises his power of Veto to override anyone standing in his
way, to ensure laws can be ‘legally’ broken. To exercise such a power of veto by the US President to even override
matters of the constitution, to stop defenceless people for entering ‘his country’ is simply applied using nothing more than
a pen. To stop defenceless people being gunned down in his country, however does not attract the same ‘show of force
and power.’ It seems that taking a ‘short cut’ in trying to enact on one issue, does not complement to mean that short
cuts will be applied on issues that are indeed require immediate attention. It seems that Trump likes to exercise his
power against those who cannot fight back. Trump is simply applying a ‘short cut’ in humanitarian matters which are
difficult to control otherwise, just to ensure his particular kind of ‘followers’ are appeased, the type of followers, most of
which have no idea, nor conception what it means to be ‘morally and ethically’ obligated to help ‘built’ the society we live;
the same type of followers who often argue that its their ‘right to carry guns.’ Trump takes a ‘short cut’ to serve
impression that he is doing ‘something’ because he is unable to do anything else. What next–education centres and
Gulags? There is always a price that much be paid, by all who are complicit in avoiding doing, that which must be
done. Government in Australia upon a whim, will issue sanctions ‘left, right and centre’ against another country that has
breached international convention on the exact same ‘Trump’ basis in where ‘short cuts’ are taken to dissolve an issue or
threat, which was deemed as being ‘too difficult,’ to do anything about to begin with. Government spends billions of
dollars in tax payer money to attend forums and the likes so as to establish ‘conventions’ that ultimately means very little
in troubled times. Another Government body, announces a major improvement to transport, by providing new trains with
little or no seating, and a means to promote the idea that such a Government has done something to improve the flow of
traffic; not by increasing the supply of new trains, but by introducing a few new trains–with no seats, showing us all how
‘short cuts’ can be put to good use. Major banks, Super funds, Financial advisors around the world ripping off consumers
by taking ‘short cuts’ have become major headlines in recent years. We the ‘little people’ are being herded like cattle, by
the ‘big people’ who we thought we could trust. A government make a law sand agencies pop up to enforce such laws,
often skimming huge payments for themselves and to do so while being legally protected. A supplier of exportable goods,
makes an offer in where procedures call for the deposit of a large sum of money, in the form of cash, as a basis of his
procedures, and of doing business; citing that other methods of doing business are more expensive; as if anyone of
sound mind would accommodate such procedures–and yet this is what some suppliers expect, by offering such ‘short
cuts.’ A device/machinery is made obsolete, by a major computer giant or car manufacturer by ensuring ‘snippets of code’
are applied, in making a ‘perfectly good device’ useless in an effort to force consumers to update such ‘perfectly
good’ devices / machinery; such acts by the way, which heavily contribute greatly to carbon emissions. The trip to new
doctor, in where the best advice is ‘we need an MRI’ or ‘blood tests’ even though you’ve explained to the doctor, that this
is your 10th MRI and 7th blood test taken in the last year, for the very same issue, is yet another example of taking ‘short
cuts’ when solutions to a problem is not readily evident.etc.etc. “If you can’t fix a problem, then at the very
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least pretending that you are doing something about the issue is a good second option for many.” Nobody ‘wants to do
the work anymore’ and yet everyone expects ‘a service to be provided’ or an adverse situation to be quickly rectified.
There are so many ‘short cuts’ taken, that many in these enlightened time, can readily become bewildered with aspects of
such ‘short cuts’ taking over aspect of everyday life. Short cuts are the bedfellow of bad management and in many cases
greed. What has happened to the law.? What happened to taking legal action.? Are only ‘the small people’ of this
world forced to abide by laws, which Presidents, Prime Ministers and Corporate giants are able to manipulate
and bypass without being held accountable when breaking such laws.? Is it better to earn a billion dollars, taking ‘short
cuts’ knowing that you could face fines of a 100 million dollars, by doing so.? Many ‘business minded people’ would
answer this question in the affirmative. Lets change the perspective. Is it better to intentionally ‘rip of people’ billions of
dollars, by taking ‘short cuts’ knowing that the instigator WILL in accordance with the law, face fines of 100’s of million
dollars, as well as a lengthy term in prison, for doing so.? Short cuts more often than not, will produce unseen
consequences. A temporary ‘fix’ is just that. A type of fix that ‘will do for now.’ The drawing of blinds, so people can’t really
see what’s going on inside is an aspect of business applied in the the early 1980’s. I heard it said that we of the older
generation, live in different times when compared to the current emerging generations, when if fact, nothing has changed
at all. ‘The colour may have changed, but the building has not.’ SMICE trains its Agents on a platform built upon integrity
in where ‘short cuts’ must not be used, no matter how tempting it may seem to do so, as ‘short cuts’ in this business will
produce huge consequences that ‘we the small people’ cannot be brought upon to bear. It is us the ‘small people’ when
joined in unity can force corporations to change their bad practices because while such entities may break laws to suit
their own needs, they will not do the same when profits are falling in then light of social media and adverse reporting
online. This is the ‘Achilles heel’ that well known international brands/names fear the most. Presidents and Prime
Ministers are very well aware of this perspective as well. This is the level playing field where the ‘small people’ can often
win. Nobody can be effectively sued for ‘telling the truth.’ SMICE will not take ‘short cuts’ to accommodate a deal
because our work is about closing deals and making legitimate profits, legally and lawfully in support of laws and rules,
which are there not only used to protect our interests, but those we are engaging with at any given time. Luckily there is
more than enough business globally for SMICE and peer traders to avoid entities who insist on taking ‘short cuts.’
‘Those who fish in dirty water can only ever expect to catch dirty fish.’
OTP COPPER
SMICE LIBRARY: OTP COPPER CATHODES 2019
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FORMAT: UNRESTRICTED PDF
DATE OF POSTING: 10/10/2018
OTP VALID FOR VALIDITY: 6 MONTHS
USCT ®: Allowed(x) Not allowed( )
COMMENTS:
Supplier world wide coming across this website may submit OTP to SMICE directly. If OTP ( or created
simile) was advised by a SMICE Agent to the supplier then OTP must be returned to the person serving
such and not SMICE. Supplier submitting OTP is able to entertain supply similar to stated basis. New
OTP may be replaced with current OTP found in library without notice
SMICE LIBRARY: AOS/OTP COMBINED FORM 2019
FORMAT: UNRESTRICTED: WORDS DOCX
DATE OF POSTING: 23/10/2018
AOS /OTS VALID FOR VALIDITY:2019
USCT ®: Allowed(x) Not allowed( )
COMMENTS:
An OTS is used in-house by a USCT member. An AOS is filed in by a supplier coming across the SMICE
website and down loading the AOS/OTS form. In in effect a combined form is a apparent. if the USCT
member is dealing with a Supplier and fragmented information is served via email, the ‘fragments’ are
added to the OTS and when the OTS is completed , its advised to the Principal. A USCT must not
simply pass the OTS form to a supplier to fill-in as the OTS is an in-house process and not an intentional
trade process proper.Same applies to the RFQ when dealing with end buyers. Once the DOCX formatted
form is filled in, it’s returned to the principal as an PDF.
AOS/OTS FORM
SMICE LIBRARY: AOS/OTP COMBINED FORM 2019
FORMAT: UNRESTRICTED: PDF
DATE OF POSTING: 23/10/2018
AOS /OTS VALID FOR VALIDITY:2019
USCT ®: Allowed(x) Not allowed( )
COMMENTS:
Same as above if DOCX format cannot be opened or used. PDF is scanned , filled in with a blue pen, re
-scanned and returned as a PDF
WORTHY PRODUCTS
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SMICE LIBRARY: IRON ORE PELLETS
FORMAT: UNRESTRICTED SIMPLE ASPECT:PDF
DATE OF POSTING: 17 NOV 2018
VALIDITY:<17 DEC 2018
CONFIRMED UNREGISTERED USCT ®: Allowed(x) Not allowed( )
COMMENTS:
RFQ IN HAND: SOURCING IRON ORE PELLETS PDF in unrestricted form ASAP
CORN DOCX
/islands..
SMICE EMAIL
SMICE EXCHANGE
Melbourne Australia
We are unable to service the many requests made from entities work wide wanting to speak with
D.G.A.Papa directly by phone, accordingly a restricted and vetted ‘front desk’ indirect telephone
contact will be made available, for the first time in decades, from early September for general
enquires not directly related to offers or buying requests, which must be expressed in writing by e-
mail as matter formality and legality. If unsure please contact a listed SMICE Registered Agent
(SRA).They are there to assist you. Private land line phone numbers and other details are provided
on contract. Making a phone appointment by email will ensure that your call will be served, if an
outline is also provide on what the call is about. Samples and other items deliveries by parcel delivery ……………
services may be sent to our Nth Carlton or Bacchus Marsh office as per instructions served at such a
time. Front desk service is mainly to do with assisting SRA’s when a problematic issue arise during
the course of a transaction. SMICE staff answering the phone will be unable to serve trade advice of
any kind. Please note; there are dishonourable traders / entities world wide claiming to represent
FTNX-SMICE. If the entity making a claim of representation, is not described on our SRA registry
then it would be prudent to email us the details, to which will be able verify and confirm a
claimed status.
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FTN Exporting Australia
Offices : Melbourne City and Bacchus Marsh Victoria
FTN Exporting is a registered business entity with ASIC
No contact information of postal postal addresses served online.
Email: ftnexporting@yahoo.com
Current website: www.ftnx.net
Past defunct non active website: www.ftnexporting.com.
Long past defunct non active website : www.exportexpert.freeservers.com
INTRODUCTION
The number of ill informed intermediaries in the market place today is is reducing in size yearly, thanks in no small part
to FTN Exporting (FTNX) creating the first ever legally defined uniform doctrine of trade that all Private Commodity
Traders (PCT), including suppliers, buyers, brokers, corporations and agents can now learn to apply and trade world
wide, in this new emerging profession, no matter from which country the PCT is situated in. FTNX Exporting had
released its Doctrine of Trade online in 2005.
The need for such information was great–as thousand of ‘ ill informed intermediaries’ now have the opportunity to ply
their desired business as it applies in real transactions a PCT. As the leading expert and best selling international
Author, as well as Author to over 50 private in-house publications, in the nature of business being prescribed FTNX
CEO Davide Giovanni Papa is not only providing correct lawful trading procedures and advice that all End buyer and
Suppliers ought to be using as well, but trading procedures based not only on rules and laws, but trading aspects as
attained in the real environment of business over a very long period of time as well. Not many academics level Authors
can claim to have such experience, for the material they have published.
Today the term ‘intermediary’ is reserved or ill informed ‘ad hoc’ traders. When we use the term ‘intermediary’, it’s only
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done so to add clarity in the lessons and study we are delivering. Any entity who is attempting to trade in commodities
must study the FTNX Doctrine of Trade to obtain the required insight to trade legally and effectively. To distinguish
those who have completed the study against those who have not, all Professional Commodity Trader form 2015 onwards
were issued a ‘Unified Society of Commodity Traders’ (USCT) logo and number which easily verified thorough FTNX.
Trading in commodities is one of the most complex business applications on the planet–it’s also one of the most exciting
and challenging business applications as well, that most informed ‘indoctrinated’ traders can attempt to apply without a
huge financial outlay.
To secure goods at prices that most end buyers cannot secure and selling such to end buyers while generating a huge
personal profit, takes real skill knowledge and experience. Those who are prepared to spend 3 months studying the
doctrine, and spend ‘years’ in attempting to close a lucrative import export deal- welcome to the FTN Exporting
educational website for ‘intermediaries.’ We cannot guarantee that applicant will close a deal (never have), as everyone
has different abilities–which is something we cannot gauge.
What is guaranteed however is that the FTNX Doctrine of Trade is able to close such deals, as described, breaking down
complex situation into its simplest premise of understanding.
Three things cannot be long hidden; the sun, the moon and the truth. Buddism
FTN Exporting wishes all USCT members and FTNX clients a Very Happy Christmas, Prosperous and Profitable New
Year, as we slow down operations, for 2018, from the 1 December 2018, due to the festive season. Orders for
POTE placed up to the 22 December 2018 will be service on the 27 December 2018. Later orders
taken serviced when FTNX operations as well as banks and suppliers around the world return to full normal
business by 3 January 2019.
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not cut off applicants after nine months are up, and may continue the interactive process at mentors discretion for some
time thereafter with a equally active member ) Ask questions as required during study period, then interact on the 9
month trading period on real efforts made and live dealing. Consultation by email is open as needed. Phone number
given and personal phone ‘chats’ as needed is all available as instigated by the applicant. ( A 10 minute chat can delivery
clarity to a situation instantly that may take months to otherwise serve by email.) To have all publication /study
material as well as having the world leading intermediary /trading expert on standby overseeing your efforts at a
academic level for 1 year , at the price offered is unheard of; denoting that undervalued basis of this offer will rise
dramatically in 2019. This is the last chance to secure a mentor as stated, at the price offered. By being a declared a
SMICE member you will act on deals as FTNX would act when sourcing and acting on such deals in the orthodox
trading aspect. You will learn the trading aspect at a very high level and trade just like your mentor would in a very short
period of time.In essence a advance trading and training aspect is offered. The SMICE member is served advice as
needed to enact as an associated SMICE member. This means the applicant may approach suppliers and end buyers
is doing so not as an intermediary but a SMICE member (www.smice.net is our real live trading / training site). What is
being paid for is 'time.' FTNX cannot mentor anyone at call, accordingly those who secure 'time' and reserve a place with
FTNX has such time 'reserved' and personally devoted in servicing the applicant is all matters of study and trading via
email on a one on one personal basis .The applicant may trade alone after 9 months or they may continue with
the SMICE association ( or apply to do both instructed) once the 9 most interactive period is up. Once the study
/trading period is over, the applicant should be able to trade in commodities world wide alone at a high level where
‘gaining more experience’ will dictate the applicants final outcome. This interactive offer also delivers good experience
early . More importantly, the unseen aspect of having a mentor on standby is that; if the applicant has assets to protect,
then FTNX bears all responsibilities and consequences of the applicants actions when trading as an associated SMICE
member; this one aspect boosts the confidence level of the applicant to make real efforts to trade and learn the
business through the eyes of a principal. FTNX closes all contracts, should the efforts of the applicant proves to
be fruitful (unlikely while training but possible thereafter) all profits are shared evenly. How FTNX enacts with the
applicant, then in time the applicant will also do the same when enacting with others when he or she starts to trade on
their own. We know by experience that even a few interactions at this level, will cause the applicant to learn at faster
pace, than having to waste months in discovering aspects of trade on your own. Dealing in petroleum based products
will be in part, the main focus for 2019 and this is the most difficult category to deal in. The applicant reads the first four
parts of the POTE segments offered then commences to trade, reading the remaining segments over time. We will
assume a 3 month grace study period is in effect, in where 9 months trading aspect then become apparent thereafter.
The applicant simply start the process as instructed in the doctrine to secure one supplier of a wanted product. You’ll be
instructed accordingly by your Principal FTNX. This is the first act, in where efforts are presented in a amicable and
friendly manner with your mentor D.G.A.Papa.We expect mistakes and we expect some confusion , which we will clear
up quickly, so long as the applicant make efforts to interact with his or her mentor. Work the deals with FTNX as your
principal and learn the ropes accordingly, before trading on your own in around 12 months after (The SMICE member
status will still be active there-after on merit). The ability to service our advice when sought is the minimum expectation.
Anything else is treated as a bonus as the educational aspect remain the underlying purpose of taking this offer. We
cannot force an applicant to interact with us or do do assigned tasks, hence the applicant works at their own pace, and
interacts with there mentor as needed, in essence however, the more efforts made, the better the final
outcome.Become a specialist commodity trader by learning from the best.
Notes:
1. Applicant act as a SMICE member (SM) from day one
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2. As SM you will not be rushed with enquiries so early. The important aspect of getting your name 'out
there' ASAP while studying the doctrine is a worthy well tested aspect.
3. A letter of introduction will stipulate all matters intently. Applicant also receives all codes to access smice.net
restricted PDF's
4. If you cannot really afford to purchase offer (2) and think that you will recoup payment made on a deal ; this
is the wrong mindset to apply.
5. Regardless if applicant is studying/ training/ trading full time or in their spare time after work,email
service served on weekends will be also answered
6. Holiday breaks by don’t count in essence the best time to take the study is at the end of any given year.
7.
1. Terms and Conditions of Purchase: (As applicable to the purchase being made)
2. We state all relevant matters as they are, regardless if such matters seem negative, adverse or obtuse, in an
effort to attract only applicant with firm trading intent.
3. We are offering educational services ‘not get rich quick’ schemes are offered.
4. This is a professional business, dictated heavily by international laws, rules and regulations world wide.
5. Some applicants buying the doctrine will close a deal, some will get close, some will never close deal as
principal. This is the nature of any business application including ours.
6. We cannot gauge personal skills of the applicant which contributes to the overall trading success.
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32. Only financially stable or applicant who are working should consider taking up mentorship; as no income will be
earned while educational process is in place, may be assumed.
33. Should any deal eventuate , while mentorship is in force (highly unlikely), such is treated as a bonus.FTNX
protects all fiduciary interests of the applicant should their efforts led to SMICE closing a deal.
Such incorrect terms of reference above defines that ill informed traders are in your midst. You know all this because
you have studied the FTNX doctrine of trade. The PCT needs to trade in manner that is both lawful and proper, which
also means avoiding enquiries from ill informed others. The PCT while sourcing a supplier, is actually applying the
virtues of applying due diligence at the same time. To start a deal , negotiate upon its premises and close a deal could
take as much as 3 months; like wise when sourcing goods or end buyer ; long period of time become apparent.
Statements on ‘fake’ offers such as “Deal can be closed in 24 hours’ now starts to make a whole lot of sense to the
PCT, that many people in this business really don’t know what they are doing at all– thanks to the study. A study to do
with international trade laws, rules and procedures - not guess work, and fake deals.
Securing a Supplier
Whether it takes ‘five months or five years’ to receive an offer from a genuine ‘supplier’ is not the relevant issue. The
relevant issue is that ‘you do secure a genuine supplier’ first. What many have not understood is that ‘it’s not the number
of suppliers secured that counts’ but rather, the quality of long term supply of a wanted product has indeed been
secured. Nine months after studying the doctrine–finally you have secured a supplier of lets say ‘Aluminium Ingots’
who has assured you supply for 3 months minimum. This now means that the PCT will be busy for 3 months trying to
secure an end buyer for the very goods the PCT has secured. The PCT is trading as a ‘Seller to his secured end buyer,
and buyer to his secured supplier,’ while at the same time still attempting to test, to source ‘yet another supplier’ and
supply therein.’ To secure two perhaps three product in any given year is great ; to attempt to secure more, becomes a
foolish act. The PCT learn everything they need to know, by practising to secure a supplier intently. The matter of
closing procedures comes second to the first premise. The whole matter of not being charged for a criminal offence
pertaining to fraud is avoided once a supplier is formally secured and identified by the PCT. In this light the PCT has
not other option.
FTN EXPORTING
THE FORMAL BUSINESS OF THE IMPORT EXPORT INTERMEDIARY
By Davide Giovanni Papa
Educational Website 2019: last Updated 12 October 2018
trading aspect with advanced trading aspects included. Applicant are required to be mentored by FTNX if the entity
wants to learn to apply the basic as well as the advance trading aspect. This site page is not for novice applicants but
applicants who have already studied our doctrine which may have become ‘stale’ ( Pre-2015) or applicant who ‘have
earned their strips’ and has moved to practising buying and selling commodities, at both the basic and the advanced
levels.
This new aspect of the SIPG may also be imposed any time with the supplier if no SLC P.G is being offered. “ I will
agree to give you, the supplier, the asking price of US$100.00 per MT at FOB for goods offered, and we do not
require the usual SLC P.G, but I will retain 3.0% of the first delivery payment as a ongoing performance
guarantee which is forfeited, for any late deliveries, at the rate of 0.25%. If after 6th delivery from the 12 deliveries
purchased, the clear amount retained is reimbursed to the supplier as a cash rebate to a bank account as
nominated at that time. The remaining 1.50% SIPG is released after the 12th and final delivery.” The SIPG has been
explained above by example, and is referred to in the offer.One way out another the Supplier has to offer a SLC P.G
or SIPG unless waived by the PCT. Waiving of a P.G is usually served to suppliers in undeveloped countries.
Good Question
Served by USCT No: EJ10009
Posted: 12 October 2018
‘I thought the doctrine states I could service inquiries to ill informed trader as a matter of practice.’
Answer: Sure, you can do as much, once the PCT commence to trade and only for a little while, in testing how to
spot a fake deal. In essence you have nothing to learn by interacting with such traders is the recent aspect and
conclusion we have arrived at. Real deals / supply from ill informed other are simply extremely rare events;
ostensibly as from 2016–from every thousand inquiries one product might be real and if so the procedures often
attached cannot be applied by the PCT anyway. If the PCT kept on testing such ill informed inquiries, no harm would
be effected, hence it’s more to do with wasting time on dead end deals applied by ill informed others, who may be
trying to learn trading matters from the PCT. If you can see that an inquiry is fake or unworkable, why serve the
answer? This aspect usually become relevant when the PCT starts trading in where ill informed others are attracted
to the PCT. Testing a few fake deals with questions, will produce no harm, but it will serve no lesson either than to test
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ones own knowledge which should be done on real potential deals being attempted,as the doctrine is forgiving for
Novice applicants, when they get started. “If you argue with idiots , they will drag you down to their level.” Solution?
Once you have identified a suspect inquiry - trash it as RF. There is the risk that by attaching ill informed traders,
such could be doing harm to the status of the PCT as well is another concern,that is rarely mentioned.
DLC ADVICE
FTN EXPORTING
THE FORMAL BUSINESS OF THE IMPORT EXPORT INTERMEDIARY
By Davide Giovanni Papa
Educational Website 2019: last Updated 12 October 2018
In Summary:
No personal phone numbers or full postal addresses for FTNX are published online.
It would be impossible for us to answer the many un-vetted calls we would receive daily.
Contact details are privately served as a matter of contract.
FTNX has long ceased testing social site, business sites and the likes, accordingly we do not use any social sites, as the d
such sites in her past when we had tested such.
Any information found about www.ftnexporting.com site is now considered outdated. The www.ftnx.net site is our new busine
International visitors required to meet with FTNX CEO on a pre advised business matter must arrange as much long before a
If accepted, meeting shall be held in our Central Melbourne City Address.
Any FTNX In house publication pre 2013 is now considered ‘stale.’ Publication 2010 or prior are deemed obsolete and not w
SCAM ALERT
Entities from USA and Europe illegally reselling outdated copies of our in-house beta educational material are back again with a re
long outdated and unworkable. Fake Resellers have changed key words to try and disguise the theft, but the main
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world and altered past Rules of Association. Paying dishonourable entities for plagiarised copy of our in-house doctrine some go
dishonourable people. Those trading using such outdated and unauthorised copies of our doctrine, will not be able to secure a su
have served and continue to serve adverse reports to suppliers and end buyers checking up on the status of persons
INTERMEDIARIES
It is impossible to earn commission acting as a lone ill informed intermediary passing deals from one side to another all day, regard
are wasting your time. Those who cannot afford to buy our in-house beta masterworks publications should buy our least expensive
by Leading U.K publishers (Francis and Taylor ) now in its 8th year and still going strong. ITSI is only 80,000 words (against P
application. An intermediary who becomes successful, must first learn to trade using the proper intermediary basis only for a sho
after. U.K Publisher is offering hardcopy ITSI for under US$100.00. Failing this, ask your local library ( USA Library of Congress
cannot guarantee that an applicant will close a deal (never have) What is guaranteed however is that the FTNX Doctrine o
level challenge will need to test their own abilities–to learn and then trade accordingly.
END of Doc
74/40416/237513
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