for Scrap Metals
The following business procedure is a typical one that a buyer has to follow when the buyer buys scrap metals from the qualified suppliers in N. America. Before you take any actions, we strongly advise you to review the "Typical Export Sales Terms by N. American Major Suppliers" discussed below.
- You send us the end buyer's PO(Purchase Order) or LOI(Letter of Intent). This document should be on buyer's letterhead, should be signed and sealed by the buyer, and should include buyer's banking details to allow the supplier to check buyer's financial capability. Some suppliers require, in addition, buyer's BCL(Bank Capability Letter).
- End-buyer and our company set up working relationship by making a Buying Agency Agreement.
- On receipt of the PO or LOI, the supplier will send to the buyer a Sales/Purchase Contract, Pro Forma Invoice, and/or FCO(Full Corporate Offer).
- Once the buyer and supplier have agreed and signed on the Contract, Pro-Forma Invoice, and/or FCO, the deal is executed in compliance with the terms of the agreement.
Typical Export Sales Terms by N. American Major Suppliers
- 30% to 50% down-payment within 3 working days after the purchase contract and the rest just before uploading or against B/L by bank wire transfer for most suppliers or
- 100% L/C that will be opened within 3 working days after the purchase contract for certain end-suppliers or
- 100% pre-payment just before uploading by bank wire transfer for certain end-suppliers
- Incoterm: Primarily FAS/ Sometimes CFR Possible
- Product Specification: Product specification is supposed to be written in LOI according to ISRI(Institute of Scrap Recycling Institute) code system for mutual clear understanding. If you cant find a appropriate code, you are advised to provide a detailed product specification along with some pictures.