|
|
 FAQ
Your questions are always welcome to us. If your question is likely to interest others we may post that and the answer here.
You may also find our Glossary of Export Terms valuable.
Getting down to business: The LOI
|
How do I acquire a final and binding quotation?
|
|
In order to buy any agricultural commodity, e.g. rice and rubber, a Letter of Intent, LOI, must be sent to us.
The LOI must at least contain the following information.
- Your firm's name, address, telephone & fax number
- Contact person's name and title
- Products quantity and specifications
- Contact length
- Your target price in USD.
- Method of packing (bags, bulk etc.)
- Destination port or country
- Shipment size.
- Method of payment, typically an irrevocable Letter of Credit (see below) at sight, or a Telegraphic Transfer (also below)
- Preferred shipping date
- A Bank's Confirmation Letter, BCL, stating that the buyer would have the financial capacity to handle the payment.
This will let our Legal Officer review the LOI, make suggestions for amendment and
draft a final contract.
At this point, if all suggested terms and conditions of the LOI, the L/C (if applies) and contract are acceptable to both buyer and sellar, a Full Corporate Offer, FCO, legally binding, is made to the prospective buyer.
|
Payment
|
|
How do I pay for the products?
|
|
|
Several methods are available, depending on the nature of the transaction and the
relationship we have established with the customer. See "Order's and Samples, Policies" below for information about when to use the
different methods.
Method 1: Letter of Credit, L/C
The L/C is a guarantee from the buyer's bank that money will be paid when certain conditions are met.
It is an excellent way to protect both the buyer and the seller in larger transactions.
- The buyer will have the guarantee that no money is
paid before all the conditions stipulated in the L/C are fulfilled and documented, typically that the goods are shipped, and that quality control and delivery time was as agreed.
- The seller will have the advising bank's guarantee that the money is available when the L/C conditions are met.
The drawbacks are the bank charges and needed amount of paperwork.
You can read more about L/Cs here.
The L/C payment procedure is usually as follows:
- After receiving a Full Corporate Offer, FCO, from us, you, the importer, apply to open the L/C to us, through your issuing bank, in your country.
- Upon the issuing bank's approval they will inform our bank in Thailand, our advising bank, that the L/C has been opened, and in turn they inform us.
- We will verify that terms and conditions in the L/C are correct as agreed, and then prepare the delivery.
- After the shipping agent has verified that the shipment matches the specifications in the L/C he will issue a clean bill of lading to us.
- We will submit the bill of lading and all other relevant documents to our advising bank. All matters regarding payment is now between us and this bank.
- Our advising bank will send the bill of lading and relevant documents to your issuing bank, and they will in turn inform you.
- You arrange the payment to your issuing bank, and receive from them the bill of lading and other relevant documents. With the bill of lading in your hands you can now claim ownership of the goods.
- With all of these documents, you can clear the customs and pick up the goods after the goods arrive on the destination sea port.
The typical L/C scenario takes 7 - 15 days to complete.
Method 2: Payment in advance, T/T
T/T means 'Telegraphic Transfer', in ordinary language called 'wire transfer' or 'bank transfer'. It's the simplest and fastest payment method to use.
Naturally, payment in advance is only an option when the buyer trusts the seller. The great advantage
is the speed and the low cost, compared to the L/C procedure above.
We require T/T advance payment for some high-value samples (see our samples ordering policy) and small quantity order shipped by air.
It usually takes 2-4 business days to receive and confirm a wire transfer made from anywhere in the world.
Customers who have a long-standing business relationships with us will usually receive free samples;
and for small quantity orders, the "Document against Payment"-method (see below) is used.
Method 3: Document against Payment, D/P
We ship the goods and send the shipping documents to the importer's bank for collection. Upon receipt, the bank then sends
a collection notice to the importer.
The importer makes full payment upon receiving the notice, and only after payment does the importer receive the original
shipping documents with which he takes the physical possession of the goods.
Naturally, the risk exists that the importer fails to collect the documents or that some problem occurs.
As the cargo would already be loaded the exporter will suffer a loss.
As for the T/T method, one advantage the D/P method is the low cost, compared to using an L/C.
|
Orders and Samples, Policies
|
|
How do I request a sample?
|
|
|
If you are a new client you will have to cover the costs by making a T/T (see above).
We will send the sample as agreed, along with neccessary documents.
Clients with whom we already have done business will usually be entitled to receive free samples whenever possible.
|
|
|
What are the conditions for smaller orders where an L/C should not be needed?
|
|
|
If you are a new client we will usually need a T/T before shipping any order.
A T/T is also required on orders delivered by air.
If the order covers a larger quantity shipped by sea and the customer has a long-standing relationships with us, we often do
50% by T/T, and 50% made via D/P.
|
|
|
|
|
|
© FoodThailand - by Food com (Thailand) Co Ltd
103 Soi Supapong 1, Srinakarin Road
(near Seacon square)
Kwaeng Nongbon, Keht Praves,
10250 Bangkok
Thailand
|
|
|
- site design, programming and technical management by U5com
|
| |
