Below is the general outline of the process involved in establishing a relationship with Globe Commodity Traders (GCT). There may be a slight variation depending on a few factors, customarily or beyond GCT’s control, including the seller’s and the buyer’s preference and prerogative.
- You contact GCT and express your interest in working with GCT.
- GCT will determine the request is from a legitimate source.
- GCT will email you, THE buyer, THE seller, or the refinery, a “non-exclusive” Marketing Agreement (MA)* and, the brokers, a non-disclosure, non-circumvention (NDNC) agreement. This requirement may be waived at the sole discretion of GCT.
- Your company and GCT will execute the appropriate agreement.
- You will send GCT list of products of interest for either purchase or sale. Buyers and refineries usually issue Purchase Order (PO) or Commercial Invoice (CI) to GCT. Bonny Light transactions involve the use of a seller’s Sales Purchase Agreement (SPA).
- GCT will secure a seller or a buyer and price and terms acceptable to you or your client. This step will be slightly different if PO or CI is issued.
- GCT and the buyer or the buyer’s mandate will negotiate the commission amount for all parties involved.
- We would like to know the following: delivery preference: FOB, CIF, TTO, TTA; the quantity; contract duration; the name and location of the bank the buyer will use–NOT the account numbers; and the financial instrument the buyer will issue.
- Upon mutual acceptance of the procedure, Seller will issue an SPA for buyer’s signature.
- GCT will be in charge of communicating the SPA to both parties. Upon execution of the SPA, the seller and the buyer will be introduced to each other.
- As a standard procedure, you will participate in the issuance and/or the response to necessary documents such as: Sales Purchase Agreement (SPA), Irrevocable Corporate Purchase Order (ICPO), Commercial Invoice (CI), Mutual Non-Disclosure Non-Circumvention (MNDNC), Irrevocable Mutual Financial Protection Agreement (IMFPA), Ready, Willing, Able letter (RWA), bank Comfort Letter (BCL), Revolving Irrevocable Documentary Letter of Credit [DLC-MT 700, MT 799, MT 103, and Standby Letter of Credit (SBLC-MT 760)]. No seller will take either you or GCT seriously if you do not prove your genuine commitment by adhering to these rather standard process. Legitimate buyers and sellers know they must prove they are serious, sincere, and financially capable to commit to such large transactions.
- GCT will work with both parties to bridge any communication gap.
As per above, and to reiterate, the process will inevitably involve you to issue and respond to appropriate documents and instruments. This journey will involve some negotiations to the full satisfaction of sellers and buyers. The goal is to ensure mutual protection of interests while making the transaction possible.
* The Marketing Agreement does not negate, or compete with, an already established authorized broker or marketing/sourcing agent.
To get started, send us a message. All inquiries and communications will be kept confidential. To send the message, contact us here.