Our Procedures

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LOI (Letter of Intent)/ICPO (Irrevocable Purchase Order)
An LOI (Letter of Intent) is not a contract. Letters of intent serve to notify the seller that the buyer wishes to enter into negotiations to purchase. They do not contractually oblige either the buyer or the seller to go through with the trade.
Letters of intent should be regarded only as an opening point. Issuing an LOI does not make the buyer culpable for anything written in it. Until a contract is agreed upon and signed, both parties are free to back out of negotiations at any time, and buyers cannot be held liable for statements made in the LOI.
Banking information is usually not sent with a LOI, with the exception that Buyer and Seller had already direct contact and the data is only sent to trusted parties. An ICPO is a more detailed form of an LOI and shall always be addressed directly to the Seller or his representative and shall contain full bank data to get into the contract phase.
Procedure for FOB Deliveries
  1. Buyer sends LOI or ICPO to Seller. Seller sends SCO to Buyer. Buyer signs SCO and reverts to Seller. (This stage can be skipped and collected into the next)
    • Note: we will always verify each LOI or ICPO with the buyer himself. There is no way that we address any SCO or FCO to intermediaries or agents or mandates.
  2. Buyer sends LOI or ICPO to Seller. Seller sends SCO to Buyer.Buyer signs SCO and reverts to Seller. (This stage can be skipped and collected into the next).
    • Note: There were too many attempts from Flippers and Resellers without funds and we lose our good ranking from our banks with failed operations. In case the Buyer sends this Proof Of Funds (POP) on earlier stage we can skip the FCO and get immediately to the SPA.
  3. Seller sends FCO to Buyer and Buyer reverts the following documents properly filled out to Seller:
    • Completed FCO signed and sealed.
    • Copy of Company Registration Certificate
    • Passport copy of signatory
  4. Seller drafts Sales & Purchase Agreement (SPA) to be lodged in both banks. Seller and Buyer execute the final contract. Buyer sends the final contract electronically signed in WORD or PDF format. An electronically executed final contract can stand as original.
  5. Seller issues the proforma invoice and Buyer makes payment by SWIFT MT103 TT or MT760/SBLC (based on the agreement) about the amount for the first delivery to Seller’s bank within 3 banking days.
  6. Within 10 days Seller will conduct SGS inspection at its own costs before loading. Shipment will be handed over within 10 days or earlier based on the order quantity.
The final procedure may contain variations of the above depending on the individual case. Details will be discussed and agreed between Buyer and Seller.
Procedure for CIF Deliveries
  1. Buyer sends LOI or ICPO to Seller. Seller sends SCO to Buyer. Buyer signs SCO and reverts to Seller. (This stage can be skipped and collected into the next)
    • Note: we will always verify each LOI or ICPO with the buyer himself. There is no way that we address any SCO or FCO to intermediaries or agents or mandates.
  2. Buyer sends LOI or ICPO to Seller. Seller sends SCO to Buyer.Buyer signs SCO and reverts to Seller. (This stage can be skipped and collected into the next).
    • Note: There were too many attempts from Flippers and Resellers without funds and we lose our good ranking from our banks with failed operations. In case the Buyer sends this Proof Of Funds (POP) on earlier stage we can skip the FCO and get immediately to the SPA.
  3. Seller sends FCO to Buyer and Buyer reverts the following documents properly filled out to Seller:
    • Completed FCO signed and sealed.
    • Copy of Company Registration Certificate
    • Passport copy of signatory
  4. Seller drafts Sales & Purchase Agreement (SPA) to be lodged in both banks. Seller and Buyer execute the final contract. Buyer sends the final contract electronically signed in WORD or PDF format. An electronically executed final contract can stand as original.
  5. Seller issues the proforma invoice and Buyer makes payment by SWIFT MT103 TT or MT760/SBLC (based on the agreement) about the amount for the first delivery to Seller’s bank within 3 banking days.
  6. Within 10 to 14 days Seller will conduct SGS inspection at its own costs before loading. Shipment leaves the origin port within 10-14 days or earlier based on the order quantity.
  7. Seller provides 110% insurance in favor of the buyer.
The final procedure may contain variations of the above depending on the individual case. Details will be discussed and agreed between Buyer and Seller.

- Common Terms for FOB & CIF -

Buyer and Seller agree on subsequent deliveries after successful completion of the first shipment:
Upon successful completion of the first shipment, the guarantee/payment with the agreed financial instrument as applicable will be automatically extended (and increased if necessary) for the second shipment and further to be extended until the contract is completed totally for the quantity as specified in the contract.
Upon receipt of shipping documents for each shipment, Buyer’s bank will make the payment as required to Seller’s bank within the contract terms and conditions.
The Seller guarantees on his account that each shipment will be provided with inspection of weight and quantity and quality at the time of loading. Certificates shall be provided by SGS or similar authority at Seller’s expense and shall be binding for both parties. Seller instructs such authority to carry out the inspections under strict rules and in accordance with the specifications in the contract and or the international chamber of commerce rules (incoterms 2010 latest edition, with all amendments).
Buyer’s Bank shall use exactly the verbiage for any SWIFT as in the Appendix attached to the SPA.
For the trading account Seller will use one of his companies which will only be responsible for the financial part of the operation. The company will receive Buyer’s SBLC as collateral for the contract. The company will not have any interference in deliveries and operations.
The responsibility of KGLOBALS is to execute all the contracts and deliveries according to the SPA and to produce all delivery documents for the Buyer and Exit Buyer.
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