Procedure

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At Cuprumex Ltd., every transaction follows a transparent and internationally recognized procedure designed to ensure full compliance, reliability, and protection for both Buyer and Seller.

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ANNEX 1 ​​​Transaction Procedure

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1. Letter of Intent (LOI)
   Buyer shall issue a formal Letter of Intent (LOI) specifying product, quantity, delivery terms, and indicative price. Seller shall acknowledge receipt and confirm capability to supply.

2. Full Corporate Offer (FCO)
   Upon review of the LOI, Seller shall issue a Full Corporate Offer (FCO) outlining product specifications, origin, price, delivery schedule, and payment terms. Buyer shall confirm acceptance or propose amendments.

3. Irrevocable Corporate Purchase Order (ICPO)
   Buyer shall submit an Irrevocable Corporate Purchase Order (ICPO), confirming readiness, willingness, and ability to purchase under the stated terms, including company profile and banking details,

4. Proof of Funds (POF)
   Buyer shall provide acceptable Proof of Funds (POF) or a Bank Comfort Letter (BCL) evidencing financial capability. Seller may provide Proof of Product (POP).

5. Draft Contract (SPA)
   Seller shall prepare and issue a draft Sales & Purchase Agreement (SPA). Parties shall negotiate and finalize all terms and conditions, including quality, logistics, inspection, and payment instruments.

6. Execution of Contract
   Buyer and Seller shall duly sign the SPA. Each party shall lodge the executed contract with their respective banks.

7. Payment Instrument
   Buyer’s bank shall issue the agreed payment instrument Irrevocable Letter of Credit,  MT700. Seller’s bank shall verify and confirm receipt.

8. Performance Guarantee
   Seller shall provide a Performance Bond (PB), typically valued at two percent 2 % of the LC value, in favor of Buyer’s bank, where applicable.

9. Logistics and Inspection
   Seller shall arrange shipment in accordance with agreed Incoterms (FOB, CIF, etc.). Independent inspection (e.g., SGS, Bureau Veritas) shall verify quality and quantity prior to loading.

10. Shipping Documentation
    Seller shall provide Buyer with all requisite shipping documents, including but not limited to:

    • Bill of Lading

    • Certificate of Origin

    • Inspection Certificate

    • Packing List

    • Commercial Invoice

    • Certificate of insurance for CIF delivery

11. Payment Settlement
    Upon presentation of compliant shipping documents, Buyer’s bank shall release payment to Seller in accordance with the SPA.

12. Completion of Transaction
    Delivery shall be deemed complete upon arrival of goods at Buyer’s designated port or warehouse. Both parties shall confirm fulfillment of contractual obligations, and any outstanding balances or penalties shall be settled in accordance with the SPA.