NOTES -
NCND Agreement
We do not accept business with any party except if the direct contact to the End Buyer is granted. Therefore, if you are not the end buyer in a proposed transaction we suggest the execution of the Non-Circumvention and Non-Disclosure Agreement (NCND). However, please be advised that until a Letter of Credit is opened and confirmed, there is no reason for issuing a commission or a financial participation agreement as the transaction would not be secured at all.

For the text of the standard NCND Agreement (suggested by the International Chamber of Commerce) please click here --> NCND.

When specifying your payment of choice, please be clear and completely define the payment instrument as presented in the following examples:
  1. BG 100% payable instrument : by irrevocable, transferable, divisible, assignable and confirmed (conditional or unconditional, as per contract terms) Bank Guarantee (BG), in the total amount of the contract (100%) or in the agreed amount as per contract, issued or guaranteed by one of the top 25 world banks, 100% payable at sight, at the Seller’s Bank, against presentation of shipping and/or other contract documents.
  2. FFDLC : by irrevocable, transferable, divisible and confirmed Fully Funded Documentary Letter of Credit (FFDLC), in the total amount of the contract (100%) or in the agreed amount, as per contract, issued or guaranteed by one of the top 25 world banks 100% payable at sight, at the Seller’s Bank, against presentation of shipping and/or other contract documents.
  3. FFRDLC : by irrevocable, transferable, divisible and confirmed Fully Funded Revolving Documentary Letter of Credit (FFRDLC), issued or guaranteed by one of the top 25 world banks, in the amount corresponding to the monthly shipment, revolving the number of months specified in contract, payable at sight, at the Seller’s Bank, against presentation of shipping and/or other contract documents. The Seller may require a guarantee for securing the Buyer’s commitment in fulfilling the contract which can be represented by a Bank Guarantee (BG) or a Stand-By Letter of Credit (SBLC). In case no guarantee is required by the Seller, the price of the commodity is normally much higher.
  4. TT/SWIFT : by direct funds transfer via Bank T/T (KTT or SWIFT) in the amount corresponding to the monthly shipment, from one of the top 25 world banks, 100% payable at sight, at the Seller’s Bank, against presentation of shipping and/or other contract documents. The Seller may require a guarantee for securing the Buyer’s commitment in fulfilling the contract which can be represented by a fully funded Bank Guarantee (BG).
  5. SWIFT MT-103(23) : by irrevocable and conditional SWIFT payment instrument, 100% payable at sight, at the Seller’s Bank, against presentation of shipping and/or other contract documents or Commercial Invoice. In case the Clause 23 on the SWIFT message is omitted the transfer becomes unconditional.
  6. Other Payment Instruments : please, specify completely, even if using direct deposit, Bank T/T, or other SWIFT transactions as payment instruments.
Notes: When proposing your payment instrument of choice, please understand that the Seller must have the assurance that the whole contract will be fulfilled. Therefore, anytime a partial payment or "per shipment basis" payment is proposed, a GUARANTEE for total contract fulfillment is mandatory. Remember that in order to provide you with the prices quoted the exporter needs to arrange the shipments of a long term agreement the whole delivery schedule must be contracted from the freight forwarding company (unless a spot shipment is negotiated), Thus, the delivery schedule must be settled for the whole period of the contract. A security must be in place to avoid interruption of the agreement with the freight forwarding company.
The verbiage of these payment instruments must be approved by the Seller and his Bank.




REASONS FOR REQUESTING A TRANSFERABLE LETTER OF CREDIT

For the Importer (BUYER):

Transferable Letter of Credit (TLC) allows your supplier (the beneficiary) to make available in part or in whole the TLC to one or more second beneficiaries. This enables your supplier to transfer part or all of his rights and obligations to the second beneficiary. Your supplier (the beneficiary) will probably have other Services and other Parties to pay such as freight, storage, handling, packing, insurance, local dock or Port Fees, Local Agencies for services rendered and set up and preparation charges at his own bank. The first beneficiary does not need to issue a Letter of Credit to the second beneficiary and only needs to transfer part of the TLC, varying certain terms and conditions. Goods are shipped directly to the buyer in this instance.

Benefits

  • Allows the Supplier (first beneficiary) to arrange similar terms both with the buyer and the manufacturer
  • Minimizes the risks of non-delivery or late shipment as the TLC assures the first beneficiary of payment
  • Ensures your goods are delivered within the agreed terms and conditions
  • Improves your credibility as a purchaser
  • Allows access to financing options and variations to facilitate the smooth transition of the supply contract
  • Governed by International Chamber of Commerce Rules
  • Controlled at all stages by Reputable banking Authorities acting in the best interests of both buyer and seller and ensuring protection of procedures for both parties
  • Can be issued to suppliers worldwide in major currencies in the form of SWIFT, telex, courier and registered mail to facilitate a speedy transaction

For the Exporter (SELLER):

TLC allows you to make available in part or in whole the TLC to one or more second beneficiaries. Thus you will be able to free up your funds and credit facilities in fulfilling your duties as a SUPPLIER . This gives you added financial maneuverability. You will also be able to control the trade transaction better as the amount, latest shipment date, expiry date and several other terms are changed or modified to facilitate smooth transition of the contract. The second beneficiary also receives added comfort in receiving a TLC issued by a reputable bank.

Benefits

  • Allows you to secure goods from the ultimate supplier without utilizing your own funds or credit facilities, enabling you to expand your trade as your funds and credit facilities are freed up
  • Allows you to control the trade transaction better and arrange similar terms in procuring the goods from the second beneficiary to the buyer
  • Reduces the risk of non-payment by the buyer as payment is guaranteed by a bank
  • Reduces the risk of non-payment by the buyer's bank when your documents are checked by the bank
  • Governed by International Chamber of Commerce rules
  • Controlled at all stages by Reputable banking Authorities acting in the best interests of both buyer and seller and ensuring protection of procedures for both parties
  • Can be received from buyers worldwide in major currencies in the form of SWIFT, telex, courier and registered mail to facilitate a speedy transaction
  • Allows the Supplier (first beneficiary) to arrange similar terms both with the buyer and the manufacturer
VERY IMPORTANT
By responding to any of World Vision Business Corporation (WVBC) offers you agree with the Rules of Engagement for doing business with us.
World Vision Business Corporation
Apopka, FL 32712 (Orlando Metro Area) U.S.A.
Telephone: +1 (407) 418-8319
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