FTNX NEWS and UPDATES 2024

 

FTN EXPORTING CLOSING PERIOD OVER CHRISTMAS.

POSTED 20 December 2023

FTN Exporting office is closed from 23 December 2023.The office will be partly manned from  the 28 December  2023, and fully manned from 2nd January 2024.Inquiries made during these times  willl have a delayed reply period of 48 hours.

 

FAKE TRADERS

POSTED 22 December 2023

Every year around Christmas time, a lot of trade activity occurs as many ill iformed traders appear out of nowhere. PCT's are reminded to avoid interacting with such traders. In 2024 business will commece earlier than usual as trade inquiries from January and Feburary are already in hand. Metals  and Copper Cathodes are eagerly sought  as well as  LNG . FTN Exporting will take another look at the LNG market place  to test agian  if a potential exists for PCT's  to sell LNG.

 

COAL AND IRON 

POSTED 28 December 2023

Mettilurgical Coal (rather than thermal coal) and iron ore will attract many buyers in 2024 as will D2. While iron ore will become  difficult to souce, not so coal and D2, especially if Putin is "toppled from his throne in 2024."  FCL Copper cathodes  may also drop in price as auto makers  are having difficulty secuirng buyer of new EV's, after so many adverse reports on the  quality of some cars, have come to the fore. Add to this, the second hand EV market is also causing concern as the expense of replacing the battery and tyres  on most second hand EV is not attracting buyers. Some buyers who have changed a battery on second hand EV  purchase; have reported many other 'bits and pieces ' start to also  fall apart/brake down, where replacemant parts ( if available) are very expensive. A new EV is good for the first 5 years, before major expenses become apaprent–has become evident. EV's  may actually not be mitgating climate change aspects, as tyre replacements  in shorter time than petrol driven  cars, have increased in use  with EV's. It seems EV days are numbered. It seems crude oil still remains 'supreme.' Jet fuel is also becoming the biggest threat to the cliimate as 99% of a burned  jet fuel  used in large airlines, is returned to the atmoshere. Billions of gallons ( tons)  of burned jet fuel released into the atmosphere  every year, is the real climate change culprit not gasoline driven cars, because  "air travel for the masses has become cheap and nasty.'

 

LNG SALES

6 Jan 2024

USA has for the first time in history , has overtaken Qatar in the export of LNG.  LNG tankers  via  Calcasieu River, terminal  near Cameron , Louisiana, whiuch have  have increase sales by 15.0% since the commencement of the Russian assault on Ukraine. Most export cargoes head out of LNG terminals on the Gulf Coast via  Texas and Louisiana for  European, Asian and Latin American destinations;  add to this;  the Netherlands, the U.K., France, Spain and Germany - are currently importing well over half of total U.S. LNG exports .Venture Global LNG Inc.'s Plaquemines LNG Terminal (Louisiana)  is another LNG supplier set to come on stream in early 2025, which will ramp up production by another 40 million MT. FTNX will produce a OTP soon for testing LNG sales  by very experiences USCT  practitioner of the  FTNX Trade doctrine.One major issues with LNG sales is that they are conducted as per the  CIF delivery modes; the scarcity of LNG vessels may still hamper  PCT’s efforts to trade in LNG. In any case  securing buyers for a 10 year LNG contract of supply ‘subject to securing a vessel’ and not  actual supply  may play into the hand of the PCT’s ability to secure a LNG vessel. FTNX will place the LNG OTP when ready in the FTNX library and test the market place before amending  aspect of TRA due for updating late 2024.

 

Are TEXT MESSAGES legally binding?

12 Jan 2024

The short answer is YES.  A PCT could be placed into a legally binding position  while negotiating on a commodity  deal via text message. When one party draws inference from text messages that caused such another  party to prepare goods ( to perform) for exporting, based on the positive aspects of  text communication between said  parties; in where one party, the PCT acting as buyer, subsequently cancels the deal; could face expenses occurred in getting goods ready for export. The PCT has two options to protect it position. In where the  PCT  does not intend the offer to be served as legally binding ,the text message has a disclaimer on the bottom stating words to the effect (a) All offers subject to final contract. The  PCT may now also add on all correspondence (b) The supplier has no permission to prepare goods for a potential buyer, until final contract are signed. The PCT must know intently what they are doing if they are going to allow the deal with the supplier to become legally binding , once the offer is accepted. An offer once accepted can incur accrued expenses in getting goods to port, if the PCT cancels the order thereafter.

 

INTERMEDIARIES  AND THE OFFER

16 Jan 2024

The FTNX offer format is an elaborate document for good reason. FTNX treats the offer as being the most important document when an ongoing deal is apparent. An Ill informed intermediary  can continue to trade on useless  offers made by ill informed  others or they may ply the FTNX offer format, and stop wasting valuable time trading with ‘idiotic others.’  The FTNX offer stops the informed PCT  from wasting time on dead end deals. A real end buyer  scrutinising a  FTNX issued offer  has three options. (a) they may sign the offer as accepted or they may (b)  reject the offer and make a counter offer; or (c) not service a reply at all. When  a real end buyer  examines a FTNX offer, they are made fully aware of their obligations. Therefore real end buyers  will sign a FTNX offer to proceed to contract more often than not. Fake end buyers will not consider a FTNX offer  as they  don’t understand most of its legal basis and terms of reference,  as such  is it best to deal with a 1000 fake buyers every year or in any given year from the many offers sent out by a PCT, is it better to receive only  a few replies from  real end buyers.The answer is well tested by FTNX over a very long period of time. Obtaining a reply from a few end buyers, in any given year  on a sourced produced secured by a PCT is the only way to conduct and attract  real  business. The PCT needs to hear only from real end buyers; in doing so  a genuine possibility to close upon a large commodity transaction is at hand. A PCT must spend the whole year sourcing supply , as  goods are continually being sourced, the PCT must also enact with a few ‘real ‘ end buyer at the same time. In this light, a PCT would be reasonably busy  when end buyers are being tested, while receiving inquiries from suppliers. This is the correct light to trade in. To have in hand a secured supply of let’s say Copper Cathodes means the PCT will further  test end buyer  only, and trash all other ' buyers’ accordingly. The experience needed to close on the contract comes from being able to attract end buyers; the failure  to close a deal at this  level, is not a bad thing for a novice trader- in fact,  it means ‘ experience’ is gained to do with the contract stage. A few failures  at the contract stage, also means the PCT is no longer fearing to arrive at the contract stage, and therefore as confidence levels rise, this event will  cause the PCT  to work harder to secure that one large revolving deal. This is why a PCT must study the doctrine for a few months and start trading immediately as instructed; to  obtain  much need trading experience. This is  why a PCT will not close a deal for the first 12 months even though they are fully knowledgable of the doctrine and required trading rules and laws, as they lack experience. However once this stage has passed, deals usually start forming  where the PCT will actually have real offers signed by real end buyers. A few failed offers, a few failed contracts  will deliver the required experience  for the PCT to actually close  a lucrative deal in the future. A PCT who does not proceed intently to commence trading after a few months  of studying the doctrine  is actually doing themself an injustice, because the longer it takes to start delving at the offer and contract level, the greater the prospects are that a  potential deal will never close. Read the doctrine, and start trading to get experience is a crucial aspect, that many applicants have not adhered with. The PCT will  make mistakes  when  they  start to trade, but  it's the mistakes that will also lead to securing the  required experience.In any case the doctrine protects the PCT from liabilities due to such mistakes as stated in the doctrine. An applicant must read the doctrine quickly and intently, asks questions  needed to clarify a scenario they are unsure about , and start trading ASAP is a vey important aspect that many PCT's have simply avoided.

 

TROUBLED WATERS 

18 Jan 2024

 With the Suez canal under attack, ships are taking the 'long way around.'  The PCT must assume freight value to equal around 25% of the goods value when  insurance is accounted for on a CIF transaction on VLBC deliveries. For crude oil carriers at VLCC CIF travelling through the Suez canal expect a insiurance rate of up to 5.0% of goods value(500/100). As for Nigerian crude oil, BP has sold its share  of its onshore operations, retaining its off shore operations The NNPC now owns a 55.0% share in when ENI ( Italy) and others have secure a stake in NNPC. While NNPC supply can be tested in around 6 months, such change is expected to make no difference to the PCT  when is comes to dealing/sourcing  Nigerian crude oil. As  for Russia, sanctions are being pressed further  with American corresponding banks  avoiding handling payments for  Russian export transactions.

 

FTNX NEXT PUBLICATION: IPSI

Added Educational Matters and Insights

12 Feb 2024

 Excerpt Beta: IPSI 2025

FTNX only examines large revolving contract for 2024 allowing me ( D.G.Papa) to commence and apply other business ideas that has support in part of the procedural  aspect offered in ITSI. Learning to buy and sell commodities is closely related in matters of procedure  that could be used  for conducting other types of localised or international business. A bank that  adheres to UCP 600 DLC Rules in conducting international trade transactions as  located lets say in the U.K  Australia or the USA, would also accept the very same type of DLC from lets says a builder for another state located in the USA. A builder is asked  to agree to a completion date. Contracts are signed. A IDLC is advised as payment. The builder offers a P.G SLC. Nobody gets paid unless the work has completed on time and that if it is not competed on time, the P.G of the builder will be claimed.  The DLC will need  among other documents, a  clean original  statutory occupancy certificate to be produced ‘at sight’  before the builder can collect on the IDLC. Nobody gets hurt  when building  companies collapse as they have recently in Australia - leaving over 5000 people  with uncompleted  homes; such  people  who are repaying huge bank loans taken out to buy such homes. Only large long serving, financially stable builders will  accept such  aspects, albeit it may cause  the buyer  to have an added premium to be added to the standard price of construction; but the buyer hearing the stress and anxiety  the follows families when their homes were  lost due to builders  going into liquidation; is the far worst–of two evils. Furthermore the buyer will gain a fee if the builder is late on ‘delivery’  via the  activation of the P.G. This aspect is an added incentive to favour the buyers side, that ensures a builder will refrain from readily making false claims-before accepting such a contract. As far as the builder asking for a huge junk of the building price upfront; if he is a creditworthy and honourable person - as per  the perspective of his banker, then his bank will willing service a loan, to the builder who needs to buy material  for  a new construction job, and pay workers. His bank will issues a P.G and his bank will collect on the payment on his behalf. A genuine and financially  strong, honourable and  experienced  builder could easily conduct business in such a manner without needing a loan - ‘cowboys’ cannot. End   International Projects and the Successful Intermediary (IPSI)  is the next publication being created by FTN Exporting for business minded  entrepreneurs  wanting to legally apply a uniform world wide aspect on “how to create an investment project”  as supported by  a sister best selling  publication International Trade and the Successful Intermediary (2010) But before FTNX offers such a publication to the public, the business aspects offered in IPSI needs to first be proved. The ZEHED-BIKE project created by inventor Davide Giovanni Papa will be the basis used to support IPSI, once a working prototype  is completed and tested. 

 

 

PREVIOUS PUBLICATION ‘COSI’

15 Feb 2024

Our previous publication (COSI) will not be released  as the Russian and Ukraine war has wiped this part of the PCT market off the map, especially the much traded Russian crude oil and  refined fuel sector, which must now bear western financial sanctions. Our BETA publication COFI 2024  has absorbed parts of COSI.If time permits FTNX may launch its FTNX Private Patents business under the  LDV ( Leonardo Da Vinci)  Members  heading. We placed a page on the FTNX website for a few days when request started coming in. We removed the FPP application  and hope to return to it  mid year. This business is a freelance application; meaning it was created without guidance from a doctrine but in abeyance of the laws and rules as applicable locally and/or  internationally.

 

 

QUESTION ASKED: BANKING

16 Feb 2024

 ISS JB Asks FTNX

Q: I live in USA. I could  sell USA goods  to a buyer in China, who does not want to  open a DLC in USA  bank account   held by the Seller in the USA( me) for no known legitimate reason. Perhaps he does not understand the USA  banks conduct business internationally every day including China. Is there another alternative method  that I could try and close this deal safely. He will open the IDLC, but not in the USA.

A:FTNX has been through this process a number of times .It’s a complex procedure only suited to highly informed and experienced PCT. Perhaps he has legal trouble  with the USA Government  is one suggestions.

All PCT must remember this; An adhering UCP  Bank will not break UCP 600 procedures; that does not mean that you advising bank is not able to offer complementary services to a PCT, however smaller banks may not be able to offers their service  to compliment  a standing deal,  due to bank policies. Only large highly informed banks could do as much , more so if  the seller looks to secure a confirmed letter of credit.

So you are in USA; let’s say New York  City.The contract price and DLC value is for : US$80,773,433.00

Buyer advises a CONFIRMED  DLC to a USA corresponding bank located in China at its counter in your name. So CITI Bank  operates China. The corresponding bank is acting for YOUR bank. So your bank is able to correspond with CITi Bank USA, who in turn is able to correspond with Citi-bank In CHINA. You instruct your Bank and thus your instructions travel down the line. The bank do the closing on your behalf ‘at sight’- the availing and transfer fee are going to add up, therefore  the DLC MUST be confirmed where all documents that need presenting to your bank,  are going to be sent to the  DLC confirming bank- via SWIFT. Whatever the price of goods , add 3.0%  to cover added expenses is the added price of doing business if the buyer will not follow the simplest route. You need to ensure you own profit margin is on the higher end  at well; as some of your own profits may need  to also contribute to added expense.

Bank are intermediaries as well. It is their presence  that serves a secure  trading environment , and thus they will take part of the action, via fees and charges- and rightfully so.You need to set it all up from your side.When you are ready  for the DLC to be advised, arrange to speak  your bank  manager to advise the bank  what you want to do. Large banks will look at such an aspect smaller banks will not. It;s technical and complex way to close a deal , it's also expensive but it could be done. Do you really want to try such a process?  Are you very experienced at trading? If not , dump the deal and walk way, is a 50/50 option, because it could get really messy or it could go through smoothly; often however it's the former aspect that will eventuate.

 

CONFUSION ABOUT DOCUMENTS USED BY ‘SOME’ PCTs.

16 Feb 2024

FTNX applies matter of doctrine and correct legally defined procedures advise there in.  A PCT cannot simply use  formal documents ‘all the time’  (unless  the PCT is strictly working alone as a Buyer/Seller and Principal ) because the PCT often meet people who may have something to offer but who are not suppliers or end buyer. To entertain such  ‘traders’ the PCT uses it own created FTNX in-house documents  when considering such potential  business associated with a stringed deal. We have In-house documents (IHD)  and we have formal documents(FD)  which we have highlighted in one single  listing below- even though such matters are already scattered  in “Good and Bad Terms of Trade ” section. An in-house document MUST not be used when a PCT is dealing directly with the supplier or end buyer; and are used in-house among  string member dealing with a PCT  who is heading the deal.Most In house documents ( not all)  do not have the same legal force as formal documents. IHD are designed to save  time for the PCT, while ensuring all matters of  the deal are clearly spelled out- the first time around when directing ISS member in a stringed deal. 

 

1. BIF:IHD (BUYER INQUIRY FORM) An end buyer is making an informal inquiry to the PCT for goods it has seen listed on the PCT’s website. The end buyer may have been advised that a PCT has goods he is looking for could also advise a BIF, which is no legally binding ( NLB)
2. OTS:IHD (OFFER TO SELL) An ISS  has come across a genuine supplier  and needs a PCT to consider heading the potential  deal .The ISS  takes all  the information it has gathered and applies it on one  OTS Form , which is sent to the PCT heading the  deal.(NLB)
3. RFQ:IHD (REQUEST OFR A QUOTE) Again an end buyer  is seeking a quote for goods listed on a PCTs website or when  the PCT or its ISS members is being asked to source a product.
4. AOS:IHD (ASSURANCE OF SUPPLY) Instead of a formal  LB offer a supplier dealing with a PCT or its string members can advise an informal document defined as an AOS (NLB). It allows a casual atmosphere to develop without effecting obligations of either party to a deal.
5. OTP:FD (OFFER TO PROCURE)  it simply an offer issued by an PCT acting as Buyer r issued when an AOS  of  offer from a supplier has been rejected. An OTP is also used by experienced PCTs when sourcing goods outright ‘.Procure’ literally means ‘using skill to buy.’ (LB)
6. IPG:IND  (IRREVOCABLE PAYMENT GUARANTEE)  IPG by its nature of being a Promissory Note  has a legally  binding status. The PCT can use an IPG to pay Commission, LDD, Rebates and the likes. The deal being conducted binds the promissory attributes of the IPG.(LB)
7. MOU:FD  (Memorandum of Understanding) served by the PCT to the supplier, produced  when assured good comes  with a long validity, may also  be used as an Agency Agreement or Counter-trade. The details  on the MOU produces no surprises when a OTP is advised by the PCT to the supplier when actually buying the goods offered under a MOU.It a formally applied document but it no legally binding  (NLB)
8. OFFER:FD A PCT  as buyer may consider an offer from a supplier or reject it and counter with an OTP. A PCT acting as a seller may issue an OFFER to its end buyer .Unless stated differently on the offer, the offer once signed is legally binding on all parties(LB)
9. PG:FD A formal bank issued financial document supporting a performance guarantee via a SLC is  advised by the supplier to the PCT  once the payment for goods has been accepted. If a delivery is late, the PCT  receives the P.G rate offered unconditionally. If the PCT is late with delivery then so is the client of the PCT the end buyer.This means the  LDD offered to the end  Buyer by the PCT  is paid out when the PCT is paid on theP.G from the suppliers side.(LB)
10. LDD: IHD (Late Delivery Discount). Whenever a side payment needs to be made  as it relates to late delivery penalty, being called from the PCT  by the end buyer,  the LDD offered to the end buyer on  contract  is legally binding. (LB)
11. I hope the above stops the confusion. PCT must read their doctrine again if they have not understood the above aspects. FTNX cannot mentor applicant contacting FTNX on a potential deal .FTNX assumes such traders already have a deep understanding of in house procedures, before they contact FTNX as we cannot spend time needed to instruct a PCT or ISS  on aspect that they ought to have understood  long ago. FTNX will  not serve any inquiry unless the correct form is  apparent.

 

Palestinian Children Starving 

23 Feb 2024

The Israelis are doing to the Palestinians what  was done to them 80 years ago, via the much lauded holocaust. They are intentionally annihilating a race of people for no just purpose other than to possess more land.  Others say it's  all political, I say it’s all about  securing land. What the ‘Jews’ have never understood to this day, that while the concentration camps killed up to 10 million people, over 40 million “Christians"  had also  suffered  horrible deaths - something never mentioned before. To be carted off, in a train  and then gassed is a chamber, under the pretext of having a shower; is  equally as worse  as having your  stomach sliced open by shrapnel, where your  intestines  are  beating  on some  foreign beach, while you watch in horrific pain, your own death taking  place–taking an hour to do so.  40 million Christians suffered horrific deaths in World War II,  such deaths which are not exclusive to only Jews and yet in 2024  here are the Jews applying a scorched earth policy on all people who are not Jewish situated in a piece of land, not their own, but as conferred to them by the UN, and supported  by nations like the USA. The time has come to call a “spade a spade.”  In my opinion and feelings, like those of so many others; Isreal has made its point months ago,it has won the one way battle, and yet to this day families especially young  children are being slaughtered indiscriminately; and are being starved to death by the actions of a Government bearing a far superior army- for what reason, I don not  know. The land has been won, while the murdering continues  will lead to the ultimate outcome. The Jews facing  war crimes, is the ultimate and most shameful  irony of all. The sweet success of a good fight is only conferred to the winner when  a formidable  enemy has been fairly  and squarely  beaten;Isreal has won it fight with Hamas and lost its humanity in doing so. As for other Arabic countries not speaking up or acting in defence of “their  own kind" is also a disgrace. You may call it politics; and that people like me are naive, and don’t understand the situation,  is a poor   excuse; that a person of Hungarian  heritage like myself,  can readily recognise, more so than most  others. I do know the difference between  defending or protecting ones own sovereignty–and murder. As for the USA being slapped in the face by Isreal; this is the  side of politics I don’t understand at all. I do not understand how the USA  government and its people has allowed it to go so far; with both Isreal and indeed Ukraine.  As seen in  the last 2 years,  Ukraine can readily stand up to  Russia, and yet at this most crucial  peiod in the war, the speaker of the house has decided that a two week break is in order; while Ukraine is in need of immediate  support.  The USA must impose sanctions with all countries conducting crude oil/fuel  business with Russian; this is how quick results are achieved. The Russian people don't want this war; but Putin thinks otherwise. As for the Palestinian’s; they need their own land , just like is was conferred to the Jews, and on the same basis - Palestinians have (are) endured the deaths  and destruction of so many families, not in years but weeks and months,  at the hands of a Government  more akin  to the virtues of Hitler and Pol Pot  than a nation of just people - who we have all presumed  had learned intently from the lessons  served in the past. Isreal is wrong. No if’s buts, or politics. “ I may not like the cut of a persons Jib, but I will fight , the virtuous fight, to the end  for their undeniable right to a peaceful existence.We all have such rights; and what you allow to be done to others today, may be done to you tomorrow–no matter who  you are.’”

 

LOCAL AND INTERNATIONAL LAWS

3 April 2024

Could FTNX show an example on how  international trade payment procedures could be applied locally as stated in the doctrine.

 Let’s look at  house builders in Australia. 

Builder in Australia and other countries have acted unprofessionally  for decades. Toady the building industry  is facing insolvency on a daily basis, leaving consumers  in dire straights as the contract to do with the house being built, has nothing to do with the financial  part of the process. The home owner still needs to repay a bank a monthly mortgage interest rate, even though the house being built has been abandoned. There are bad practices creeping into the local commercial sector , where payment upfront is being  demanded  for services yet to be rendered. When one goes to the shop, a person sights the product, and takes it to the counter, where it paid for. Today,  this important aspect when buying something, has gone out the window thanks to the internet and purchases made online; where payment is sought first by ‘intermediaries’ e.g: eBay, Paypal, Medicare etc.. to pay for something, without actually handling or sighting their product  means the consumer is buying a product as per “overt market conditions.” They are paying for goods and accepting such goods ‘as advertised’ and not for the goods that will be ultimately delivered. In this light the description of goods being offered must be clearly described.The description of goods now plays a very important role- when small purchase prices is applicable. For larger orders, such aspects cannot apply.I could (have) order goods worth tens of millions of dollars from a suppliers half way around the world where the supplier does not get a cent until the goods are delivered. Even freight is no deemed to be “earned” until goods are  delivered first. The term ‘earned’ is relevant.This is the correct commercial application for most countries in the world when buying anything internationally ; and is indeed applied for purchases made locally.  The product comes first, whether buying large shipments lots - or a packet of cigarettes from a local store.If a supplier is late with delivery  it  forfeits a “Performance  Guarantee”, which must be posted by the supplier to favour the buyer, to help such mitigate its own expenses., due to ‘late deliveries.’This application should be applied against those in the building industry, where the builder lodges a P.G after payment is ‘guaranteed’ and yet to be ‘ earned’ by the builder. Builders are meant to be ‘cashed  up’; instead we have too many builders who are not ‘financially’ stable,  taking on too much ‘overpriced’ work, by asking for upfront payments from home buyers. This is fundamentally a wrong application on how to conduct commercial business. It allows those with no financial status to obtain large amounts of cash upfront , without such cash being ‘earned.’ The builder is meant to complete the building, where they are paid when the work is done; doing as much will ensure the “Cowboys” are eliminated from the industry.  The buyer, after the offer and contract with the builder is  signed; posts a bank issued  letter of credit or guarantee  assuring  future payment to the builder, as issued from the buyers bank. When the work is completed (delivered) they are able to collect on funds already lodged by the buyer after the contract was signed and occupancy certificate has been issued  “at sight.” No certificate or if the certificates are not clean ( qualified) no payment  can be collected until the issues with the home are rectified. When the house buyer  guarantees it payments, the builder lodges,  lets say a  3.0% performance guarantee, again as issued by its bank  which forces  the builder to take its roles very seriously. The builder must provide a ‘delivery date.’ For every week it is late with ‘delivery’, the buyer get the performance guarantee rate is unconditionally paid.This  aspect helps the buyer to pay it home loan, and  for any added expenses to do with having to wait for ‘delivery.’  A builder who cannot lodge a 10 / 20,000 dollar  PG  is said to be financially unstable. In law this aspect is known as ‘RWA’ or “Ready Willing and Financially Able.”A builder  must be ‘RWA’ when they take on any new jobs. A P.G reinforces this aspect. This aspect now ‘guarantees’ that a worthy financially stable builder is on hand and that ; a builder  will be paid when the work is completed (delivered) .This aspect also guarantees a buyer compensation, for ever week the builder  is late with delivery. This simple perspective protects everyone and are aspects that are already used by all the major banks in the world’s including Australia, as such rules are already establish and therefore easy to implement- immediately. These aspects assure that only qualified builders who are RWA remain in the industry and industry, which has caused so many heartaches for some many people in austral in recent times.  Bank earn a fee for ‘overseeing’ the financial part of the transaction. This who have studies the FTNX doctrine can see the correlation between International laws and localised laws as per this one example

 

 CORRESPONDING  BANK

4 April 2024

If a PCT accepts a DLC from a corresponding bank of the DLC  issuing bank, the transfer fee from the issuing bank to the corresponding bank, must be paid by the buyer. The corresponding bank will now ask for a transfer fee from the PCT when it transfer the  DLC to its banks advised from the corresponding bank; the issue here is that the corresponding  bank transfer  fee  would be higher that the standard rate being applied by the issuing bank. Once the DLC is in the account of the PCT, the transfer fee from the PCT to the bank of the supplier is for the supplier to pay. This will  ensure the added layer of security in in play, as the DLC is transferred to the bank issuing the transfer fee ( it remains fully  trackable).This is the orthodox aspect, in where the term ‘ or as agreed upon’ also forms the orthodox trading aspect. The PCT when dealing directly with the bank  issuing the DLC , must pay for the transfer fee, when the DLC leaves the bank of the PCT to the suppliers bank where no corresponding  bank is involved.  The term ‘ as agreed’ means  the PCT has sold the goods to the end buyer to includes this aspect. If the PCT accepts the transferable DLC and pay for the transfer fee, the risk here is that the PCT could still lose its money, should the end buyer  decides to renege on the contract ( which does happen ;FTNX has lost the TF twice in the early years; hence the doctrine is specific for this reason, on this matter) or the supplier decides to not honour its assurance of supply.  A first time deal applied by a PCT  where such loses  the transfer fee it has paid form its own pocket could have a financially devastating effect. The first deal, the post MUST secure the transfer fee from the end buyer ; in this light the supplier is now compelled to honour its side of the deal without any reasonable excuses being  plied. On a second and subsequent deal, after making a profit on the first deal, the PCT could now pay the transfer fee, and seek reimbursement of such from the supplier, is also tied to the orthodox trading aspect and  the preferred a trading aspect; other PCT  could seek the transfer fee from the supplier in where the DLC is now transferred to the same bank issuing the TF, is the safest all round aspect, in accordance with UCP rules.Even though  two options are available the PCT  should remain with the idea that the TF is payable from the end buyers  side; especially when closing on a first time deals being the approve aspect and lawful aspect  falling within the bounds of UCP rules and that corresponding bank are avoided unless not the aspects becomes available. FTNX has sought  the TF from end buyers in 80%  of the time - to this day. If an end buyer does not want to pay the TF, then the DLC must be advised as confirmed, which is going to the cost the end buyer more. In this  case , the PCT having a non transferable but confirmed credit in its account, must ensure that the bank of the supplier has a corresponding branch in the same country as the PCT. The PCT now collects its documents from the corresponding bank at the suppliers expenses.The transport documents are marked and changed accordingly and presented from the bank of the PCT to the bank of the end buyer  for at sight collection is again a advanced trading aspect,  which could be used by a PCT  once good experience has been gained. First  time deals, the PCT seeks the TF from the end buyer is the safest and best aspect,  and if need be the PCT can even promise to rebate the TF  once the delivery cleanly takes placed. To act outside the bounds of the doctrine is a high risk application.