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Last Updated: 23 April 2016

FTN Exporting (FTNX)
USCT
Unified Society of Commodity Traders

By

International Best Selling Author and Leading Intermediary Expert 
Davide G.A Papa  Ceo, FTN Exporting: Established 1988

Author: International Trade and the Successful Intermediary (U.K 2010)
Author:Crude Oil and the Successful Intermediary ( U.K ETA: LATE 2016 )
Education: www.ftnexporting.com     Trade: www.ftnxx.net

 

 

FTNX USCT DOCTRINE OF TRADE
What needs to happen to close a worthy commodity deal?

When FTN exporting commenced trading in the export import business in 1988 it had no idea that one day we would lead the practice world wide. Thanks to our long standing efforts and in-roads made by us, we’ve made this business easy for those who are prepared to spend some time to study the FTNX USCT Doctrine intently The term ‘easy’ does not mean a deal is a simple process to close upon, personal abilities are also important attributes. There is plenty about the author and expert Davide Giovanni Papa and Davide Andrew Papa online via a Google search, accordingly lets concentrate mainly on matters pertaining to the doctrine of trade. The USCT doctrine looks intimidating because there is so much one needs to know, before entering this business.The traps in this business are many. The FTNX doctrine is not just based on legality, rules and laws, but personal experience of the Author as well. Said experience as gained and tested over a 30 year period as enacted online from 1998. The FTNX USCT condensed doctrine advises the full trading path and provides the precise advice and reference that all intermediaries must follow if they are to have any chance at ‘clinching’ that big export deal.The condensed version of our in-house masterworks, describes how to manage a string deal intently, and all aspect needed for payment of commission and closing of a large export import deal, without the need to advise more about advanced and other experimental trading applications that may be tried. FTN Exporting (FTNX) created the first ever doctrine of trade for intermediaries and we’ve advised about such complex matters in the most simplest method. We also created URPIB Rules of support. Forget about idiotic trading aspects such as LOI, BCL, ICPO, ASWP NCNDA and MPA and the likes used on line by those who have no idea on what they are doing. Anyone using such flawed incorrect terms used for local business in the ‘international’ trading arena are wasting their time as such procedures cannot close nor protect export import deals and the intermediaries who are involved in such when attached in a string deal.

Actual Trading Routine
The actual trading routine the professional intermediary must enact upon is defined below, and is fully explained in the doctrine. Hence only seriously minded home based intermediaries should take up the study offered on the next page. To chase large scale commissions and profits, the professional intermediary has to bring something to the table–that something is “knowledge and skill” which takes time to develop.

The Applicant
Lets assume the applicant has a day job, and spends weekends and a few nights after work attempting to conduct the nature of business being attempted.The applicant can read and write in English to a ‘reasonable level.’ The applicant has a non generic email account ( a private,and / or as well as a generic email account i.e: gmail.) The applicant has a private area at home or office to conduct business.The applicant has a computer connected online at home. (using mobile phone, social sites or internet cafe to conduct such business is unacceptable.) The applicant also has a ‘strong’ and appropriate sounding online trading name, is not a bankrupt and is over 21 years of age. Applicants who open a simple website advertising their status, attract more business than those who don’t is also assumed.

The informed Intermediary Trading Aspect in a Nutshell
Intermediary studies the FTNX USCT Doctrine ; reading time is around 2-3 months.
Even though you are a first time trader, many have already dabbled in trading online only to become totally disillusioned and frustrated. Nevertheless even one with no experience can understand the trading routine advised below. The applicant studying the USCT doctrine will understand every aspect of the below steps within 6 months. Practice, experience and time will then dictate the rest. Whether you are a lawyer, banker, related professional or novice first time intermediary, we are all in the same boat. Learn to trade correctly from the leading expert on the planet , or don’t bother trading at all is the best advice I can give.

  1. Trading steps to be learned in the USCT doctrine.
    The applicant PIA must seek to secure a supplier in possession of goods first. Whether is takes a week, a month or a year to secure such a supplier is irrelevant. No other steps can be taken until such a supplier is secured.
  2. This ‘act of securing a supplier’ is a crucial stage of the whole trading and learning premise. There are so many fake products out there offered by ‘idiots’ from Crude oil, D2, Chemicals, Coal, Ores, Metals.etc.etc.that the professional intermediary simply cannot take the risk in handling such ‘products’ and deals. Accordingly matters of due diligence is also covered in the USCT Doctrine
  3. The only guaranteed way of knowing that the product you have secured is real, is to actually personally source such goods.Regardless if trading alone or in a group, one person is in-charge of such a group, that person is designated the potion of Buyer/Seller. In the doctrine we call thats person PIA. The job of the applicant is to eventually learn to hold position as PIA. Everyone in that group cannot make moves unless PIA has authorised it .In a group situation, PIA is not just a Buyer and Seller of commodities, he or she is also a “principal” looking after the interests of those he or she has allowed to become attached, in forming the said trading group (called a ‘string deal’). All those assisting PIA in the formed string, to source end buyer or supplier are defined as informed professional sourcing intermediaries if they also have studied the doctrine and have a USCT number issued by FTN exporting. Hence regardless what position the applicant may take in the fixture , anyone involved in the business should become informed.
  4. As such, PIA can work alone, or work with a trading group as directed by PIA. Both aspects apply differing procedures; which is also covered the doctrine.
  5. No intermediary informed or not, can make money from this business if they are not attached to a person who holds the informed buyer/seller status.
  6. An intermediary who as studied the doctrine but does not want to take up the Buyer/Seller status of PIA is still in prime position to (a) seek attachment of a person who is already trading as PIA or (b) To seek representation as agent or broker for another principal outright.
  7. The study therefore serves anyone who is dealing in commodities or related industries of local or international agency–including bankers, lawyers, suppliers, end buyers and specifically novice first time home based traders and entrepreneurs dealing in big sales and international contracts.
  8. PIA has the knowledge, as obtained by studying the FTNX doctrine; all others attached therefore must abide by PIA’s instructions otherwise, said others cannot be a part of the said formed string that PIA is fully responsible for.
  9. Once a single supplier has been secured, PIA now is able to source end buyers–again alone, or with his trusted group.
  10. PIA with assurance of supply, in hand, is now legally able to test many end buyers at the one time, until such time, an end buyer actually makes effort to ‘buy’ goods being offered; or until validity of supply has run out. This crucial step now delivers much wanted experience and insight to PIA.
  11. The process at first, when seeking end buyers alone develops the skill of making a quote. Later PIA can also go directly into the more complex mode of making an offer instead of a quote.
  12. Once a quote has been ‘confirmed’ by and end buyer, the next stage of the process is applied which is to do with making an offer for the end buyer to accept.
  13. From the securing an “assurance of supply” or offer, from one single supplier many end buyers can be tested at once, until the offer stage has closed.
  14. The offer is advised to the end buyer(s), who ‘accepts it.’ At first while practising and gaining experience, PIA make the an offer which is “subject to final contracts.” Later however, the proper refined procedures would entitle PIA to make the offer subject to a legally binding aspect, once accepted by the end buyer.
  15. PIA will be going through the above said steps many times as failure up to the offer stage often prevails. This gives PIA great insight, and abilities and delivers to PIA great experience to trade up to this level at a greater pace later, with supreme confidence in hand. Every now and then the offer is accepted to which the next ‘not often event’ of issuing a contract becomes the next step apparent.
  16. The issuing of the contract to the end buyer is a step that needs little practice because the contract is self serving.The doctrine provide a great contract ready made for intermediary use. The contract cannot have many changes applied, because all matters of contract were developed as part of the routine applied within the scope of prior negotiations, quote and offer stage of the deal.
  17. But this stage of the deal now also applies a very tricky secondary aspect that is applied once the contract with the end buyer is about to be returned to PIA by its validity date. This is tricky aspect is explained intently in USCT.
  18. This is the time, when the offer or assurance made by the supplier is accepted by PIA–also “subject to final contract.” PIA has a contract from the supplier, which is pre-dated and signed but not yet returned to the supplier.
  19. The contract of the supplier given to PIA to sign, and the contract PIA has issued to the end buyer will have the main important interfacing elements apparent which allows PIA to hold two interacting contracts which are workable because the main attributes of both contract pertaining to UCP rules and Incoterms must be apparent on both contract. All these matters are described in the FTNX doctrine as we break down incoterms and UCP Banking rules down to its simplest understanding.
  20. The contract is returned by the end buyer to the seller PIA as signed.
  21. PIA as buyer now signs the offer from the supplier and returns it “ subject to final contract.” PIA is now the ‘seller’ to the end buyer and ‘buyer’ to the his sourced supplier. PIA cannot simply hold a buyer or seller status, accordingly PIA is always a buyer/seller when a deal commences, and a “Buyer” or “Seller” depending on which side of the deal is being worked upon at any time.
  22. The financial instrument as per condition of the offer and contract is lodged into the account of PIA from the end buyer, in where the contract from the supplier is signed by PIA and promptly returned-–as fully explained in the doctrine.
  23. So PIA now controls the deal on both sides. PIA cannot be circumvented. PIA ensures that his or her schedule applies on all quotes and offers made, at all times.Suppliers side and end buyers side has been manipulated by PIA to ‘fit ‘ the deal.PIA is in charge. Nobody tells PIA what he can or cannot do.
  24. PIA accepts the financial Instrument of the end buyer and effects its transfer for the purchase price of goods being delivered to its supplier, as buyer.The doctrine explains this step intently.
  25. The supplier enacts in due course, to deliver ‘clean’ transport document to PIA. Also explained in the doctrine.
  26. PIA endorses such documents as required and changes the suppliers invoice as allowed to under UCP banking rules to reflect the end buyer selling price.PIA cannot legally change any other document except the invoice as PIA paid one price to the supplier and sold the goods to the end buyer at another price.
  27. PIA present the documents to his bank holding the financial instrument.
  28. If PIA has secured a confirmed credit at his bank, the deal is set to ‘close’ there and then if all documents comply to the terms of the credit, and not the contract because banks have nothing to do with the sales contract ( it’s specified under UCP banking rules.)
  29. If the credit is not confirmed, PIA’s bank checks the documents and if all is in order, transfers them to the DLC issuing bank of the end buyer, after PIA has paid the transfer fee. All these very important issues are explained fully.
  30. The ‘issuing bank’ of the end Buyer now examines the documents ‘at sight’ and if all is cleanly presented and comply; the credit may be collected upon by PIA which in turn allow the suppliers bank to collect his payment as per the credit offered( transferred) by PIA.
  31. What is left over in PIA’s account is his ‘gross profit’.
  32. If PIA used sourcing intermediaries in his/her protected group, then from his gross profit, commission payments are made as automatically stipulated under URPIB Rules of association or as agreed upon earlier (when “Commission Pay Orders or Irrevocable Payment Guarantee’ (IPG) and pro-forma invoices were advised) at the time the DLC for payment of ordered goods, was lodged by the end buyer to PIA (IPG issuance sooner or later; is not an issue ) The IPG is a like an SLC; once presented to the applicants bank when collecting commissions.
  33. Once all commissions have been paid, what’s left behind is PIA’s net profit.
  34. PIA could only ‘earn’ such money for real efforts and real work being done using real knowledge and skill.
  35. PIA now remains with the deal alone.
  36. Once ship arrives at destination, the end buyer is given up to 90 days to inspect the goods and lodge a complaint in where legitimate complaints are sorted out by PIA and his supplier until all parties are satisfied with the final outcome.
  37. All these matter are covered in the doctrine ( and much more)

In Summary
It is difficult to explain the docrine online in a few paragraphs, hence that is  why such details, as above are given. If the applicant  can understand a good part of what has been advised on this site page, then the applicant will understand the USCT doctrine intently is greatly assumed.  All those clowns currently online passing NCNDA around and squabbling over commission pay orders on suspect unworkable deals which have a very long way to go ( leading to nowhere) are simply wasting their time trading. Everything stated above needs to be understood and applied, before a red cent can ever be earned by an intermediary. The unique FTNX doctrine needs over 800 pages / 250,000 words plus to describe each and every aspect above fully in a step by step basis. This what makes an informed intermediary a specialist at what they do. All other ill informed intermediaries online have no idea of the great efforts and understanding needed to complete a non break cargo import expert deal at FOB, CFR or CIF. To give this business a serious attempt, serious academic level studies must be taken. Learn the basic trading predicate from which advance trading methods will later self generate .No matter how complex or advance a commodity deal has become the base USCT predicate is always apparent. Secure the supplier, source the end buyer and close the deal–Sounds simple enough,if you are fully informed and are prepared for the long haul. Read the doctrine for a few months and start trading immediately there after as per its basis.The doctrine actual protects the pro intermediary from making serious mistakes.Good effort lead to experience, experience and knowledge gained, leads to that one deal you have been working hard on.This is  an exciting and highly rewarding  and challenging business for those who 'make the grade' and a useless business for those  who are not informed.

 

  E&O.E: Errors and Omission Excepted

FTNXX and all sites owed by FTN Exporting (including this site) offers general trading advice and are subject to constant change. FTNX site pages are also full of personal opinions, always given with good intent, without prejudice,for purpose of education. FTNXX services information to suppliers and end buyers as well as invited informed others as a matter education. FTNXX often applies testing of new products and procedures on this site as well, which may only be validated as per the advice being tested. Common and obvious mistakes in advice, offers or prices, and all errors overall found on our websites do not effect the service / offer being rendered. Grammatical and spelling mistakes are corrected over time in most cases. Personal opinions served, are done so without prejudice, with good intent, for purpose of education and serving information and advice.We’ve never have made promises in any form over many years, that anyone buying this doctrine will close a deal; hence only an academic level educational aspect is given. Applicant should not buy a pirated altered copies our works, as applicant will be buying old outdate material and losing their money.Such applicant cannot connect with legitimate FTNX peer to peer traders as well.Nobody has permission to resell our material.

FTN Exporting (Est:1988) Registered Business (ASIC)
Business: www.ftnxx.net Education: www.ftnexporting.com