Commodity Trading Terms
CIF ASWP
CIF ASWP stands for Cost Insurance and Freight to Any Safe World Port. This is a flawed term which does NOT exist in the real market. When you get asked for (or offered) the CIF ASWP price, you know right then and there that you are either dealing with a scammer or more often a person who does not know much about import/export business – a beginner who picked up the term from other beginners and is throwing it around in hopes to land his first deal and get his big commission. People who use this term are known as “time wasters” or “joker brokers” and usually do not get a reply from anyone other than fellow time wasters. There have been “intermediaries” who have been caught in time wasting circles for years, not realizing that what they are doing cannot possibly lead to closure of a real deal.
The CIF part of the term is valid, the ASWP however is wrong. There is a simple logic behind this – the shipment cost cannot be the same to ANY World’s Port! For example the CIF price to ship sugar from Brazil to China would be double compared to if it was shipped to South Africa. In only one small ship load (12.500 MT) that makes over half a million dollars price difference. No buyer would be willing to pay extra just to get a an “easily” quoted CIF ASWP price. The “CIF ASWP” was probably developed by scammers because they did not have access to the ever changing real prices so they needed something more “general” they could quote on the fly.
ICPO (also LOI)
ICPO stands for Irrevocable Corporate Purchase Order while LOI is supposed to mean Letter of Intent while in fact the proper meaning would be Letter of Indemnity (international trade and carriage business). These documents are frequently used in some countries and some industries to establish corporate intent for certain undertaking – such as to purchase real estate, or to enter into some sort of deal, but there is no standard usage of these documents in International Trade! This is used by “joker brokers” because the phrase “Irrevocable Corporate Purchase Order” sounds barbarous, “strong” or “professional” if you will. In reality there is no need for anything other than Quote, Offer, Contract, Payments and Exchange of goods.
Commodity Trading Manual
Nenhum comentário:
Postar um comentário