Simplified Procedures to purchase from Hatton FZE

1) Buyer agrees on the pricing by phone or by e-mail with Seller (Hatton). Pricing is different for products in stock ready for immediate shipment as compared to 35 to 45 days delivery. Then Buyer and Seller sign contract.

2) Seller will sent past performance such as past B/L, inspection report, health certificate, etc to Buyer to confirm Seller has shipped sugar in the past.

3) Buyer deposits 30% downpayment, and Seller makes vessel booking for containers or full vessels and transmit the booking information to Buyer. Again, Buyer can call the shipping lines such as MSC, or Mearsk, or port authority to confirm the booking.

4)Seller loads the products to vessel and email copies of B/L, inspection report (SGS or Cotecna, etc), health and sanitary reports and certificate of origin directly to Buyer. Buyer should contact the inspection agency - SGS or Cotecna - to verify the certifcates are authentic. Please note that this is very important to prevent FRAUD on the SGS certificates. By contacting SGS directly to confirm that the report is genuine, there is no chance of errors.

5) Buyer bank then releases the payment to Seller Bank and collects shipping documents.

NOTE:
D/P ( Document Against Payment) is a very popular method of payment for international business. The procedure is as follows:

D/P (document against payment)
The Seller makes the shipment and sends the shipping documents to Seller's bank for collection. Seller's bank then sends the shipping documents along with a collection letter to the Buyer's bank. Buyer's bank then sends a collection notice to the Buyer. The Buyer authorizes the payment upon receiving the notice. Only after payment is made does the Buyer receives the original shipping documents which the Buyer needs to take the physical possession of the shipment.

The major advantage of using " cash against documents" payment is the low cost, as compared to using a "letter of credit". The risk is with the Seller. This is because if for some reason, the Buyer rejects the documents (perhaps he does not need the shipment any longer), the Seller is stuck with the shipment and needs to find another buyer..

Since the cargo would already been loaded onto the vessel(to generate the shipping documents), the Seller has little recourse against the Buyer in cases of non-payment. So, a payment against documents (D/P) arrangement involves a high level of trust between the Seller and the Buyer and are usually offered to Seller's best customers.