Somontaj 

General Trading

Procedures

The procedure of buying our products starts with signing Letter of Intent specifying the product, quantities, delivery dates and other required information.

 

After preliminary negotiations parties, can start negotiating Master Agreement conditions. However, our customers need to meet strict prequalification requirements for Master Agreement:

 

1. Organization

 

· Valid Certificate of Incorporation

· Adequate proof of experienced key officers in industry Trade (personnel profile or CVs)

· Evidence of presence in the key markets (registered office addresses in Europe, Middle East and Asia)

· ​Evidence of trading in products of interest (volumes lifted, date, sources and destinations)


​2. Shipping Capability (if buying FOB)

 

· Adequate proof of affiliation with ship owners or brokers (agreements/ MOU)

· Shipping Quality Assurance HSE & Ship Management Systems and Policies (documents)

· Shipping Operations Contingency Plans & Risk Mitigation (documents)

 

3. Financials

 

· Three (3) years Audited Financial Statement

· Availability of Financial Support (parent company guarantee or proof of ability to provide bank guarantee/ Letter or Credit)

 

If all prequalification requirements are met we can go on to contract structuring.

 

We have worked on differently structured contracts and can adjust depending on client and supplier needs.


Below is the presentation of the few possible contract evolution timelines as an example: