ABSTRACT
This chapter discusses import/export deal using acceptable international rules of trade. The end buyer communicates interest in the quote and confirms their interest to the supplier. Sometimes the supplier accepts the credit and provides a performance guarantee (PG) for the end buyer, although most times PG issuance is not a requirement. The supplier ships the goods to raise the required delivery documents, which must be acquired once the goods are loaded on board ship. The delivery documents are collected and forwarded to the end buyer or the end buyer's bank for presentation. Banks are also conducting business as intermediaries. The sourcing intermediary becomes the primary intermediary (PI) of the buyer/seller. Intermediaries cannot use financial instruments such as Standby Letter of Credit (SLC), SWIFT, Telegraphic Transfer (T/T), Medium Term Notes 100 (MTN) and so on, or a document called a Bank Guarantee (BG). Intermediaries also need to show that they have the financial capacity to enter into the transaction.
