LOI — define the requirement
Identify the product, grade, volume, destination and proposed delivery basis.
AURESTIQUE / INTERNATIONAL TRADING
Trade Procedures & Glossary
Understand the path from LOI and purchase order to contract, due diligence, banking instruments, inspection, shipping and settlement.
ICPO / FCO — align commercial terms
Exchange the purchase order and corporate offer, including the exact product and commercial procedure.
SPA — agree the contract
Agree specifications, inspection, shipment, document requirements, payment triggers and responsibilities.
KYC — verify the counterparties
Complete company and authorised-representative checks through an agreed secure channel before execution.
Banking instrument
The parties’ banks review the agreed credit or standby structure and applicable rules. A SWIFT reference alone is not proof of product or payment.
Inspection
Verify quality, quantity and the required inspection documents at the contractually agreed stage.
Shipping
Coordinate shipping, insurance and export/import documents according to the named delivery rule and port.
Payment
Settle against the exact contractual conditions and documents, using the method accepted by the banks.
This is an explanatory sequence, not a binding or universal procedure. KYC and due diligence can begin earlier and continue throughout the transaction. The signed SPA and bank-approved instruments control execution.
TRADE TERMINOLOGY
A shared commercial language.
LOI
Letter of Intent: an initial expression of the buyer’s requirements.
ICPO
Irrevocable Corporate Purchase Order: a corporate purchase order used in the source procedure.
FCO
Full Corporate Offer: a detailed commercial offer from the supplier.
SCO
Soft Corporate Offer: preliminary indicative commercial terms.
SPA
Sales and Purchase Agreement: the final agreement governing the transaction.
PI
Proforma Invoice: a preliminary invoice recording proposed commercial details.
KYC
Know Your Customer: verification of the company and authorised parties.
POF
Proof of Funds: evidence of financial capacity, subject to verification.
BCL
Bank Comfort Letter: a bank letter whose effect depends on its actual wording.
RWA
Ready, Willing and Able: a statement used in source banking procedures; its status requires bank review.
SBLC / MT760
Standby Letter of Credit: a contingent bank undertaking. MT760 is a SWIFT message category for guarantees and standby credits; wording and governing rules matter.
DLC / MT700
Documentary Letter of Credit: a bank undertaking against complying documents. MT700 is used to issue a documentary credit.
MT103
A customer credit-transfer message referenced in the supplied procedures. The executing banks confirm the current payment message and settlement route.
PB
Performance Bond: security for specified performance obligations. Source percentages are transaction-specific.
POP
Proof of Product: transaction documents intended to support product existence or availability; independently verify them.
SGS
An inspection company named in the source documents. Naming it does not establish an inspection result or company certification.
B/L
Bill of Lading: a transport document issued for the sea shipment.
CIF
Cost, Insurance and Freight: a sea/inland-waterway rule. Seller arranges freight and insurance; delivery and risk transfer occur on board at shipment, not on arrival.
FOB
Free On Board: a sea/inland-waterway rule with delivery on board the buyer-nominated vessel at the named shipment port.
ASWP
Any Safe World Port: source shorthand, subject to a specifically agreed port and logistics constraints. It is not an Incoterms rule.
Delivery-rule reference: ICC — Incoterms® 2020