Questions

Q WHAT ARE THE PAYMENT TERMS?

A

Payment terms will be clearly spelled out in the original offer or SCO. Payment terms are set by the supplier. We have suppliers who can offer some slightly different terms and we try to match your needs with those suppliers. In general, suppliers will only accept an Irrevocable Documentary Letter of credit (DLC) 100% payable at sight of loading documents.

DLC at sight transferable, divisible and revolving issued by or confirmed by a major western bank agreeable to us-the seller. Sometimes, we may agree to some form of cash payments or Bank guarantees (called Stand-by L/C- in Europe -LC in the US. DLC is a payment method LC -Stand by LC, is a guarantee not a method of payment. It can guarantee cash payment or some other form.)

Some of our suppliers will require a RWA, or BLC (Ready, Willing and Able document from the buyer’s bank, similar to BCL- Bank Comfort Letter) from the buyer.

Q CAN I DO MY OWN INSPECTION AT THE PORT OF LOADING?

A

Some suppliers will allow the buyer to conduct their own inspection at loading, at the buyer’s expense. However, for the purposes of the LC opening etc., only the inspection report provided by SGS or other inspection company is valid. Buyers may also attend the loading to observe only. At no time are buyers or sellers to interfere, in any way, with the inspection process.

Q CAN I DO A TRIAL ORDER?

A

Most suppliers will not do a trial order unless it is a part of the long-term contract. Most suppliers have a 10×40’ container MOQ (Minimum Order Quantity). So you may do an order of 10 containers for the first month, followed by a monthly total of more. If you want to order less than the MOQ as a trial not a part of the contract, it is treated as a spot order. The price will be higher and payment will be by 30/70 TT only.

Q HOW DO I KNOW THAT THE CHICKEN IS APPROVED FOR CHINA?

A

All chicken we offer for delivery to China is from a plant that has been approved for importing to China. Brazilian chicken will come from a plant with a SIF#. At times, such as in the case of a spot order, we will know in advance which plant is supplying and will give you the SIF# in advance. At other times, we will not know the SIF# until the order has been placed and the slaughterhouse company assigns that order to a particular plant. For some suppliers, we can provide a number of plant numbers ahead of time and your order will come from one of those plants. No orders for Chinese import can leave the plant until the independent inspection company has confirmed that the plant has the correct and current SIF#.

Q CAN I SEE DOCUMENTS TO PROVE THE SUPPLIER’S ABILITY TO SUPPLY?

A

Yes, after the LC opens. Most suppliers are willing to share some documents after the LC opens. This is due to a few reasons. Documents such as past BL’s, Sanitary Certificate etc. that have in the past been shared with buyers have ended up being used by scammers for fraudulent use. It is also illegal in many countries to share this information.

Q CAN I GET PICTURES OF THE PRODUCTS?

A

Pictures will be included in the SGS report. Unfortunately, pictures have become meaningless because of the rampant fraudulent use of images provided by suppliers in the past. Most slaughterhouses now do not allow pictures to be taken and have banned employees from bringing their cell phones inside the slaughterhouse.

Q WHAT ARE THE SPECIFICATIONS OF THE PRODUCTS I AM ORDERING?

A

General specifications are provided with the offer or the SCO and confirmed in the FCO and contract. It is your responsibility to include the specifications that you need on the LOI and ICPO. Products that are specified outside of the normal specification may be higher priced. In most cases, custom products and/or packaging may require a down payment.

Q CAN I GET A PERFORMANCE BOND?

A

Some suppliers provide performance bonds (PB) and others do not, but may include a penalty clause in the contract. Generally, suppliers who provide Performance Bonds have slightly higher prices.

Each of our suppliers has a different policy regarding PB’s. Some will post the bond within a set time after your LC opens. Some will ask you to issue a non-operative LC that is triggered when the bond is posted. A PB will never post before the LC opens.

Q WHAT ARE THE PRICES OF MY PRODUCTS?

A

Not all suppliers can provide firm pricing at any given time. Only those who have a locked-in supply contract with firm long-term pricing, and a specified allotment of a certain cut can do so. Some have the allotment, but at prices that can be changed by the slaughterhouse company depending on market conditions. In general, prices are adjusted every Monday. Upon receipt of your LOI, we can provide a Soft Price (SCO). Once you submit your detailed ICPO with full buyer company and banking information, we can issue a Full FCO with firm prices valid until certain date indicated in FCO.

Q WHAT DOCUMENTS ARE PROVIDED?

A

The following documents are provided for every shipment:       

  1. Commercial Invoice.
  2. Full set original clean “shipped on board” bills of lading made out to order marked “freight prepaid” and blank endorsed.
  3. Packing List
  4. Veterinary Certificate
  5. Declaration Of Non-Wood Packing Material
  6. Certificate Of Registration And Sales Permit Of Products In Brazil- for Brazil origin product
  7. Original Of: Quality And Quantity issued by S.G.S. or independent authorized surveyor
  8. Certificate of Origin
  9. Cargo Insurance Original for 110% of cost value of goods
  10. New Health Certificate with the Lab Report Number
  11. Original Lab Report Free from Dioxin Attached
  12. Halal Certificate