Our Process
The TSM Commodity Trading Process is quite straightforward. When we commence any type of trade, we request a NCNDA (Non Circumvent Non-Disclosure Agreement) by both brokers and/or traders. Trading then commences, and TSM helps negotiate the most optimum deal for all parties involved until a deal is successful at which point we sign a FPA (fee protection agreement) to secure commissions.
TSM Pacific follows the guidelines set out in the United Nations International Trade Procedures for Sale of Goods. Below is a summary of the guidelines:
- Buyer submits a complete Letter of Intent with a Bank letter qualifying the buyer to purchase the quantity listed on the Letter of Intent
- Seller will then issue a complete corporate offer
- Buyer returns signed offer to seller
- Seller then issues a contract with full banking details
- Buyer returns signed contract to seller
- All Intermediary Commissions will be protected by Fee Agreements
- Buyer's Bank Officer contacts Seller's Bank Officer or visa versa, by telephone to confirm readiness to proceed with the signed contracts
- When the two hank officers confirm readiness, Seller's bank then KTT's buyer's bank to verify funds readiness and to confirm proof of product
- After confirmation of funds and product, Buyer's bank opens Non‑Operative or Pre-advise Letter of Credit
- Seller's bank activates Letter of Credit by posting Performance Bond in favor of buyer
- Shipments commence as per contract
- Seller usually pays for Inspection at loading port
- Buyer should have all documentation checked or verified by a reputable Freight Forwarder
