5 decisions on reduction of risks for buyers and wholesale suppliers sugar
5 DECISIONS ON REDUCTION OF RISK FOR BUYERS AND WHOLESALE SUPPLIERS SUGAR
Risks connected with International trade and their decision:
Risk № 1. Not payments for goods which sugar suppliers can face.
Decision: Use of conditions of deliveries on open account with a covering in form of SBLC of reserve letter of credit or BG of bank guarantee on demand. Alternative: Use of DLC of documentary letters of credit in compliance of UCP 600, developed by ICC.
Risk № 2. Delivery of goods of inadequate quality with which can will face buyer.
Decision: Requirement of acts (certificates) on survey issued by official bodies. For example: SGS (Switzerland).
Risk № 3. Sugar supplier because conscientious at first sight, client will receive item, and will make after that attempts will evade from his payment.
Decision: Payment only, Top of 50 banks and confirmation from the Top of 50 Banks. Appeal to services of service ICCin fight against economic crimes.
Risk № 4. Losses, damages of goods or theft of a part of a consignment of goods of buyer.
Decision: A sufficient insurance covering of all possible unforeseen circumstances and attention to the details which are contained in the consignment. Attentive acquaintance with the contract of transportation. Requirements to packing and transportation.
Risk № 5. Non-executions by supplier sugar, contractual obligations.
Decision: To use BG (bank guarantees), SBLC (reserve letters of credit) and a guarantee of appropriate performance of contract PB (Perfomans Bond).
Conclusion: Work only with reliable suppliers sugar!
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