URPIB RULES OF TRADE

 

© FTN EXPORTING (TRADING HOUSE)
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AGI
ACADEMY OF GLOBAL INTERMEDIARIES

URPIB 2010

Why use URPIB ?
The Intermediary who requests FTN Exporitng URPIB to apply among a trading group shall provide a copy of the rules as defined below via e-mail to inform them as to the content. Once accepted, the group shall abide by the terms of URPIB. Acceptance of the rules within a trading group gives stability and uniformity to the attempted transaction. This is the case even when other intermediaries have previously been unaware with these methods.

Similarly any global supplier, owner, manufacturer or end user of goods being sourced, purchased or sold who is trading with intermediaries may also benefit from URPIB, especially in relation to matters surrounding the offer and/or contract. Updates to this publication, and to URPIB the accompanying guidance rules can be found at www.itsi.itgo.com

© URPIB Rules of Trade
Full Revision 1988-2010

Copyright: FTN Exporting 2009
Formal Date of Application: November 20th 2009

URPIB is a set of rules that are recommended for all commodity export dealers, and specifically designed for private or corporate intermediaries, brokers, agents and those intermediaries who are described as intermediate ‘buyers’ and ‘sellers’ worldwide. URPIB is considered to be the first uniform set of guiding rules of its kind, created by FTN Exporting and specifically for intermediary usage.

All intermediaries using these rules in combination with acceptable international laws and rules of trade enhance their capability and therefore the likelihood of being able to close an international commodity transaction. When intermediaries agree to be governed by URPIB in their documentation, then URPIB shall be deemed to be the applicable rules among the trading group, in where one person is heading the group following ITSI or FYBR Doctrine.

All offers of contracts which state that URPIB prevails when used among intermediaries shall carry the following paragraph to reinforce the edict among a trading group:



URPIB Article 1: Definitions and Overall Premise:
1.0: An International Trade intermediary shall be defined as a Sourcing Intermediary, and/ or Intermediate Seller, Intermediate Agent, Intermediate Broker or Intermediate Buyer. An entity working as a ‘Middle Person’ individually or grouped between two other Principal entities shall also be known as the ‘Buyer/Seller’. The other principal entities who are not the intermediary are; the actual owner in possession of goods being offered, also referred to as the ‘Supplier’ and the person paying for the goods who is also the person taking possession of the goods being purchased, also referred to as the ‘End Buyer.’

In a scenario where no other ‘sourcing intermediaries’ are involved within a transaction, the parties are as follows:

Supplier
Buyer/seller
End buyer

Where sourcing intermediaries are involved, the group may look like this:

Supplier
Sourcing intermediaries (one or many)
Seller/ Buyer (middle person in control of the whole deal)
Sourcing Intermediaries (one or many)
End buyers

If a ‘Mandate holder’ has disclosed his principal or produced a written mandate-ship issued by his claimed principal, and if such a mandate ship has been authenticated as being genuine, the following group will eventuate:

Supplier
Suppliers Mandate holder
Sourcing intermediaries (one or many)
Seller/ Buyer (Middle Person in control or the whole deal)
Sourcing Intermediaries (one or many)
End buyer’s mandate holder
End buyers

The ‘middle person’ who leads a trading group of ‘sourcing intermediaries’ is also referred to as a primary principal.

1.1: A ‘seller’ is not the same thing as a ‘supplier’ and an ‘end buyer’ is not the same as a ‘buyer’.

1.2: For the purpose of these rules a primary principal is different from the other principal entities, in that the primary principal shall only be able to proceed in a transaction as a person holding and transferring title or leading delivery documents of the goods without ever taking actual or physical ‘possession’ of the goods.

1.3: A ‘sourcing intermediary’ is not a primary principal or a ‘primary intermediary’. Sourcing intermediaries answer directly to the primary intermediary (PI). The primary intermediary in turn answers to his primary principal, the leading ‘middle person’ in a trading group, commonly referred to in international trade as the ‘buyer/seller’.

A seller/buyer shall also define a single person acting as a ‘seller and buyer’ at the same time in the position between a supplier and end buyer and as per URPIB, shall also mean to define the activities as they pertain to a ‘Primary Principal of Agency’.

1.4: Where the seller/buyer is advising his immediate primary intermediary, the primary intermediary is responsible for advising all other intermediaries on that side of transaction, in particular where language and cultural barriers may need to be addressed in an effort to appease the end buyer of the primary principal’s contracting requirements.

1.5: There will only ever be a maximum of three primary principals involved in any one deal. (1) The supplier. (2) The buyer/seller. (3) The end buyer or end user. All others involved in the same deal are defined as ‘sourcing intermediaries’ in the collective form.

1.6: A ‘string contract’ is where many ‘sourcing intermediaries’ are acting as a collective ‘middle group’ or with a middle entity located between the principals to the particular side of a transaction.

1.7: A ‘buyer/seller is a single entity in a trade, in that both the selling and buying is done by the same entity within a transaction. There cannot be an intermediate ‘buyer’ and another intermediate ‘seller’ acting as the single controlling entity in a string contract. A single buyer or seller is trading on the premise that they are able to buy goods for reselling and vice versa, which means that when entities claim to be able to do this it infers that they are also a ‘buyer/seller’. A middle controlling buyer/seller cannot transact on any deal where another buyer/seller is involved but may occasionally use the option of an ‘intermediary irrevocable personal guarantee’ in an attempt to cause the other buyer/seller or indeed any other intermediary to choose to ‘step back’.

1.8: The middle controlling buyer/seller must be in a position of strength as to knowledge of international trade procedures.

1.9: A middle buyer/seller will never step back to another buyer/seller who makes reference to LOI, RWA, ICPO, NCND, BCL, POP, PB, MPA, ASWP and other variants no matter how infrequently they are referred to nor in which combination.

1.10 An intermediary shall not entertain another intermediary who is using the above flawed procedures.

1.11 A sourcing intermediary not prepared to take up the mantle of a controlling middle seller/buyer without the protection and guidance of a middle controlling trusted seller/buyer should not be trading.

1.13: A sourcing intermediary is treated with respect by the middle buyer/seller who in turn guides the sourcing intermediary as to the way in which a deal should be closed. This is done so that eventually the sourcing intermediary may also learn the correct procedures to further enhance the whole trading group to which they will eventually attach themselves.

1.14: Any middle controlling buyer/seller who is trading but not using his own trusted intermediaries should not be considered a buyer/seller holding a position built upon honourable intent. The exception to this is if a specific reason is given as to why this trader does not allow intermediaries in a transaction.

1.15: In the formation of a string contract there is a principal supplier, one or more intermediaries leading to the buyer/seller and a principal end buyer with one or more intermediaries leading to the controlling buyer/seller. In this formation the buyer/seller, holds the ultimate position of strength and is the controlling principal. The buyer/seller is well versed in procedures and has chosen intermediaries who are similarly well informed and able to verify the proficiency and good intent of the buyer/seller.

URPIB Article 2: MANDATED ENTITIES.
2.0: Mandated Entity: A person who holds special permission verifiable by written authority to act on behalf of an end buyer or supplier, and who has offered proof as on request to anyone transacting in a string contract. An official mandated agent obtains their own commission from their respective principal, and has no part or share in intermediaries’ protected commission. A genuine mandate holder does not ask for payment of goods with a transferable financial instrument and must be prepared to accept only a restricted financial instrument.

2.1: A person holding the position in a string contract next to the end buyer or supplier is not a mandate holder to that end buyer or supplier simply by virtue of the position he holds in the string contract or intermediary chain, unless he holds written documentation which proves his mandate-ship.

2.2: A person who claims to be something that they are not is acting with bad or dishonourable intent and should be avoided at all times.

2.3: Intermediaries must never trade with a person claiming to be a mandate holder who fails to disclose his principal supplier or end buyer by failing to disclose his mandate-ship papers.

2.4: A sourcing intermediary must not claim to represent any mandate holder to others within a trading group, unless the sourcing intermediary has personally verified the claimed title of mandate-ship and has obtained a copy of the document to disclose when requested by others.

2.5: Formal verification of the mandate-ship must be provided when requested by any intermediary, and in particular when requested by the primary intermediary.

2.6: Proof of the mandate-ship must be supplied in writing and bear the name, address and contact telephone number of the end buyer or a supplier. A person claiming to be a mandate holder and who refuses to verify his authority shall be treated as not being a mandate holder.

2.7: Under such circumstances the ‘mandate holder’ shall be treated no differently to any other intermediary in string deal. If the bona fides position of a mandate holder is not proven then this person shall only be entitled to a share of commission, as that equally divided among all others in the string contract, and forfeits the right to hold or act in the position of primary intermediary.

2.8: Making claims of mandate-ship which later prove to be false shall bear consequences, in that all sourcing intermediaries in a string contract may take a vote to cut the false mandate holder out of the transaction, without risk of claim of circumvention by the intermediary in question.

2.9: If it becomes apparent, after the identity of the supplier or end buyer has been revealed, that the claimed mandate holder was not genuinely holding the mandate-ship as claimed, then all intermediaries in that group may vote to eject the false mandate from the group and continue with the transaction.

2.10: If the group of intermediaries comprises an even number of votes, one intermediary shall opt to refrain from voting to reach a definite decision as to whether or not the false mandate shall be allowed to remain within the chain. This vote is sanctioned under URPIB in that it is the exception to the rule relating to circumvention.

2.11: No option exists for a true mandate holder to refrain from disclosing his mandate-ship once he has made this claim of authority.

2.12: When determining the validity of a claim of mandate-ship the intermediary shall adopt this position: the mandate holder of an end buyer or supplier is able to issue and/or accept payments and negotiate the terms of a contract within the perimeters of the agreement with his principal.

2.13: A mandated intermediary cannot mandate another intermediary, other than to represent agency of the mandate holder.

2.14: A buyer/seller cannot and will not delegate his position to another intermediary and must remain in his position as a principal in the transaction. Similarly a buyer/seller cannot delegate his position to another principal, namely a supplier or end buyer.

2.15. Sourcing intermediaries (agents) are not permitted to direct other intermediaries within their group. The only entity entitled to provide directions to the intermediaries is the primary principal or buyer/seller (the agency) who shall do so as he deems necessary.

2.16: As the head of the agency the buyer/seller takes the legal burden and associated responsibilities of the transaction and it is therefore imperative that the intermediaries or agents act only within the ambit of their position in the trade as directed by the head of agency representing them.

2.17: In order to indemnify himself from legal obligations in a transaction an intermediary representing agency must disclose the principal of his agency (i.e. the buyer/seller).

URPIB Article 3: OSTENSIBLE AUTHORITY
3.0: A ‘buyer/seller’ or ‘primary principal’ needs only to declare his status on formal stationery/ letterhead to show the intent of the trader’s position. A ‘buyer/seller’ is also an intermediary but with many more obligations and requirements placed upon him than his attached sourcing intermediaries. Intermediaries are allowed to trade on behalf of a ‘Disclosed Principal’ or on behalf of an ‘Undisclosed Principal.’

3.1: When an intermediary acts on behalf of a ‘disclosed principal’, then the intermediary acting as buyer/seller must disclose his full name, address and contact information of the ‘disclosed principal’ on his letterhead under his own title. The ‘disclosed principal’ cannot be another sourcing intermediary or agency principal (i.e. the buyer/seller).

3.2: The buyer/seller is allowed to act on behalf of a disclosed principal or undisclosed principal. This is because the buyer/seller is in direct contact with the end buyer or supplier and not another intermediary such as a seller, buyer or sourcing intermediary.

3.3: Any intermediary not taking up the position of the buyer/seller is defined a being a sourcing intermediary, who may or may not disclose their principal to others unless a ‘guarantee’ has been issued by the buyer/seller looking after and protecting the intermediaries’ interests, unless other arrangements have been made.

The buyer/seller may disclose or not disclose his end buyer or supplier in any transaction, and this implies that a ‘sourcing intermediary’ may also disclose or not disclose his buyer/seller to one side of the specific transaction. In every case the Buyer/seller cannot disclose the principal on one side of the deal to the other. This prevents circumvention of the group being protected by the middle controlling buyer/seller.

3.4: A buyer/seller shall not act on any information obtained from any sourcing intermediary in a current transaction for a period of two (2) years once the transaction has failed to close. The exception to this is if the buyer/seller first advises the sourcing intermediary who originally provided the information that the buyer/seller intends to use the information in either a new transaction or the same transaction that is revived at a later stage.

3.5: A sourcing intermediary is said to be acting on behalf of an undisclosed or disclosed ‘principal agency’ (as regards an intermediate buyer/seller or ‘buyer’ or ‘seller’ as appropriate) and not on behalf of a disclosed or undisclosed principal as it pertains to an end buyer or supplier.

3.6: In defining his position a sourcing intermediary may use ‘acting on behalf of an undisclosed or disclosed principal’. However, a sourcing intermediary not disclosing his ‘principal’ is said to be trading in a very weak, if not unworkable, position.

3.7: An intermediary or a primary principal must disclose the identity of the end buyer or supplier of the actual goods being offered when acting on behalf of a disclosed principal, and is not required to do so when acting on behalf of an undisclosed principal.

3.8. Intermediaries, unless otherwise inferred shall not trade as ‘acting on behalf of a disclosed principal’ if it means disclosing the identity of an end buyer or supplier, but many do so at their own discretion usually by disclosing the agency who is acting in the position of the seller and buyer.

3.9. Sourcing intermediaries not attached to a buyer/seller and who do not have in their control an end buyer or supplier must not claim to be acting on behalf of an undisclosed principal with information obtained from only another sourcing intermediary.

3.10. Any intermediary may act on behalf on an undisclosed principal as opposed to ‘principal agency; so long as the direct end buyer or supplier is in their control, and as long as they do so as a ‘buyer/seller’.

3.11. A sourcing intermediary who has sourced an end buyer or supplier but is not prepared to take up the position of a ‘buyer/seller’ must disclose to his aligned trusted ‘principal’ the information as it pertains to other ‘principals’.

3.12. An intermediary must never share or surrender his trading information to others, unless he implicitly trusts the principal to whom he has attached himself. Notwithstanding this, once an IPG (or Intermediary Irrevocable Performance Guarantee) has been provided the buyer/seller has the right to verify the information disclosed, unless other arrangements have been agreed.

3.13. The buyer/seller is obligated to keep the leading/primary intermediary (PI) in his group well informed of the progress of a deal. The intermediary thus being advised is further obligated to keep informed all other intermediaries who have assisted in the transaction.

3.14. If an intermediary has provided information to a deal which closes only after a prolonged period of inactivity, the buyer/seller will at his own discretion pay him a fair commission at a reduced rate.

3.15. The buyer/seller must make every effort to contact the intermediary who gave him the original contact information that is intended to be used, and when exhaustive failed attempts have been made to contact that intermediary, the buyer/seller may use the information for business purposes without later being accused of circumvention.

3.16. Should this intermediary make himself known to the buyer/seller within three working days to the minute after the completion of the transaction, where the said intermediary provided the initial vital information which has progressed a deal to its state of completion. Where no valid IPG is in force, the buyer/seller is required to honour the payment of commission to the intermediary, but only at a reduced rate not exceeding 50% of the normal rate, as offered under the discretion of the buyer/ seller.

3.17. A sourcing intermediary is under a duty to inform a buyer/seller, with whom he has a long association, about changes to contact numbers or address in writing. Failure to do so may lead to future commission owed to him not being paid.

3.18. All sourcing intermediaries involved in a string contract with the buyer/seller must have agreed to ‘step back’ among themselves before requesting an IPG.

3.19. An intermediary trading under the protection of a buyer and/or seller is trading under the protection of a ‘primary principal’ to which honourable intent shall apply at all times.

URPIB Article 4. Right to Sell
4.0. The ‘principal’ will observe and be governed by the laws of their domiciled country/or the country from which they are trading – whichever is applicable. Ignorance of the domestic law is no defence and sourcing intermediaries cannot be held responsible for their actions in relation to this matter as long as they were acting under instruction from their principal at the applicable time.

An intermediary who trades under the premise of ‘acting’ on behalf of an ‘undisclosed principal’ (and where the truth and facts about a particular transaction have been hidden from a ‘principal’) shall bear full consequences of his own doing, and cannot rely as a defence against legal action, that they are ‘ignorant of the law’ as it pertains to agency or the position from which he was attempting to trade.

The seller/buyer shall not intervene in or take over a transaction he was not involved in from the beginning.

4.1. If an intermediary has acted in accordance with the instructions of his principal prior to entering a legally binding situation he may act on behalf of an ‘undisclosed principal’ and be guided under instruction by their ‘principal’ without risk of legal consequences.

4.2. When ‘ostensible authority’ has been obtained, the buyer/seller is not required to disclose the supplier or end buyer’s details on his letterhead. ‘Ostensible authority’ means, inter alia, the buyer/ seller has sourced a direct product or end buyer, whether this has been with or without the assistance of others. At this stage it does not matter whether others have assisted him or not, as that becomes a factor only in relation to commission payments. This is the only status that the intermediate buyer/seller must achieve in order to offer and resell the secured goods before offering them to potential buyers.
4.3 Ostensible authority is an offer for goods being sold by an intermediary who has secured them directly obtained from a supplier who is in possession of those goods. Ostensible authority may come in the form of (a) an offer, (b) an e-mail or (c) with the issue of an ‘OTS’ form (Offer to Sell) that has been returned by a supplier in possession of goods to an intermediary. Ostensible authority may not be obtained verbally and must always be obtained in writing, as with every other aspect of the intermediary’s business.

4.4. Before attempting to close a deal and enforce stepping back procedures, it is imperative that the buyer/seller has in his possession at least a written quotation as directly issued from a supplier. It is in fact fraudulent to seek potential buyers by making an offer to sell goods that have not been secured. The issuance of an IPG is allowed to occur prior to securing goods, but only where the IPG is used to protect the interests of intermediaries in a transaction yet to occur (i.e. in order to gain the trust of a sourcing intermediary who, once in possession of an IPG, then goes on to secure a supplier.)

4.5. The right to resell occurs at the point when the buyer/seller has a quotation from a supplier. Securing the funds for the purchase is now considered the most important aspect of the transaction.

URPIB Article 5: STEPPING BACK
5.0. ‘Stepping back’ procedures occur at the point at which the end buyer, buyer/seller and the supplier at any given time will need to deal directly with each other. Both sides are independent of each other: one side of the deal does not become involved with the other side of the deal, as both sides of the deal start and end with the middle controlling buyer/seller.

5.1. The buyer/seller controlling the transaction is obligated to protect, secure and pay all intermediaries involved in any particular transaction on both sides, once the business has been successfully concluded.

5.2. If a buyer/seller is claiming to hold the middle controlling position, he shall ‘offer’ his services to protect the commission of intermediaries involved on both sides of the transaction.

URPIB Article 6. Chain of Command
6.0. The buyer/seller is the controlling entity of the whole intermediary group. The Primary Intermediary (PI), the immediate associate next to the buyer/seller is second in command. The (PI) adjacent to the end buyer is next in line, and then finally there are the sourcing intermediaries who do not have any defined role in the actual closure of the trade.

6.1. A buyer/seller is a primary principal with special skills and capabilities that enable him to be able to close a complex import export transaction.

6.2. All other intermediaries assisting the buyer/seller are ‘sourcing intermediaries’ (SI). A sourcing intermediary may not circumvent the nominated primary intermediary (PI) to attempt to transact directly with the buyer/seller unless the primary intermediary provides permission of the same.

6.3. If no honourable trusted buyer/seller is evident in the string contract, then all the other intermediaries cannot and should not expect to close a deal and earn the commissions implied therein. Any attempts to do so means that there is a strong threat of circumvention should such a transaction occur without the use of the said buyer/seller.

6.4 The first major step in the formation of an intermediary string contract is when the buyer/seller communicates with his immediate PI on either side of the deal. The PI informs all sourcing intermediaries (SI) as to the procedure required for ‘stepping back’. The PI secures details of all the commissions that are to be paid and then the intermediaries ‘step back’ to expose the primary intermediary next to the end principal.

6.5. The remaining disclosed PI discusses the parameters of the transaction. The PI next to the buyer/seller has power over the PI next to the end principals, as it’s the buyer/seller who is morally, if not legally, obliged to secure the funds as well as the commission for all those he is protecting. Should the PI ultimately block the disclosure of the end principal and not step back to disclose his principal to the seller/buyer, no transaction will be possible.

6.6. The PI next to the buyer/seller clears the path so that the buyer/seller is able to confer directly with the end principal(s) to close the deal. The buyer/seller ‘passes’ information to and from the end principal(s) via the intermediaries until contracting time. The buyer/seller is conducting business in a transparent manner so as to keep all involved on one side of a deal fully informed on the progress of the deal.

The buyer/seller must obtain the clear path with assistance of a PI from both sides of the deal, if necessary. If this is not possible the buyer/seller shall refrain from continuing with the trade in question.

6.7. The buyer/seller must obtain the controlling position with honest and honourable intent and without deceit or misleading statements, or no deal is said to be possible.

6.8. A person holding a position as a sourcing intermediary in a string contract is unable to earn commission without the presence of a buyer/seller in the deal. The following is a typical flawed example of a problematic string contract and its variations which must be avoided at all times, especially where two buyer/sellers are simultaneously attempting to close a transaction in which sourcing intermediaries are also being used.

(1) End buyer, (2) buyer/seller, (3) sourcing intermediaries, (4) middle buyer/seller, (5) sourcing intermediaries, (6) buyer/seller, (7) end supplier.

No commission will be secured or paid in this situation, and there is a real threat of circumvention. If faced with this scenario the middle buyer/seller (Number (4)) can only attempt to use the virtues of the IPG to get all parties on both sides to expose their principals. This must only be attempted if there is cogent evidence that the end principals exist.

6.9. All intermediaries, in particular sourcing intermediaries, learning the business and who are not confident enough to take the position of buyer/seller must either seek to attach themselves to, or secure the services of, another intermediary who is a trusted and highly competent person able to transact in the position of ‘buyer/seller’.

6.10. A buyer/seller who receives information via sourcing intermediaries is then obligated to protect all intermediaries’ interests in the transaction being attempted at all times regardless of whether an IPG is in force or not.

URPIB Article 7. Commission Payments
7.1. The buyer/seller buys goods from a supplier at one lower price then resells the same goods to the end buyer at a higher price: the difference between the two amounts is defined as ‘commission’. The buyer/seller cannot collect these commissions, paid by the issuance of pay orders, until such time as the goods have been delivered. Accordingly the buyer/seller is only obligated in the first instance to protect intermediaries’ interests in securing and collecting commissions on their behalf. When the deal is successfully and officially closed, payment of the promised commission to each beneficiary being protected by the buyer/seller is conducted in a safe manner. Before the formal transaction begins buyer/seller protecting both sides of the deal provides reassurance to intermediaries with the issuance of an IPG.

7.2 Although an element of transparency is preferable the buyer/seller is not under any obligation to disclose either his share or any other intermediary’s share of the commission.

7.3. The buyer/ seller protecting the whole group is the only person allowed to issue pay orders to pay commissions.

7.4. No master pay order is permitted in any form.

7.5. As provided by the rules under UCP600, ‘pay order’ shall also mean ‘corporate issued UCP600 letter of credit’. ‘Corporate’ shall also mean ‘privately issued’. The pay order shall be described as ‘pre-advised’ and/ or ‘draft’ when being advised electronically or digitally.

The credit shall be sent as a hardcopy via courier without the term ‘Draft’ or ‘Pre advised’ but stamped as ‘Original’. This pay order may be issued by electronic means if the country of the beneficiary’s bank so allows.

7.6 The draft pay order is issued to each intermediary seeking commission protection by the buyer/seller, in effect providing good intent of the buyer/seller in that the issuance of the draft pay order carries with it the personal guarantee of the buyer/seller declaring that payment will be made sometime in the future of issuance upon the transaction in hand supported by the pay order is finalised. The pre advice applied to the pay order becomes immediately apparent by the issuance of the IPG, before the commencement of formal trading in a deal.

7.7 The primary intermediary must collect the relevant personal details of each person seeking commission from a buyer/seller. No Post Office box addresses are allowed. Current banking information must be supplied for inclusion on each individual pay order. All draft and subsequent pay orders must be individually issued, naming a single beneficiary.

7.8 Pay orders, once issued, cannot be reissued because of a mistake. All intermediaries are to ensure that all information is accurate from the start.

7.9 It is unlawful to claim other forms of commission in the same transaction from any source. If any such fraudulent activities are discovered the seller will advise his bank not to honour the commission pay order due to this person.

URPIB Article 8. Commission Pay Order Instrument
8.0. In accordance with UCP600, the buyer/seller shall provide the commission pay orders to each beneficiary as UCP 600 (Pre advised) corporate, irrevocable non transferable (standby letter) documentary letter of credit, with a declaration which states: ‘This corporate credit is issued in accordance with UCP 600 2007.’

Where there are to be monthly commission payments, the credit shall be advised as ‘non cumulative revolving’ whether issued as a standby credit supporting UCP600 or ISP98, or as pre-advised or not.

8.1 The bank of the beneficiary shall adhere to the rules of issuance as defined under UCP600, as well as the appropriate collection rules. The buyer/seller shall only be responsible for issuing a Pay Order in accordance with these rules. Before attempting to issue the pay order, the buyer/seller must be fully satisfied that a deal is feasible and will close, and that the end principals are genuine. The final commission amount as dictated on the SLC shall prevail as the commission rate. The buyer/seller issues the SLC when it has become apparent that a transaction is about to close. This is within twenty-four hours of the occurrence of the transference of the credit to buy such goods as defined by the following trading path (buyer’s side):

(1) Negotiations by E-mail
(2) Issuance of IPG/Return: Allow 5 days.
(3) Quotation confirmation: Allow 5 days.
(4) Offer Acceptance: Allow on average 14 days.
Pre advice on implied commission rate (advised as gross.)
(5) Contact Acceptance: Allow up to 21 days.
(6) End buyer deposits DLC to middle controlling seller/ 5 days for acceptance allowed: Final commission set rate advised.
(7) Middle Seller arranges payment to supplier/ 5 days allowed for acceptance.
(8) Supplier accepts and arranges delivery documents. Allow up to 60 days
(9) Full SLC advised for payment of commission issued within 24 hours of Number (8) occurring as final adjusted rates.
(10) Commission SLC presented for collection 7 days after delivery documents have been presented as accepted, or earlier/later if advised by the buyer/seller (Note: Issuing bank has up to 5 days to accept such documents as per UCP600 banking rules)

8.2. The commission SLC pay order supported by a documentary credit can be collected upon from only the bank account of the buyer/seller used to deposit the financial instrument that paid for the goods.

8.3 The beneficiary must not under any circumstances attempt to collect upon the credit in any other manner other than by complying with the conditions on the credit. Doing so will constitute a false attempt at collection, which will result in the credit being cancelled. The beneficiary to the credit will lose the commission payment and will have no right to recourse or legal remedy because of his fraudulent intent.

8.4 The commission payment credit is issued as operational once issued. The credit is issued as non-transferable and only to the named beneficiary on the issued IPG.

8.5. Once the financial instrument is deposited for collection all fees, including transfer fees (if applicable), all bank charges and all VAT, GST or statutory taxes are deducted from the account of the beneficiary. Whether these fees are paid from his own pocket or when the commission clears is a matter for the beneficiary and his bankers.

8.6 The above practice allows for a buyer/seller to issue a privately endorsed pay order. This offers protection of commission payments should the transaction in question complete successfully. No bank endorsed pay orders are allowed to be issued under any circumstances.

8.7 Commission Rates: CIF, FAS or FOB Incoterms: Commission rates and disbursements shall be set at rate of up to 5% of the goods value, at the discretion of the buyer/seller for non container type bulk goods. 2.50% of the contract value shall be the median commission rate. The exception to the bulk commission rule means that the maximum of 2.50% shall be added for crude oil trades and 1.25% is said to be the ideal median rate.

All rates must be added in relation to the value of the goods only and not the value of the goods and freight combined. Up to 22 % of the goods value is allowed to be added to any container-type transaction: 12% is a medium average commission rate. These rates are the maximum amount of commission that the buyer/seller is allowed to add in a transaction.

If an offer carries ambiguous or conflicting details of expenses the buyer/seller may add up to a further 5% more to the commission rate to cover any related expenses, whether foreseeable or not. If these expenses eventuate they shall be drawn from the total commission rate.

If there are no such extra expenses the funds shall be shared appropriately between the buyer/seller and those whose commission is protected by him.

Any offer a buyer/seller receives directly from a supplier that does not clearly indicate the price of the goods, in relation to Incoterms delivery, is said to be an ambiguous offer. After all expenses have been accounted for, the remaining commission is the final commission rate to be made payable. The buyer/seller keeps his rate as a gross rate. The portion offered to those being protected by the buyer/seller is said to be a net rate. After all expenses associated with the closing of the transaction have been met, and after all commission has been paid out, the remaining sum is said to be the buyer/seller’s net commission.

The ideal way to trade in the first instance is not to offer a performance guarantee to the end buyer. If however the end buyer insists on a PG, the buyer/seller shall not offer a PG, which exceeds a rate of 1.50% of the contract price of the goods. In this case the buyer/seller shall secure a PG of 1.75% or more from the supplier to ensure that there is a gap of at least 0.25% between the two values.

In every case, the buyer/seller shall obtain the price of the goods first, and apply the final performance guarantee that the supplier is willing to offer to calculate the correct lower value rate of the PG to offer to the end buyer. If the supplier is not offering a PG in the first instance when securing a quote, the buyer/seller shall not offer it to the end buyer. If the end buyer accepts an offer that does not require a PG in favour of a lower price, the buyer/seller shall still secure a PG from the supplier for his own benefit, if possible, without transferring it to the end buyer.

Where no P.G is offered but an LDD (Late delivery Discount) is included in the contract as an alternative, a higher rate of commission shall apply to the deal. The average rate for an LDD is 1.50% but shall never exceed 2.50% of the whole transaction value. Where the LDD is collected due to late delivery, the net commission rate shall be adjusted to allow for the discount favouring the end buyer (as applied on the sellers invoice.) The ‘PI’ has the right to see the seller’s invoice copy as stamped by the buyer/seller’s advising bank. This will prove that the LDD has been discounted against the price of the goods,

8.8. Acceptable Disbursement rates of commission.
The buyer/seller who does all the work to close the contract with both the end buyer and supplier, and who also accepts all responsibilities in relation to the transaction while also protecting the commission of all those assisting the buyer/seller is at his or her discretion permitted to keep up to 60% gross of the commissions. The remaining 40% shall be distributed between the sourcing intermediaries: 20% net on the seller’s side and 20% net on the buyer’s side.
Where the buyer/seller has secured goods from a supplier the PI next to the buyer/seller shall have his commission paid by the buyer/ seller from his 60% secured commission gross rate (as agreed between buyer/seller and his primary intermediaries.) In all cases, the buyer/seller receives the largest share of commission. The PI receives the next highest rate. Sourcing intermediaries who are not providing any added services receive the lowest rate. In every case the buyer/seller determines the commission rate and has discretion to distribute the rates as he deems fit so that the rates reflect a true and fair rate to each beneficiary in accordance with these rules.

If for whatever reason the string contract reduces in number the left over funds shall be distributed in the same way. The buyer/seller receives more than the PI, who receives more than the sourcing intermediary. In all cases the intermediaries simply passing information then stepping back without giving any further assistance to the PI shall earn the lowest rate.

The buyer/seller at his discretion declares and discloses a formal commission rate he is prepared to protect, secure and pay out upon as a gross amount to the intermediaries he is protecting. This is the case even though this rate may not be the apparent gross rate that the buyer/seller is attempting initially to secure.

The remaining portion (undeclared rate) is set aside for unforeseen expenses that may arise during the transaction. After the deal is closed any extra funds left over may be verified and disclosed on the buyer/seller’s invoice copy in order to maintain transparency and honourable intent. These extra funds that may become available from the undeclared portion, will also be paid out in the same way as the rest of the commission, i.e. the biggest portion shall be retained by the buyer/seller, once the deal has formally closed.

Only the declared gross value apparent in the first instance and the allotted portion shall be provided on the initial IPG, and on the subsequent commission pay order instrument. This total declared lump sum becomes in practice the official gross available amount. After each allocated amount is paid to the protected intermediaries from the gross amount, the remaining amount becomes the final net amount allowed retained for the benefit of the Buyer/seller, even though the amount may at the end of the deal be lower in rate than his entitlement declared under the URPIB disbursement scale. The buyer/seller is required to ensure the promised allotted net amount becomes payable to those he is protecting first. The buyer/seller collects his own commission last. After the minimum promised net amount has been settled, there may be extra payments left over from the previously undeclared amount. These shall be settled in an informal manner via direct bank depositing methods. The buyer/seller, when making payment upon the undeclared amount, if any, must reflect that no more than 20% of the total declared gross amount was being held as an undeclared amount.

e.g. If the buyer/seller declares a total commission pay out amount to the protected intermediaries of USD$10.00, then the undeclared amount of USD$2.00 or less should be the extra amount (which implies that the buyer/seller initially secured USD$12.00 as a gross amount.) The buyer/seller is only required to disclose the declared gross amount in the first instance. Any extra payments are announced within 72 hours of the closure of the deal. All extra payments are verified on the offered copy of the buyer/seller’s invoice as was applied on the appropriate transaction.

If a buyer/seller secures supply but does not want to control the deal, then he may surrender his position to another informed buyer/seller. In this situation the first buyer/seller becomes a PI and the commission rates are adjusted accordingly.

In accordance with the ‘Humano*’ humanitarian edict, any buyer/seller is allowed to keep up to 5% of total gross commissions before calculating the commission rate for the protected intermediaries, for the following purpose:

(i) Once raised, all intermediaries involved in the deal at hand must give their consent to the Humano contribution. A deduction on the final commission pay out, not exceeding 5% of the total value of the commission secured, is reserved for humanitarian or charitable payments. The buyer/seller contributes 2.5% of his personal gains and the remaining 2.5% is made up from the other intermediaries’ contributions on both side of the fence. Those who agree to the contribution will have a deduction from their commission. Those who do not wish to contribute may refrain from doing so.

(ii) Once the buyer/seller’s contribution has been declared then all others, at their own discretion, may choose to contribute a share, however small, to charity by way of an authorized deduction before the final commission pay order is issued. If the buyer/seller does not declare his payment then no Humano contribution will eventuate for that particular transaction.

(iii) Within three days of the transaction being closed and commission values declared intermediaries agreeing to contribute to the Humano initiative must nominate two charities to benefit from the ‘Humano payment’ and to define the purpose for which the payment is be made. The buyer/seller collects this information and, if there is a clear majority, the buyer/seller ensures that the charity is paid and all intermediaries involved are named as benefactors including the supplier and end buyer of the goods.

(iv) This ‘*Humano edict’ only applies to a transaction in which each Intermediary has earned more than USD $1001 dollars net in commissions.

(v) The charity in question will be a globally recognizable charity, which is supported by a well-informed Internet site carrying contact information.

(vi) If there is no clear majority the buyer/seller shall select an appropriate charity from the list provided by the intermediaries. The country supplying the goods is given first priority unless it is a first world country, in which case a third world country has priority.

(vii) The receiving organisation must be transparent to the whole group and receipts provided, copies of which must be issued to the contributing parties for verification and taxation records.

URPIB Article 9. Acceptable Products
9.0 An intermediary shall not trade in or attempt to trade with, the following products or entities:

PBG otherwise known as financial instruments; ‘Prime Bank Guarantees’. This includes Cash and Bank Warrants, Pension Funds, Medium Term Notes (MTN) and the like.

Any form of gold bullion (or other precious metals) held in electronic depository form. Physical trading in gold in any form is allowed where no certificate is apparent on such gold – this is also defined as ‘deep storage gold’. DSG must be refined at buyer’s cost to obtain formal certification. In general only very experienced traders should attempt these trades.

Any form of diamonds or precious stones held in electronic depository form is not permitted. Physical trading in any precious stones is allowed, with the exception of ‘conflict diamonds’; diamonds obtained by the exploitation of children or which provide appalling pay and condition for its workers. In general only very experienced traders should attempt such a trade.

Any weapons or material, whether raw or processed, used to make weapons or devices of mass destruction. Legally acquired military equipment and such associated material allowed. In general only very experienced traders should attempt such a trade.

Any biological material that could be misused to the detriment of humans. (Medical equipment and medicines allowed.)

Any government, race or country that has a definite ill will against the United States of America or allied countries considered to be allies or amicable with the USA. Intermediaries may trade with countries which have demonstrated past ill will towards the USA but which now are making efforts to unite or reunite with the USA.

A felon or person who has been incarcerated in a prison for any serious reason involving more that 12 weeks imprisonment, or a person who has been charged with matters of arson, fraud or deception, but who has or has not yet been imprisoned or otherwise sentenced for such an offence.

The intermediary should not trade nor be in possession of any trade secrets, copyright material or matters considered secretive by nature and state.

Intermediaries shall not practice any business that suggests money laundering or any associated criminal activity such as the trafficking of people or prohibited substances.

Any transaction in which the parties are not transacting in the same language.

Any primary crude oil transaction (or fuels in general). Secondary crude oil transactions are allowed. A primary contract is defined to be one where a precondition of sale requires the disclosure of a refinery processing agreement or similar.

An undischarged bankrupt may only trade in the position of a sourcing intermediary and may not trade in the position of a primary principal.

A person of diminished mental capacity, or a person who cannot comprehend the language of a deal they are entering into.

The following commodities and quantities are best avoided: Non-ferrous scrap metal; Beef products; Quarantine products; Fumigated products; Lose clothing; Single or Muti FCL loads.

Any other commodity traders who ask for T/T , SWIFT type of payments or PBG payments or an active or inactive SLC up front are to be avoided.Likewise trading in such instruments are not allowed-

A country noted for human rights violations.

An intermediary must at all times ensure that the product they are dealing with is indeed merchantable, appropriate and readily sourced from reputable suppliers. Further the intermediary must have made reasonable effort to ascertain by whatever means that the product they are dealing with is safe, legal and genuine, and is generally acceptable as a tradable product worldwide. Bulk shipments deals are preferable to container loads.

URPIB Article 10. Honourable Intent
An intermediary shall not transact in bad faith or in a dishonourable manner. Any intermediary who circumvents others or produces offers without ‘ostensible authority’ shall be deemed to be a ‘dishonourable trader’, and shall not be allowed to trade within a string contract. Once the infringing party or person has been clearly identified as having transacted in a manner that is defined at being in bad faith, this person shall be blacklisted on the URPIB registry for life. ‘Dishonourable acts’ are defined as, among other things, wilfully deceiving an end buyer, supplier or any other intermediary in the course of a transaction, with the intention of causing or furthering the successful closure such a transaction. No intermediary can falsely represent that they have a ‘principal’ in relation to a transaction (the specific purpose of obtaining information being to source a principal, after previously declaring that they had already secured that principal.)

URPIB Article 11. Intermediary and Goods
An intermediary officially trading under the doctrine of UCP600 Banking rules, INCOTERMS, delivery rules, and English common laws of contract shall at all times trade in ‘documents’ and not the physical goods pertaining to such documents. Only statutory or federal laws in the exporter’s country are capable of overriding these rules and laws. In all cases the private global intermediary must, at least, abide by the implicit and adapted ICC Paris France Incoterms 2000 and UCP 600 Banking Rules and in a manner as provided by these rules and this publication.

URPIB Article 12. Policy Proof of Interest (PPI)
An intermediary officially trading according to UCP600, INCOTERMS, and URPIB shall at all times trade in ‘documents’ and not the physical goods relating to the documents. No ‘proof of product’ documentation or often implied ‘POP.’ will be supplied before the applicable financial instrument to the transaction has been lodged into the account of the intermediary representing the ‘middle person’ in a particular transaction. An intermediary shall not trade on a transaction where POP is insisted upon before the lodgement of the active financial instrument. Where a pre advised credit is issued an intermediary shall offer to provide a ‘Policy Proof of Interest’ certificate. This is based on the assumption that PPI is issued from the intermediary making the offer, who is in turn offering goods from a supplier: PPI information should already be in the possession of the intermediary when making an offer.

URPIB Article 13: Performance Guarantee
Other than that which has been already advised regarding the performance guarantee: under no circumstances shall a performance guarantee be opened as active or inactive in any form whatsoever to favour an end buyer before the financial instrument pertaining to the product being purchased has been lodged and accepted into the account of the ‘buyer/seller’ associated and controlling the trade. Intermediaries shall not transact on any deals in which the transaction calls for the performance guarantee to be lodged prior to the lodgement of an active financial instrument.

URPIB Article 14: Shipment Date
As far as the intermediary is concerned, no transaction shall be allowed to proceed where a ‘shipment date’ is more than twenty days after the issue of the bill of lading.

A bill of lading for all FOB transactions shall mean a ‘received’ bill, where the intermediary is asked to assist the end buyer in obtaining the bill of lading. All transactions involving a CIF deal shall require a ‘shipped’ bill. In all such transactions, the shipment date shall mean the date when the bill of lading is issued.

URPIB Article 15: Pre- Advised credits
As far as the intermediary is concerned a UCP600 Irrevocable Transferable Pre-advised documentary letter of credit (as opposed to normal active documentary credits) is an acceptable instrument to request but only when issued as a UCP600 financial instrument and only if issued as confirmed. This is the preferred instrument for use by the intermediary, until such time as the intermediary gains enough confidence to accept other forms of financial instruments.
An intermediary shall not transact on any deal where SWIFT or other methods apply for payment of goods, other than a ‘Transferable or Unrestricted Letter of Credit’.

A ‘Supplier’ purporting to offer goods shall not be considered a genuine ‘Supplier’, if they request payment in the form of a transferable letter of credit.
The buyer/seller shall allow the transferable instrument to be transferred only to a supplier’s account, as a ‘non transferable instrument.’

‘Back to Back’ letter of credit procedures are not allowed to be used by intermediaries under URPIB rules of trade. A transferable credit may only be transferred once. The end buyer issues the credit to the buyer/seller (which may be transferred once) as ‘non transferable’ directly to the owner in possession of the goods and not to another seller.

In accordance with UCP600 Post Office box addresses can no longer be cited on a credit. Further, the term ‘transferable’ must now be applied to the credit accordingly as advised from an end buyer or his bank, to the buyer/seller or his bank.

The credit must be issued from a Top 100 world class safe bank, otherwise the credit must be advised as confirmed to the buyer/seller. The exception to this is a pre-advised credit, which must be issued as confirmed in the first instance.

A confirmed credit allows the buyer/seller to ‘localise’ the credit. This means that the advising bank is not dependent on the issuing bank’s instructions, and allows collection upon examining the documents required for delivery presentation. All expenses of adding confirmation to the credit shall be for the account of the end buyer.

URPIB Article 16: Bank Comfort Letter.
Where one of the preconditions to a transaction is the supply of a Bank Comfort Letter (BCL) or similar associated with the issue of an ICPO or LOI (Letter of Intent) etc, these preconditions shall not be entertained under any circumstances.

Under URPIB a quotation, offer and contract must prevail to establish grounds under contract law, which defines inter alia, acceptance, legal capacity and consideration. Since English Law is the leading jurisdiction in international trade, then intermediaries using URPIB shall apply it to reinforce and favour their own trading activities.

URPIB Article 17: Corporate Business.
As already described the BCL and LOI are tools of trade used internally by corporate entities. In international trade LOI means ‘Letter of indemnity’ and Bank Comfort Letters are used in circumstances where a corporate entity needs to give financial support to a related associated sub entity, usually to one established in the same country of the issuer.

Intermediaries using URPIB shall not accept nor apply procedures in a trading environment by using an LOI associated with a BCL, other flawed terms such as - ASWP, NCND, ICPO, RWA, FFIDLC, PB, and the likes is a premier application. The use of these acronyms automatically invalidates the protection offered under URPIB. Where the buyer/seller encounters others using these flawed methods, the buyer/seller must personally adhere to the provisions URPIB (URPIB shall also mean the doctrine of trade as taught in the text of International trade and the successful intermediary) even if others associated in a potential trade do not. The buyer/seller shall not continue in any trade in which URPIB rules are not being universally applied. Under no circumstances shall URPIB rules be used to apply midway in a transaction after it has commenced using other flawed applications.

There is no protection offered to an intermediary using the virtues of a NCNDA (Non disclose and non circumvention agreement) and as such NCNDA agreements shall be deemed as useless for intermediary purposes. If it is used (as may be the case when involved with a supplier or end buyer who requests it, in which case the intermediary complies in order to appease him) the Intermediary shall do so with the clear undertaking that such a document does not imply in any form that commissions will be assured, guaranteed or forthcoming. Signing this document does not either create or enforce the confidentiality issues as specified in URPIB.

URPIB Article 18: Contract versus Financial instrument.
No party to a trade will be permitted to present the contract of sale to a financial institution. Banks deal in finance and not contracts. Under URPIB an intermediary shall treat the financial instrument, the sales contract, and the insurance contract as all being individual documents that are separate to each other.

URPIB Article 19: UCP500 Versus UCP600
Unless advised by his bank in relation to an active credit or if permitted by any URPIB updates, an intermediary is not allowed to issue a contract that refers to or relies upon any provisions in UCP500. UCP 600 rules apply at all times.

URPIB Article 20: DLC Transfer Fees
Article 38 of UCP 600 applies where both parties have contractually agreed that the transfer fees are for the account of the buyer.

URPIB Article 21: “Sanctuary”
Any Intermediary approaching any “SB” who has declared to also be a URPIB trader infers explicitly that the “SB” shall automatically protect the interests of anyone approaching them in any manner with information, and that should such information prove positive , the “SB” shall collect and protect commission for each said protected entity unconditionally. The “SB” is not allowed to use the information given in where a deal has collapsed in where later the ‘SB” uses such vital information as provided by the intermediary in the past on another deal yet to apply in the future, without first notifying the said intermediary who originally gave such vital information. The said intermediary once notified whether he or she is involved in the deal or not being attempted , the ‘SB” shall apply to include the said intermediary in the commission payment structure. Vital information specifically defines in where information about Supplier and or End buyers are provided regardless if a “IPG” is in place or not. It is a dishonourable act to trade as a seller/buyer and URPIB trader in where others have trusted the “SB” in providing such with valuable information that could be used to close upon a transaction. to which the seller /buyer uses such information on other future deal without involving the original person providing to disclose such original information.Any Intermediary defines to mean anyone trading in commodities whether or not such is informed about URPIB. “Sanctuary “ is an applied mechanism that allows one party to disclose up front vital information in a quick manner for purpose of evaluation without having the deal stall due to matters involved in issuing the “IPG”

URPIB Article 22: Connecting Commission Payments
In where an intermediary or group being protected by the Buyer /Seller has provided information to such in the course of a transaction or otherwise, which leads to the discovery of other Principal(s) of industry by default, then the original intermediary group shall be entitled to the payment of commission unconditionally, should the Buyer/Seller later contact (or visa versa) such a Principal, person or party in where a transaction is closed. The Buyer/Seller is fully obligated to contact all person associated in the original party, and pay to each individual, a commission payment at a rate being 40% of the collected rate in where the divisible formulation as per URPIB is applied to pay such said original party a "Corresponding/ Sourcing" type of commission payment, within 10 days of deal closure . Accordingly, the original party to a deal being headed by a URPIB Buyer/Seller ,where later results in the disclosure of any other party of person not originally tied with the said party in where a deal later eventuates with the disclosed newly discovered party, entitles to the original party to be defined as a "connecting" party; to which commission from the successful deal is still payable to the original party introducing the newly discovered entity. For clarity of this matter the following base example shall be used to describe the meaning of "corresponding or connecting" party or entity.

(a) In where the first party has “Steped back” on any side of the “fence” to reveal a Principal to the controlling Buyer/Seller heading a deal, in where the deal being attempted has recorded as a sucess or failure ;

(b) In where the Seller /Buyer at a later time (Perpetually) heads a totally different team , using information as revealed, offered or was secured by the first party, the Said Buyer/Seller shall ensure payment to the first party of commission in where the said deal with the second party has resulted in a succesful transaction.

(c) At a rate equal to 40% of the total commisson earned .

(d) As divided amongst the first party at per normal URPIB divisional rates.


*Copyright : ©URPIB 2001 FTN Exporting
*©UCP600/ Incoterms: Trade mark ICC Paris France.



In Summary of Defined Rules.
Over time “AGI” (Academy of Global Intermediaires) will be the controlling body administering FTN exporting URPIB Rules -

ICC UCP600 Article 38 relates to the issue of a financial instrument for payment of goods by a UCP applicable DLC. The transfer fee relating to the issue of this DLC is for the expense of the End Buyer. Intermediaries must ensure that the offer and contract provides that these fees are for the account of the End buyer. Article 38 Paragraph (C) implies that “Unless othewise agreed” at the time of transfer , the said transfer fee MUST be paid by the Beneficiary. The End Buyer aggrees with the Intermediary on the offer and contract to pay such a transfer fee, and/or bank commisson ”On behalf of the Beneficiary.” It’s irrelevant how such charges / fee’s are paid so long as it paid by the Beneficiary as defined , is sufficient to satisfy UCP600 requirements. Should the intermediary encounter problems with such bank in regards to said matter, the expereinced and well informed Intermediary is reminded that it can leave the DLC in their account and issue their own UCP600 applciable in house DLC. The Intermediary does not need a bank to conduct such a transaction is also another option and trading protocol available for advanced experienced intermediaires.

UCP600: As of July 1st 2007 UCP 600 superseded UCP500. The intermediary shall now only use UCP600, Incoterms 2000 and URPIB as their guiding rules. All intermediaries should consider using URPIB rules while conducting their business as international trade intermediaries. They have been compiled based on the extensive experience and knowledge of the author of these works. Attempting to trade using anything less concise and strict than the doctrines provided in these rules is both unacceptable and futile.

*The Humano Edict is a FTN Exporting initiative in which intermediaries make a contribution for the purpose of helping those less fortunate than themselves. This is especially the case in countries from which high value goods are exported but where workers do not enjoy basic human rights and are very poorly paid. For example, in the Dominican Republic, sugar cane farm workers are paid less than a dollar a day, while the goods they harvest are sold globally at world benchmark prices.

FTN exporting hopes that one day U.N edicts encourage bank globally to follow suit in allowing such to collect a small charitable fee on each DLC issued to buy goods of which is is collected to favour economically depressed third world countries. These funds would be used to provide basic needs to people living in a state of abject poverty . Even at 20 cents per Tonne applied on such goods as a Humano tax, collected via banks world wide would generate many millions of dollars annually to help those in need without End Buyers even noticing such deductions.