SELLER’S LETTERHEAD
WITH FULL ADDRESS
TEL, CELL
EMAIL, WEBSITE
SELLER’S FULL or SOFT CORPORATE OFFER
Date : XX MONTH, 2014
With this Full or Soft Corporate Offer (FCO/SCO), the undersigned hereby confirm with full responsibility
and authority that we are ready, willing and able to enter into a Sales and Purchase Contractual Agreement
for Gold Bars located in [Country] with rolls and extensions, according to the following specifications, terms
and conditions under the agreed procedure as mentioned below.
- Commodity: Gold Bars (Aurum Utalium)
- Shape / Size: XX.X Kg Bars of Au Metal (1 Kg = 32.1507425 Fine Troy Ounces)
- Fineness/Purity: XX.XX%
- Quantity: XXX Kg/week or bi-weekly or monthly with rolls and extensions up to X,XXX Kg per year,
- Initial Tranche Size (Trial Shipment) XXX Kg, Subsequent Tranches XXXKg per week/biweekly/monthly
- Country of Origin: XXX
- City/Country of Export: XXX
- Delivery/Lifts: CIF UK (ASWP – Any Safe World Port/Airport to be agreed by Veylco Trading)
- Purchase Price: The Previous Day’s second fixing price as quoted on the London Bullion Market
Association (LBMA) in USD per troy ounce on the day of final assay by Buyer’s nominated Assayer,
minus the purity difference between pure gold content of 999.9% purity and the purity results by the
Assayer. - Discount Rate: Gross: XXX Percent (XX%); Net: XXX Percent (XX%) and the difference to the
Buyer’s Intermediary (XX%) and/or the Seller’s Intermediary (XX%) - Intermediary Fees:
X.X% (XXX point XXX percent) for Buyer’s side paid by Buyer’s account.
X.X% (XXX point XXX percent) for Seller’s side paid by Buyer’s account.
The Irrevocable Master Fee Protection Agreement (IMFPA) is made as an integral part of the involved
Sales & Purchase Agreement (SPA) to be provided by the Buyer. - Guarantee Payment: Buyer’s Bank issues a 100% PoF covering the value of each delivery.
Buyer to provide sample verbiage of PoF as per the following link: - Payment: In USD by swift to the Seller’s Account at XXX Bank in XXX Country.
- Documents: The following documentation is required in order to import Gold into the U.K.:
14.1 Each shipment and delivery shall be identified with all appropriate contract numbers. Copies of the
documents shall be sent for customs preclearance (if at all possible and done by the Import Country
customs authorities) and original documents will be provided with shipment at the port of
destination:
14.1-1 Three original Proforma Commercial Invoices in favour of the Buyer, based on the weight
and purity of the Gold Bars ascertained by the Preliminary Assay Report, minus the
discount offered and based on the second fixing of the previous day’s price LBMA (“for
customs purposes only) (“Proforma Commercial Invoice”);
14.1-2 Certificate of origin and Certificate of circulation of merchandise;
14.1-3 Full set Original Bill of Landing / Bill of Entry (BOE) / Customs Declaration Form with no
marking of any kind, Air Waybill marked “Air Freight Pre-Paid” and showing the Gross, Net
weight, showing the shipment description as “believed to contain gold” cargo and showing
the Harmonized Custom Code for Raw Gold Ingot form 71081210;
14.1-4 Fully completed Client Information Sheet (“CIS”) ten days prior to contract signature and
shipment, as found at our website
14.2 The above four documents are mandatory for customs clearance and transfer of payment, while
the following documents may be optionally required by the Refinery, the Banks, Customs and other
Governmental Authorities so in order to avoid any delays, the Seller is strongly advised to also
submit them on time:
14.2-1 Inventory of goods – packing list with gross and net weight of the gold content, net weight
of each Gold Bar, number of Gold Bars per box serial numbers of packing boxes;
14.2-2 14.2-3 Insurance Certificate;
14.2-4 Export license;
14.2-5 Certificate of ownership stating that Seller is the lawful owner of the goods;
14.2-6 Export Permit;
14.2-7 Preliminary Assay Report;
14.2-8 Customs Certificate and taxes receipt of the country of origin;
14.2-9 Title of exportation and declaration by Seller/Supplier/Owner stating that payment of all
duties, charges and taxes to the relevant authorities at origin, that the Gold Bars is of noncriminal origin, unencumbered and free of any liens, transferable and exportable;
14.2-10 Shipping Approval Certificate;
14.2-11 Any other documentation requested by Import and Customs Authorities in the Import
Country or the Refinery in the Import Country that may even request full details of the mine
that the gold was produced from;
14.2-12 Further required documentation if the Gold comes from the DRC or any neighboring
country to the DRC or a country that the Import Country requires such documentation, as
follows:
▪ UN clearance;
▪ Interpol clearance certificate;
▪ Compliance that the gold contains no Deleterious Elements as shown in detail on the
site.
ELECTRONIC SIGNATURE IS VALID AND ACCEPTED IF PROMPTLY ACCOMPANIED BY AN
ORIGINAL AS DEMANDED
SELLER:
TRANSACTION PROCEDURES
The Seller and the Buyer hereby agree to and fully accept the following procedure for the execution of the
transaction by both Parties
After receipt of the completed Client Information Sheet (CIS), including all requested attachments, by
downloading it from the site together with all the documents in the Required Documentation section, and
receipt of your Full Corporate Offer (FCO) stating quantity and discount based on Purity and LBMA price
offered, we will proceed with the evaluation and if we find them of interest, we will then send you our Sales
& Purchase Agreement (SPA) for review and approval.
Please see below the steps in further detail:
▪ Seller (Miner or Owner) sends to the Buyer, Veylco Trading, a Full or Soft Corporate Offer
(FCO or SCO) as per to the sample on the site.
▪ Buyer reviews the FCO/SCO, makes comments, if any, and if both Buyer and Seller agree on principle,
then the Buyer asks the Seller to complete and return this CIS/KYC.
▪ Seller completes and sends the CIS/KYC and if due diligence and compliance is cleared by the Buyer,
then
▪ Seller sends all required documentation for importing the gold to U.K., in order for the Buyer to perform
his due diligence.
▪ Buyer sends the Sales & Purchase Agreement (SPA) for review and approval, as per the verbiage
sample found on the site..
▪ Buyer sends sample verbiage of the Proof of Funds (PoF) that must be issued by the Buyer’s Bank and the funds deposited to an account of the Buyers choice to act as an escrow for both the buyer and the seller.
▪ Seller and his bank approve the sample verbiage of the PoF, and both parties sign the SPA.
▪ Seller, after paying all export document processing, taxes, duties, freight & insurance costs and other
expenses imposed on or required up to delivery of the Gold Bars to the Nominated International Airport,
notifies the Buyer three days prior to the date of transport with all the details of the shipment. Failure
to do so would result in delays in Customs Clearance, smelting, weighing and assaying, and the Buyer
shall be held harmless and blameless.
▪ Seller ships the commodity to the Buyer’s Nominated Airport in the U.K. in the name of the Buyer
and Consignee, either the Buyer or G4S or Nautis Shipping, in order for the shipment to be cleared through
Customs as cargo “believed to contain gold” and cargo will be transported by the Buyer or G4S or
Nautis Shipping to the nominated Refinery or nominated Assayer where the smelting or refining, weighing and
assay will take place.
Buyer pays for Customs Clearance, Security Transport, Storage, Smelting or Refining and Assay costs
in the U.K. and deducts all these expenses from the final price.
▪ Buyer assays the gold, and if not homogenous, also smelts it. If the bars are not homogeneous and
needs to be smelted, then for each 100Kg, it will take one additional business day prior to being able
to do the assay. Any and all associated costs incurred for the transfer of the Gold Bars to the smelting
facility, their smelting and their return to the Bonded Warehouse shall be borne and paid by the Buyer
on behalf of the Seller and shall be set-off and deducted from the Final Commercial Invoice Price.
▪ After smelting the Gold will be placed in sealed boxes and the Seller from that point on will not be able
to touch the gold and in case the seal has been tampered with, the smelting and weighing process will
have to be done again. The smelting and weighing can be done in the presence of the Seller or one
(and only one) of his representatives, if the Seller so requires
▪ Upon receipt of the refining results and/or the assay results from the Buyer’s Nominated Refinery and/or
Assayer, the Seller issues Final Commercial Invoice, which must be signed by the Seller and the Buyer
(or their authorized representatives) in the presence of one of the Buyer’s Bank Officers certifying the
amount on the invoice and that payment in the escrow can now be released by the buyer. The
ownership of the gold automatically transfers to the Buyer, while the Seller has access to the bank escrow account to release the funds.
▪ In case any advance payment has been transferred or expenses paid, like turning the bars to a
homogeneous form, from the Buyer to the Seller or on behalf of the Seller, this amount will be deducted
from the amount owed as per the Final Commercial Invoice.
CONFIDENTIALITY / NON-CIRCUMVENTION:
All parties, including the Buyer / Buyer’s Mandate, Seller / Seller’s Mandate and any and all
Representatives, Consultants, and Intermediaries involved in this transaction, agree to act in complete
confidentiality and shall not disclose the Agreement to any other party except on a Need-to-Know basis and
shall observe strictly the rules of the International Chamber of Commerce (ICC) Paris, France, Latest
Edition, relating to Non-circumvention and non-disclosure. This will be valid for Five (5) years.
INTENDING TO BE LEGALLY BOUND, the undersigned Parties has executed this Full Corporate Offer
as of the date set forth below:
FCO/SCO VALIDITY: This offer is indicative only and valid for Seven (7) Calendar days from the date of
proposal. It will become valid upon receiving a RWA from Veylcoe Trading. If this offer is not
sent from the Seller (Miner or Owner) and it is sent via a Broker/Intermediary/Mandate, it must be
accompanied by the Seller’s Mandate/ Broker/Intermediary Authorization Letter, signed and stamped by
the Seller and certified by a Notary Public in the Seller’s country (original to follow by courier).
PROPOSAL DATE: XX MONTH 20YY valid until XX MONTH 20YY
Represented by :
Title:
Passport Number :
Date : XX MONTH 20YY
Signed/Stamped
THE BUYER:
Represented by :
Title:
Passport Number :
Date : XX MONTH 20YY
Signed/Stampe