FTN EXPORTING

PRINCIPAL CEO: DAVIDE G.A.PAPA

Author International Trade and the Successful Intermediary
FTN EXPORTING : Australian Business Number ABN:B2144654K
AGI: Education Division: Buyers/Sellers ABN:B2043651G
FTN Exporting Mail: P.O BOX 468 CARLTON NORTH 3054
MELBOURNE, AUSTRALIA Facsimile: (61 03 ) 9347 0003
E-mail General: Davide_ftnexporting@yahoo.com.au or ftnexporting @yahoo.com
Private e-mail, phone numbers, telex, at contract issuance
www.ftnexporting.com www.smice.net
FTN Exporting Established 1988

FORMAL OFFER

THE SMICE EXCHANGE

Any changes to the offer made , rejects the offer unconditionally.
Payment Tolerance -/+5% Quantity Tolerance -/+10%
Any changes whatsoever to the actual offer basis is a rejection of the offer
Unless stated differently all offers are made by " Seller acting on behalf
undisclosed principal "
E&OE. URPIB 2013 EFFECTIVE

SPECIAL OFFER AND ARRANGEMENT

CFR INCOTERMS

SMICE REGISTERED AGENT

NAME
EMAIL
REG No

:
:
:

NAME OF END BUYER

Offer Sent To: BUYER TAKING POSSESSION OF COAL
AUTHORISED AGENT and CIRCUMVENTION NOTICE
Representatives of FTN Exporting are privy to the nature of business herein. Buyer please
return signed offer to above Agent providing the offer and not FTN Exporting. Anyone
attached to the SMICE Agent securing a principal has their interests automatically
protected by FTN Exporting Australia as Per URPIB Rules 2013. This offer is filed into the
FTN Exporting data base, ensuring any attached agent securing an end buyer, continual
protection of all future interests. Accordingly, to all suppliers , end buyers and all others
please be advised in accordance with URPIB Rules of association it a dishonourable act
to circumvent a SMICE Agent or those attached to such to which FTN Exporting will not
accept to consider an offer being returned to us directly unconditionally and without
exceptions.

OFFER BASIS
OFFER ADVISED BY SELLER
: FTN EXPORTING AUSTRALIA
DATE OF OFFER
: 3 MAY 2013
TRANSACTION CODE
: 12FT-NANM-006DP
VALIDITY
: 7 DAYS FIRST COME FIRST SERVE
PRODUCT NAME
: THERMAL COAL BLACK 6100/6300 GCV AV (AIR DRIED )
PRODUCT ORIGIN
: INDONESIA
CONTRACT QUANTITY
: 40,000 AVERAGE -/+10% PER SHIPMENT
DELIVERY MODE
: FOB INCOTERMS BARGE BOL : SAMARINDA
INSURANCE FOR BUYERS
: BUYER MUST SECURE/PRODUCE INSURANCE DELIVERABLE
QUANTITY
: 480,000 MT 1 YEAR PERIOD -/+10%
MONTHLY SHIPMENTS
: 40,000 MT PER MONTH
PORT OF LOADING
: ANCHORAGE AT EAST KALIMANTAN
PRICE USD$ MT
: USD $66.00 PER MT FOB REG BARGE: SAMARINDA
OFFERED
:FIXED CONTRACT PRICE
BENCHMARK PRICE
: N/A
LESS DISCOUNT
: N/A
BENCHMARK USED
: N/A
1ST DELIVERY
: 10TH JUNE 2013
IRREVOCABLE TRANS DLC
: YES PREFERRED AT BEST PRICE
TRANSFER FEE
: AT COST TO BUYER
CONFIRMED NON TRANS DLC
: ALLOWED: AT ADDED COST USD$2.95 PER MT
PAYMENT SOUGHT
: SEE COMMENTS
NON CUMULATIVE REVOLVING
: 2 SHIPMENTS IN ADVANCE
TRANSHIPMENT
: ACCEPTED BY BUYER: BARGE BOL : SAMARINDA
PACKAGING
: IN HOLD
MARKINGS ON BAG
: NIL

PERFORMANCE GUARANTEE (LDD):

LDD: Late Delivery Discount:
If coal as "AD" falls below 6100 GCV Av. Penalty USD$1.00 per MT is
discounted from price offered. If Barge does not arrive on time monthly along
side Mother vessel, a further USD$1.00 Per MT discount applies.
PAYMENT BASIS
ACTUAL CONTRACT VALUES
:USD$31,680,000 of 12 month contract
NON CUMULATIVE REV PAYMENT :USD$2,640,000.00 PER SHIPMENT

REVOLVING SET VALUE X 5

:USD$5,280,000.00 IN ADVANCE AT ALL TIMES.CONTRACT

DLC TO SUPPORT TOTAL CONTRACT VALUE BY IT EXPIRATION DATE

PAYMENT REQUIRED
Best Price Application : Once contract is signed, Buyer lodges a top 300 world ranked bank as a
UCP 600 endorsed Pre advised Transferable Irrevocable Documentary letter of credit non
cumulative revolving for 2 shipment values in advance at all times in where the credit supports 12
month contract value, from DLC issuance date made for collection "at sight" of clean documents
for each delivery FOB BARGE . All Transfer and Pre advising fee's for the account of the end
buyer.
Once Pre advised credit is advised and accepted, seller releases to owner verifiable disclosure
certificate of our supplier/exporter as specified on contract, to which pre advised status is
removed leaving a fully active credit. If end buyer does not want to advise a transferable credit ,
then a Pre advised IDLC CONFIRMED CREDIT AS confirmed to Sellers bank or corresponding
bank to the sellers bank , at end buyers expense will be required in where an added USD$2.45 per
MT applies to the offer price for added expenses. Pre advised status is removed on the same
basis in the manner previously stated.

SELLERS BANK
NAME OF SELLERS BANK
WESTPAC MELBOURNE AUSTRALIA AS ADVISED ON CONTRACT

DELIVERY DOCUMENTS
1)
2)
3)
4)
5)

SELLERS INVOICE : DECLARING ALL DEBITS AND CREDITS AS PER INCOTERMS

BILL OF LADING :MADE TO ORDER FTN EXPORTING AND ENDORSED IN BLANK NOTIFY CONSIGNEE.
CERTIFICATE OF ORIGIN FOR BUYER ACCOUNT AS PER INCOTERMS 2010 DELIVERY RULES
CERTIFICATE OF STOCKPILE ANALYSIS OF QUALITY/QUANTITY
EXPORT PERMIT

The buyer must ensure insurance is taken before 1st delivery payable in his own
country.
No CFR/CIF available.

COMMENTS AND SPECIAL CONDITIONS

(1) The seller is offering coal as harvested emanating from one base mine situated near Melak
Indonesia for barge delivery of 250 Kilometres to mother ship at East Kalimantan. The seller is
assuring Moisture, GCV and Sulphur content as per the Melak Base Coal offer as a
benchmark guiding specification of all other coal being offered in where a tolerance factor of-/
+10% is allowed to prevail to the below Melak specifications. Collection on DLC is for quantities
actually delivered in where every single shipment shall stand as an independent delivery, and
be assessed accordingly for each collection on DLC applied for.
(2) The total amount offers on contract will be delivered in 40,000 MT -/+10% shipment lots at will
every 30 days. Seller has right if delays are apparent to secure coal form other near by mines
of same or better quality.
(3)BARGE BOL FROM REGISTERED VESSEL : SAMARINDA .The buyer shall arrive at
anchorage or before delivery date .Barge shall pull along side. Ship use its own
cranes to load vessel.One original copy Barge BOL secured at Melak to initiated
DLC collection procedures carry 7 days DP collection application ensuring barge is
along side Buyers mother ship before DLC collection is applied for.

AVERAGE MAIN SPECIFICATIONS (Full Specs on contract)

PARAMETER

TEST METHOD

RESULT

TOTLAL MOISTURE WEIGHT%

MOISTURE PER SAMPLE%
TOTAL SULPHUR WEIGHT %
GROSS CV K/CAL/kg (AD)
DRIED)
GROSS CV K/CAL/kg at MINE

D 3302/D 3302M-12
D 3174-11
10.45
D 4239-12
D 5865-11a Min 6100/Max 6300+
D 409/D

17.56 AR
AD
1.07 AD
AD (AIR
44

COMMENTS BY SELLER
(1) TRANSHIPMENT ALLOWED FROM BARGE TO OVER SHIPS RAILS MOTHER VESSEL;
(2) 6.0 KG SAMPLE FROM MINE (AR) AND LATER AT STOCKPILE (AD) TAKEN 25
MARCH
2013 BY WORLD RECOGNISED CARSURIN LABORATORY IND. FURTHER
SAMPLING TAKEN EVERY DELIVERY.
(3) MINIMUM PARTIAL DRAWING ON DLC AT 40,000 MT RATE -/+5% ALLOWED.

RULES OF TRADE:
1.
2.

3.
4.

Seller is conducting business internationally on behalf of an undisclosed

principal in accordance with acceptable English and European Rules of Agency.
UCP600 (Uniform Custom and Practice for Documentary Credit issuance as per
ICC publication 600) Rules of Delivery as per Incoterms 2010 in accordance
with ICC Paris, France, trademark application. URC522 (Uniform Rules for
Collection ICC publication numbered 522) English foreign law contract
governance. English language applies. Intermediaries assisting on this
transaction agree to apply FTN exporting URPIB (Uniform Rules and Practice for
Intermediaries and Brokers) Rules of Trade.
Offer once accepted is legally binding subject to draft contract issuance.Internet
PDF and or facsimile documents allowed to apply up to formal contract signing
time.
Formal hardcopy of contracts issued by courier mail. Transaction remain in force
with PDF advised signed documents while awaiting hard copy contract return.

PROCEDURES:
a. Offer and Contract. DLC issuance and PPIC. Acceptance and delivery.
Document Presentation. Collection and finally Next delivery. General
insight :Offer ,Contract and DLC issuance 15 days is allowed. 1st delivery
is 30 days there after or less. This offer is legally binding once accepted
upon the issuance the draft contract via the internet has occurred in
where the contract does not conflict with matters applied in this offer.
This offer is an agreement.
b. PPIC TYPE :Verifiable details of stockpile, product, owner and or supplier .

SELLERS DECLARATION
I , Davide G. A Papa of FTN Exporting Melbourne Australia as Seller do hereby make
this offer with good and honourable intent. Offer and price valid once contracts are
signed.

DAVIDE GIOVANNI PAPA

3 May 2013

Australian Business Number

ABN:B2144654K

OTHER IMPORTANT MATTERS

1. If buyer decides to be at port of loading, to inspect goods, right for buyer
to reject goods later may not be valid.
2. Transhipment allowed. Literage BOL shall be considered a transhipment
document if loading is to a mother ship .

TN EXPORTING AUSTRALIA
BUYERS ADVICE AND DECLARATION (ACCEPTANCE )

Mark with (x) as required.Offer is subject to final contracts.

End Buyer please scan sign and return as PDF after rescanning.Whole
document must be returned.
Is Certificate of Origin Required:

Yes( )

No ( )

PAYMENT WILL BE ADVISED BY PRE ADVISED TRANSFERABLE IDLC (

)
PAYMENT WILL BE ADVISED BY PRE ADVISED CONFIRMED IDLC
(
)
NAME OF DLC ISSUING BANK:
(Must be issuing bank of the supplier)
Name of Bank:
Address:
Country:

Buyer may lodge credit to the sellers (Westpac bank ) Bank in Melbourne
Australia in where all corresponding fee's and transferable fees are for the
account of the end buyers. If the end buyer does not want to issue a
transferable irrevocable DLC from a top 300 world ranked bank, the end buyer
may advise a non transferable credit in where such MUST be advised to sellers
bank at higher value and
carrying confirmation of the sellers bank or
confirmed by a corresponding bank to the seller bank at the higher added price
of goods offered.
ANY COMMENTS THAT WE SHOULD BE INFORMED ABOUT FOR OUR FUTHER CONSIDERATION

END BUYERS DECLARATION

I / We the said end buyer named on this offer taking possession of goods, or
representative of such do hereby sign this offer with good and honourable intent as
accepted subject to the issuance and arrival of the supporting sales contract. Please
issue draft contract for our consideration within 2 days of returning this offer.
CORPORATE NAME
NAME OF IMPORT MANAGER
POSTAL ADDRESS
AFTER HOURS CONTACT
PHONE BUSINESS HOURS
PRIVATE EMAIL
WEBSITE
SIGNATURE /SEAL / DATE/ OR HAND APPLIED SIMILE

End of Offer