Standard documents in commodity trading.

Letter of Intent (LOI)

A buyer's non-binding statement of intent. Usually the first document exchanged, setting out the product, quantity and broad terms before detailed negotiation.

Irrevocable Corporate Purchase Order (ICPO)

A buyer's formal purchase order, typically including company and banking details. Common in physical commodity transactions as a precursor to contract.

Proforma Invoice (PI)

The seller's pre-shipment invoice. It confirms the commercial terms and is commonly used to trigger issuance of the payment instrument.

Sales and Purchase Agreement (SPA)

The main contract. It covers product and specification, quantity, price, delivery terms (Incoterms), payment, inspection, and the rights and obligations of each party.

Certificate of Origin

Confirms the country of origin of the goods, usually issued or certified by a chamber of commerce.

Inspection certificate

Independent verification of quality and quantity at loading or discharge, issued by an inspection company such as SGS, Intertek or Bureau Veritas.

Bill of Lading

The shipping document issued by the carrier. It evidences the contract of carriage and acts as a document of title to the cargo.

Certificate of Analysis / Quality

Laboratory results confirming the product meets the contracted specification.

Insurance certificate

Evidence of cargo insurance cover, required where the seller arranges insurance under CIF or CIP terms.

Counterparty information (KYC) form

Company details, beneficial ownership and bank references used to assess and onboard a counterparty before transacting.

Non-Disclosure Agreement (NDA)

Protects confidential information exchanged while a transaction is being discussed.

Non-Circumvention, Non-Disclosure (NCND) agreement

Protects introductions. Prevents parties from bypassing the introducing party to deal directly with a counterparty they were introduced to.

Payment instrument terms

The agreed form and wording of the payment instrument, such as a documentary letter of credit (DLC) or standby letter of credit (SBLC).

A practical sequence for progressing a commodity transaction from first contact to completion.

• Confirm the product, specification and quantity in writing.
• Establish the parties and their authority to buy or sell.
• Complete counterparty checks (KYC) before exchanging sensitive documents.
• Agree the delivery term (Incoterms 2020) and who pays freight, insurance and duty.
• Agree the payment method and the form of any payment instrument.
• Nominate an independent inspection company for quality and quantity.
• Confirm the delivery schedule, load and discharge ports, and any laytime terms.
• Arrange vessel capacity consistent with the contract delivery window.
• Review the draft contract with a qualified lawyer before signing.
• Keep a complete record of all signed documents and certificates.

We coordinate the documents and parties involved in each transaction we are engaged on. To discuss a requirement, outline the product, quantity and proposed terms.