Feed grains buying terms and condition for Iranian customers
One of the biggest market for Russian and Kazakhstan feed grains like feed barley and feed corn is Iran; mostly of these feed grains are exported from Caspian Sea to Iranian North ports, like Amir Abad and Anzali ports.
Here we are explaining terms of payment, conditions and some risks of working with Russia and CIS countries.
Feed grains buying terms of payment
Sailing of the vessel from loading port to discharge port in North ports of Iran takes about 4days, which this duration of time for L/C at sight CIF/CFR basis is a trouble because it takes more days than this for exchanging documents between banks and for this reason the vessel will be under risk of demurrage about detention.
Our terms of payment:
30% TT in advance and 70% TT against documents for Kazakhstan origin grains.
20% TT in advance and 80% due upon shipment documents for Russian origin grains.
- Is there any bond against this 30% advance payment for Kazakhstan grains? This question always asked and our response is that the buyer can come to our Kazakhstan office and pay this 30% advance payment in place and has a business tour from loading feed grains from elevator to departure of vessel to the Iranian ports that at this stage the rest of payment should take place against shipping documents.
- Is there any bond against this 20% advance payment for Russian grains? You will receive guarantee through our shipping company in Iran about this per-payment.
- Why some companies offer L/C but we can not? There is a Russian trick is used on their offer for L/C terms that is L/C on loading port that means L/C on FOB, NOT CIF! Russian and CIS countries won’t accept to let vessel depart the loading port before they got their product money; in fact, One of the more commonly used payment terms for international transactions in Russia and Kazakhstan is 30/70, meaning 30% due at the time of order/invoice and 70% due upon shipment.
Attention: about 80% of Russian companies who claim can export grains are not qualified or are fraudulent.
For more information call to our sales specialist (German, Azeri, Persian languages): +49 1520 170 6517