Hours: 8am-5pm GMT Monday-Friday
FREQUENTLY ASKED QUESTIONS
What kind of company is Eirris?
Eirris International is a private independent commodity trading firm that buys raw materials or commodities such as Cocoa, metals, sugar etc. In essence, we simply buy from mainstream producers and resell to our clients at competitive prices.
What type of businesses does Eirris service frequently?
Most of the businesses we serve include distributors, wholesalers, importers and exporters involved in a wide range of commodity dealings. Our clients are typically companies that are looking or are struggling to gain alternative supply sources in order to foster the growth of their commodity trading business.
Why should I prefer using Eirris' services?
With our close and personal interest in all trading activities we undertake, we have a unique capability of being able to open up new supply opportunities for businesses that have had or are still struggling with attaining supply from their existing vendor(s) by providing alternative supply sources to keep their businesses moving. Reasonable terms and competitive pricing are just some of the benefits of using Eirris International for your consistent supply needs. Our competitive market offering and high standards of service mean the businesses we serve can reach their growth plans and increase their trading capacity with confidence.
Can I introduce business to Eirris?
Yes, you can, it is for a fact that almost all of our business dealings have come to us through professional intermediaries. We believe strongly in always staying committed, responsive and efficient to the successful advancement of each and every transaction we undertake. We structure solutions that creates constructive relationships with all our counterparties and we at all times strictly adhere to the best practices of getting transactions done in a safe and timely manner in order to build a healthy and continuous business relationships in the long run.
How does Eirris International conduct business in a safe manner?
It is of crucial importance to us at all times to apply safe, secure and established international trade rules that corporate trading entities as well as international banks use in their own dealings. There are no shortcuts in international trade, anything less than using international trading applications involving UCP 600 banking rules, Incoterms 2010 delivery rules and URC 522 collection rules will lead a potentially viable transaction into a precarious situation and even potential legal difficulties. Costly misunderstandings are likely to occur once the foundation of the transaction is not based on internationally established trade applications.
How important is the documentary letter of credit (DLC) in international trade?
In the international trade arena, buyers want an assurance of receiving their products or merchandise on time upon the close of a transaction. Therefore, the issuance of a DLC Is required as an assurance that the seller will receive timely payment from the buyer. The issuing bank gives a binding undertaking to the seller (beneficiary) that payment will be made against documents or bills drawn in strict compliance with the terms of the credit. The DLC issuance allows for both the buyer and seller’s banks to get involved in the transaction. The transfer of the money to the seller (beneficiary) will only be initiated after all the conditions or documents of the contract are met. Banks as financial intermediaries, also protects the interest of the buyer by not paying the named beneficiary until it receives a confirmation that the goods have been shipped.
Is a revocable letter of credit acceptable for the payment of goods?
We do not accept a revocable letter of credit because it can be changed or terminated by the buyer without any prior notice to the other parties involved in a transaction. The least financial instrument required is the Pre Advised Transferable Irrevocable DLC. The operative word here is “IRREVOCABLE”.Irrevocable means that the DLC cannot under any mere circumstances be cancelled once advised and accepted (except for strong, verifiable matters pertaining to fraud).
How different is the Documentary letter of Credit (DLC) from a Standby letter of credit (SLC)?
Documentary letter of credit for the most part are used as traditional methods of payment in international transactions. Standby letter of credit on the hand are often used to assure performance or payment of counterparty. Unlike a normal DLC used to pay for goods, a SLC is not activated based on conditions such as presentation of delivery documents but rather issued as an unconditional instrument: upon a certain single event occurring a SLC is allowed to be presented for collection.
Note: A Standby letter of credit must never be used or offered to be used for payment of goods. It is advisable that if you come across anyone asking for payment of goods via an SLC, MT 799, SWIFT, PBG and the likes, you have no deal and the enquiry should be discarded immediately. It is safe to assume that the individual or entity requesting this type of payment has no idea of what they are doing, or it may be some kind of letter of credit scam of which there are many.
Can you differentiate between what a Bank Guarantee and Documentary Credit (DLC) is?
They are both financial instruments which aid in reducing payment risk to both parties involved in a transaction. The major difference between a Documentary Letter of Credit (DLC) and Bank Guarantee lies in the financial instruments usage. DLCs are mostly used in international trade transactions whereas Bank Guarantees on the other hand are used in the infrastructure and real estate industry to mitigate credit risk.
What are the payment terms that are available to us?
For transparency and security reasons, Eirris only accepts bank issued DLCs governed by UCP 600 as a means of payment for all offered commodity merchandise through top prime banks across globe.
The following are the acceptable means of payment:
1. Bank issued Irrevocable Confirmed Transferable UCP600 DLC (confirmation of DLC as confirmed by seller bank at cost to buyer.)
** Makes for a fast and straightforward deal. **
2. Bank issued Irrevocable Transferable UCP600 DLC.
3. Pre Advised Confirmed UCP600 DLC.
What does SWIFT MT 760 mean?
This type of payment is an internal bank application for transferring money. When a bank issues an MT 760, it practically issues a payment guarantee, on behalf of its applicant, typically having first blocked the same amount of funds in the applicant or customer’s account. Eirris International as a trader only uses a Non-Cumulative Revolving UCP600 Bank issued Irrevocable Documentary Letter of Credit which is more suitable for trading purposes.
What does SWIFT MT- 103 mean?
It is a payment application that is used internally by banks to mean a wire transfer, telegraphic transfers of SWIFT transfers. This payment type is used when a buyer and a seller already have an existing good relationship. However, standard practice dictates that payment for shipment should be made using a Documentary Letter of Credit (DLC). Hence, it is not advisable to use a wire transfer (MT103) to make any payment in advance because this can leave a buyer open to fraud, and no supplier in business will attempt to ship products before they receive payment or a guarantee backed by a top prime World Bank that payment will be made upon shipping.
If we do not have any funds right now, can Eirris still assist us?
No. It is rather unfortunate that we do not offer any assistance to parties who cannot afford to open a bank Documentary Letter of Credit (DLC) to assure and ultimately pay for the desired merchandise being considered. It is important to note that there is a big difference in assuring payment and making payment.
What are Incoterms?
Determining whether the responsibility associated to cost, risk and other duties fall with the buyer or the seller can prove to be a source of costly misunderstanding. Therefore the International Chamber of Commerce (ICC) saw the need to create a set of ‘international commercial terms’ under the heading Incoterms that are to be used worldwide. However, Incoterms cannot be used within states of a country.
What does FOB (Free on Board) stand for?
FOB means “Free on Board.” The goods are placed on board a ship by the seller at a port of shipment named in the sales contract. The risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods pass the ship’s rail. All costs from that point forward, including freight and insurance, are for the buyer’s account. This term can be used only for sea or inland waterway transport.
Who pays for the charted vessel in an FOB deal?
In an FOB deal as per Incoterms 2010 the end buyer pays for the charted vessel.
What does ASWP stand for?
ASWP stands for ‘Any Safe World Port’. This is a flawed term which does not exist and is normally attached to an incoterm (example: CIF ASWP) when applying freight cost to goods which should not be the case. The simple logic is, the shipment cost cannot be the same to “Any Safe World’s Port”. For example, the distance to ship any bulk commodity from Ghana to Brazil is 4,300 nautical miles and from Ghana to China is 12,256 nautical miles. This could make it more than half a million dollars price difference. It is advisable that any transaction making reference to ASWP is to be treated as though it is entirely without merit and if possible dismissed immediately.
What is a P.O.P.? Can I obtain one upfront?
POP simply refers to ‘Proof of Product’. In practice, there is no such thing as a genuine ‘Proof of Product’ and should be correctly defined as the evidence of supplier in possession of goods being sold under FOB or CIF delivery rules. Even if goods are inspected at site, and pictures are even taken, this only goes to prove that goods were sighted. It does not in any way imply that it will be the same goods that will be shipped to the buyer. Most upfront POPs produced are fake, because once it has been issued, it automatically renders it out of date. The product could have been sold to another buyer and no longer exists, which is why third-party internationally recognized experts such as pre-shipment inspectors are very critical. These independent inspection agencies examine goods ordered by the buyer at port of loading which provides a strong independent guarantee to what is on board a shipping vessel. In other words, the goods which the buyer will be taking or has taken delivery of, are inspected and assurances are given as to matters of quantity and quality. The only real proof that the product exist is after delivery has been made to the carrier/vessel with a Bill of Lading and a SGS certificate. A SGS certificate cannot be forged as it only takes one phone call to authenticate it.
Please note: Before a supplier will even consider making any effort in getting goods ready for delivery. The payment assurance in a form of a DLC must be made available first and foremost.
What does Eirris not engage in?
Kindly be informed, below are some of the things we do not engage in:
We do not transact based on unworkable applications such as ASWP, PB, ICPO, POP, LOI, BCL, MFPA, NCNDA, SPA, MT103, MT 760 and SWIFT among others.
We do not request any upfront payments or hidden fees in advance. (Only assurance of payment in the form of a DLC is required)
We do not provide commodity trading advisory services in any form.
We do not transact spot deals.