UNIFORM RULES AND PRACTICE FOR INTERMEDIARIES AND BROKERS. (URPIB).
For our trade rules we always apply UCP 600 Banking Rules, Incoterms 2000 Delivery rules, URC 522 Collection Rules and URPIB Intermediary protocol.
URPIB Article 1:
Definitions and Overall Premise:
1. An International Trade intermediary shall be defined as a sourcing Intermediary, and/ or Intermediate seller, intermediate agent, intermediate broker or intermediate buyer. An entity working as an independent ‘middle person’ individually or grouped between two other principal entities shall also be known as the ‘Buyer/Seller’. The other principal entities who are not acting in the position of the intermediary are; the actual owner in possession of goods being offered, also referred to as the ‘Supplier’ and the person paying for the goods who is also the person taking possession of the goods being purchased, also referred to as the ‘End Buyer.’
2. A Procurement intermediary is one who is specifically trading under the name of either the principal supplier or principal end buyer. (Mandate holder of such) One who is- “Acting on behalf of a disclosed principal.” It is said that these type of traders are in the minority and not a preferred position for an independent intermediary to hold nor trade in.
3. The private intermediary is one prefered to hold position and trade “On behalf of an undisclosed principal.” In where ultimately the said intermediary holding such a position does so as “Seller and Buyer.”
4. Any intermediary acting in the position of an undisclosed principal is not required to disclose the principal End buyer or Supplier at anytime throughout the course of any transaction.
5. An Intermediary claiming to be acting upon a disclosed principal must disclose such principal upfront at the start of the transaction. Such an intermediary is defined as a Procurement or Sourcing Intermediary or Agent of said disclose principal once such disclosure is made.
6. An URPIB intermediary may consider acting as a procurement agent of any principal, but ostensibly it's said that all URPIB intermediaries do not procure nor act as agent for anyone and are defined to trade holding position as intermediate buyer and or seller at any given time;as being the best , safest position to hold when dealing in the export and import of commodities and the sales of such for commission.
7. In a scenario where no other ‘sourcing intermediaries’ are involved within a transaction, the parties are as follows:
8. (a)Supplier (b)Buyer/Seller (c)End Buyer
9. Where sourcing intermediaries are involved, the group to the transaction to be implied in similar mode:
11. (b)Sourcing intermediaries (one or many)
12. (c)Seller/ Buyer (middle person in control of the whole deal)
13. (d)Sourcing Intermediaries (one or many)
14. (e)End buyers
15. If a ‘Mandate holder’ has disclosed his principal or produced a written mandate ship issued by his claimed principal, and if such a mandate ship has been authenticated as being genuine, the following group will eventuate. Mandate ship of a disclosed principal paying for and accepting goods purchased or; Mandate ship of a supplier in possession of goods and not another intermediary.
17. (b)Suppliers Mandate holder (or Procurement agent of disclosed Principal )
18. (c)Sourcing intermediaries (one or many)
19. (d)Seller/ Buyer(Middle Person in control or the whole deal)
20. (e)Sourcing Intermediaries (one or many)
35. A sourcing intermediary not prepared to take up the mantle of a controlling middle Seller/Buyer without the protection and guidance of a middle controlling trusted Seller/Buyer should not be trading.
36. A sourcing intermediary is treated with respect by the middle Buyer/Seller who in turn guides the sourcing intermediary as to the way in which a deal should be closed. This is done so that eventually the sourcing intermediary may also learn the correct procedures to further enhance the whole trading group to which they will eventually attach themselves.
37. Any middle controlling Buyer/Seller who is trading but not using his own trusted intermediaries should not be considered a Buyer/Seller holding a position built upon honorable intent. The exception to this is if a specific reason is given as to why this trader does not allow intermediaries in a transaction.
38. In the formation of a string contract there is a principal supplier, one or more intermediaries leading to the Buyer/Seller and a principal end buyer with one or more intermediaries leading to the controlling Buyer/Seller. In this formation the Buyer/Seller, holds the ultimate position of strength and is the controlling principal. The Buyer/Seller is well versed in procedures and has chosen intermediaries who are similarly well informed and able to verify the proficiency and good intent of the Buyer/Seller.
39. All informed URPIB Intermediaries shall trade using trademark rules of delivery as defined by the owners International Chamber of Commerce, (ICC) Paris, France as currently applicable under latest ‘Incoterms’ at any given time in where any new incoming delivery rules becoming apparent, outgoing incoterms delivery rules may still be used as the intermediary slowly dissolves the use of one application to favour the new incoming application.
40. Any person heading a deal amongst all intermediaries involved in such a deal is specifically defined to hold the position of ‘Seller and Buyer’, within such a group and hold position as a (Primary) Principal within the group.
41. Such trade procedures as per the Intermediary doctrine of trade created by FTN exporting
42. Whether such a doctrine has been studied and applied fully or in part as such with allowable or acceptable variations enacted.
43. Middle Buyer and Seller applying URPIB Rules of reference and who has studied fully FTN exporting Doctrine shall not step back to anyone.
44. A Buyer/Seller is not entitled to or have obligation to guide or assist anyone unless such is reasonably informed of basic procedures as per said doctrine.
45. A Buyer / Seller shall attempt to trade on his own or where appropriate with other trusted associated intermediaries who trust the Buyer/Seller implicitly and who are able to endorse the buyer/seller accordingly.
46. All informed URPIB Intermediaries shall trade using trademark rules of delivery as defined by the owners , International Chamber of Commerce , (ICC) Paris, France as currently applicable under latest “UCP” banking rules at any given time in where any new incoming Banking rules becoming apparent, outgoing banking rules may still be used as the intermediary slowly dissolves the use of one application to favour the new incoming application. Banking rules as it applies to financial instrument issuance and collection under current collection rules at any given time.
47. Financial instrument specific to at sight collection of documentary letters of credit to exclude of all other forms of paymentedit.
21. (f)End Buyer’s mandate holder (or Procurement agent of disclosed Principal )
22. (g)End buyers
23. The ‘middle person’ who leads a trading group of ‘sourcing intermediaries’ and or mandate holders is also referred to as a primary principal.
24. A ‘seller’ is not the same thing as a ‘supplier’ and an ‘end buyer’ is not the same as a ‘Buyer’.
For the purpose of these rules a primary principal is different from the other principal entities, in that the primary principal shall only be able to proceed in a transaction as a person holding and transferring title or leading delivery documents of the goods without ever taking actual or physical ‘possession’ of the goods.
25. A ‘sourcing intermediary’ is not a primary principal or a ‘primary intermediary’. Sourcing intermediaries answer directly to the primary intermediary (PI). The primary intermediary in turn answers to his primary principal, the leading ‘middle person’ in a trading group, commonly referred to in international trade as the
26. ‘Buyer/Seller’. A person acting for the head of a group is a “Principal of Agency.”
27. A Seller/Buyer shall also define a single person acting as a ‘Seller and Buyer’ at the same time in the position between a Supplier and end Buyer and as per URPIB, shall also mean to define the activities as they pertain to a ‘Primary Principal of Agency’.
28. Where the Seller/Buyer is advising his immediate primary intermediary, the primary intermediary is responsible for advising all other intermediaries on that side of the transaction, in particular where language and cultural barriers may need to be addressed in an effort to appease the end Buyer of the primary principal’s contracting requirements.
29. There will only ever be a maximum of three primary principals involved in any one deal.
(1) The supplier.
(2) The Buyer/Seller.
(3) The end Buyer or End user. All others involved in the same deal are defined as ‘Sourcing intermediaries’ in the collective form even where genuine mandate ship is held of a principal.
30. A ‘String contract’ is where many ‘Sourcing intermediaries’ are acting as a collective ‘middle group’ or with a middle entity located between the principals to the particular side of a transaction.
31. A Buyer/Seller is a single entity in a trade, in that both entities are selling and buying is activated and conducted by the same entity within a transaction. There cannot be an intermediate ‘Buyer’ and another intermediate ‘Seller’ acting as the single controlling entity in a string contract. A single Buyer or Seller is trading on the premise that they are able to buy goods for reselling and vice versa, which means that when entities claim to be able to do this it infers that they are also a ‘Buyer/Seller’. A middle controlling Buyer/Seller cannot transact on any deal where another Buyer/Seller is involved but may occasionally use the option of an IPG ( Intermediary Payment Guarantee ) in an attempt to cause the other Buyer/Seller or indeed any other intermediaries to ‘Step back’.
32. The middle controlling Buyer/Seller must be in a position of strength as to knowledge of international trade procedures.
33. A middle Buyer/Seller will never step back to another Buyer/Seller who makes reference to LOI, RWA, ICPO, NCND, BCL, POP, PB, MPA, ASWP and other variants no matter how infrequently they are referred to nor in whatever combination.
34. An intermediary shall not entertain another intermediary who is using the above flawed procedures.