Payment Terms : Irrevocable, Non-Transferable, Payable at Sight Letter of Credit (L/C)
Payment shall be made in two installments :

L/C Validity: The L/C shall have an expiry period of ninety (90) days and is valid for one (1) drawing/shipment only.

1. First Installment (40%)
   • Amount: Forty percent (40%) of the total contract value
   • Condition: Payable at sight immediately upon presentation of the following documents, after signing the Sale and Purchase Contract:
   • Full Corporate Offer (FCO) / Proforma Invoice /
   • The Seller shall complete the preparation of the goods ready for shipment within a maximum of 25 days from the date the Seller receives this payment under the Letter of Credit.
   • Note: This installment confirms the contract execution and activates the L/C.
2. Second Installment (60%)
   • Amount: Sixty percent (60%) of the total contract value
   • Condition: Payable against issuance of all shipping documents copies, including but not limited to:
   • Bill of Lading (B/L)
   • Packing List
   • Certificate of Origin
   • Insurance Certificate
   • SGS
   • Health Certificate
   • GACC
   • Any other documents stipulated in the contract
3. Bank Charges: All banking fees and charges related to the opening and operation of the L/C shall be borne by the Buyer.

Procedure

• Buyer and Seller sign the Sale and Purchase Contract.
• Buyer opens an Irrevocable, Non-Transferable, Payable at Sight L/C covering 100% of the contract value within fourteen (14) calendar days from the date of signing the Sale and Purchase Contract.
• Seller submits FCO and Proforma Invoice / Commercial Invoice → Seller’s Bank claims the First Installment (40%).
• Seller arranges shipment and prepares all required shipping documents.
• Seller’s Bank presents the complete set of shipping documents copies → claims the Second Installment (60%) under the L/C.
• Buyer is responsible for all banking fees and charges related to the L/C.
• Original Documents Courier : The Seller shall send all original documents to the Buyer via DHL / FedEx for the purpose of cargo release.

Upon completion of both installments, the contract is deemed fully executed.

As per our internal financial and risk management regulations, for new buyers we are able to proceed under the following terms only:

• Payment Term: 100% Irrevocable Letter of Credit at sight.
• Advance Provision : 40% of the L/C value is available for drawing as an advance payment against the beneficiary’s simple receipt and a signed statement/undertaking.
• Balance Payment : 60% of the L/C value to be paid against presentation of full set of shipping documents.

Regarding your inquiry about 100% Letter of Credit (L/C), kindly be informed that we do not accept 100% L/C for new buyers. The reason is that L/C payment terms allow access to funds only after shipment completion and presentation of compliant documents, while substantial production and operational expenses must be financed in advance. This creates significant financial exposure prior to payment realization.

We are able to consider 100% L/C terms only with established buyers with whom we have successfully completed at least one or two shipments. After satisfactory transaction history, a Customer ID is issued internally, enabling us to allocate company funds to cover pre-shipment costs prior to L/C negotiation.

Kindly also be informed that we export to China on a regular basis and can share records of some of our previous shipments to China for your reference, should you require supporting documentation of our export experience.

We hope for your kind understanding that these measures are in place to ensure smooth operations and sustainable cooperation. We remain fully committed to building a long-term and mutually beneficial business relationship and look forward to your confirmation of the above terms.

Thank you for your understanding and cooperation.