Procedures
The steps to follow to conclude this deal are as follows:
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Sign a Non-Disclosure Agreement (NDA): Before any confidential information is shared, both parties should sign an NDA to protect their sensitive information. This is a standard practice in the industry.
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Schedule a Zoom meeting: Once the NDA is signed, the parties can schedule a Zoom meeting to discuss the details of the transaction. During this meeting, the parties can discuss the quantity, quality, and price of the gold, as well as the delivery and payment terms. They may also discuss any other relevant details, such as taxes or customs fees.
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One-month trial tranche: As a way to test the waters, some buyers and sellers may agree to a one-month trial tranche. This allows the buyer to test the quality of the gold before committing to a larger purchase.
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“Ready, Willing and Able" (RWA) letter from the buyer's bank. This is a letter that confirms that the buyer is ready, willing, and able to complete the transaction, and that they have the necessary funds to do so
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Bank Comfort Letter (BCL): To show the seller that the buyer has the funds to complete the transaction, the buyer will provide a BCL that has been signed and stamped by two banking officers. The BCL is a letter from the buyer's bank that confirms the buyer's ability to pay for the gold.
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Proof of Funds (POF): The buyer will also provide a confirmation of POF to show that they have the necessary funds to complete the transaction. This can be a bank statement or another form of financial proof.
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Non-operative device: Once the buyer's POF has been confirmed, a non-operative device will be used to transfer the Proof of Product (POP) to the buyer. The POP is proof that the gold exists and is available for purchase.
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Proforma invoice: A proforma invoice is a preliminary invoice that outlines the details of the transaction, including the quantity, quality, and price of the gold. This invoice is not a legally binding document, but it provides a framework for the final contract.
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Receipt of custody safety protection: To ensure that the gold is safe during transportation, the seller will provide a receipt of custody safety protection. This document shows that the gold is securely stored and protected during transportation.
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Certificate of Purity: The Certificate of Purity confirms the purity of the gold being sold. This document is important for both the buyer and seller, as it ensures that the gold is of the quality agreed upon.
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Commercial invoice: The commercial invoice is a legally binding document that outlines the details of the transaction, including the quantity, quality, and price of the gold. This document is used for customs and tax purposes.
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Certificate of Ownership: The Certificate of Ownership confirms that the seller has the legal right to sell the gold being offered. This document is important for the buyer, as it ensures that the gold is being sold by a legitimate seller.
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Packing List: The Packing List outlines the contents of each package of gold being shipped. This document is important for customs and logistics purposes.
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Certificate of Origin: The Certificate of Origin confirms where the gold originated from. This document is important for customs and tax purposes.
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Export documents: Depending on the regulations of the country, additional export documents may be required for the transaction.
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Safely maintaining receipt from storage/warehouse in Dubai: The documents should be stored in a safe place, such as a secure storage/warehouse in Dubai.
By following these steps and procedures, the parties can ensure a smooth and successful gold transaction. However, it's important to note that the exact steps and procedures may vary depending on the specific circumstances of the deal.