Purchase Procedures

At Peca Import and Export Company Limited, we ensure a seamless and transparent process for all our buyers. Below is a step-by-step guide to our purchasing procedures, designed to guarantee efficiency and clarity for every transaction.

1. Letter of Intent (LOI) Submission

  • The buyer begins the process by issuing a Letter of Intent (LOI) to indicate their interest and intention to purchase.

2. Simple Corporate Order Issuance

  • Within 2 banking days, the seller issues a Simple Corporate Order to formalize the process and confirm the buyer’s interest.

3. Irrevocable Corporate Purchase Order (ICPO)

  • The buyer issues an ICPO, detailing their firm commitment to the purchase.

4. Due Diligence (DD)

  • The seller performs due diligence on the ICPO to verify authenticity and evaluate the buyer’s credibility. This step typically takes 2-3 banking days.

5. Contract and Invoice Drafting

  • The seller provides a draft Sale and Purchase Contract and Invoice.
  • The buyer has 48 hours to sign, seal, and return the contract.
  • The seller reviews, signs, and returns the finalized contract.
  • A Non-Circumvention, Non-Disclosure Agreement (NCNDA) is signed to ensure confidentiality and trust.

6. Contract Exchange

  • Both parties exchange signed contract hard copies electronically via PDF, ensuring both have verified and finalized copies.

7. Initial Payment

  • Within 48 hours, the buyer sends an initial payment of $10,000 USD to the seller.

8. Product Certification

  • After verifying the initial payment (7-10 banking days), the seller issues a product certificate (e.g., SGS or similar) for the agreed quantity.
  • This certificate is sent via email and courier services such as DHL or FedEx.

9. Financial Instrument Issuance

  • The buyer issues the required financial instrument within 5 banking days as per the contract.

10. Performance Bond

  • For contract buyers, the seller issues a 2% Performance Bond within 10 banking days.

11. Product Delivery Preparation

  • Within 30-45 days, the product is delivered to the port, ready for loading.

12. Payment Upon Shipping Documents

  • Upon loading, the seller presents shipping documents to the buyer’s bank.
  • The buyer’s bank transfers payment via MT103 or an agreed-upon method.

13. Delivery as Per Contract

  • Delivery begins as per the agreed contract terms and conditions.

Our detailed purchasing procedures ensure a smooth and secure process for both buyers and sellers, fostering trust and long-term partnerships. Should you have any questions about our purchasing steps, please feel free to contact us for more information.