Option 1: Pre-Approved Shipment Process:

• Informal Date Agreement: We agree on a tentative shipment arrival date (e.g. 01/XX/202X).
• Pre-Approval with Customs: Our client contacts customs of your jurisdiction to request pre-approval for a shipment on the agreed date.
• Document Submission: The necessary documents and certifications are sent to your customs for pre-approval.
• Customs Confirmation: Your customs confirm pre-approval for the shipment’s arrival on the agreed date.
• Verification: We provide you with the confirmation, and your team verifies its legitimacy with your customs.
• Formal Agreement: Once verified, we formalize the shipment date.
• Incorporation of Dubai-based Escrow Service: To add an additional layer of security and trust, both parties agree to utilize a Dubai-based escrow service.
• Minimize risk to Buyer: The escrow service will manage the payment process for logistics and customs fees, ensuring that funds are only released after all relevant paperwork is reviewed and verified by both the buyer and the escrow service. This means that the buyer does not have to rely solely on the seller’s integrity but can trust a reputable, neutral third party to handle these critical payments.
• Logistics Selection: Your client chooses a logistics company of their preference, with the assurance that the escrow service will directly pay the logistics provider from the held funds once all conditions are met.
• Guaranteed Clearance: With pre-approved customs verified. Clearance is guaranteed, giving you or your client confidence in the process.
• Shipment and Payment: The shipment is arranged for the agreed date. Upon arrival at your facility and after satisfactory assessment of the commodity done by yourselves, payment is made on the spot at a preferred discount rate, since you/your client covered logistic costs.

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Option 2: Comprehensive Contractual Process

• Legal Documentation: Our lawyers draft multiple contracts, including:

1. Intermediary Agreement: Brokerage and Commission Agreements.
2. Sales Contract: Purchase Agreement, Sale and Purchase Contract, Proof of Funds, and Letter of Credit Confirmations.
3. Commission Agreement: Irrevocable Master Fee Protection Agreement.
4. Confidentiality Agreement: Non-Circumvention Non-Disclosure Agreement (NCNDA) and Confidentiality Agreement.
5. Jurisdiction and Dispute Resolution: Arbitration, Choice of Law, and Dispute Resolution Clauses.

• Contract Finalization: Once all contract terms and agreements are finalized, the shipment process begins.
• Seller Arranges Logistics: The seller pays for logistics and arranges delivery to the facility with their chosen logistics provider.
• Shipment and Payment: Upon the shipment’s arrival at the facility, your client conducts tests on the commodity. After confirming the commodity’s specifications, payment is made on the spot.
• Rate Consideration: This option typically incurs higher costs for the seller, resulting in less favorable rates compared to the first option.

Opting for Option 1: Pre-Approved Shipment Process

Best for: Buyers who prioritize cost-efficiency and confidence in logistics and customs clearance.

Advantages:

• Lower Costs: The buyer receives a discount since they handle logistics.
• Guaranteed Clearance: Pre-approval from customs reduces the risk of delays or complications.
• Flexibility: The buyer has control over the choice of logistics provider.

Considerations:

• Buyer's Responsibility: The buyer must manage and pay for logistics, which may require more involvement on their part.
• Risk Management: Although clearance is guaranteed, the buyer takes on more upfront responsibility.

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Option 2: Comprehensive Contractual Process

Best for: Buyers who prioritize thorough legal protection and are willing to accept higher costs for a more structured process.

Advantages:

• Legal Security: Extensive contracts provide clear terms and protections, reducing potential disputes.
• Seller Responsibility: The seller handles logistics, minimizing the buyer's involvement until the shipment arrives.
• Standard Process: This option may be preferable for buyers accustomed to formal

Considerations:

• Higher Costs: The buyer may face less favourable rates due to the higher costs incurred by the seller.
• Time-Consuming: Drafting and finalizing multiple contracts can take longer, potentially delaying the transaction.

Recommendation:

• Choose Option 1 if you prefer a cost-effective, streamlined process with control over logistics and have confidence in handling customs pre-approval.
• Choose Option 2 if you value comprehensive legal protection and prefer the seller to manage logistics, even at a potentially higher cost.

Ultimately, the best option aligns with your risk tolerance, cost sensitivity, and preference for control over the transaction process.