FTN: Exporting Advice

Intermediaries have been in existence for as long as countries have been trading with one another, or have required the need of a mediator to convey vital messages to each other for a set fee or charge or for commission. (Commissionaire- A Commission Agent ). It’s the said earning of commission which differentiates in identifying the activities of an intermediary to the activities of a specific agent, messenger or a roaming disciple who may also be acting on behalf of their principal.

Historically
We could start with the Babylonian , Phoenicians or even the Greeks , but the true historical impetus related to the nature of business applied by intermediaries today can be traced back to immediate reference as it relates to Ancient Rome and later Britain. In where historically Hellenic relevance fell into insignificance from 99 B.C in where Roman laws and rule was just beginning to apply its influence to most of the known world in the period of time when the Roman Empire establish more exacting and refined measure to the rule of law, Democracy and indeed International trade- From 1 A.D nearly a third of the knowns world’s population lived and died under Roman Rule and Laws- including (fiscus) Laws pertaining to banking and finance . Remnants of the 1 “Lex Marcatoria” (Merchant law) can still, be found giving reference is today realm of practice.

1 Principles of trade used often by merchants throughout Europe in medieval times


Intermediary Roman Times.
Most of the legislative rules, trading rules and payments techniques used today in Agency , Banking and Commerce can be indirectly traced back to Ancient Rome. For as long as the environment of support became apparent there were always private individuals who were able to 1 exploit such support for their own benefit and gain . An Intermediary thus has many forms and such form can be found to prevail in many situations.

2 An intermediary acting as principal for the Cilian pirates brokered a deal with Sparticus for a large fee, to provide passage from Rhenium to Sicily , which never arrived ( 109-71 BC)

*The fall of the Roman empire (*A “Decline” rather than “Fall.” 476 AD. German Captain Adducer and his Mercenaries , sacked Rome and put to death the emperor Orestes.With this act the Rule of Rome was terminated) was one of Government and not of the worldly contributions left in it’s wake. The administrative Government collapsed, but it’s legacy and influence to the world remained in place for over another 1000 years until another world changing event dictated in the way business was to be conducted. The 3 Indian Sanskrit way of defining number mounted its challenge , and for all its efforts the Roman Numeral, as used by most of the civilised world , was on the verge of being bumped out of the way for ever, to favour this new method of accounting using the said Sanskrit numerals - further more the Sanskrit numerals had something which the Roman Numerals did not - a numerical number not starting with the traditional “ 1 “ but “Zero” - With the Zero came percentages- but again it was 12th century Italian mathematician named Leonard 4 Fibonacci , (1170 - 1250) who embraced this new numerical form long before such became a formal application, with loathing from his peers , to create what is known today as the effective type “Binary” Code- the same basis of such used today now needed to run computers-

3 The formal introduction of zero into the decimal system in the 13th century was the most significant achievement in the development of a number system, in which calculation with large numbers became feasible. Sanskrit numerals permanently changed the way civilisation formulated costs and commercial business practice related to pricing applications.

4 Such claims are apparent as far back as 200 B.C , the but the actual related Fibonacci coding is a universal code which encodes positive integers into binary code words.


16th Italian renaissance , “Merchants of Venice” unlike the fictitious character in the same named play made famous by William Shakespeare, the events of the time as depicted in the play were indeed adapted correctly. Italy once more forged direction in banking and commerce with the introduction of “ Double book ledger entries” in applying new methods of accounting, fiscal (fiscus) lending policies, including matters on guarantees , bonds , and formal use of financial instrument as it pertains the rudimentary use of documentary letters of credit . The Intermediary buyer of goods from other Countries would meet over a bench with money lenders looking to secure funds with the best “interest’ rates for such purchases, in where upon reselling such goods , gains or commissions made from such , would suffice to repay such loan and interest, leaving the merchant with profit. Lost goods at sea, piracy and bad debts often met that the lender could go *“Bankrupt “ on bad lending decisions made- (Hence “Broken bench” give use today term defined and ‘Bankrupt” )

Add Guglieimo Marconi’s ( 1874 -1937) Invention of the radio graph , now give us the basic tools of commerce and banking used by all today in the nature of business as is pertains amongst other things, the buying and selling commodities, especially by intermediaries.

In ancient times the International trade Intermediary merchant could transverse its length from the Euphrates to the 5Thames without being called upon to produce a passport, allowed merchants and their representatives to cover and immense area to look for and introduce new products into Italy and visa versa.

5 Indeed the rapid extensions of the Roman network of roads and the establishments of Roman camps and colonies on the outskirts of the empire opened up many new markets for the ‘Entrepreneur” Foreign trade in the Roman empire attained its maximum rate of expansion in the First century AD. - 50 years before Roman occupation of Britain brisk trade by intermediate vendors prevailed. The sea trade route to India existed before 100 B.C in where Hindu or Arab middlemen would conduct business with Roman merchants -as far south as Ceylon and the Bay of Bengal. Bronze port and pans from Tuscany have been found in the black seas regions, Wales and even Scotland, now give scope in the depth of commerce being plied by the Roman Empire.

The intermediary application coincidentally was also born not only from commerce but from war and need.

It was in war the the Roman gave us insights that they were prepared to deal with intermediaries and 6“Mandate Holders” in where the greatest changes made to Roman law in support of such activities became permanently embed thanks to the Emperor Augusts. A tribune or person of higher rank could hold mandate ship of the emperor , defines to imply that only a worthy person of experience could be appointed a “mandatership”.

6 Imperium Consulare- This Imperial act allowed Augusts (27 AD.) to exercise power via the use of Agents or “his representatives” abroad. Under this specific act of “Agency” Augusts could appoint Governors other provinces within Roman territory and rules, in where such a Governor is acting on behalf of the Roman Emperor, thus acting on behalf of the Roman Government. There cannot be a undisclosed Mandate ship holder - One has explicit power to act upon the authority of another . An intermediary who is not a mandate holder of a principal can as best only act on behalf of an undisclosed principal in his own name and therefore responsibilities and consequences of such failures apparent while holding such a position. In English law this maxim is still apparent today : ‘Delegates non pastiest delegate” - One who is delegated by another is not allowed pass on such powers conferred upon him to another .


Intermediaries today do not understand the importance of claiming to hold position of a “mandate ship” and tout the term with disregard to the importance of such a position. The position of mandate ship carries with it the unconditional 7 authority of the principal in where decision made by the mandate holder whether correctly applied or not bears responsibility of Principal.

7 The government of Ancient Rome appointed Governor Herod to Jerusalem in where as governor such powers confirmed upon Herod allows even the death penalty to be applied upon a criminal breaking the law as apparent in the administrative capital Rome.

In Modern era it was the English who provided the final protocol that allowed international trade to accelerate in a manner closely associated to how we all apply practice in the way export import trade and commerce of today is applied. It was the English use of ships to protect trade routes and the use of insurance practices that enabled international trade to flourish dramatically . The Use of a special types of intermediary was born of with the application insurance regime like Sourcing Intermediary, Agents for a disclose principal, and brokers.

Lloyds of London started in a small coffee house in Tower street London- runners would be paid to source incoming ships and report on their cargo. From this humble beginning the world’s largest maritime insurer was born. Add to this the established colonies of England, its laws and ability to discover , map out protect trade routes, gave more to matters of International trade than any other single country on earth. “ Britannia rules the Waves “ - Such sentiments is born of such activities.

At the end of the second world war it was Japanese industry that led the way of rebuilding its society with the specific use on international trade intermediaries, going forth world wide in securing goods to rebuild its war torn empire.


The Modern Day Professional Intermediary .
The individual today contemplating to conduct business as a Professional International Trade Intermediary has to be very well informed and technically proficient in understanding the nature of business being plied . A single allowable act which prevails today amongst other in banking practices allows the existence of an international trade intermediary to ply the nature of business being contemplated world wide, thanks to the use of a transferable documentary letter of credit in the first instance , and English law governance in the second instance , which still carry forth much improved upon varies aspects of the Lex Mercatoria especially in matters of contract formation , which today all attribute heavily to the activities of the import / export intermediary .

The term Agent is confusing due to 8 Civil and 9 Common laws apparent to the person practising such business, but not so to the nature of business being plied, which clearly identifies the actions of the entity performing to apply such practices. The method of earning commission or gains which technically identifies the type of ‘Agent’ as it relates specifically to his own country and the laws applied in such.

8 Civil Laws Countries: Derived from the maxim “Corpus Juris Civilis”( Emperor Justinian 529 A.D) Most European Continental and latin American countries, and others.

9 Common laws countries apply such as derived from English Law; England , Wales Scotland and Ireland, Most of the USA ( Some exception prevail), Most of Canada ( Some exception prevail). Austraila , India and many other countries.

Some countries apply often common law and an admixture of both common and civil laws: I.e: China.

Defining the activities of various types of Agents.
A salesperson representing a firm or entity , also defines at times to mean an Agent of a disclosed principal or broker. 10 Sales dictate earnings . Such earnings as offered by their Principal. In such circumstances the said sales person is holding both representative status and Intermediary status at the same time.

10 A law enforcement Agent (I.e: Interpol, F.B.I) holds specific representative status enforced under statutory laws, but does not hold to imply the position of an Intermediary and is not able to earn commission from the position such holds.

11 In biblical times. Judas Escariot accepting the 30 pieces of silver for valuable information on the whereabouts of Jesus Christ typifies to imply that a sourcing intermediary has made gains on valuable information sourced. Information is also therefore defined as being a tangible asset that can also be traded upon.

11 Matthew 27:3- In that the reward was offered to any person able to source the whereabouts of Jesus Christ not subject to arrest- but only subject to “Discovery” and “Proof”

Booking Agents, Shipping agents, Export Import agents of specific Agency , Real Estate Agents, Insurance brokers and Stock brokers are just some of the very common entities identifiable world wide as entities working on behalf of their respective “Disclosed principal”.

The most commonest activity today of a private intermediary is that which prevails undoubtedly in the biggest industry in the world associated with international trade, in where many intermediaries can be found most often acting on behalf of non disclosed principals. Such privately based foreign trade negotiators can be found trading in commodities in one form or another in nearly every country on earth.

An intermediary no matter how defined stands most often on 5 two basic platforms of application (a) As acting on behalf of a disclosed principal (b) as acting on behalf an undisclosed principal. In all cases the earning of an agreed upon commission rate , or and undisclosed commission rate created at will is the supporting premise in identifying the nature of business being plied. Regardless on how other experts may have ambiguously defined such intermediary applications the way such products are traded upon and the method used to obtain commissions or gains specifically dictates the type of practice being initiated now give us a specific understanding that although and intermediary can be classified by some countries into other type of activities, the basis activity in defining specifically the difference between an Agent and Intermediary has become apparent for the very first time by trading entity FTN exporting.

12 Reference: The law and Practice of International Trade 1991.Clive .M.Schmitthoff Barrister, Lawyer: Honourary Professor of Law University of Kent Canterbury England.


On behalf of a disclosed Principal
The Intermediary when acting on behalf of disclosed principal works within the realm of practice as advised by his principal and only with goods held by the principal. All disclosure must be made apparent to the principal as are all commission payment earned and paid out. In such circumstances the “agent” working on behalf of a disclosed principal has specific and limited powers on what he can and cannot do and most often signs an agreement with his principal in regards to the scope of activities which the intermediary may enact within. The authorised entity of the principal will often also bear exclusivity in matters of territorial arrangement in where the said Agent would be given exclusive control of one territory with assurance given by his principal that he will not appoint anyone else in such a territory. Territorial arrangement also confers special attributes in that should a buyer of goods belonging to the principal come from within the territory of his appointed agent , then whether such an agent transacts on the said deal or not , the agent of the principal would still be entitled to the payment commission from the principal , even though the buyer was dealing with the principal and not the agent in his own territory.

This virtue of application is specific to the ideal that and agent of an authorised entity once appointed to a particular territory , may use his own funds, expenses and means to promote the goods of the supplier in such a territory is a very open and disclosed manner with fear of being “circumvented” in matter of earnings. This application allows the agent right to benefit from any deals eventuating from his own territory , even though the buyer made contact with his principal located outside the territory of the agent.

The benefit to the individual and authorised Agent is holding such a position is reasonable position one for reason in that inter alia; all legal consequences and obligation of the deal are bought to bear by the principal and not agent , and that a regular income could be earned as customers who are secured and continue to buy anything from the same principal will generate perpetual commission to the agent holding territory. The relationship ship here is one of Agent, principal and client in where, the client even though eventually concludes business with the principal in that- the principal is duty bound to pay commission to agent , who represents the client they had initially sourced. Duty bound as a opposed to *legally bound to pay commission now defines the the agent and principal are in a business relationship based on contract ing terms and condition.

*The law cannot force the payment of commission to an intermediary is can only force payment of compensation for breach of contract.

In such a circumstance , the principal may require exclusive tenure of the Agent in disallowing such to trade in other goods in where the true nature of the Agent now becomes apparent .In where no such exclusive tenure is applicable then such an entity is best described to hold position of an Agent as well as an Intermediary if the agent trades disclosing his principal with no contract in place- A precarious trading position.

Their can be no viable position applied to the position of intermediary who is unable to place attachment with a principal and owner of goods.The term “Sourcing intermediary” defining one who is merely trading freely and unattached to any principal is an ambiguous, ambitious and not a viable term that can be effectively applied in the nature of business applicable in international trade. A true Agent has support of a principal is the mechanism which allows such to ply their trade effectively. A true Intermediary in the real sense has no principal to rely upon for support and relies of a different mechanism in being able to ply their trade effectively, hence defining a second mechanism of application giving support in the method such an intermediary is able to “earn” commissions

Mechanism : On behalf of a undisclosed Principal
The Intermediary where acting on behalf of an undisclosed principal is able to work within the realm of practice as advised by his principal with nearly any type of of product . Disclosure of the principal is not made nor required to be made, whether such is a end buyer or supplier and all commission payment are earned and collected by the private Intermediary based solely on the differential made between the buy price of the goods and later selling price of such. In such circumstances the private intermediary is not an agent nor broker but a Intermediate Buyer or Seller of goods. An unattached freelance principal in his own right as head on his own agency , working among other principals. Working on behalf of an undisclosed principal confers to the intermediary that such is able to work at his own pace, applying his own method of application in its attempt to close a deal for profit or gain, without being answerable to anyone. The benefit to the individual private entity trading in such a position is indeed great for reason of the potentially huge gains that could be earned, exceeding far more than the entity working on behalf of a disclosed principal- but , there is a trade-off in allowing such huge earnings to be made. All legal consequences and obligation of the deal are bought to bear by the intermediary and not the principal such is dealing with , and that a regular income will not be earned and that intermediary is acting alone without being directed or supported by anyone. Acting on behalf of a disclosed principal requires knowledge to prevail in many cases up to a certain level of comprehension, because once the agent secure the “buyer” other entities take over in the closing of the transaction, where as the intermediary acting on behalf of a undisclosed principal requires great in-depth knowledge of every aspect of the transaction because once the intermediary secures the “buyer” such an entity is also responsible for the closing of the whole transaction.

Circumvention
The Intermediary spending great time effort to source goods from a supplier in possession of such goods, cannot simply surrender such information to a potential end buyer looking to take possession of such goods, as their is no viable effective mechanism that exists which can be applied to ensure that the intermediary is able to earn commission or gains on the information held. To surrender such information will gives legal application to the end buyer to trade directly with the Supplier and not the intermediary. Not dissimilar to the ideal that a person who has invented a unique much wanted product , must not disclose the workings of such a product to any potential buyer without ensuring first that all disclosures are applied an in a legally defined manner. Simply holding a patent to the invention is not enough to confer protection from other taking advantage on the invention for personal exploitation. The Inventor is only required to demonstrate the the working of invention and not how such workings are achieved to be able sell such an invention for profit.

The inventor must legally define first all claim of what his invention can do. The inventor signs agreement with potential buyers in where a demonstration is provided. If the invention performs as claimed , the buyer has no choice but to pay for and own the invention before its workings are revealed. The inventor under such circumstance cannot be circumvented.

The intermediary must also provide a set of procedures and demonstrate their ability in being able to perform, in where once such procedures have become apparent, information based on disclosures may then apply safely. The said performance starts in the manner documents are presented, because the nature of business defines further that an intermediary works with documents and not the physical goods they are attempting to trade upon. This principle and scope of understanding in one of the most confusing aspects of trading as a intermediary in the export and import of goods.

The act of circumvention is rife in today’s industry and for this specific reason the 6 FTN (Foreign Trade Negotiators) Protocol, as a matter or urgent necessity has rewritten the previous flawed, problematic, and confusing rules of agency which may have existed under civil or common law applications, to incorporate a uniform global practice in where Private Intermediaries as opposed to the now defined realm Agents can now safely apply.

6 FTN Exporting created the first effective uniform intermediary application supported by it’s own rules of trade. The FTN doctrine and URPIB rules were first unofficially published and tested on line in 1998, and formally applied on the USA Allexperts.com site from 2001- SEE: Google Search Engine Keywords “Distribution of Products”- The protocol became established in 2005 with the in house publication release“ The World is Yours” which has established copyright application of both the doctrine and URPIB rules world wide.

The Agent acting on behalf of a disclosed principal is an appointed position in where such an agent is not concerned on matters of Circumvention. The Intermediary working on behalf of an undisclosed principal on the other hand is concerned in matters of circumvention as such, applies a protocol in where the intermediary sets in motion in protecting itself from being circumvented, applying effective procedures in being able to ensure that the intermediary is safe from the ill virtues of circumvention.

The import export Intermediary sources much wanted goods from only a supplier in possession of such goods in where the supplier provides an “offer” to the intermediary. The intermediary cannot disclose from where or whom the the goods are supplied by for fear of circumvention. The intermediary reverts to the ostensible position of Buyer and Seller of such goods secured from a supplier. The “Ostensible Authority” in being able to offer goods on behalf of an undisclosed principal is not conferred by the principal, but is an “authority “ conferred upon the intermediary as a matter of English common law contract application. The intermediary must have in hand an offer with consideration being apparent in being able to buy goods from a supplier, armed with such an offer , the method of purchasing such goods becomes a secondary application. The primary application applies that the intermediary buyer is able to buy and pay for such 12 goods being secured from a supplier in possession of such goods. In that while the intermediary buyer is making arrangements to buy such goods, it is also making arrangement to sell such goods to an end buyer who is going to also take possession fo such.

12 The mechanism here in being able to buy “Goods” and sell “Goods” is defining the buying and selling of the “Documentary title” to such goods . This title and tangible “Derivative” in such is created by securing the the offer. The intermediary does not obtain possession of goods- that privileged is reserved for the end buyer. The intermediary is actually “flipping the contract” of purchase over to his own end buyer in a very exacting method and in full support of current practices pertaining to delivery rules (*Incoterms 2000) and Banking rules pertaining to the use of a financial instrument (*UCP600)

*Trademark of the ICC, Paris France.

Ostensible Authority

The Intermediary above else must have secured goods first before making an offer to sell such goods to another is a golden rule of trade that must not be bypassed. The Intermediary acting as a buyer to the supplier must first have in its hand an offer or well defined quote from such a supplier in being able to claim that they have in their possession the authority to resell such goods as an intermediary seller. The intermediary must convey a true perception to “all others” that is has the goods in its control that such is offering for others to buy. More importantly the the Intermediary Buyer/ Seller holding such a position in a string contract has no ostensible authority to sell goods as obtained from another intermediary and in doing so may be acting on a precarious platform in where fraud charges could eventually apply.

Said goods must be secured from the supplier in possession of goods and not another intermediary seller is in support of the maxim 8“Delegates Non Potest Delegare” in that ; someone must take responsibility of the deal being applied and the offer being made in that deal without recourse nor ability to make excuses in that the goods were being offered by another intermediary , should the goods later be found not to exist . The required “Ostensible Authority” to offer goods to a end buyer has not been obtained if such goods have been simply passed down a string contract.

8 One who has already been delegated by a Principal cannot transfer the edicts of the principal to another subordinate. This maxim expressly now defines that the majority of intermediaries found on the net today and acting in contrary of this very long establish and principle of mercantile business.

The Intermediary and the Internet
With the explosion that is the telecommunication application of the internet, international trade has attracted a great if the not the greatest numbers of private intermediaries working for undisclosed principals, who lack the knowledge, abilities and skill to trade professionally in such a field of business resulting in the majority of said import /export intermediaries conducting business that will never mount to anything in where many products touted are also often fake. Until very recent times , no effective uniform protocol and guiding set of rules were available for intermediaries to reply upon. An intermediary and entity defined as FTN Exporting has developed a effective doctrine and guiding set of rules that for the first time an intermediary could apply to a legally defined standard in being able to act in the position of a professional International trade intermediary. The FTN (Foreign Trade Negotiator ) doctrine relies of rules already in place that and exporter usually deals with an importer on a two party deal , except FTN has adopted the same rules of trade and made effective adaptation to such in allowing a third person to exist between two other principals . UPPIB defines the first uniform set of effective rules of its kind, first tested in 1998 and over many years refined so that could formally be applied in 2005. The Publication “International trade and the successful intermediary”, is the first unique works as created by FTN exporting which explains the platform that a import /export intermediary is able to trade upon. The said FTN doctrine and supporting rules are unique and that for thousands of years and entity has defines the application which is both technically proficient and viable both in theory and practice - more importantly such a doctrine and supporting rules are legally supported application as well.

Nature of business: The International Trade intermediary: 21st Century

Often a buyer in one country, and a supplier in another enact together in where one buys goods from the supplier, in return for payment of such. The Intermediary specifically is a person who is resourceful in sourcing a supplier and goods being offered by such in a manner so the the supplier is able to make more sales of such goods, thanks to new markets being secured by the Intermediary,especially where a supplier in one country is dealing with a end buyer in another country in where limitation often prevail. Limitation which may include. (a) Knowledge of safe trading procedures and laws (b) Language Barriers ( c) Barriers related to traditional custom and indeed religion (d) Financial constraints and Banking (e) Matters related to Embargoes (f) Matter in being able to secure much hard to get goods , which are much wanted by other.

Today, the International trade intermediary has entered a new realm of business and must become sophisticated in the methods on conducting their business. More importantly , the private international trade intermediary can longer depend upon casual business application to earn gains from effort made. Uniformity of practice must become apparent in any field of endeavour before any such endeavour can become an established part of commercial business applications.

The Intermediary Buyer and Seller
An intermediary cannot simply ply its trade as a person who sources goods in a hope that such is able to make gains on such application, especially one who trade in the import and export of much wanted commodities on a globally applied basis.

Today’s international trade intermediary enacts a method of business in where such buys goods from a supplier and sells them to a End buyer for a higher price, thus earning commission from the deal. In essence the Intermediary cannot simply apply to remain in the position a just buying or just selling such goods, in that the whole nature of business is dependent of the combined act of buying and selling such goods sourced.

The Sourcing intermediary must have the ability to source goods and then act as a buyer and seller of such goods for specific purpose of making gains , and have the ability to collect upon such gains.


The Internet
The Internet has made trading on an international scale more accessible to many. Web sites such as Alibaba, Tradeholding.net and sources have provided trade board platforms to enable suppliers and potential buyers to offer their goods to the global marketplace. As a result, there are now hundreds of thousands of intermediaries operating in the world on any given day. working unbridled and without a guiding protocol of uniformity and practice.

Note the term “Operating”- An ambiguous term in where viability of such operations are at best flawed, unworkable and unsafe for most of the time.

In reality, the Internet is now riddled with false offers and dated quotation requests, the origins of which are barely traceable. Some of them may at an earlier time have had potential, but these offers are passed from intermediary to intermediary until such time as no one can remember the source of the request and the chance of doing business is long gone.

Working in an environment of no support gives no purpose. The purpose of the intermediary is to works in a method not conducive in its ability to earn “Profit”

The whole nature of business is indeed based on the idea that such profit could be earned. The earning of such profits is one application, the ability to collect upon such earning is another. Therefore it is encumbered upon, should the intermediary be able to put a deal together in where they could make such a profit in a manner which such could easily be collected when a successful transaction is closed.