URPIB Rules for Intermediaries and Brokers

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URPIB July 2011 rules for intermediaries and brokers

© FTN EXPORTING
A Division of ‘AGI’
ACADEMY OF GLOBAL INTERMEDIARIES
©FTN Exporting Established 1988

Global Author (ITSI and FYBR) and Leading Buyer, Seller and Agency Expert
Davide Giovanni Papa

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AGI: Education Division: Buyers/Sellers ABN:B2043651G
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 Current Edition of
URPIB January 2011
INCOTERMS 2010 EFFECTIVE

UNIFORM RULES AND PRACTICE FOR INTERMEDIARIES
AND BROKERS

 


Incoterms is a registered Trademark of the ICC Paris, France.
FTN Exporting has no affiliation with the ICC in any form whatsoever.
FTN Exporting has created these private rules of trade.
First 6 rules appeared online pre 2001 as URITI.

URPIB Rules are a set of vigourously tested rules established over a long period of time. Such rules are supported by the Intermediary doctrine of international trade (ITSI) as created by FTN Exporting Australia. These Rules are also supported by many aspects of international trade laws banking laws and delivery rules.

URPIB 2011 : Why use URPIB ?

The Intermediary who requests that FTN Exporting URPIB governance is to apply among a trading group shall provide a copy or web site to said the rules as defined below . Once rules are accepted, the group shall abide by the terms of URPIB. Acceptance of the rules within a trading group gives stability and uniformity to the attempted transaction. This is the case even when other intermediaries have previously been unaware with these methods. Any pay order must also imply that URPIB rules are in force .


A statement to the effect that intermediaries to a transaction have agreed to conduct business in support of said URPIB Rules of Trade in where such rules shall then govern all proceeding involving intermediaries conducting business on a particular transaction. Statement in effect such as;

Commission Payment Guarantee and International Trade Procedures as Defined under Uniform Rules and Practice for Intermediaries and Brokers (URPIB) Latest Edition.

Anyone who agrees to use URPIB within a transaction, must specifically abide with matters of Article 21 and 22 even if they later leave the group to trade independently . Failure to abide by URPIB as reported by other practitioners, shall cause the offending entity and their associates to be “Banned for Life” (BFL) on the www.SMICE.net restricted BFL registry . FTN exporting universal presence will ensure such BFL entity will not get a deal ratified ever.

Any Global Trader, Supplier and Buyer who are trading with URPIB intermediaries may also benefit from using these rules especially in relation to matters surrounding the offer, financial instrument, contract issuance, and commission payments. URPIB offers a globally uniform , superior and safe trading application.

URPIB is a set of rules that are recommended for all commodity export dealers, and specifically designed for private or corporate intermediaries, brokers, agents, entrepreneurs and those intermediaries who are described as intermediate ‘buyers’ and ‘sellers’ world-wide. URPIB is considered to be the first uniform set of guiding rules of its kind, created by FTN Exporting and specifically made for intermediary usage. Practitioners should beware of other dubious trading applications and other claims- or of other implying that they are URPIB traders when they are not.

A URPIB trader is not allowed to claim status of these rules if such are trading or entertaining any transaction where matters such as LOI, BCL, POP, MT SWIFT or SLC payments for goods, ASWP, ICPO, MPA, BOND, or NCNDA are the apparent procedures in the transaction being applied.


All intermediaries using these rules in combination with acceptable international laws and rules of trade enhance their capability and therefore the likelihood of being able to close an international commodity transaction. When intermediaries agree to be governed by URPIB in their documentation, then URPIB shall be deemed to be the applicable rules among the trading group, in where one person is heading the group is following the FTN Exporting doctrine of trade ‘International Trade and the Successful Intermediary’ ( ITSI) or ‘ Follow the Yellow Brick Road ’ (FYBR) Doctrine.


© URPIB Rules of Trade Full Revision 1988-2011. Last Revision: 7th July 2011

Copyright: FTN Exporting Australia 1988-2011

URPIB Article 1:
Definitions and Overall Premise:
An International Trade intermediary shall be defined as a sourcing Intermediary, and/ or Intermediate seller, intermediate agent, intermediate broker or intermediate buyer. An entity working as a independent ‘middle person’ individually or grouped between two other principal entities shall also be known as the ‘Buyer/Seller’. The other principal entities who are not acting in the position of the intermediary are; the actual owner in possession of goods being offered, also referred to as the ‘Supplier’ and the person paying for the goods who is also the person taking possession of the goods being purchased, also referred to as the ‘End Buyer.’

  1. A Procurement intermediary is one who is specifically trading under the name of either the principal supplier or principal end buyer. (Mandate holder of such) One who is- “Acting on behalf of a disclosed principal.” It is said that these type of traders are in the minority and not a preferred position for a independent intermediary to hold nor trade in.
  2. The private intermediary is one prefers to hold position and trade “On behalf of an undisclosed principal.” In where ultimately the said intermediary holding such a position does so as “Seller and Buyer.”
  3. Any intermediary acting in the position of an undisclosed principal is not required to disclose the principal End buy or Supplier at anytime throughout the course of any transaction.
  4. An Intermediary claiming to be acting upon a disclosed principal must disclose such principal upfront at the start of the transaction. Such an intermediary is defined as a Procurement or Sourcing Intermediary or Agent of said disclose principal once such disclosure is made.
  5. A URPIB intermediary may consider acting as a procurement agent of any principal, but ostensibly its said that all URPIB intermediaries do not procure nor act as agent for anyone and are defined to trade holding position as intermediate buyer and or seller at any given time;as being the best , safest position to hold when dealing in the export and import of commodities and the sales of such for commission.
  6. In a scenario where no other ‘sourcing intermediaries’ are involved within a transaction, the parties are as follows:
  7. (a)Supplier (b)Buyer/Seller (c)End Buyer
  8. Where sourcing intermediaries are involved, the group to the transaction to be implied in similar mode:
  9. (a)Supplier
  10. (b)Sourcing intermediaries (one or many)
  11. (c)Seller/ Buyer (middle person in control of the whole deal)
  12. (d)Sourcing Intermediaries (one or many)
  13. (e)End buyers
  14. If a ‘Mandate holder’ has disclosed his principal or produced a written mandate ship issued by his claimed principal, and if such a mandate ship has been authenticated as being genuine, the following group will eventuate. Mandate ship of a disclosed principal paying for and accepting goods purchased or; Mandate ship of a supplier in possession of goods and not another intermediary .
  15. (a)Supplier
  16. (b)Suppliers Mandate holder (or Procurement agent of disclosed Principal )
  17. (c)Sourcing intermediaries (one or many)
  18. (d)Seller/ Buyer(Middle Person in control or the whole deal)
  19. (e)Sourcing Intermediaries (one or many)
  20. (f)End Buyer’s mandate holder (or Procurement agent of disclosed Principal )
  21. (g)End buyers
  22. The ‘middle person’ who leads a trading group of ‘sourcing intermediaries’ and or mandate holders is also referred to as a primary principal.
  23. A ‘seller’ is not the same thing as a ‘supplier’ and an ‘end buyer’ is not the same as a ‘Buyer’.
  24. For the purpose of these rules a primary principal is different from the other principal entities, in that the primary principal shall only be able to proceed in a transaction as a person holding and transferring title or leading delivery documents of the goods without ever taking actual or physical ‘possession’ of the goods.
  25. A ‘sourcing intermediary’ is not a primary principal or a ‘primary intermediary’. Sourcing intermediaries answer directly to the primary intermediary (PI). The primary intermediary in turn answers to his primary principal, the leading ‘middle person’ in a trading group, commonly referred to in international trade as the ‘Buyer/Seller’. A person acting for the head of a group is a “Principal of Agency”
  26. A Seller/Buyer shall also define a single person acting as a ‘Seller and Buyer’ at the same time in the position between a Supplier and end Buyer and as per URPIB, shall also mean to define the activities as they pertain to a ‘Primary Principal of Agency’.
  27. Where the Seller/Buyer is advising his immediate primary intermediary, the primary intermediary is responsible for advising all other intermediaries on that side of transaction, in particular where language and cultural barriers may need to be addressed in an effort to appease the end Buyer of the primary principal’s contracting requirements.
  28. There will only ever be a maximum of three primary principals involved in any one deal. (1) The supplier. (2) The Buyer/Seller. (3) The end Buyer or End user. All others involved in the same deal are defined as ‘Sourcing intermediaries’ in the collective form even where genuine mandate ship is held of a principal.
  29. A ‘String contract’ is where many ‘Sourcing intermediaries’ are acting as a collective ‘middle group’ or with a middle entity located between the principals to the particular side of a transaction.
  30. A Buyer/Seller is a single entity in a trade, in that both entities are selling and buying is activated and conducted by the same entity within a transaction. There cannot be an intermediate ‘Buyer’ and another intermediate ‘Seller’ acting as the single controlling entity in a string contract. A single Buyer or Seller is trading on the premise that they are able to buy goods for reselling and vice versa, which means that when entities claim to be able to do this it infers that they are also a ‘Buyer/Seller’. A middle controlling Buyer/Seller cannot transact on any deal where another Buyer/Seller is involved but may occasionally use the option of an IPG ( Intermediary Payment Guarantee ) in an attempt to cause the other Buyer/Seller or indeed any other intermediaries to ‘Step back’.
  31. The middle controlling Buyer/Seller must be in a position of strength as to knowledge of international trade procedures.
  32. A middle Buyer/Seller will never step back to another Buyer/Seller who makes reference to LOI, RWA, ICPO, NCND, BCL, POP, PB, MPA, ASWP and other variants no matter how infrequently they are referred to nor in which combination.
  33. An intermediary shall not entertain another intermediary who is using the above flawed procedures.
  34. A sourcing intermediary not prepared to take up the mantle of a controlling middle Seller/Buyer without the protection and guidance of a middle controlling trusted Seller/Buyer should not be trading.
  35. A sourcing intermediary is treated with respect by the middle Buyer/Seller who in turn guides the sourcing intermediary as to the way in which a deal should be closed. This is done so that eventually the sourcing intermediary may also learn the correct procedures to further enhance the whole trading group to which they will eventually attach themselves.
  36. Any middle controlling Buyer/Seller who is trading but not using his own trusted intermediaries should not be considered a Buyer/Seller holding a position built upon honourable intent. The exception to this is if a specific reason is given as to why this trader does not allow intermediaries in a transaction.
  37. In the formation of a string contract there is a principal supplier, one or more intermediaries leading to the Buyer/Seller and a principal end buyer with one or more intermediaries leading to the controlling Buyer/Seller. In this formation the Buyer/Seller, holds the ultimate position of strength and is the controlling principal. The Buyer/Seller is well versed in procedures and has chosen intermediaries who are similarly well informed and able to verify the proficiency and good intent of the Buyer/Seller.
  38. All informed URPIB Intermediaries shall trade using trademark rules of delivery as defined by the owners International Chamber of Commerce, (ICC) Paris, France as currently applicable under latest ‘Incoterms’ at any given time in where any new incoming delivery rules becoming apparent, outgoing incoterms delivery rules may still be used as the intermediary slowly dissolves the use of one application to favour the new incoming application.
Amendments, Citations and Clarifications : Article 1
1.01 [Extended upon 20th May 2011:] Citing: WAPI Members :Any person heading a deal amongst all intermediaries involved in such a deal is specifically defined to hold the position of ‘Seller and Buyer’, within such a group and hold position as a (Prima) Principal within the group.
1.8.1[Amendment 1.8/1.8.1: 1st September 2009:] Such trade procedures as per the Intermediary doctrine of trade created by FTN exporting.
1.8.2: [Extended upon 1st December 2010:] Citing: Mr Jamie Little (ACA) and FTN Exporting variable introduced: Sugar Transaction: India 2009- Whether such a doctrine has been studied and applied fully or in part as such with allowable or acceptable variations enacted.
1.9.1: [Amendment 1.9/1.9.1: 1st January 2009:] Citing : Mr Liz Kaegi Cruz /FTN Exporting and PASA Paraguay: Middle Buyer and Seller applying URPIB Rules of reference and who has studied fully FTN exporting Doctrine shall not step back to anyone.
1.9.2: [Citing: 1.9 /1.9.2: June 2010:] FTN Exporting Australia and SOMO Iraq.
1.9.3: [Citing: 1.9 /1.9.3: May 2011:] Rock Goossen (ACA) and Mexican iron ore suppliers.
1.11.1: [Amendment 1.11/1.11.1: March 2010:] A Buyer/Seller is not entitled to or have obligation to guide or assist anyone unless such is reasonably informed of basic procedures as per said doctrine.
1.14.1: [Amendment 1.14/1.14.1: 1st January 2011:] Should Infer : A Buyer / Seller shall attempt to trade on his own or where appropriate with other trusted associated intermediaries who trust the Buyer/Seller implicitly and who are able to endorse the buyer/seller accordingly.
1.16: [Amendment 1.16/1.16.1: 10th June 2010:]
 All informed URPIB Intermediaries shall trade using trademark rules of delivery as defined by the owners , International Chamber of Commerce , (ICC) Paris, France as currently applicable under latest “UCP” banking rules at any given time in where any new incoming Banking rules becoming apparent, outgoing banking rules may still be used as the intermediary slowly dissolves the use of one application to favour the new incoming application. Banking rules as it applies to financial instrument issuance and collection under current collection rules at any given time.

 1.16.1: [Amendment 1.16/1.16.1: 10th June 2010:] Financial instrument specific to at sight collection of documentary letters of credit to exclude of all other forms of payment

URPIB Article 2:
Mandated Entities.
Mandated Entity: A person who holds special permission verifiable by written authority to act on behalf of an end Buyer or supplier, and who has offered proof as on request to anyone transacting in a string contract. An official mandated agent obtains their own commission from their respective principal, and has no part or share in intermediaries’ protected commission. A genuine mandate holder does not ask for payment of goods with a transferable financial instrument and must be prepared to accept only a restricted financial instrument.

  1. A person holding the position in a string contract next to the end Buyer or supplier is not a mandate holder to that end Buyer or supplier simply by virtue of the position he holds in the string contract or intermediary chain, unless he holds written documentation which proves his mandate-ship which in turn confirms his authority in being able to “procure” goods on behalf of such said named principal.
  2. A person who claims to be something that they are not is acting with bad or dishonourable intent and should be avoided at all times. A intermediary is not procuring goods if a said principal they represent is not disclosed. Such an intermediary is said to be holding position as buyer/Seller acting on behalf an undisclosed principal.
  3. Intermediaries must never trade with a person claiming to be a mandate holder who fails to disclose his principal supplier or end buyer by failing to disclose his mandate-ship papers.
  4. A sourcing intermediary must not claim to represent any mandate holder to others within a trading group, unless the sourcing intermediary has personally verified the claimed title of mandate-ship and has obtained a copy of the document to disclose when requested by others.
  5. Formal verification of the mandate-ship must be provided when requested by any intermediary, and in particular when requested by the primary intermediary.
  6. Proof of the mandate-ship must be supplied in writing and bear the name, address and contact telephone number of the end buyer or a supplier. A person claiming to be a mandate holder and who refuses to verify his authority shall be treated as not being a mandate holder.
  7. Under such circumstances the claim of ‘mandate holder’ shall be treated no differently to any other intermediary in string deal. If the bona fides position of a mandate holder is not evidenced then this person shall only be entitled to a share of commission, as that equally divided among all others in the string contract, and forfeits the right to hold or act in the position of primary intermediary.
  8. Making claims of mandate-ship which later prove to be false shall bear consequences in that; all sourcing intermediaries in a string contract may take a vote to cut the false mandate holder out of the transaction, without risk of claim of circumvention by the intermediary in question.
  9. If it becomes apparent, after the identity of the supplier or end buyer has been revealed, that the claimed mandate holder was not genuinely holding the mandate-ship as claimed, then all intermediaries in that group may vote to eject the false mandate from the group/peers and continue with the transaction.
  10. If the group of intermediaries comprises an even number of votes, one intermediary shall opt to refrain from voting to reach a definite decision as to whether or not the false mandate shall be allowed to remain within the chain. This vote is sanctioned under URPIB in that it is the exception to the rule relating to circumvention.
  11. No option exists for a true mandate holder to refrain from disclosing his mandate-ship once he has made this claim of authority.
  12. When determining the validity of a claim of mandate-ship the intermediary shall adopt this position: The mandate holder of an end Buyer or supplier is able to issue and/or accept payments and negotiate the terms of a contract within the perimeters of the agreement with his principal.
  13. Delegatus non Potest Delegare. A mandated intermediary cannot mandate another intermediary, other than to represent agency of the mandate holder. One who has obtained ostensible authority is not allowed to delegate such authority to another intermediary. Any entity once holding a delegate position where such is nominated , delegated or self proclaimed directly or ostensibly cannot delegate nor assign to another intermediary the obligations and consequences that comes with such delegated position.
  14. A Buyer/Seller cannot and will not delegate his position to another intermediary and must remain in his position as a principal in the transaction. Similarly a Buyer/Seller cannot delegate his position to another principal, namely a supplier or end Buyer. Interalia : Paragraph; 2.13.1
  15. Sourcing intermediaries (agents) are not permitted to direct other intermediaries within their group. The only entity entitled to provide directions to the intermediaries is the primary principal or Buyer/Seller(the agency) who shall do so as he deems necessary. Interalia : Paragraph; 2.13.1
  16. As the head of the agency the Buyer/Seller takes the legal burden and associated responsibilities of the transaction and it is therefore imperative that the intermediaries or agents act only within the ambit of their position in the trade as directed by the head of agency representing them.
  17. In order to indemnify himself from legal obligations in a transaction an intermediary representing agency must disclose the principal of his agency (i.e. the Buyer/Seller).
Amendments, Citation and Clarifications :Article 2:
2.8.1: [Amendment 2.8/2.8.1: 1st January 2011:] Vote as taken by registered peers involved in the string contract at the time upon discovery of false claim made.
2.13: [Amendment 2.13/2.13.1: 1st January 2010:] Unless full control is surrendered unconditionally to another primary intermediary heading the transaction. Once surrendered the new entity is holding portion as buyer seller in where the entity surrendering such a position becomes primary intermediary by default of this action to the new entity agreeing to accept such a position fully.


URPIB Article 3:
OSTENSIBLE AUTHORITY
  1. A ‘Buyer/Seller’ or ‘primary principal’ needs only to declare his status on formal stationery/ letterhead to show the intent of the trader’s position. A ‘Buyer/Seller’ is also an intermediary but with many more obligations and requirements placed upon him than his attached sourcing intermediaries. Intermediaries are allowed to trade on behalf of a ‘Disclosed Principal’ or on behalf of an ‘Undisclosed Principal.’
  2. When an intermediary acts on behalf of a ‘disclosed principal’, then the intermediary acting as Buyer/Seller must disclose his full name, address and contact information of the ‘disclosed principal’ on his letterhead under his own title. The ‘disclosed principal’ cannot be another sourcing intermediary or agency principal (i.e. the Buyer/Seller).
  3. The Buyer/Seller is allowed to act on behalf of a disclosed principal or undisclosed principal, assuming the Buyer/Seller is in direct contact with the end Buyer or Supplier and not another intermediary.
  4. Any intermediary not taking up the position of the Buyer/Seller is defined a being a sourcing intermediary, who may or may not disclose their principal to others unless a ‘guarantee’ has been issued by the Buyer/Seller looking after and protecting the intermediaries’ interests, unless other arrangements have been made.
  5. The Buyer/Seller may disclose or not disclose his end buyer or supplier in any transaction, and this implies that a ‘sourcing intermediary’ may also disclose or not disclose his Buyer/Seller to one side of the specific transaction. In every case the Buyer/Seller must not disclose the principal on one side of the deal to the other. This prevents circumvention of the group being protected by the middle controlling Buyer/Seller.
  6. A Buyer/Seller shall not act on any information obtained from any sourcing intermediary in a current transaction for a period of two (2) years once the transaction has failed to close. The exception to this is if the Buyer/Seller first advises the sourcing intermediary who originally provided the information that the Buyer/Seller intends to use the information in either a new transaction or the same transaction that is revived at a later stage.
  7. A sourcing intermediary is said to be acting on behalf of an undisclosed or disclosed ‘Principal of Agency’ (as regards an intermediate Buyer/Seller or ‘Buyer’ or ‘Seller’ as appropriate) and not on behalf of a disclosed or undisclosed principal as it pertains to an end Buyer or Supplier.
  8. In defining his position a sourcing intermediary may use ‘acting on behalf of an undisclosed or disclosed principal’. However, a sourcing intermediary not disclosing his ‘principal’ is said to be trading in a very weak, if not unworkable, position.
  9. An intermediary or a primary principal must disclose the identity of the end Buyer or supplier of the actual goods being offered when acting on behalf of a disclosed principal, and is not required to do so when acting on behalf of an undisclosed principal.
  10. Intermediaries, unless otherwise inferred shall not trade as ‘acting on behalf of a disclosed principal’ if it means disclosing the identity of an end Buyer or supplier, but many do so at their own discretion usually by disclosing the agency who is acting in the position of the Seller and Buyer.
  11. Sourcing intermediaries not attached to a Buyer/Seller and who do not have in their control an end buyer or supplier must not claim to be acting on behalf of an undisclosed principal with information obtained from only another sourcing intermediary.
  12. Any intermediary may act on behalf on an undisclosed principal as opposed to ‘principal agency; so long as the direct end buyer or supplier is in their control, and as long as they do so as a ‘Buyer/Seller’.
  13. A sourcing intermediary who has sourced an end Buyer or supplier but is not prepared to take up the position of a ‘Buyer/Seller’ must disclose to his aligned trusted ‘principal of agency ’ the information as it pertains to other ‘principals’.
  14. An intermediary must never share or surrender his trading information to others, unless he or she implicitly trusts the principal to whom he has attached himself. Notwithstanding this, once an IPG has been provided the Buyer/Seller has the right to verify the information disclosed, unless other arrangements have been agreed.
  15. The Buyer/Seller is obligated to keep the leading/primary intermediary (PI) in his group well informed of the progress of a deal. The intermediary thus being advised is further obligated to keep informed all other intermediaries who have assisted in the transaction.
  16. If an intermediary has provided information to a deal which closes only after a prolonged period of inactivity, the Buyer/Seller will at his own discretion pay him a fair commission at a reduced rate.
  17. The Buyer/Seller must make every effort to contact the intermediary who gave him the original contact information that is intended to be used, and when exhaustive failed attempts have been made to contact that intermediary, the Buyer/Seller may use the information for business purposes without later being accused of circumvention.
  18. Should this intermediary make himself known to the Buyer/Seller within three working days to the minute after the completion of the transaction, where the said intermediary provided the initial vital information which has progressed a deal to its state of completion. Where no valid IPG is in force, the Buyer/Seller is required to honour the payment of commission to the intermediary, but only at a reduced rate not exceeding 20% of the normal rate, as offered under the discretion of the Buyer/ Seller.
  19. A sourcing intermediary is under a duty to inform a Buyer/Seller, with whom he has a long association, about changes to contact numbers or address in writing. Failure to do so may lead to future commission owed to him not being paid.
  20. All sourcing intermediaries involved in a string contract with the Buyer/Seller must have agreed to ‘step back’ among themselves before requesting an IPG.
  21. An intermediary trading under the protection of a Buyer and/or Seller is trading under the protection of a ‘primary principal’ to which honourable intent shall apply at all times.
Amendments, Citation and Clarifications :Article 3:
 3.3: [Amendment 3.3 / 3.3.1: 1st February 2010:] Citing Jamie Little/ FTN Exporting and Indian Governmental Sugar Buyers: “Guarantee” by payment of a deposit as a buyers performance guarantee and or for early disclosure of evidence of supply. Type of “Guarantee” in where collection of such may be applied unconditionally for buyers breach of performance .In where performance cause unconditional payment to become registered as a deposit for goods purchased.
3.4: [Amendment 3.4/3.4.1: 1st January 2010:] Such information even after 2 years may not be used unless person providing such information is involved in any new deal or has commission automatically reserved accordingly upon using past information which leads to the closing of a transaction.
Attached to 3.4.1: 28th January 2010: E-mail is sent to prove good intent,to last e-mail address on file, stating and affirming the use of such information even though no reply was forthcoming.
3.14 :[Amendment 3.14/3.14.1: 1st January 2011:] Prolonged period of inactively shall now mean three months or less from when the offer is made to the closing of a deal in this period of time in where the buyer/seller is left to maintain the integrity of the deal a started by others on his own. Reduced rate not exceeding less than 20% percent of first promised rate.
3.16.1 : [Amendment 3.16/3.16.1: 1st January 2011:] 20 percent now applies not 50 percent as previously stated.


URPIB Article 4.
Right to Sell
  1. The ‘principal’ will observe and be governed by the laws of their domiciled country/or the country from which they are trading – whichever is applicable. Ignorance of the domestic law is no defence and sourcing intermediaries cannot be held responsible for their actions in relation to this matter as long as they were acting under instruction from their principal at the applicable time.
  2. An intermediary who trades under the premise of ‘acting’ on behalf of an ‘undisclosed principal’ (and where the truth and facts about a particular transaction have been hidden from a ‘principal’) shall bear full consequences of his own doing, and cannot rely as a defence against legal action, that they are ‘ignorant of the law’ as it pertains to agency or the position from which he was attempting to trade.
  3. The Seller/Buyer shall not intervene in or take over a transaction he was not involved in from the beginning.
  4. If an intermediary has acted in accordance with the instructions of his principal prior to entering a legally binding situation. The intermediary may also act on behalf of an ‘undisclosed principal’ if allowed to do so under instruction of their ‘Principal’ then such in effect does so without risk of legal consequences.
  5. When ‘ostensible authority’ has been obtained, the Buyer/Seller is not required to disclose the supplier or end Buyer’s details on his letterhead. ‘Ostensible authority’ means, inter alia, the Buyer/ Seller has sourced a direct product or end Buyer, whether this has been with or without the assistance of others. At this stage it does not matter whether others have assisted him or not, as that becomes a factor only in relation to commission payments. This is the only status that the intermediate Buyer/Seller must achieve in order to offer and resell the secured goods before offering them to potential buyers.
  6. Ostensible authority is an offer for goods being sold by an intermediary who has secured them directly obtained from a supplier who is in possession of those goods. Ostensible authority may come in the form of (a) an offer, (b) an e-mail or (c) with the issue of an ‘OTS’ form (Offer to Sell) that has been returned by a supplier in possession of goods to an intermediary. Ostensible authority may not be obtained verbally and must always be obtained in writing, as with every other aspect of the intermediary’s business.
  7. Before attempting to close a deal and enforce stepping back procedures, it is imperative that the Buyer/Seller has in his possession at least a written quotation as directly issued from a supplier. It is in fact fraudulent to seek potential buyers by making an offer to sell goods that have not been secured. The issuance of an IPG is allowed to occur prior to securing goods, but only where the IPG is used to protect the interests of intermediaries in a transaction yet to occur (i.e. in order to gain the trust of a sourcing intermediary who, once in possession of an IPG, then goes on to secure a supplier.)
  8. The right to resell occurs at the point when the Buyer/Seller has a quotation from a supplier. Securing the funds for the purchase is now considered the most important aspect of the transaction.
Amendments, Citation and Clarifications :Article 4:
 4.0.2 : [Amendment 4.0.2/4.0.2. 1st January 2011:] A Buyer/Seller not heading the deal cannot be expected to and is not obliged to accept to trade on a deal as started by others. As started by said others who failed to provide a pre-advised OTS (Offer to Sell) or RFQ (Request for a Quote ) form or similar information usually found on such forms. The act of surrendering an OTS or RFQ to a person who is prepared to except such, defines that the said person is holding position as an informed buyer/seller and that such a person is automatically controlling the transaction as head of the string contract from the start.
4.0.3[Amendment 4.0.3/4.0.3: 20th May 2011:]
 A buyer seller rescinding an offer to take over a transaction of another principal or entity may accept once only, a plea for reconsideration in where new advice not perviously stated is informed. Reconsideration once only on any new advice in where a second refusal applied in writing defines a permanent and final decision .
4.4 : [Amendment 4.4/4.4.1: 1st January 2011:] In where the Principal in continuing association with trusted others attached, may give assurance of intent to secure commission in where no IPG shall be forthcoming until financial instrument to pay for the goods has been advised and accepted. In where any name applied on an offer made by a principal carrying the name of their representative on such, for forwarding to another principal, indicates assurance has been given in that the principal issuing the offer is protecting commission for said named intermediary.


URPIB Article 5:
Stepping Back
  1. ‘Stepping back’ procedures occur at the point at which the end Buyer, Buyer/Seller and the supplier at any given time will need to deal directly with each other. Both sides are independent of each other: one side of the deal does not become involved with the other side of the deal, as both sides of the deal start and end with the middle controlling Buyer/Seller.
  2. The Buyer/Seller controlling the transaction is obligated to protect, secure and pay all intermediaries involved in any particular transaction on both sides, once the business has been successfully concluded.
  3. If a Buyer/Seller is claiming to hold the middle controlling position, he shall ‘offer’ his services to protect the commission of intermediaries involved on both sides of the transaction.

URPIB Article 6.
Chain of Command
  1. The Buyer/Seller is the controlling entity of the whole intermediary group. The Primary Intermediary (PI), the immediate associate next to the Buyer/Seller is second in command. The (PI) adjacent to the end Buyer is next in line, and then finally there are the sourcing intermediaries who do not have any defined role in the actual closure of the trade.
  2. A Buyer/Seller is a primary principal with special skills and capabilities that enable him to be able to close a complex import export transaction.
  3. All other intermediaries assisting the Buyer/Seller are ‘sourcing intermediaries’ (SI). A sourcing intermediary may not circumvent the nominated primary intermediary (PI) to attempt to transact directly with the Buyer/Seller unless the primary intermediary provides permission of the same.
  4. If no honourable trusted informed URPIB Buyer/Seller is evident in the string contract, then all the other intermediaries cannot and should not expect to close a deal and earn the commissions implied therein. Any attempts to do so means that there is a strong threat of circumvention should such a transaction occur without the use of the said Buyer/Seller.
  5. The first major step in the formation of an intermediary string contract is when the Buyer/Seller communicates with his immediate PI on either side of the deal. The PI informs all sourcing intermediaries (SI) as to the procedure required for ‘stepping back’. The PI secures details of all the commissions that are to be paid and then the intermediaries ‘step back’ to expose the primary intermediary next to the end principal.
  6. The remaining disclosed PI discusses the parameters of the transaction. The PI next to the Buyer/Seller has power over the PI next to the end principals, as it’s the Buyer/Seller who is morally, if not legally, obliged to secure the funds as well as the commission for all those he is protecting. Should the PI ultimately block the disclosure of the end principal and not step back to disclose his principal to the Seller/Buyer, no transaction will be possible.
  7. The PI next to the Buyer/Seller clears the path so that the Buyer/Seller is able to confer directly with the end principal(s) to close the deal. The Buyer/Seller ‘passes’ information to and from the end principal(s) via the intermediaries until contracting time. The Buyer/Seller is conducting business in a transparent manner so as to keep all involved on one side of a deal fully informed on the progress of the deal.
  8. The Buyer/Seller must obtain the clear path with assistance of a PI from both sides of the deal, if necessary. If this is not possible the Buyer/Seller shall refrain from continuing with the trade in question.
  9. The Buyer/Seller must obtain the controlling position with honest and honourable intent and without deceit or misleading statements, or no deal is said to be possible.
  10. A person holding a position as a sourcing intermediary in a string contract is unable to earn commission without the presence of a trusted and informed URPIB Buyer/Seller in the deal. If faced with this scenario the nominated middle Buyer/Seller is secured can only attempt to use the virtues of the IPG to get all parties on both sides to expose their principals. This must only be attempted if there is cogent evidence that the end principals exist.
  11. All intermediaries, in particular sourcing intermediaries, learning the business and who are not confident enough to take the position of Buyer/Seller must either seek to attach themselves to, or secure the services of, another intermediary who is a trusted and highly competent person able to transact in the position as a URPIB informed ‘Buyer/Seller’.
  12. A Buyer/Seller who receives information via sourcing intermediaries is then obligated to protect all intermediaries’ interests in the transaction being attempted at all times regardless of whether an IPG is in force or not.

Amendments, Citation and Clarifications :Article 6:
 6.4 : [Amendment 6.14 /6.14.1: 1st January 2011:] Unless Paragraph 4.4.1 prevails.

URPIB Article 7.
Commission Payments
  1. The Buyer/Seller buys goods from a supplier at one lower price then resells the same goods to the end Buyer at a higher price. The difference between the two amounts is defined as a gain to the buyer/seller and ‘commission’ to all other intermediaries involved in the deal being protected by the Buyer/seller.
  2. Although an element of transparency is preferable the Buyer/Seller is not under any obligation to disclose either his share or any other intermediary’s share of the commission.
  3. The Buyer/ Seller protecting the whole group is the only person allowed to issue pay orders to pay commissions.
  4. No master pay order is permitted in any form.
  5. As provided by the rules under UCP, ‘pay order’ shall also mean ‘Corporate issued UCP letter of credit’. ‘Corporate’ shall also mean ‘privately issued’. The pay order shall be described as ‘pre-advised’ and/ or ‘draft’ when being advised electronically or digitally.
  6. The credit shall be sent as a hardcopy via courier without the term ‘Draft’ or ‘Pre advised’ but stamped as ‘Original’. This pay order may be issued by electronic means if the country of the beneficiary’s bank so allows.
  7. The draft pay order is issued to each intermediary seeking commission protection by the Buyer/Seller, in effect providing good intent of the Buyer/Seller in that the issuance of the draft pay order carries with it the personal guarantee of the Buyer/Seller declaring that payment will be made sometime in the future of issuance upon the transaction in hand supported by the pay order is finalised. The pre advice applied to the pay order becomes immediately apparent by the issuance of the IPG, before the commencement of formal trading.
  8. The primary intermediary must collect the relevant personal details of each person seeking commission from a Buyer/Seller. No Post Office box addresses are allowed. Current banking information must be supplied for inclusion on each individual pay order. All draft and subsequent pay orders must be individually issued, naming a single beneficiary.
  9. Pay orders, once issued, cannot be reissued because of a mistake. All intermediaries are to ensure that all information is accurate from the start.
  10. It is unlawful to claim other forms of commission in the same transaction from any source. If any such fraudulent activities are discovered the Seller will advise his bank not to honour the commission pay order due to this person.

Amendments, Citation and Clarifications :Article 7:
 7.1.1: [Amendment 7.1.1/7.1.2: 1st January 2011:]
 The Buyer/Seller cannot collect these commissions, until such time as the goods have been delivered. Accordingly the Buyer/Seller is only obligated in the first instance to protect intermediaries’ interests in securing and collecting commissions on their behalf. When the deal is successfully and officially closed, payment of the promised commission to each beneficiary being protected by the Buyer/Seller is conducted in a safe manner. Before the formal transaction begins Buyer/Seller protecting both sides of the deal provides reassurance to intermediaries with the issuance of an IPG. Unless Paragraph 4.4.1 prevails.

7.4.1: [Amendment 7.4/7.4.1: 1st January 2011:] To which one IPG issued to each individual being protected independently of each other is the only acceptable protocol

URPIB Article 8.
Commission Pay Order Instrument and Rates.
  1. In accordance with UCP, the Buyer/Seller shall provide the commission pay orders to each beneficiary as UCP 600 (Pre advised) corporate, irrevocable non transferable (standby letter) documentary letter of credit, with a declaration which states: ‘This corporate credit is issued in accordance with UCP 600 2007.’
  2. Where there are to be monthly commission payments, the credit shall be advised as ‘non cumulative revolving’ whether issued as a standby credit supporting UCP or ISP98, or as pre-advised or not.
  3. The bank of the beneficiary shall adhere to the rules of issuance as defined under UCP, as well as the appropriate collection rules. The Buyer/Seller shall only be responsible for issuing a Pay Order in accordance with these rules. Before attempting to issue the pay order, the Buyer/Seller must be fully satisfied that a deal is feasible and will close, and that the end principals are genuine. The final commission amount as dictated on the SLC shall prevail as the gross commission rate. The Buyer/Seller issues the SLC when it has become apparent that a transaction is about to close.
  4. The commission SLC pay order supported by a documentary credit can be collected upon from only the bank account of the Buyer/Seller used to deposit the financial instrument that paid for the goods.
  5. The beneficiary must not under any circumstances attempt to collect upon the credit in any other manner other than by complying with the conditions on the credit. Doing so will constitute a false attempt at collection, which will result in the credit being cancelled. The beneficiary to the credit will lose the commission payment and will have no right to recourse or legal remedy because of his fraudulent intent.
  6. The commission payment credit is issued as operational once issued. The credit is issued as non-transferable and only to the named beneficiary on the issued IPG.
  7. Once the financial instrument is deposited for collection all fees, including transfer fees (if applicable), all bank charges and all VAT, GST or statutory taxes are deducted from the account of the beneficiary. Whether these fees are paid from his own pocket or when the commission clears is a matter for the beneficiary and his bankers.
  8. The above practice allows for a Buyer/Seller to issue a privately endorsed pay order. This offers protection of commission payments should the transaction in question complete successfully. No bank endorsed pay orders are allowed to be issued under any circumstances.
  9. CIF, CFR, FAS or FOB Incoterms and variable of such: Commission rates and disbursements shall be set at rate of up to 5.0 % of the goods value and not more, at the discretion of the Buyer/Seller for all non container type goods shipped in bulk , in where Insurance value provided by the supplier carries goods value rate 115% in where the end buyer is offered 110% minimum insurance coverage. The Buyer/Seller shall apply to identify that the 5% differential remaining shall be defined as the maximum commission rate including all associated expenses. In all cases CFR delivery is the preferred delivery application over CIF.
  10. 2.50% of the contract value shall be the median commission rate. The exception to the bulk shipment commission rule stated means that up to the maximum of 2.50% shall be added for crude oil/fuel trades and 1.25% is said to be the ideal median rate at FOB for such fuels/oils.
  11. All rates must be added in relation to the value of the goods only and not the value of the goods and freight combined.
  12. If an offer carries ambiguous or conflicting details of expenses the Buyer/Seller may add up to a further 1.0 % more to the above commission rate to cover any related expenses, whether foreseeable or not. If these expenses eventuate such shall be drawn from the total commission rate.
  13. If there are no such extra expenses the funds shall be shared appropriately between the Buyer/Seller and those whose commission is protected by him.
  14. Any offer a Buyer/Seller receives directly from a supplier that does not clearly indicate the price of the goods, in relation to Incoterms delivery, is said to be an ambiguous offer. After all expenses have been accounted for, the remaining commission is the final commission rate to be made payable. The Buyer/Seller keeps his rate as a gross rate. The portion offered to those being protected by the Buyer/Seller is said to be a net rate. After all expenses associated with the closing of the transaction have been met, and after all commission has been paid out, the remaining sum is said to be the Buyer/Seller’s net commission.
  15. The ideal way to trade in the first instance is not to offer a performance guarantee to the end Buyer, but a Late Delivery Discount applied on invoice.(©LDD) If however the end Buyer insists on a PG, the Buyer/Seller shall not offer a PG, which exceeds a rate of 1.50% of the contract price of the goods. In this case the Buyer/Seller shall secure a PG of 1.75% or more from the supplier to ensure that there is a gap of at least 0.25% between the two values.
  16. In every case, the Buyer/Seller shall obtain the price of the goods first, and apply the final performance guarantee that the supplier is willing to offer to calculate the correct lower value rate of the PG to offer to the end Buyer. If the supplier is not offering a PG in the first instance when securing a quote, the Buyer/Seller shall not offer it to the end Buyer. If the end Buyer accepts an offer that does not require a PG in favour of a lower price, the Buyer/Seller shall still secure a PG from the supplier for his own benefit, if possible, without transferring it to the end Buyer.
  17. Where no P.G is offered but an LDD (Late delivery Discount) is included in the contract as an alternative, a higher rate of commission shall apply to the deal to also incorporate some or all of the LDD value. The average rate for an LDD is 1.50% but shall never exceed 2.50% of the whole transaction per unit value. Where the LDD is collected due to late delivery, the net commission rate shall be adjusted to allow for the discount favouring the end Buyer(as applied on the sellers invoice.) The ‘PI’ has the right to see the Seller’s invoice copy as stamped by the Buyer/Seller’s advising bank. This will prove that the LDD has been discounted against the price of the goods.
  18. The Buyer/Seller who does all the work to close the contract with both the end Buyer and supplier, and who also accepts all responsibilities in relation to the transaction while also protecting the commission of all those assisting the Buyer/Seller is at his or her discretion permitted to keep up to 60% gross of the commissions. The remaining 40% shall be distributed between the sourcing intermediaries: 20% net on the Seller’s side and 20% net on the Buyer’s side.
  19. Where the Buyer/Seller has secured goods from a supplier the PI next to the Buyer/Seller shall have his commission paid by the Buyer/ Seller from his 60% secured commission gross rate (as agreed between Buyer/Seller and his primary intermediaries.) In all cases, the Buyer/Seller receives the largest share of commission. The PI receives the next highest rate. Sourcing intermediaries who are not providing any added services receive the lowest rate. In every case the Buyer/Seller determines the commission rate and has discretion to distribute the rates as he deems fit; more than specified but not less than specified so that the rates reflect a true and fair rate to each beneficiary in accordance with these rules.
  20. If for whatever reason the string contract reduces in number the left over funds shall be distributed in the same way. The Buyer/Seller receives more than the PI, who receives more than the sourcing intermediary. In all cases the intermediaries simply passing information then stepping back without giving any further assistance to the PI shall earn the lowest rate.
  21. The Buyer/Seller at his discretion declares and discloses a formal commission rate he is prepared to protect, secure and pay out upon as a gross amount to the intermediaries he is protecting. This is the case even though this rate may not be the apparent gross rate that the Buyer/Seller is attempting initially to secure.
  22. The remaining portion (undeclared rate) is set aside for unforeseen expenses that may arise during the transaction. After the deal is closed any extra funds left over may be verified and disclosed on the Buyer/Seller’s invoice copy in order to maintain transparency and honourable intent. These extra funds that may become available from the undeclared portion, will also be paid out in the same way as the rest of the commission, i.e. the biggest portion shall be retained by the Buyer/Seller, once the deal has formally closed.
  23. Only the declared gross value apparent in the first instance and the allotted portion shall be provided on the initial IPG, and on the subsequent commission pay order instrument. This total declared lump sum becomes in practice the official gross available amount. After each allocated amount is allotted to each protected intermediary from the gross amount, the remaining amount becomes the final net amount allowed retained for the benefit of the Buyer/Seller, even though the amount may at the end of the deal be lower in rate than his entitlement declared under the URPIB disbursement scale. The Buyer/Seller is required to ensure the promised allotted net amount becomes payable to those he is protecting first. The Buyer/Seller collects his own commission last. After the minimum promised net amount has been settled, there may be extra payments left over from the previously undeclared amount. These shall be settled in an informal manner via direct bank depositing methods. The Buyer/Seller, when making payment upon the undeclared amount, if any, must reflect that no more than 20% of the total declared gross amount was being held as an undeclared amount.
  24. If the Buyer/Seller declares a total commission pay out amount to the protected intermediaries of USD$10.00, then the undeclared amount of USD$2.00 or less should be the extra amount (which implies that the Buyer/Seller initially secured USD$12.00 as a gross amount.) The Buyer/Seller is only required to disclose the declared gross amount in the first instance. Any extra payments are announced within 72 hours of the closure of the deal. All extra payments are verified on the offered copy of the Buyer/Seller’s invoice as was applied on the appropriate transaction.
  25. If a Buyer/Seller secures supply but does not want to control the deal, then he may surrender his position to another informed Buyer/Seller. In this situation the first Buyer/Seller becomes a PI and the commission rates are adjusted accordingly.
  26. In accordance with the ‘Humano*’ humanitarian edict, any Buyer/Seller is allowed to keep up to 5% of total gross commissions before calculating the commission rate for the protected intermediaries, for the following purpose:
  27. Once raised, all intermediaries involved in the deal at hand must give their consent to the Humano contribution. A deduction on the final commission pay out, not exceeding 5% of the total value of the commission secured, is reserved for humanitarian or charitable payments. The Buyer/Seller contributes 2.5% of his personal gains and the remaining 2.5% is made up from the other intermediaries’ contributions on both side of the fence. Those who agree to the contribution will have a deduction from their commission. Those who do not wish to contribute may refrain from doing so.
  28. Once the Buyer/Seller’s contribution has been declared then all others, at their own discretion, may choose to contribute a share, however small, to charity by way of an authorised deduction before the final commission pay order is issued. If the Buyer/Seller does not declare his payment then no Humano contribution will eventuate for that particular transaction.
  29. Within three days of the transaction being closed and commission values declared intermediaries agreeing to contribute to the Humano initiative must nominate two charities to benefit from the ‘Humano payment’ and to define the purpose for which the payment is be made. The Buyer/Seller collects this information and, if there is a clear majority, the Buyer/Seller ensures that the charity is paid and all intermediaries involved are named as benefactors including the supplier and end Buyer of the goods.
  30. This ‘*Humano edict’ only applies to a transaction in which each Intermediary has earned more than USD $1001 dollars net in commissions.
  31. The charity in question will be a globally recognisable charity, which is supported by a well-informed Internet site carrying contact information.
  32. If there is no clear majority the Buyer/Seller shall select an appropriate charity from the list provided by the intermediaries. The country supplying the goods is given first priority unless it is a first world country, in which case a third world country has priority.
  33. The receiving organisation must be transparent to the whole group and receipts provided, copies of which must be issued to the contributing parties for verification and taxation records.

 Amendments, Citation and Clarifications :Article 8:
 [Amendment 8.0/8.0: 20th May 2011:] Addition: In accordance with latest “UCP rules”, or “latest incoterms ”, shall be defined throughout theses rules where a particular publication number or edition is implied.
8.0.1: [Amendment 8.0./8.0.1: 1st January 2011:] Where there are to be monthly commission payments, the credit shall be advised as ‘non cumulative revolving’ whether issued as a standby credit supporting UCP or ISP98, or as pre-advised or not only after the buyer /seller has obtained a supporting revolving credit for the goods being purchased . In where a non revolving credit is advised to a monthly contract of supply, the buyer /seller shall only advise a commission payment instrument per each month as each deal closes.
8.0.2: [Amendment 8.0.2/8.0.2: 1st January 2011:] A buyer/seller with good intent issues a IPG which later is unable to be paid upon because of the failure of the end buyer to perform, shall not be held liable for such payments is an unconditional understudying of issuance. The Said status of the IPG is only effective to transactions which close and in where the buyer/seller has made a gains.
8.4.1: [Amendment 8.4 /8.4.1: 1st January 2011:] Or to person with expressed authority to act on behalf the beneficiary.
8.4: [Amendment;20th May 2011:] If an “LDD” is offered such shall be allowed to be added to the gross commission rate not exceeding 2.50% of goods value in where the same “LDD”, rate
 added is the same rate offered to the end buyer .
[Amendment; 20th May 2011:] Commission gross rate applied on the value of goods is one reference . Net commission payable at the end of each delivery is another issue. One is not related to the other.
[Amendment; 20th May 2011:] All gross commission are expressed so that all matter of “LDD” is incorporated in actual gross commission rate, in where a supplier is not providing a separate performance guarantee. In where P.G is offered and in where a small LDD is also offered- in which case only the LDD is incorporated in the gross commission amount added to the value of the goods being sold.
[Amendment ; 1st January 2011:] In all container deals the minimum per Metric Ton (MT) gross commission rate allowed to be applied for at the informed discretion of the Buyer/Seller is USD$20 dollars per MT as the minimum rate up to USD$100 dollars per MT in where the price of goods offered fall within a region to imply a reasonable world price offer or better has been advised within plus or 10 percent of such world price offer average as defined on any respectable benchmark online indices is apparent. Is apparent as a minimum application when prices become contested on such basis.
[Amendment; 20th May 2011:] If there is a genuine PI next to the end buyer, the buyer seller pays such a PI the same rate as provided to the PI next to the buyer /seller.
[Amendment ; 20th May 2011:] Addition: Those who enact on a deal where the principal insists on payment of Humano contribution by all then all involved in such a transaction must contribute to the Humano edict without question.


URPIB Article 9. Acceptable Products
  1. An intermediary shall not trade in or attempt to trade with, the following products or entities:
  2. PBG otherwise known as financial instruments; ‘Prime Bank Guarantees’. This includes Cash and Bank Warrants, Pension Funds, Medium Term Notes (MTN) and the like.
  3. Any form of gold bullion (or other precious metals) held in electronic depository form. Physical trading in gold in any form is allowed where no certificate is apparent on such gold – this is also defined as ‘deep storage gold’, alluvial gold or dust. DSG must be refined at Buyer’s cost to obtain formal certification. In general only very experienced traders should attempt these trades.
  4. Any form of diamonds or precious stones held in electronic depository form is not permitted. Physical trading in any precious stones is allowed, with the exception of ‘conflict diamonds’; diamonds obtained by the exploitation of children or which provide appalling pay and condition for its workers. In general only very experienced traders should attempt such a trade.
  5. Any weapons or material, whether raw or processed, used to make weapons or devices of mass destruction. Legally acquired military equipment and such associated material allowed. In general only very experienced traders should attempt such a trade.
  6. Any biological material that could be misused to the detriment of humans. (Medical equipment and medicines allowed.)
  7. Any government, race or country that has a definite ill will against the United States of America or allied countries considered to be allies or amicable with the USA. Intermediaries may trade with countries which have demonstrated past ill will towards the USA but which now are making efforts to unite or reunite diplomatically with the USA.
  8. A felon or person who has been incarcerated in a prison for any serious reason involving more that 12 weeks imprisonment, or a person who has been charged with matters of arson, fraud or deception, but who has or has not yet been imprisoned or otherwise sentenced for such an offence.
  9. The intermediary should not trade nor be in possession of any trade secrets, copyright material or matters considered secretive by nature and state.
  10. Intermediaries shall not practice any business that suggests money laundering or any associated criminal activity such as the trafficking of people or prohibited substances.
  11. Any transaction in which the parties are not transacting in the same language.
  12. Any primary crude oil transaction (or fuels in general). Secondary crude oil transactions are allowed. A primary contract is defined to be one where a precondition of sale requires the disclosure of a refinery processing agreement or similar.
  13. An undischarged bankrupt may only trade in the position of a sourcing intermediary and may not trade in the position of a primary principal.
  14. A person of diminished mental capacity, or a person who cannot comprehend the language of a deal they are entering into.
  15. The following commodities and quantities are best avoided: Non-ferrous scrap metal, Beef products, Quarantine products, Fumigated products, Lose clothing. Single or Multi FCL loads.
  16. Any other commodity traders who ask for T/T , SWIFT type of payments or PBG payments or an active or inactive SLC up front are to be avoided. Likewise trading in such instruments are not allowed-
  17. Any producer, supplier entity in any country in where such has been noted for human rights violations.
  18. An intermediary shall not be involved with any exporter or importer of live animals in where cruel handling or processing methods are apparent.
  19. An intermediary must at all times ensure that the product they are dealing with is indeed merchantable, appropriate and readily sourced from reputable suppliers. Further the intermediary must have made reasonable effort to ascertain by whatever means that the product they are dealing with is safe, legal and genuine, and is generally acceptable as a tradable product world-wide.

17. [Amendment : 20th May 2011:] Addition: or where UN sanction are in force.


URPIB Article 10.
Honourable Intent
An intermediary shall not transact in bad faith or in a dishonourable manner. Any intermediary who circumvents others or produces offers without ‘ostensible authority’ shall be deemed to be a ‘dishonourable trader’, and shall not be allowed to trade within a string contract. Once the infringing party or person has been clearly identified as having transacted in a manner that is defined at being in bad faith, this person shall be blacklisted on the URPIB registry for life. ‘Dishonourable acts’ are defined as, among other things, wilfully deceiving an end Buyer, supplier or any other intermediary in the course of a transaction, with the intention of causing or furthering the successful closure such a transaction. No intermediary can falsely represent that they have a ‘principal’ in relation to a transaction (the specific purpose of obtaining information being to source a principal, after previously declaring that they had already secured that principal.)

URPIB Article 11.
Intermediary and Goods
An intermediary officially trading under the doctrine of UCP Banking rules, INCOTERMS delivery rules, and English common law of contract formation. Then URPIB intermediary shall at all times trade in ‘documents’ and not the physical goods pertaining to such documents. Only statutory or federal laws in the exporter’s country are capable of overriding these rules and laws. In all cases the private global intermediary must, at least, abide by the ICC Paris France latest use of Incoterms and UCP Banking Rules and in a manner as provided by these rules and this publication.

URPIB Article 12.
Policy Proof of Interest (PPI)
An intermediary officially trading according to current UCP, INCOTERMS, and URPIB Rules shall at all times trade in ‘documents’ and not the physical goods relating to the documents. No ‘proof of product’ (POP) documentation or often implied ‘POP.’ will be supplied before the applicable financial instrument to the transaction has been lodged into the account of the intermediary representing the ‘middle person’ in a particular transaction. An intermediary shall not trade on a transaction where POP is insisted upon before the lodgement of the active financial instrument. Where a pre advised credit is issued an intermediary shall offer to provide a ‘Policy Proof of Interest’ certificate. This is based on the assumption that PPI is issued from the intermediary making the offer, who is in turn offering goods from a supplier in possession of goods and/or verified identifiable authorised agent or exporter of such. PPI information should already be in the possession of the intermediary when making an offer.

URPIB Article 13:
Performance Guarantee
Other than that which has been already advised regarding the performance guarantee: under no circumstances shall a performance guarantee be opened as active or inactive in any form whatsoever to favour an end Buyer before the financial instrument pertaining to the product being purchased has been lodged and accepted into the account of the ‘Buyer/Seller’ associated and controlling the trade. Intermediaries shall not transact on any deals in which the transaction calls for the performance guarantee to be lodged prior to the lodgement of an active financial instrument.

13: [Amendment 13.0 /13.0.1: 30th March 2010:] The term ’Performance Bond” is an inappropriate term of reference for use by URPIB intermediaries. Citing Doctrine: FYBR and ITSI

URPIB Article 14:
Shipment Date
As far as the intermediary is concerned, no transaction shall be allowed to proceed where a ‘shipment date’ is more than twenty days after the issue of the bill of lading.

A bill of lading for all FOB transactions shall mean a ‘received’ bill, where the intermediary is asked to assist the end Buyer in obtaining the bill of lading. All transactions involving a CIF deal shall require a ‘shipped’ bill. In all such transactions, the shipment date shall mean the date when the bill of lading is issued.

URPIB Article 15:
Pre- Advised credits
  1. As far as the intermediary is concerned a current version of a UCP Irrevocable Transferable confirmed Pre-advised documentary letter of credit (as opposed to normal active documentary credits) is an acceptable instrument to request but only when issued as a UCP financial instrument and only if issued as confirmed. This is the preferred instrument for use by the intermediary, until such time as the intermediary gains enough confidence and experience to accept other forms of financial instruments. Other forms of DLC type of financial instruments (credit) defined as revolving instrument, confirmed instrument or instrument not carrying pre advice status .
  2. An intermediary shall not transact on any deal where SWIFT or other methods apply for payment of goods.
  3. A ‘Supplier’ purporting to offer goods shall not be considered a genuine ‘Supplier’, if they request payment in the form of a transferable letter of credit.
  4. The Buyer/Seller shall allow the transferable instrument to be transferred only to a supplier’s account, as a ‘non transferable instrument.’
  5. ‘Back to Back’ letter of credit procedures are not allowed to be used by intermediaries under URPIB rules of trade. A transferable credit may only be transferred once. The end Buyer issues the credit to the Buyer/Seller(which may be transferred once) as ‘non transferable’ directly to the owner in possession of the goods and not to another Seller.
  6. In accordance with UCP Post Office box addresses can no longer be cited on a credit. Further, the term ‘transferable’ must now be applied to the credit accordingly as advised from an end Buyer or his bank, to the Buyer/Seller or his bank.
  7. The credit must be issued from a Top 100 world class safe bank, otherwise the credit must be advised as confirmed to the Buyer/Seller. The exception to this is a pre-advised credit, which must be issued as confirmed in the first instance.
  8. A confirmed credit allows the Buyer/Seller to ‘localise’ the credit. This means that the advising bank is not dependent on the issuing bank’s instructions, and allows collection upon examining the documents required for delivery presentation. All expenses of adding confirmation to the credit shall be for the account of the end Buyer. In house credits or any other credit may not be used until great trading experience over years is gained by the URPIB trader.

URPIB Article 16:
Bank Comfort Letter.
  1. Where one of the preconditions to a transaction is the supply of a Bank Comfort Letter (BCL) or similar associated with the issue of an ICPO or LOI (Letter of Intent) etc, these preconditions shall not be entertained under any circumstances.
  2. Under URPIB a quotation, offer and contract must prevail to establish grounds under contract law, which defines inter alia, acceptance, legal capacity and consideration. Since English Law is ostensibly the leading jurisdiction in international trade, then intermediaries using URPIB shall apply it to reinforce and favour their own trading activities.

URPIB Article 17:
Corporate Business.
  1. As already described the BCL and LOI are tools of trade used internally by corporate entities. In international trade LOI means ‘Letter of indemnity’ and Bank Comfort Letters are used in circumstances where a corporate entity needs to give financial support to a related associated sub entity, usually to one established in the same country of the issuer.
  2. Intermediaries using URPIB shall not accept nor apply procedures in a trading environment by using an LOI associated with a BCL, other flawed terms such as - ASWP, NCND, ICPO, RWA, FFIDLC, PB, and the likes is a premier application. The use of these acronyms automatically invalidates the protection offered under URPIB. Where the Buyer/Seller encounters others using these flawed methods, the Buyer/Seller must personally adhere to the provisions URPIB (URPIB shall also mean the doctrine of trade as taught in the text of International trade and the successful intermediary) even if others associated in a potential trade do not. The Buyer/Seller shall not continue in any trade in which URPIB rules or appropriate endorsed variations to such are not being universally applied. Under no circumstances shall URPIB rules be used to apply midway in a transaction after it has commenced using other flawed applications.
  3. There is no protection offered to an intermediary using the virtues of a NCNDA (Non disclose and non circumvention agreement) and as such NCNDA agreements shall be deemed as useless for intermediary purposes. If it is used (as may be the case when involved with a supplier or end Buyer who requests it, in which case the intermediary complies in order to appease him) the Intermediary shall do so with the clear undertaking that such a document does not imply in any form that commissions will be assured, guaranteed or forthcoming. Signing this document does not either create or enforce the confidentiality issues as specified in URPIB.
Amendments, Citation and Clarifications :Article 17:
 17.0: [Amendment 17.0./17.0.1: 1st January 2011:] Variations as published or being enacted by the FTN exporting doctrine of trade with it own attached or associated members or as disclosed online on any FTN Exporting endorsed site. Variation(s) as such is able to be applied without conflict to URPIB rules.

URPIB Article 18:
Contract versus Financial instrument.
  1. No party to a trade will be permitted to present the contract of sale to a financial institution. Banks deal in finance and not contracts. Under URPIB an intermediary shall treat the financial instrument, the sales contract, and the insurance contract as all being individual documents that are separate to each other.

URPIB Article 19:
UCP: Uniform Customs and Practice for Documentary Credits.
  1. Unless advised by his bank in relation to an active credit or if permitted by any URPIB updates, an intermediary is not allowed to issue an offer or contract that refers to or relies upon any other provisions pertaining to the issuance of a financial instrument other than UCP rules. This includes all financial Instruments issued as a “In house” DLC

URPIB Article 20:
DLC Transfer Fees
  1. Article of UCP unless changes in the future applies where both parties have contractually agreed upon; that the transfer fees is made for the account of the Buyer.

URPIB Article 21:
Sanctuary
  1. Any Intermediary approaching any Seller/Buyer(SB) who has declared to also be a URPIB trader infers explicitly that the “SB” shall automatically protect the interests of anyone approaching them in any manner, with information, and that should such information prove positive, the “SB” shall collect and protect commission for each said protected entity unconditionally. The “SB” is not allowed to use the information given in where a deal has collapsed in where later should the ‘SB” decide to use such vital information as provided by the intermediary in the past on another deal yet to apply in the future, such must first notify the said intermediary who originally gave such vital information, before the approach is made. The said intermediary once notified (whether he or she is involved in the deal or not being attempted at that time ) shall expect unconditionally that the ‘SB” will apply to include the said intermediary in the commission payment structure. Vital information specifically defines in where information about Supplier and or End buyers are provided regardless if a “IPG” is in place or not. It is a dishonourable act to trade as a Seller/Buyer and any URPIB trader in where others have trusted the “SB” in providing such with valuable information that could be used to close upon a transaction, in where the Seller/Buyer uses such information on other future deals without involving the original person providing to disclose such original information. Any Intermediary defines to mean anyone trading in commodities whether or not such is informed about URPIB. “Sanctuary” is an applied mechanism that allows one party to disclose up front vital information in a quick manner for purpose of evaluation without having the deal stall due to matters involved in issuing the “IPG”
  2. Such shall apply even if the Seller/Buyer is no longer associated with the group or entity who surrendered such original information , perpetually.
  3. Such is also applied in where the Buyer/Seller has given information to another party or person so as not to get caught using such information for personal gains.

URPIB Article 22:
Connecting Commission Payments
  1. In where an intermediary or group being protected by the Buyer /Seller has provided information to such in the course of a transaction or otherwise, which leads to the discovery of other Principal(s) of industry by default, then the original intermediary group shall be entitled to the payment of commission unconditionally, should the Buyer/Seller later contact (or visa versa) such a Principal, person or party in where a transaction is closed. The Buyer/Seller is fully obligated to contact all person associated in the original party, and pay to each individual, a commission payment at a rate being 40% of the collected rate in where the divisible formulation as per URPIB is applied to pay such said original party a "Corresponding/ Sourcing" type of commission payment, within 10 days of deal closure. Accordingly, the original party to a deal being headed by a URPIB Buyer/Seller,where later results in the disclosure of any other party of person not originally tied with the said party in where a deal later eventuates with the disclosed newly discovered party, entitles to the original party to be defined as a "connecting" party; to which commission from the successful deal is still payable to the original party introducing the newly discovered entity. For clarity of this matter the following base example shall be used to describe the meaning of "corresponding or connecting" party or entity.
  2. In where the first party has “Stepped back” on any side of the “fence” to reveal a Principal to the controlling Buyer/Seller heading a deal, in where the deal being attempted has recorded as a (success or) failure ;
  3. In where the Seller/Buyer at a later time (Perpetually) heads a totally different team , using information as revealed, offered or was secured by the first party, the Said Buyer/Seller shall ensure payment to the first party of commission in where the said deal with the second party has resulted in a successful transaction.
  4. At a rate equal to 40% of the total commission earned .
  5. As divided amongst the first party at per normal URPIB divisional rates.
  6. Such shall apply even if the Seller/Buyer is no longer associated with the group or entity who surrendered such original information , perpetually.
  7. Such is also applied in where the Buyer/Seller has given information to another party or person so as not to get caught using such information for personal gains.

URPIB Article 23:
Buyers Performance Guarantee.

  1. Any intermediary holding position, responsibility and liabilities of a Seller, who has issued a genuine offer because of strong forceful intent and /or claims made by a “Buyer” was apparent , in where;
  2. The Intermediary may request a BPG (Buyer Performance Guarantee) from an end buyer any time as advised on any offer and before the contract is issued or after such is issued depending on the size of the transaction and problematic nature of the principal or deal being considered.
  3. Such an offer if not accepted on time, or not at all- the Intermediary holding position as Seller may use its own discretion in refusing to issue a second or subsequent active offer to the same End Buyer, for the same or other type of goods, unless an active Buyers Performance Guarantee is first established.
  4. For first or 2nd time issuance of an offer the rate of said Buyers Performance Guarantee (BPG) shall be defined as USD$20,000.00 or more.
  5. All subsequent default and offer issuance BPG increments set at USD$20,000.00 there after shall be paid.
  6. The Seller issuing a 2nd or any subsequent offer at his discretion has right to advise the offer, to imply in specie that a legally binding agreement is also being issued.
  7. The new offer shall carry an agreement that before any contract is issued, the Buyer shall advise by UCP or ISBP98 SLC to favour the Seller, the said Buyers Performance Guarantee (BPG)
  8. All ‘RFQ” issuance or usage must also disclose to the “Buyer” the seriousness of failure to accept an offer on time.
  9. Once such a BPG is advised and accepted, the Seller is obligated to ask the End Buyer if they would like the release of the PPI before the contract is issued , explaining to such a Buyer about the consequences that prevail with the issuance of such a ‘PPI’ Certificate.
  10. In where; within 24 hours of accepting a BPG , at the expressed request of the Buyer, the Seller shall release via facsimile or by internet means, full genuine PPI (Policy Proof of Interest) in writing, disclosing fully all details of the Supplier, Supplier’s mandated representative or /and , Agent or Exporter who has direct access to goods being offered to the Seller in where; such will verify in writing that the Sellers has purchased or is able to purchase goods, implied or otherwise indicate to imply as much, that required said “Ostensible Authority” is apparent as per the offer made by the Seller to the End Buyer.
  11. In where; within 24 hours thereafter a proper valid customary contract shall be issued to the End Buyer from the Seller. In that;
  12. Should the fair contract of usual proper, acceptable terms and conditions not be accepted within its validity, the Seller claims and keeps the said BPG, but only if (1) End Buyer asked of the PPI (2) Was informed of consequences at the time PPI was asked for, in where (3) A contract was issued to the same End Buyer within 72 hours thereafter after of such PPI release.
  13. Should the contract be accepted, But the Financial Instrument fail to open on time, Seller make claims and keeps BPG.
  14. In where the PPI was not released prior to contract issuance in where the contract was not accepted 95 % of issued BPG net and clear must be retuned to the Buyer within 7 of of contract expiration date.
  15. In all of the above, the person advising the BPG has disclosed his position as being a “Buyer”, End Buyer or otherwise similarly implied.
  16. The Seller has right to make the claim for a BPG as compensation in having to waste considerable time and effort servicing the requirement of declared Buyer at at the cost and potential loss of other transactions and business opportunities, in where it further became apparent that the Buyer was lacking real intent , have capacity, or ability to make the attempt in purchasing the said goods in the first place.

Article 24: In house DLC use.
  1. An In house DLC is a financial instrument produced by the intermediary from their own stationary and forwarded to the bank of the supplier or exporter for acceptance, in where authentication occurs contrary to normal practices as per a reverse protocol. Only very experienced intermediaries may use the virtues if an In house DLC as the use of such is a new (Late 2007) development in banking practice which still widely unknown and not a familiar application to many bankers around the world for years to come.
  2. In where URPIB defines the process, the intermediary must assume such In-house DLC use is an extraordinary practice which many not be available for use in some countries to due to internal banking laws and other reasons of not understanding the merit of this valuable application to begin with. Some banks may not advise correctly on the use of an “ In house credit” ,as such takes both earnings and business away from banks normal DLC practices is also best assumed.
  3. Ideally the In House DLC application is used when accepting a Irrevocable Confirmed Non transferable type of Financial Instrument from the bank of the End Buyer .
  4. May also be used on the same premised defined, in effecting the issuance of a Performance Guarantee in the form of a UCP SLC but not in the form of an ISBP 98 SLC
  5. In where amongst other things; In where the issuing bank has issued a “Bank issued credit” directly to the intermediary. Provided such is a UCP effectively endorsed credit ;
  6. In where the In house credit is issued directly to the supplier or exporter of goods being purchased and not another Seller in the first instance.
  7. The Intermediary has accepted a preferred Confirmed Non transferable DLC directly into their own account from an End Buyer. In where such confirmation allows the bank of the Intermediary to pay out upon clean presentation of delivery documents-or ;
  8. In where the End Buyer has issued a Credit from a top 100 ranking world bank as listed under Forbes or other current rating agency in where such is issued without confirmation. In such an event , the Document once presented must travel to the issuing bank, before the credit of the the intermediary Buyer /Seller is able to be collected upon, causing the required collection protocol to also apply directly to the In House DLC as held by the supplier, albeit; at a much slower pace than if a confirmed credit usage prevailed.
  9. As a ‘Confirmed” Credit- Preferably Confirmed by the bank of the intermediary Buyer (The Advising bank) in the first instance or another large world ranked top 100 banking institution in the second instance.
  10. In where all confirmation fees are for the account of the Supplier as agreed upon on contract, if such confirmation is sought and enacted upon by the Supplier .
  11. The In house credit may be issued directly to the bank of the supplier or to the supplier personally via facsimile or airmail as agreed upon in the contract and only after the Credit of the End Buyer has first been accepted as issued from the End Buyers bank ( The issuing bank) to the advising bank.
  12. In where the intermediary Buyer recognises that an act of fraud is implied in issuing a In house credit to anyone first - that is not supported by a bank issued credit held in its own account.
  13. The In house credit is made similar in details and design to the credit obtained from the issuing bank of the End Buyer, except the issuance now reflects the intermediary Buyer to the Supplier. as being the “Applicant” of the the credit and that the Supplier is the “Beneficiary” of such.
  14. In where the created in house credit must have marked on its margin the word “Original” even though a copy is provided. Partial payment is marked as allowed. Transhipment is marked as not allowed.
  15. In where the statement “Telecommunication of Credit” is valid credit no original hard copy will be advised” , must also be stipulated-
  16. In where the same credit number as per the End Buyers credit account held is applied on the in house DLC along with a credit issuance number identifying such to the actual transaction being applied.
  17. In where the value of the Credit is changed to reflect the lower buy price .
  18. In where most importantly the term “Bank issued Credit” of word to effect is not used when concluding an Offer or and Contract with a Supplier .
  19. In where the following statement must also be applied on the in-house created credit so that the in-house credit is applying to follow the same rules as a bank issued credit .(New edict: Allowable under UCP )
  20. This credit is issued subject to Uniform Customs and Practice for Documentary Credits (2007 revision) as per International Chamber of Commerce publication Number 600 © Paris, France.
  21. The bank of the supplier, the accepting bank, authenticates the credit to the account of the Intermediary Seller in where once authenticated and accepted current UCP rules govern the application fully.
  22. In where the intermediary Buyer is holding a transferable confirmed credit such may attempt the virtues of using the In house credit issuance protocol , in where failure of such will still allow the virtue of the transferable status to apply if need be.
  23. In where an “In house transferable” Credit could also be used as issued to a Seller, for transferring to a Supplier, URPIB Rules do not allow the intermediary Buyer/Seller to advise a credit to anyone else other than a Supplier, Exporter or official representative of such.


*Copyright : ©URPIB/URITI: 2001 FTN Exporting
*©UCP and Incoterms are a Trade mark of the ICC Paris France.



In Summary of Defined Rules.
In summary :The intermediary for the first time using the DLC “in house” protocol should use the advice of its bankers and seek assistance once a full DLC from the Buyer has been secured and only in where real supply has been obtained, and that the contract with the supplier does not reflect in any manner that a In house DLC may not be use- No disclosure that a “Non bank issued in house credit” is being used to pay for goods- is required to be made. The Intermediary Buyer using an In house credit confirmed by its bank may face discounting of the original credit held, if such is allowing collection to apply-
The In house DLC is no different in global design of a person writing a personal cheque , in that the cheque has the account number applied along with the actual number identifying the cheque issuance details - in as far as - If the checking account has no funds , the issued personal cheque will bounce, nevertheless at point of issue , the cheque is a legally valid payment instrument regardless if funds are in the account to support collection. The cheque needs to bounce before a default of non payment become apparent Furthermore more it is a little know fact that a person can write a personal cheque on a piece of paper without the need of a bank issued cheque book. So long as all the relevant details and signatures are present , presenting such to a bank is a valid application.
Over time “AGI” (Academy of Global Intermediaries) will be the controlling body administering FTN exporting URPIB Rules -
Current as of December 2010: ICC UCP Article 38 relates to the issue of a financial instrument for payment of goods by a UCP applicable DLC. The transfer fee relating to the issue of this DLC is for the expense of the End Buyer. Intermediaries must ensure that the offer and contract provides that these fees are for the account of the End Buyer. Article 38 Paragraph (C) implies that “Unless otherwise agreed” at the time of transfer , the said transfer fee MUST be paid by the Beneficiary. The End Buyer aggress with the Intermediary on the offer and contract to pay such a transfer fee, and/or bank commission “On behalf of the Beneficiary.” It’s irrelevant how such charges / fee’s are paid so long as it paid by the Beneficiary as defined , is sufficient to satisfy UCP requirements. Should the intermediary encounter problems with such bank in regards to said matter, the experienced and well informed Intermediary is reminded that it can leave the DLC in their account and issue their own UCP applicable in house DLC. The Intermediary does not need a bank to conduct such a transaction is also another option and trading protocol available for advanced experienced intermediaries.
UCP: As of July 1st 2007 UCP 600 superseded UCP500. The intermediary shall now only use UCP, current Incoterms and URPIB as their guiding rules until advised further. All intermediaries should consider using URPIB rules while conducting their business as international trade intermediaries. They have been compiled based on the extensive experience and knowledge of the author of these works. Attempting to trade using anything less concise and strict than the doctrines provided in these rules is both unacceptable and futile.
*The ©Humano Edict is a FTN Exporting initiative in which intermediaries make a contribution for the purpose of helping those less fortunate than themselves. This is especially the case in countries from which high value goods are exported but where workers do not enjoy basic human rights and are very poorly paid. For example, in the Dominican Republic, sugar cane farm workers are paid less than a dollar a day, while the goods they harvest are sold globally at world benchmark prices.
FTN exporting hopes that one day U.N edicts encourage bank globally to follow suit in allowing such to collect a small charitable fee on each DLC issued to buy goods of which is is collected to favour economically depressed third world countries. These funds would be used to provide basic needs to people living in a state of abject poverty . Even at 20 cents per Tonne applied on such goods as a Humano tax, collected via banks world wide would generate many millions of dollars annually to help those in need without End Buyers even noticing such deductions.

Special Note: FYBR and ITSI doctrine is written in a manner to convey how a intermediary must trade independently. Such a doctrine is not designed for interaction with the Author or FTN Exporting, only because of the unique position it holds as a leading teacher for so many others. Invited supported and mentored traders and or FTNX agents working with FTN exporting often bypass the previous said IPG application to save time as such, associated traders after the first few times become wary on how hard it is to close a deal and often simply wait for the deal to go past offer stage in where, as per such understanding, FTN issues the pay order- In any case; sometimes FTN exporting provides extra support to its invited agents, thus due to the special said mentor position held by FTN exporting, the invited intermediary can only hold position of “PI” and not “SB” when dealing with FTN, so that FTN can work with the invited applicants in a transparent manner for teaching purposes. Intermediaries are not to be confused with such an in house applications as used by FTN exporting when being instructed. Thus only long standing intermediaries attached within a group can apply such similar applications with their own disclosed SB. For all new intermediaries please ensure you follow the basic IPG advice as implied, this is the correct trading position even though such intermediaries who end up dealing with FTN exporting, may see differing application being applied.
The advice in FYBR is about an independent trader learning to hold the position as a SB. It has nothing to do with the nature of business or advance application used by FTN exporting or FTNX agents. When an invited or acceptable intermediary applies to do business with FTN exporting , then all disclosures must be upfront as to End Buyer or Supplier, in where the intermediary follows our advice - It has to apply as such because FTN exporting is taking all legal obligations and consequences away from the intermediary who is learning procedures- Like wise any SB looking after other intermediaries.
Thus at first a SB works as per “FYBR”, much later as they themselves form their own trusted group, the SB can bypass the initial IPG application earlier to apply as such later in any eventuating deal- In return the SB keeps all applicants to a deal fully informed -
FTN exporting or resellers have discretion on who they invited on board for extra mentoring. In effect anyone dealing specifically with any “SB” or FTN exporting have “Sanctuary” applied in that the mentor get information that must never be used for personal gains in return FTN mentors the intermediary on how to close such a deal as part of the FTN exporting agency, and for promoting the agency. “Sanctuary” implies from the start that all approaches to FTN exporting is confidential and that if such an approach leads to the closing of deal , the intermediary is fully and automatically protected in matters of circumvention and commission as per URPIB rules. This application allows FTN to trade much more openly with any intermediary they become involved with for purpose of providing good clear study advice. By default this method of teaching others advance applications, also suggest that discretion to take on such invited intermediaries belongs to FTN exporting and has nothing to do with the purchase of ITSI, in where such mentoring is usually associated with the purchase of more expensive FTN Exporting in house publications.

About Incoterms 2010: Due 1st of Jan 2011
 It is the informed personal opinion and conviction of FTN exporting that Incoterms 2010 has been found to be mephitic, ambiguous, contradictory and antonymous as it relates to the Intermediary business. FTN Exporting was not consulted on matters of Incoterms 2010, yet strangely enough, changes made are already incorporated years ago in the FTN Doctrine, defining on the superior nature of the doctrine thanks to the brilliant mind of International trade expert and U.K Barrister, Professor Clive M. Schmitthoff (1992) in where FTN exporting has secured and studied the works of such, in where the required mindset to be able to produce the said doctrine mainly first eventuated from after changes were adopted, tested and applied.
The doctrine is the structure and platform of trade made for intermediary use. Current UCP and Incoterms of any period of time are made to fit into this structure as required.
Until others not affiliated with FTN exporting apply to use Incoterms 2010 in where issues are discovered and defined online, FTN exporting shall inexorably refuse to use some part of incoterms 2010 (i.e: DAP delivery mode) as its primary delivery application. The ITSI/ FTN doctrine has already long ago applied most of Incoterms 2010 edicts as standard practice.

FTN Exporting own © ‘Ultraterms 2012’ shall replace the use ‘Incoterms’ in late 2012.