Friday, June 17, 2011

COAL, How to secure the Coal purchasing from Indonesia

International trade transaction expose so many risks in examples; inconsistent quality, under shipment or late shipment. Even though already using LC, you still bearing the risks. More over when your commodity is COAL.

Yes, you are right. You have to outsource systematic instrument parties to secure the transaction. and the answer are :


  • Your sugestion to your COAL supplier for using CMA scheme.


  • as Importer, you have to open LC in Top 200 banks (bankers almanac version)
Inventory financing by CMA are tripartiet agreement. involve three parties as below:



  1. Client, COAL exporter who propose the financing from the bank

  2. Bank, set up due diligence the client and provide inventory financing with pre export financing and post export financing in Indonesia

  3. Collateral manager, secure the COAL at stockpile and make sure the quality & quantity the COAL at stockpile. issue the the warehouse receipt.

For detail informations, don't hesitate contact me at dedep@dbs.com