Trade governance
ICC standard operating procedures
KWE Metals LLC contracts, ships and settles under the rules of the International Chamber of Commerce. This page sets out the framework we trade on and the exact sequence every consignment follows, so counterparties, banks, inspectors and carriers know what to expect before the first tonne moves.
The rules we contract under
Incoterms® 2020
Delivery terms and risk transfer
Every KWE Metals contract names one Incoterms® 2020 rule with the named place spelled out in full — EXW Puerto Cortés, FOB Puerto Cortés, CIF Rotterdam, CFR Shanghai or DAP. The rule fixes who arranges carriage, who insures, where cost passes and where risk passes. We do not use retired or informal terms.
UCP 600
Documentary credits
Letters of credit are issued subject to UCP 600, irrevocable, and advised through a first-class bank. Documents are presented within 21 days of shipment and inside the credit validity. Amendments are agreed in writing by both parties before shipment; we do not ship against an unworkable credit.
URC 522
Documentary collections
Where a collection is agreed instead of a credit, it runs under URC 522 on documents-against-payment terms. Title documents are released only when the collecting bank confirms cleared funds.
URDG 758
Demand guarantees and performance bonds
Performance guarantees, advance-payment guarantees and standby instruments are issued under URDG 758 or ISP98, stating the exact amount, expiry date and the documents required for a demand.
ICC Force Majeure 2020
Force majeure and hardship
Contracts carry the ICC Force Majeure and Hardship Clauses 2020. Affected party notifies the other without delay, evidences the impediment and mitigates. Prolonged events allow either side to terminate on written notice.
ICC Arbitration
Governing law and disputes
Disputes are settled finally under the Rules of Arbitration of the International Chamber of Commerce by one or three arbitrators appointed under those rules. Seat and language are stated in the contract; English is our default language of proceedings.
Transaction procedure, step by step
- 01
Enquiry and indicative offer
Buyer submits metal, grade, tonnage, delivery port and Incoterm. We return an indicative offer priced off the live LME/COMEX/LBMA benchmark with the payable percentage, treatment and refining charges, freight, insurance and validity period.
- 02
Contract and full corporate disclosure
On acceptance we issue a sales contract with specification, quantity with tolerance, price formula and quotational period, delivery terms, payment terms, inspection regime, title and risk, force majeure and arbitration clause. Both parties exchange company registration and authorised-signatory evidence.
- 03
Compliance and counterparty screening
Know-your-customer checks, sanctions and politically-exposed-person screening, and beneficial-ownership verification are completed before any instrument is opened. We apply the ICC Rules on Combating Corruption — no facilitation payments, no undisclosed agents, no off-contract commissions.
- 04
Payment instrument
Buyer's bank issues the operative instrument — documentary credit under UCP 600, collection under URC 522 or an agreed deposit-and-balance structure. We verify workability clause by clause and confirm acceptance in writing before nominating a vessel.
- 05
Independent inspection and assay
Quantity and quality are determined at load port by a mutually appointed independent inspector — SGS, Bureau Veritas, Intertek or equivalent. Sealed umpire samples are retained. Final settlement follows the agreed assay-exchange and umpire procedure.
- 06
Shipment and nomination
Vessel or flight is nominated within the shipment window; the carrier confirms ETD and ETA. Cargo insurance is placed to at least 110% of CIF value under Institute Cargo Clauses (A) where the Incoterm requires it.
- 07
Document set
Signed commercial invoice, full set of clean on-board bills of lading or air waybill, packing/weight list, certificate of origin, inspection certificate of weight and quality, and insurance certificate where applicable — presented complying and on time.
- 08
Payment, provisional and final
Provisional payment is released against complying documents. The final invoice is trued up on outturn weight and final assay against the contractual quotational period, and any balance settles within the agreed number of days.
- 09
Tracking and closure
The consignment is tracked end to end in the buyer portal — carrier, vessel or flight, container, position, ETD and ETA. The file closes on discharge, final settlement and release of any performance instrument.
Records we keep on every file
- Signed contract and all amendments
- KYC, sanctions and beneficial-ownership screening records
- Payment instrument, presentation and any discrepancy correspondence
- Inspection, assay and umpire certificates with sample retention record
- Transport documents, insurance certificate and customs filings
- Provisional and final settlement statements
Incoterms® and UCP 600 are publications of the International Chamber of Commerce. KWE Metals LLC applies these rules in its contracts; this page is a summary of our own operating procedure and is not legal advice or an ICC publication. The contract signed for each consignment governs.
Downloads
The reference sheets our trade desk works from. Hand the credit checklist to your bank before a letter of credit is issued. These are general reference guides based on ICC rules; the signed contract and the letter of credit terms always take precedence.
- Incoterms® 2020 quick referenceEvery rule we trade under, with who arranges carriage, who insures and where risk passes.Download PDF
- Documentary credit checklistWhat a workable UCP 600 credit must say, and the document set we present against it.Download PDF
- KWE transaction procedureThe nine-step procedure from enquiry to closure, including inspection and payment.Download PDF
Commercial forms — account application, moisture certificate and assay sheets — are on our compliance packets page.
Frequently asked questions
+Which Incoterms® rule should I choose?
If you have your own carrier and insurance, take FOB Puerto Cortés and control the voyage yourself. If you want a landed price with cover in place, take CIF to your discharge port. EXW suits buyers with an agent already working in Honduras. Every contract names the rule and the precise place — never a bare city name.
Open document: Incoterms® 2020 quick reference (PDF) →+What payment instruments does KWE Metals accept?
Three forms, all issued in favour of KWE Metals LLC, Hamburg, NY: (1) an Irrevocable Sight Letter of Credit, (2) an Irrevocable Documentary Credit (SWIFT MT700 format) at sight for 100% of invoice value, available by negotiation or sight payment with KWE's nominated bank, or (3) an Irrevocable Standby Letter of Credit (SBLC) as payment security. All documentary credits are subject to UCP 600 (2007 Revision, ICC Publication No. 600).
Open document: Documentary credit checklist (PDF) →+Where and when does payment happen?
At the load port. Payment is made at sight and wired immediately to KWE Metals LLC's nominated bank account once compliant load-port documents are presented. This happens regardless of the vessel's transit status or its arrival at the destination port.
Open document: Transaction procedure (PDF) →+Which documents must be presented under the letter of credit?
1. Signed commercial invoice, in 3 originals and 3 copies, showing the contract number, description of goods, total weight and value based on load-port figures. 2. Full set of clean on-board bills of lading showing loading at the named load port, made out to order of the bank or buyer and marked "Freight Payable as per Charter Party". 3. Independent third-party survey certificate issued at the load port by an internationally recognised agency (e.g. SGS, Intertek or Saybolt), certifying exact weight and draft survey. 4. Independent third-party assay certificate from that type of agency, confirming the metal's chemical composition and grade match the contract. 5. Certificate of origin issued by the Chamber of Commerce of the loading country.
Open document: Documentary credit checklist (PDF) →+Who inspects the cargo, and when?
An internationally recognised independent inspection agency, such as SGS, Intertek or Saybolt, at the load port. The agency issues the survey certificate (weight and draft survey) and the assay certificate (chemical composition and grade). Both form part of the payment documents.
Open document: Pre-shipment moisture certificate (PDF) →+How does the Standby Letter of Credit (SBLC) work?
The SBLC is a safety net. KWE may draw on it at sight at the load port only if the buyer fails to pay for delivered goods. To draw, KWE presents: a signed statement from an authorised KWE officer that the buyer has not paid under the named contract; a copy of the unpaid commercial invoice; copies of the load-port assay and survey certificates; and a copy of the clean on-board bill of lading. The SBLC expires at the counters of the beneficiary's bank.
Open document: Documentary credit checklist (PDF) →+What other conditions apply to the credit?
All documents must be issued and presented in English. Drafts are drawn at sight. All banking charges outside the issuing bank are for KWE Metals' account. The credit must name the load port, the discharge port, and the commodity, grade, specifications and quantity as set out in the contract.
Open document: Documentary credit checklist (PDF) →+How is the final price settled after assay?
Invoice value is based on the load-port weight and assay certified by the independent agency. Those load-port figures are what the bank pays against.
Open document: Laboratory assay spec sheet (PDF) →+What happens if a shipment is delayed by events outside our control?
Contracts incorporate the ICC Force Majeure Clause 2020. The affected party gives prompt written notice, performance is suspended while the event lasts, and if it persists beyond the agreed period either party may terminate without liability beyond work already done.
Open document: Transaction procedure (PDF) →+How are disputes resolved?
Amicably first — commercial discussion, then the escalation route in the contract. Failing that, arbitration under the ICC Rules of Arbitration, seat and language as stated in the contract.
Open document: Transaction procedure (PDF) →+How do I start trading with KWE Metals?
Complete the onboarding application at /apply. Our compliance desk verifies your corporate documents, beneficial ownership and trade references, then sets your credit terms and commodity allocation, usually within three business days.
Open document: Account application packet (PDF) →