TRANSACTION PROCEDURE
Iron Ore — CIF.Step by Step.
Every Meridian transaction follows a defined, transparent procedure from first contact to final Bill of Lading. No deviation from commercial norms. No surprises.
THE PROCEDURE
Iron Ore — CIF Process
Soft Corporate Offer (SCO)
Seller issues a Soft Corporate Offer (SCO) outlining the product specification, origin, available volume, indicative pricing, and proposed commercial terms. The SCO is non-binding and serves as the basis for Buyer's formal response.
Buyer Expression of Interest
Buyer issues a formal Letter of Intent (LOI) together with a Client Information Sheet (CIS) and provides issuing bank details for the financial instrument.
Full Corporate Offer (FCO)
Seller issues a Full Corporate Offer (FCO) confirming product specification, origin, volume, firm pricing, and all commercial terms. Buyer countersigns the FCO to proceed to contract.
Draft Contract Issuance
Seller issues a Draft Sales and Purchase Agreement (SPA) outlining all commercial and technical terms for Buyer's review.
Contract Review & Execution
Buyer reviews, signs, and returns the SPA along with Company Registration Documents, Authorised Signatory Passport Copy, and Proof of Funds (POF) or Bank Comfort Letter.
Proforma Invoice & Banking Initiation
Seller issues a Proforma Invoice (PI) to enable Buyer's bank to initiate the transaction. Buyer's bank transmits an MT799 (Pre-Advice) to Seller's bank.
Bank-to-Bank Confirmation
Seller's bank responds via SWIFT confirming readiness and ability to receive and accept the LC / DLC.
Issuance of Financial Instrument
Buyer's bank issues an Irrevocable, Transferable LC or Irrevocable, Non-Transferable DLC covering the value of one month shipment, as agreed in the SPA.
Shipment & Documentation
Upon cargo readiness and successful inspection at the loading port (SGS / Intertek / CCIC / CIQ or equivalent), Seller provides full POP documents: Commercial Invoice, Packing List, Certificate of Origin, Inspection Certificate, and Draft Bill of Lading.
Payment & Bill of Lading
Upon presentation of the full shipping document set and acceptance by Buyer's bank, payment is released via MT103 (Telegraphic Transfer). Original Bill of Lading is endorsed and transferred to Buyer, completing the transaction.
GOVERNANCE
Legal framework & pricing
All transactions are governed by English law. Disputes resolved by ICC arbitration in Singapore or London. Pricing based on Platts IODEX or agreed fixed price, quoted in USD per dry metric tonne (DMT).
Ready to begin?
Request our SCO to receive full product specifications and indicative terms. We respond to all verified principal enquiries within 24 hours.