Sales Procedure

📑 Sales and Purchase Procedure

At Arm Industry Co., LTD, we have a structured and transparent sales and purchase procedure designed to ensure smooth transactions, from initial inquiry to final delivery. Here’s how the process works:

1. 📨 Buyer Contacts the Seller & Negotiates the Price

The process begins when the buyer contacts Arm Industry Co., LTD to inquire about purchasing rubber buffing, rubber scrap, or other rubber materials. The buyer and seller will discuss the specific materials, quantities, and pricing. Both parties agree on the general terms of the sale.

2. ✉️ Buyer Sends the Letter of Intent (LOI)

Once the price and terms are negotiated, the buyer sends a Letter of Intent (LOI). This document outlines the buyer’s intention to purchase the goods and their commitment to move forward with the transaction. It typically includes the following details:

  • Quantity and specifications of rubber materials

  • Proposed terms of sale

  • Payment terms

3. 📄 Seller Issues the Sales and Purchase Contract

Upon receiving the LOI, Arm Industry Co., LTD drafts the Sales and Purchase Contract based on the agreed terms. The contract will include:

  • Detailed description of goods

  • Total price and payment schedule

  • Delivery terms (CIF, FOB, ExW)

  • Inspection procedures

  • Legal terms and conditions

Both parties review the contract, and if the terms are acceptable, they proceed to sign.

4. 💼 Proforma Invoice Issued & Initial Deposit

Once the contract is signed, Arm Industry Co., LTD issues the Proforma Invoice to the buyer, which reflects the agreed terms, including the total amount and payment structure. The buyer then makes the first deposit as per the terms specified in the contract (usually a percentage of the total value).

5. 🔍 SGS Inspection & Quality/Quantity Confirmation

As per the contract, the SGS (Societe Generale de Surveillance) or another inspection agency is invited to conduct an inspection of the goods before shipment. This step verifies the quality and quantity of the rubber materials.

The buyer has the option to visit the facility during this inspection to confirm that the materials meet the required standards. The inspection report will be issued, confirming that the goods are in compliance with the agreed specifications.

6. 🚢 Goods Taken to Port & Shipping Documents Issued

Once the inspection is complete and the first payment has been received, the seller arranges to transport the goods to the port. At this stage, the following shipping documents are prepared:

  • Bill of Lading (BOL)

  • Packing List

  • Certificate of Origin (COO)

  • Material Safety Data Sheets (MSDS), if applicable

  • Other necessary export documentation

7. 💳 Second Payment Before Shipment

The buyer makes the second payment (usually the remaining balance or another agreed installment) according to the contract. Once this payment is received, the goods are ready for shipment.

8. 🌍 Goods Shipped & Final Balance Payment

The goods are shipped according to the agreed Incoterms (FOB, CIF, ExW). Upon arrival in the buyer’s destination country, the goods undergo inspection and customs clearance at the port.

Once the goods are cleared, the buyer makes the final balance payment (the remaining amount) as per the contract. After this payment, the goods are fully transferred to the buyer, and the transaction is complete.

🏁 Transaction Completion

Upon full payment, the goods are considered fully transferred to the buyer, completing the transaction. The buyer is now free to arrange for the goods to be transported to their final destination.

📌 Additional Notes:

  • Payment Terms: The payment schedule will be clearly outlined in the Sales and Purchase Contract.

  • Inspection: The buyer is encouraged to participate in the inspection process to ensure full satisfaction with the goods before shipment.

  • Shipping & Customs: All shipping and customs procedures are handled in accordance with the agreed Incoterms (CIF, FOB, ExW).