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International Resource For Civic Education And Civil Society

 

THE NEXT STEP FOR ALUMINIUM BROKERS

 

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The many faces of Dr. Palms
 References -   Testimonials - History  
AwardsAwards
IBM - ATT - Microsoft - Magellan - Time Warner - Europe Online - NYNE


 

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Thank you for your inquiry indicating you believe that
as an intermediary you have knowledge of a potential
Buyer of aluminium ingots, billets or t-bars from a 
factory in the Russian Federation.

Palms & Company was founded in 1934 and has been an advisor
to the Presidents of four countries and seven agencies of the
United States Government

Our credentials can be found at:
http://www.PeterPalms.com/credentials

References, Testimonials Awards from Microsoft, IBM, AT&T,
testimonials, company history and track-record can be found at
http://www.PeterPalms.com/catalog/alum/


Complex issues arise when intermediaries are involved in
"Aluminium Purchase Transactions" with Russian factories in which
Palms & Company acts as "The Purchasing Agent" for a Buyer,

For example

* Is the broker expecting to make payment with his own funds or
anticipating the availability of a back-to-back letter of credit
to make payment?

* Is the buyer aware of such broker expectations? Do they both
understand that payment by LC raises the price substantially
and that Palms only accepts Bank Wire Transfer payments to
Palms & Company at the time the factory accepts the order
and that Palms pays the factory when the buyer has received
the order.


* is the presence of a "Purchasing Agent" precluded because of
expectations of either the buyer or broker for dealing directly 
with the primary smelter?

* Does the broker expect Palms to obtain and provide a quote
from a smelter for transmission to an unidentified buyer
who may already be a customer, and with respect to whom
Palms already owes non-circumvention to another broker?

* Under law, Palms has a requirement under "EAR" 
(see http://www.PeterPalms.com/trade/broker.html) to
know the final destination of the product and has assurance
regarding trans-shipment.

* Is the buyer, unbeknownst to broker or Palms, already a client
of Palms or another broker who expects fee protection from Palms?

* is the history of the buyer one of perpetual annual bid seeking
for the purpose of remaining with their existing supplier, as usual,
but re-negotiating price.

* Is there a chain of more than one broker leading to the principal?

* Is a Tender involved on which thousands of brokers are all
bidding annually to the same buyer? 

* Whom is the broker expecting payment from, the Buyer or Palms?

* Is the broker expecting detailed costly negotiations 
for drafting of elaborate NC agreements?

For full details read

http://www.PeterPalms.com/trade/brokers.html

http://www.PeterPalms.com/catalog/alum

We have therefore developed the following policies to eliminate
unacceptable delays, costs, complexities and known unproductive
situations based upon our 69 years experience. 
_______________________________________________________________



PALMS & COMPANY SERVICES

TYPE SERVICE: 
We provide "Purchasing Agent Services" primarily in Russia

TO WHOM:
We provide these services to the following:

A) Buyer Processors such as "smelters and "extruders"

B) Buyer Stocking Distributors

COMPENSATION:
Consists of a combination of
A) A retainer of a negotiable number of dollars per ton
for the number of tons to be purchased annually.
B) Negotiable Performance incentive compensation of
a percentage of the "savings" effected


ARRANGEMENTS WITH BROKER
(A) We accept introductions to refining "smelter " and "extruder" processors
and "stocking distributors
(B) We will honor existing agreements introducing broker has with such buyers.
(C) If broker has no agreement with buyer, Palms agrees that if it is introduced to
buyer by broker, Palms will not consummate an agreement with buyer
unless and until an agreement is in place, acceptable to broker.


Definitions

A "Purchasing Agent" provides the following services
A "Purchasing Agent" renders the following services the first
year related to these Buyer's expenses.

* identifies primary producers available to supply Buyer
* assists with negotiation of purchasing order agreement and its
execution
* assists with arranging inland transportation within the Russian
Federation
* assists with securing collaboration and security with Russian
railroad officials
* assists with arranging for in-transit security with guard service
* assist with arranging for availability of a berth in the harbor
for loading the vessel.
* assists with availability of cranes with loading capacity to
preclude extra per diem demeurage.
* assists with arranging Union official collaboration in Bayshore
with laborers performing the loading
* assist with selection of a reliable vessel under a flag other
then Russian, to eliminate piracy risks or mysterious disappearance
* assist with selection of a reliable freight forwarder
listed on New York Stock Exchange.
* Assst with securing cargo insurance with a recognized
western insurance company
* assists with arranging for the cooperation of The Russian Ministry
of Foreign Economic Relations with whom Palms & Company
was licensed in 1990.
* assist with arranging documentation coordination with Russian
Customs officials at port of embarcation, and customs clearance
* assist with repeat shipments in ensuing years
* assist with utilizing foreign exchange arbitrage
* assist with denomination of payment negotiations
* assist with arrangign for Russian banks to finance
the overhead and raw materials for producing the order

These expenses are more than offset (recovered) by savings
between the purchase price Buyer has been paying in the past
and the price at which Palms & Company is able to arrange for
delivery


A "Processor' is a "refining smelter" or "extruder" who purchases aluminium ingots 
or billets for in-house manufacturing processes, and not for wholesale resale 
or brokering or trans-shipment.

A "refining smelter" is a buyer who purchases billets, which the smelter refines 
into ingots of varying sizes to fit the specifications of extruders 
processing equipment, and not for wholesale resale or brokering, or trans-shipment

An "extruder" is a buyer that purchases ingots for manufacturing into
into extrusion products or other value added products.

A "Stocking Distributor" is a buyer who imports and maintains an inventory of
billets or ingots for resale from inventory to Processors.

"Savings" are the amount by which the "present price" is reduced

"Present Price" is an amount agreed upon by negotiation. It might involve 
reference to present and past invoices, current quotations for future 
delivery, LME, historical discounts from LME, etc.


A "Broker" is an intermediary who knows a Processor or Stocking Distributor.

______________________________________________________________________________

HERE, FOR THE BUYERS CONSIDERATION, IS A BRIEF OUTLINE OF THE
PROCEDURES OF PALMS & COMPANY FOR ACTING AS A PURCHASING
AGENT IN RUSSIA FOR ALUMINIUM BUYERS.

1. Buyer pays for product in cash, by wire transfer to Palms Bank
at the time Russian factory has accepted the order and promised
delivery. Payment is denominated in Dollars or Euro

2. Palms retains buyer's payment in our account denominated
in Euros to hedge currency exchange.

3. Palms issues guarantee of payment to Russian aluminium smelter
denominated in Russian Rubles through Palms's Russian bank.

4. When buyer receives the goods, Palms pays the Russian factory
in Rubles

5. We receive an expense retainer at the time we are engaged as
Buyer's Purchasing Agents of $250,000. this covers the following
expenses the Buyer has and incurs in establishing a reliable supplier.
a secure manner:

A "Purchasing Agent" renders the following services the first
year related to these Buyer's expenses.


* identifies primary producers available to supply Buyer
* assists with negotiation of purchasing order agreement and its
execution
* assists with arranging inland transportation within the Russian
Federation
* assists with securing collaboration and security with Russian
railroad officials
* assists with arranging for in-transit security with guard service
* assist with arranging for availability of a berth in the harbor
for loading the vessel.
* assists with availability of cranes with loading capacity to
preclude extra per diem demeurage.
* assists with arranging Union official collaboration in Bayshore
with laborers performing the loading
* assist with selection of a reliable vessel under a flag other
then Russian, to eliminate piracy risks or mysterious disappearance
* assist with selection of a reliable freight forwarder
listed on New York Stock Exchange.
* Assist with securing cargo insurance with a recognized
western insurance company
* assists with arranging for the cooperation of The Russian Ministry
of Foreign Economic Relations with whom Palms & Company
was licensed in 1990.
* assist with arranging documentation coordination with Russian
Customs officials at port of embarcation, and customs clearance

These expenses are more than offset (recovered) by savings
between the purchase price Buyer has been paying in the past
and the price at which Palms & Company is able to arrange for
delivery


6. Estimated Price would be $1100MT c.i.f. customer's designated port
but might be as much as $125 per MT lower.

7. Ship-loads per delivery should be in 12,500 or preferably
25,000 ton quantities. Annual aggregate deliveries may
be as high as 600,000 MT annually, or more by arrangement.

8. We expect to negotiate the amount of additional incentive
performance compensation from Buyer in the form of a percentage
of the savings effected compared to the prices presently paid
by buyer, within 90 days of the date our services start.

9. Certify to the government that the Buyer is a qualified Buyer 
under "EAR" regulations

_______________________________________________________________________



If this sounds like something that would meet the needs of
the Buyer we invite you to consider introducing the Buyer to us.
We would be pleased to answer any questions the may have by email,
or to receive Buyer's visit to our offices in Seattle (Kirkland),
Washington State, USA for an eyeball-to-eyeball meeting. It is also
possible for the Buyer to pay the expenses of having such a meeting
take place in a country of the Buyer's choosing.



P0LICIES

1. We will not consummate any any aluminum purchase transaction
with any manufacturer in Russia on behalf of any Buyer, introduced
by an intermediary, until and unless an agreement, acceptable to the
intermediary providing for compensation of the intermediary has
been receive by the intermediary.

2. We do not request price quotations from Manufacturers
for unknown anonymous buyers represented by intermediaries
whose authority has not been confirmed by the Buyer.


3. We accept introductions to buyers from intermediaries
as a first step in discussing our services with buyer

4. After we confirm validity and financial credibility
of the buyer, we are willing, at buyer's instructions
to conduct our services through any intermediary the
buyer designates as his legal agent with power of
attorney to bind Buyer.





 

PALMS COMPANY , INC., MERCHANT BANKERS  FOUNDED 1934
LICENSED BY MINISTRY OF FOREIGN ECONOMIC RELATIONS OF THE SOVIET UNION - 1991
Zheleznodrozhnikov Ulitsa 17, Krasnoyarsk, Siberia, Russian Federation 660049
Tel: 7-3912 248891,  563778,  566593 Fax: 7 3912 563401, 563081
Teletype: 288156 KRAZ

 E-MAIL 

 

 

 



Attention Brokers, Agents , Intermediaries, Mandates of Principals/Buyers

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Palms & Company, Inc. Founded 1934
Palms Bayshore Building, Penthouse Suite #408 West Wing 
6421 Lake Washington Boulevard North East
State of Washington, United States of America, 98033-6876
Phone: 1-425-828-6774 & 1-425-827-5528
Branches: 41 World-wide 
email: Marketing@PeterPalms.com
Consulting telephone: click HERE 
Created 1995 Last Revision: 6/23/2004
Copyright 1995-1996, Palms and Company, Inc., All rights reserved

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