Gold Trade Procedure:
- Delivery Terms
Delivery shall be on CIF Dubai (Incoterms 2020) basis.Seller is responsible for transportation and insurance up to Dubai International Airport / Port.
- Payment Terms
Buyer will issue an Irrevocable, Transferable, Non-Cancellable Letter of Credit (LC) in favor of the Seller.
No advance payment shall be made outside the LC.
- Required Documentation
The Seller shall present the following documents under the LC for payment negotiation:
3.1 Commercial Invoice.
3.2 Packing List.
3.3 Certificate of Origin.
3.4 Air Waybill / Bill of Lading showing CIF delivery to Dubai.
3.5 Insurance Certificate covering the shipment value.
3.6 Refinery Assay Report from a DMCC-approved refinery in Dubai confirming minimum purity of 98% Au and final weight.
- Refinery Assay & Payment
Upon arrival, the gold shall be delivered directly to a mutually agreed DMCC-approved refinery in Dubai.
Assay and weighing will be conducted in the presence of both Buyer’s and Seller’s representatives.
The LC shall be negotiated and payment released only after the refinery’s final report confirms contract specifications.
- Governing Law & Dispute Resolution
Governing Law: UAE Law and ICC Rules.
Arbitration: ICC Paris or DIFC Courts, Dubai.
- Additional Protective Clauses
6.1 Non-Performance: If the Seller fails to deliver goods in accordance with contract specifications, the LC shall be null and void.
6.2 No Side Payments: No commissions or payments shall be made outside the LC framework.
6.3 Force Majeure: Standard ICC clause applies.