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International Commodities Trading, Procurement, Sales & Trade Finance

Document Type: Standard Operating Procedure
Version: 2.0 — General International Trading Framework
Effective Date: October 16, 2026
Applies To: Domestic and international commodity transactions
Company: New Era Industries, Inc. dba New Era Commodities

This Standard Operating Procedure establishes a consistent framework for sourcing, selling, purchasing, and exporting commodities through New Era Industries, Inc. dba New Era Commodities (“New Era”).

The procedure is designed to facilitate secure, transparent, and commercially viable transactions involving agricultural commodities, food products, energy products, petroleum derivatives, industrial raw materials, and other approved commodities.

All transactions are subject to satisfactory due diligence, contractual agreement, financial verification, regulatory compliance, product availability, and the applicable requirements of the transaction.

Before requesting a formal quotation or initiating a purchase or sale, the prospective buyer should define the following requirements:

• Commodity: Product type, grade, specification, origin, and quality requirements.
• Quantity: Total volume, initial shipment size, and anticipated monthly or annual requirements.
• Destination: Country, destination port, and final delivery location, as applicable.
• Target Price: Target price per metric ton or other applicable unit, including currency and preferred delivery basis.
• Delivery Terms: Preferred Incoterms® rule and named port or delivery location.
• Payment Method: Documentary letter of credit (DLC), standby letter of credit (SBLC), bank guarantee (BG), wire transfer, documentary collection, advance payment, or another mutually acceptable arrangement.
• Financial Readiness: Confirmation that the buyer has the funds, approved credit facility, or bank financing required for the transaction.
• Transaction Timeline: Requested shipment schedule and delivery window.

New Era will review the information to determine whether the transaction is commercially feasible and whether a quotation or formal offer can be issued.

All prospective counterparties must provide sufficient corporate, ownership, and financial information to support transaction verification.

Depending on the transaction, the required documentation may include:

1. Certificate of incorporation or business registration.
2. Current company registry extract or certificate of good standing, where applicable.
3. Company address and verifiable business contact information.
4. Identification and authority of directors, officers, and authorized signatories.
5. Beneficial ownership information.
6. Tax identification or applicable business license information.
7. Import, export, commodity-specific, or distribution licenses where required.
8. Bank reference or bank comfort letter, where appropriate.
9. Evidence of financial capacity or an approved trade-finance facility.
10. Sanctions, anti-money-laundering (AML), know-your-customer (KYC), and other compliance documentation as applicable.

New Era reserves the right to reject or suspend any transaction where documentation cannot be verified, material information is inconsistent, or compliance requirements are not satisfied.

The buyer submits a signed Letter of Intent on company letterhead specifying:

• Commodity and product specifications.
• Required quantity and shipment frequency.
• Destination port or delivery location.
• Target price or acceptable pricing range.
• Preferred delivery terms.
• Proposed payment method.
• Buyer’s corporate details and authorized contact information.

An LOI is an initial expression of commercial interest and is not binding unless expressly stated otherwise.

Following an initial review, New Era or the authorized seller may issue a preliminary quotation or Full Corporate Offer (FCO).

The offer may specify:

• Product description, grade, origin, and specifications.
• Available quantity and minimum order requirements.
• Price, currency, and pricing validity period.
• Delivery terms and shipment schedule.
• Payment conditions and acceptable financial instruments.
• Inspection, certification, and documentation requirements.
• Offer validity and conditions precedent.

All offers remain subject to verification of product availability, supplier authorization, compliance approval, and final contractual agreement.

If the buyer accepts the commercial offer, the buyer submits an Irrevocable Corporate Purchase Order (ICPO), signed by an authorized representative.

The ICPO should reference the applicable FCO and include:

• Full legal name and registration details of the purchasing entity.
• Commodity, quantity, price, and delivery terms.
• Destination port and proposed shipment schedule.
• Proposed payment method.
• Issuing bank details, where a bank instrument is proposed.
• Authorized signatory details and corporate contact information.

The ICPO must be submitted in PDF format on the buyer’s official letterhead.

New Era may request a Bank Comfort Letter (BCL), bank reference, proof of funds, or other appropriate evidence of financial capacity. Such documents must be authentic and independently verifiable.

A draft financial instrument may be requested for review before issuance. The buyer should not instruct its bank to issue an instrument until the parties have agreed on the required wording and the relevant bank has confirmed its ability to process it.

The buyer’s ICPO, supporting corporate documents, bank information, and proposed payment terms will be reviewed by New Era, the seller, and, where necessary, their respective banks or authorized trade-finance representatives.

The review may include:

• Verification of the buyer and seller.
• Verification of the bank and relevant banking relationships.
• Review of the proposed instrument and payment conditions.
• Assessment of creditworthiness and transaction funding.
• Sanctions screening and AML/KYC checks.
• Verification of the proposed supply chain and product origin.
• Confirmation of the commercial feasibility of the transaction.

Banking standard: New Era generally prefers established, internationally recognized banks with demonstrable trade-finance capabilities. A bank’s inclusion in a recognized top-100 ranking may be used as a screening criterion where agreed, but it does not itself guarantee acceptance, authenticity, creditworthiness, or payment.

Bank acceptance remains subject to the actual issuing institution, country, instrument terms, confirmation arrangements, and the receiving bank’s requirements.

Following satisfactory preliminary review, the seller issues a draft Sales and Purchase Agreement (SPA).

The SPA should address:

• Legal identities and obligations of the parties.
• Commodity specifications, quantity, and tolerances.
• Price, currency, and applicable price adjustments.
• Delivery terms under the agreed Incoterms® rule.
• Shipment schedule and delivery milestones.
• Payment arrangements and financial instrument requirements.
• Inspection, sampling, and certification procedures.
• Required shipping and commercial documents.
• Allocation of freight, insurance, duties, and other costs.
• Risk transfer and title-transfer provisions.
• Force majeure, default, termination, and dispute resolution.
• Governing law and applicable compliance obligations.

The buyer reviews the SPA and returns proposed amendments or redlines.

The parties negotiate and resolve outstanding issues before signing the final agreement.

Once both parties approve the final version, the SPA is executed by authorized signatories using DocuSign or another mutually accepted electronic signature platform, or by another agreed signing method.

No party should treat an unsigned draft as the final contract unless the parties have expressly agreed otherwise.

After execution of the SPA, the seller issues the applicable commercial invoice, pro forma invoice, or payment request as agreed in the contract.

New Era's standard commercial policy: New customers may be required to pay an initial deposit of 30% of the contract value upon signing the SPA, subject to the transaction-specific agreement and any approved exceptions.

The deposit requirement, payment deadline, refund conditions, and treatment of the remaining balance must be expressly documented in the SPA.

For transactions involving exports to China or Hong Kong, New Era's standard policy is not to accept a letter of credit as the sole initial payment arrangement without an agreed initial deposit. Exceptions require prior written approval.

The buyer returns the invoice acknowledged and signed or stamped where required, and provides payment confirmation if a deposit applies.

If the SPA requires a bank instrument, the buyer arranges issuance through its bank in accordance with the final agreed terms.

Acceptable instruments may include:

• Documentary Letter of Credit (DLC/LC): A bank undertaking to honor a complying documentary presentation under the credit's terms.
• Standby Letter of Credit (SBLC): A bank undertaking that supports the specified payment or other obligation in accordance with its terms.
• Bank Guarantee (BG): A bank undertaking subject to its stated conditions and applicable rules.

The specific instrument, amount, validity, expiry date, beneficiary, presentation requirements, governing rules, and payment trigger must be agreed in writing.

Where applicable, the instrument may be transmitted through authenticated bank-to-bank channels, including the relevant SWIFT message type.

A documentary credit may be issued subject to UCP 600. A standby letter of credit may be issued subject to ISP98 or another expressly agreed framework. A demand guarantee may be subject to URDG 758 where appropriate.

A revolving, transferable, divisible, irrevocable, or confirmed structure will be accepted only where commercially appropriate, legally permissible, and expressly agreed by the parties and their banks.

These features are not automatic requirements for every transaction. Transferability, in particular, must be expressly provided for and approved by the issuing bank.

The buyer's bank must satisfy the transaction's agreed banking criteria. A required Relationship Management Application (RMA) relationship with Bank of America, Wells Fargo, or another designated bank must be verified by the relevant banks where applicable. An RMA relationship alone does not establish a bank's creditworthiness or guarantee acceptance.

Timing: The parties may agree on a target of 15 working days for issuance after execution of the SPA and satisfaction of applicable conditions. Any deadline must be recorded in the contract.

Where negotiated and expressly included in the SPA, the seller may provide a Performance Bond (PB) equal to 2% of the applicable contract value.

The SPA must identify the bond issuer, beneficiary, amount, validity, claim conditions, governing rules, and delivery deadline. A performance bond is not assumed to be available or mandatory in every transaction.

Where a 2% performance bond is agreed, the parties may establish a target of 12 banking days after receipt and verification of the agreed financial instrument for delivery of the bond, subject to the issuing institution's approval and processing.

The seller will provide Proof of Product (POP) or equivalent evidence of supply capacity in accordance with the SPA.

Acceptable evidence may include, as applicable:

• Supplier confirmation or an authorized supply allocation.
• Warehouse or storage documentation.
• Product availability statements supported by verifiable records.
• Inspection or quality documentation.
• Origin certificates or other relevant commercial records.
• Terminal, refinery, producer, or authorized supplier confirmations, where applicable and verifiable.

The parties may agree on a target of 21 calendar days for delivery of specified POP documentation following satisfaction of the agreed conditions.

No POP, performance bond, bank instrument, inspection certificate, or supplier authorization should be represented as authentic unless it has been properly issued and can be verified.

The seller and buyer coordinate the shipment schedule, loading arrangements, logistics, insurance, and required inspections.

Where applicable, an independent inspection company, such as SGS or another mutually accepted inspection provider, may verify quantity and quality.

The SPA should specify:

• Inspection location and timing.
• Sampling and testing standards.
• Applicable tolerances.
• Responsibility for inspection fees.
• Required certificates and reports.
• Loading port and vessel or transport arrangements.
• Freight, insurance, and customs responsibilities.
• Required export and import documentation.

An invitation letter for a buyer's representative to attend loading or inspection may be issued where appropriate, subject to port, terminal, supplier, security, and immigration requirements.

The seller arranges loading and shipment in accordance with the SPA and the agreed Incoterms® rule.

A preliminary shipment target of approximately 35–45 days may be used where commercially realistic and expressly agreed. The actual timeline depends on product availability, production or procurement lead time, vessel schedules, port capacity, inspections, regulatory approvals, and other transaction-specific factors.

The seller will provide shipment updates and the agreed documentary package.

Typical documents may include:

• Commercial invoice.
• Packing list, where applicable.
• Bill of Lading (B/L) or other appropriate transport document.
• Certificate of origin, where required.
• Certificate of quantity and quality.
• Independent inspection certificate or report, where agreed.
• Insurance certificate, where applicable.
• Export declarations and other regulatory documents.
• Phytosanitary, health, fumigation, or other commodity-specific certificates, where required.

Documents must reflect the actual transaction and satisfy the applicable contractual and regulatory requirements.

Payment will be made in accordance with the SPA and the applicable payment instrument.

For a documentary letter of credit, payment is governed by the credit's terms and the presentation of complying documents.

For an SBLC or BG, payment or a demand under the instrument is governed by its specific terms and is not automatically triggered merely by presentation of shipping documents.

Where the agreed payment structure requires settlement against shipping documents, the SPA and the financial instrument must specify the documents, presentation location, deadlines, and conditions for payment.

Settlement may be structured through an agreed bank transfer, including MT103 where applicable, or through another agreed banking mechanism.

Payment location: New Era's standard policy is to require payment at the port of loading or at the contractual loading-stage milestone, unless an alternative arrangement has been expressly approved in writing. Payment solely at the destination port is not accepted under the standard policy without prior written approval.

Upon completion, the parties reconcile the final quantity, price adjustments, payment, and any outstanding contractual obligations.

New Era maintains appropriate transaction records, including the executed SPA, invoices, payment confirmations, inspection reports, shipping documents, compliance records, and correspondence, subject to applicable law and contractual confidentiality obligations.

Any claim, shortage, quality dispute, or payment discrepancy must be handled in accordance with the SPA.

New Era respects the confidentiality of its suppliers, customers, and commercial counterparties.

Accordingly:

1. Historical Bills of Lading, customer-specific inspection reports, and other third-party documents will not ordinarily be distributed without authorization or a lawful basis.
2. Past-performance references are subject to customer consent, confidentiality obligations, and company policy.
3. Product photographs and videos may be supplied where authorized, available, and commercially appropriate.
4. Physical samples are subject to product availability, supplier authorization, shipping feasibility, and applicable regulatory requirements. Samples may be declined where impractical or prohibited.
5. Prospective counterparties may be offered alternative verification methods, including independently verifiable supplier documentation, authorized inspection arrangements, or controlled document review.
6. All material documentation remains subject to authenticity and compliance checks.

Confidentiality requirements do not prevent disclosures required by law, regulators, financial institutions, customs authorities, or other duly authorized parties.

New Era Industries, Inc. dba New Era Commodities will identify its corporate status, registrations, licenses, certifications, and authorizations accurately in each transaction.

Where applicable, the company may provide evidence of relevant registrations, export authorizations, distribution licenses, or commodity-specific certifications.

Any claim that the company is GACC-certified, or that a particular facility, supplier, product, or exporter holds a GACC registration, must be supported by current, verifiable documentation and must accurately identify the entity and scope covered by the registration.

Product-specific eligibility, origin requirements, destination-country rules, and import permits must be confirmed before shipment.

New Era may accept DLCs, SBLCs, BGs, bank transfers, deposits, and other commercially acceptable payment arrangements, subject to transaction approval.

Transferable instruments and instruments issued by banks meeting a top-100 ranking criterion are subject to prior review and acceptance. No instrument is accepted solely on the basis of a bank's name, ranking, draft wording, or an unauthenticated copy.

Where required by the transaction, the buyer's bank must satisfy agreed institutional and operational criteria, including any verified RMA relationship with Bank of America, Wells Fargo, or another designated institution.

The specific requirement will be confirmed before the buyer incurs issuance fees.

The following are standard planning thresholds, subject to product availability and written approval:

• Agricultural commodities: Minimum order quantity of 12,500 metric tons per month for qualifying bulk products such as grains, sugar, flour, and beans.
• Other commodities: Minimum order quantities are established individually according to product type, packaging, logistics, supplier terms, and market conditions.
• Maximum monthly volume: Standard planning capacity of up to 100,000 metric tons per month, with higher volumes considered on an exceptional, case-by-case basis.

These thresholds are commercial guidelines, not guarantees of supply or acceptance.

Requirements may vary by destination country, commodity, customs regime, sanctions exposure, import licensing, payment method, and banking arrangements.

Exports to China and Hong Kong require particular attention to destination-specific import requirements, documentation, payment conditions, and counterparty verification.

This SOP establishes the general operating framework. Individual transactions may require amendments or additional steps based on commodity type, supplier requirements, delivery terms, applicable law, or bank requirements.

Any material deviation from the standard financial, deposit, quantity, or delivery policies must be documented and approved by an authorized company representative.

All transactions must comply with applicable laws and regulations, including sanctions restrictions, AML requirements, anti-bribery rules, customs and export controls, and applicable commodity regulations.

New Era will not knowingly proceed with a transaction involving forged documents, unauthorized representations, concealed beneficial ownership, prohibited counterparties, or misrepresented product origin.

Before any deposit, bank issuance fee, performance bond fee, inspection charge, or other material payment is made, the responsible personnel should verify the recipient, contractual basis, banking instructions, and relevant service provider independently.

Banking instructions must be authenticated through a previously verified contact channel. Changes to beneficiary accounts require enhanced verification.

No employee or representative may promise guaranteed financing, guaranteed payment, guaranteed product availability, or guaranteed shipment dates unless supported by the relevant binding commitments.

Buyer

• Supplies accurate corporate and financial information.
• Submits the LOI, ICPO, and required supporting documentation.
• Obtains approved financing and arranges the agreed payment instrument.
• Meets contractual payment, import, and documentation obligations.

Seller / New Era

• Reviews the commercial inquiry and issues offers within its authority.
• Conducts counterparty and transaction due diligence.
• Coordinates supplier verification, contracting, and logistics.
• Provides agreed product and shipment documentation.
• Meets its contractual delivery and performance obligations.

Banks and Financial Institutions

• Independently evaluate and process financial instruments.
• Authenticate relevant bank-to-bank communications.
• Apply their own compliance, credit, and document-review requirements.
• Honor valid obligations in accordance with the applicable instrument terms.

Inspection and Logistics Providers

• Perform agreed inspections and logistics services.
• Issue accurate reports and records within their authority.
• Comply with applicable operational and regulatory requirements.

The following is an indicative planning schedule only. It is not a guarantee of completion.

MilestoneIndicative timeframeLOI, initial review, and quotationBased on completeness and product availabilityICPO and compliance reviewCase-specificSPA negotiation and executionCase-specificFinancial instrument issuanceTarget of 15 working days, if agreedPerformance bond deliveryTarget of 12 banking days after instrument receipt, if agreedPOP documentationTarget of 21 calendar days after agreed conditions, if agreedLoading and shipmentTarget of 35–45 days, if agreedFinal settlementAccording to SPA and payment instrument

All timelines are subject to the agreed contract, bank processing, regulatory approvals, supplier readiness, inspection results, and logistics availability.

This SOP is an internal and commercial operating framework. It does not independently create a payment obligation, guarantee supply, or replace a signed SPA or valid bank instrument.

In the event of a conflict, the executed SPA, the applicable financial instrument, and mandatory applicable law govern according to their respective scope and legal effect.

Documentary credits, standby letters of credit, and demand guarantees should expressly identify the applicable rules where relevant, including UCP 600, ISP98, or URDG 758.