Trade Facilitation Support Services

CIS Commodity Inspection Services provides trade facilitation support services in selective regions where CIS have their own offices. Such trade facilitation support services includes Collateral Management Agreement (CMA) services and Stock Monitoring Agreement (SMA) services.

 

Collateral Management Agreement (CMA) services

CMA services are formed between a financier (bank) if goods are pledged to bank and finance transactions are involved between Bank and owner of goods whose goods are pledged to bank, a depositor/borrower (owner of the goods pledged to bank), the collateral manager (inspection company) and the warehouse provider (storage provider for Third party storage). Collateral Management Agreement (CMA) is signed between parties as referred to above either tripartite or quadripartite. CMA services facilitate the import and export of trade of agricultural and other commodities.

Under CMA, the physical commodity is received into a storage facility such as warehouse or silo and retained under exclusive custody until the collateral manager is instructed by the bank or the borrower to release (partially/totally) the commodity.

 

Scope of work under CMA services:

• Preliminary inspection of the storage facility assuring suitability for storage of goods
• Supervision of stacking/storing of goods into a warehouse or silo
• Issuance of warehouse or silo receipts
• Daily verification of the commodity condition and quantity stored
• Supervision of inbound/outbound movement of the commodity upon receipt of appropriate written instructions
• Recording and reporting of in/out movement of the commodity

 

Stock Monitoring Agreement (SMA) services

CIS Commodity Inspection Services also provides stock monitoring services for verification of quality and quantity of commodities stored in warehouses and silos. The Stock Monitoring Agreement is signed between the parties involved in the stock monitoring. The commodities under SMA are generally not held under exclusive custody. The documents related to commodities storage/movement are verified and validated by the SMA provider (inspection company). The in/out movement of commodities supervised. All recordings are maintained and reported on daily/periodic basis.

Do not hesitate to contact CIS and find out how our trade facilitation support services can facilitate your trade.