Due diligence & documentation guide
Verify first. Document everything. Then deal.
Trade Leads Daily gives you lead information only. Whether a lead becomes a safe, profitable deal depends on the checks you do and the documents you insist on. This guide is a practical checklist for bulk import and export – it is general information, not legal or financial advice, so use qualified lawyers, banks and inspectors for your actual deal.
تحقّق أولًا، ووثّق كل شيء، ثم أبرم الصفقة. هذا الدليل يساعدك على التحقق من المشتري أو البائع وتوثيق الصفقة بشكل كامل.
Due diligence in 8 steps
- Go to the official source. Open the original tender notice or announcement from the lead page. For public tenders, only the official notice and the buyer's own published contacts count – not intermediaries who 'represent' the buyer.
- Verify the company exists. Check the commercial registry in its country, the registration number, registered address, directors and age of the company. Compare the website domain, its registration date and the email domain. Be careful with free email addresses and newly registered sites.
- Confirm authority and capacity. Is the person authorised to sign? Does the seller actually own or control the goods (production capacity, stock, title documents)? Does the buyer have the import licence and the funds (bank reference, not 'proof of funds' screenshots)?
- Screen for sanctions and compliance. Screen every party, beneficial owner, bank, vessel and port against the UN, US OFAC, EU and UK sanctions lists. Check export controls, dual-use rules, import bans and quotas in both countries.
- Check references and track record. Ask for trade references and previous shipment records (B/Ls, invoices with sensitive details hidden). Use credit reports, chamber of commerce membership and your bank's checks.
- Agree inspection. Name an independent inspection company (SGS, Bureau Veritas, Intertek, Cotecna or similar) in the contract for quality and quantity at loading, and at discharge if needed. Never accept 'the seller's own lab only'.
- Secure the payment. Use a confirmed irrevocable L/C, documentary collection, escrow or payment after inspection. Never pay advance fees, 'registration', 'dip test', 'tank storage' or 'document' fees to unknown parties. Never send money to an account in a name or country different from the contracting company.
- Sign a full written contract. Put everything in a signed SPA: specification, tolerance, Incoterms® 2020 with named place, shipment period, documents, inspection, payment, penalties, force majeure, sanctions clause, governing law and arbitration. Have a trade lawyer review it.
Deal documents checklist
Typical documents for a bulk cross-border deal, by stage. The exact set depends on the product, the countries and the payment method – your L/C or contract should list exactly what is required.
1. Enquiry & offer
| Document | Issued by | What it is / what to check |
|---|---|---|
| RFQ / enquiry or official tender notice | Buyer | States product, specification, quantity, delivery, payment and how to bid. For public tenders, the official notice is the only valid channel. |
| Company profile & registration documents | Both | Certificate of incorporation / CR, trade licence, tax/VAT number, address, authorised signatories. |
| Letter of Intent (LOI) / Purchase Order | Buyer | Non-binding statement of interest. Never send bank details or pay anything at this stage. |
| Quotation / Firm Corporate Offer (FCO) / Pro-forma invoice | Seller | Price, Incoterm, validity, specification, packing, inspection and payment terms on the seller's letterhead. |
2. Contract
| Document | Issued by | What it is / what to check |
|---|---|---|
| Sales & Purchase Agreement (SPA) / sales contract | Both | Parties, goods & specs, quantity tolerance, price & currency, Incoterms® 2020 and named port, shipment period, inspection, payment, documents required, force majeure, sanctions clause, governing law and arbitration (e.g. GAFTA, FOSFA, ICC, LCIA). |
| Specification sheet / technical data sheet | Seller | Agreed quality parameters and test methods, attached to the contract. |
| Performance bond / bid bond (if required) | Seller | Bank guarantee securing the seller's performance – usual in government tenders. |
| Export / import licences and permits | Both | Export permit, import permit, quota allocation, health or agricultural approvals as the products require. |
3. Payment security
| Document | Issued by | What it is / what to check |
|---|---|---|
| Letter of Credit (L/C), ideally confirmed and irrevocable | Buyer's bank | Opened under UCP 600. Seller is paid against compliant documents. Confirmation by a bank in the seller's country removes country/bank risk. |
| Documentary collection (D/P – cash against documents) | Banks | Under URC 522. Cheaper than an L/C but the seller carries more risk. |
| Standby L/C or bank guarantee (URDG 758 / ISP98) | Banks | Security for open-account or term deals. Issued bank-to-bank via SWIFT – never 'leased' or 'monetised'. |
| Escrow or T/T after inspection | Both | For smaller or repeat deals with known parties. |
4. Before shipment
| Document | Issued by | What it is / what to check |
|---|---|---|
| Commercial invoice & packing list | Seller | Must match the contract and L/C exactly. |
| Certificate of inspection – quality & quantity | Independent inspector | From an independent company such as SGS, Bureau Veritas, Intertek or Cotecna, at loading. |
| Certificate of origin | Chamber of commerce | Needed for customs duty, preferential trade agreements and sanctions checks. |
| Phytosanitary / health / veterinary / halal certificate | Authorities | For food, agricultural and livestock products, as the importing country requires. |
| Certificate of analysis / mill test certificate | Producer / lab | For chemicals, fuels, fertilizers and metals. |
| Product conformity certificates | Certification body | For example SASO/SABER in Saudi Arabia, CE in the EU, PVoC in Kenya, SONCAP in Nigeria. |
5. Shipping & delivery
| Document | Issued by | What it is / what to check |
|---|---|---|
| Bill of Lading (B/L) or charter-party B/L | Carrier / master | Title document for sea cargo. Check vessel name, IMO number and ports. Track the vessel independently. |
| Insurance certificate | Insurer | Usually 110% of CIF value under Institute Cargo Clauses (A) for CIF/CIP. |
| Draft survey / ullage report / outturn report | Surveyor | Confirms quantity loaded and discharged. |
| Customs declaration & duty payment | Importer / customs broker | With HS code, value and origin – the importer is responsible for import compliance. |
🚩 Red flags – stop and check
- You're asked to pay any fee in advance – 'registration', 'legalisation', 'dip test', 'tank storage', 'NCNDA/IMFPA processing' or 'procedure' fees.
- Petroleum 'procedure' offers (EN590, JP54, D2, Jet A1, Bonny Light) from resellers asking buyers for ICPO, POF, MT799/MT760 or bank comfort letters before showing any verifiable product.
- Requests to 'lease', 'monetise' or 'block' bank instruments (SBLC, BG, MTN) or to pay for them.
- Prices well below the market, very large quantities 'available immediately', or a seller who refuses independent inspection.
- Free email addresses, websites registered a few weeks ago, addresses that are virtual offices, or names copied from real companies.
- Pressure to decide fast, to skip the contract, or to pay a different company or a personal account.
- Documents that can't be verified: B/Ls for vessels that weren't in that port, inspection certificates the inspection company doesn't recognise, bank letters the bank can't confirm.
- Goods, vessels or banks linked to sanctioned countries or parties, or unclear ship-to-ship transfers.
Where to check
Company registration
The commercial registry of the company's country (for example the Ministry of Commerce CR search in Saudi Arabia, Companies House in the UK, MCA in India, the registrar in each Emirate). Chambers of commerce can confirm membership.
Sanctions screening
UN Security Council Consolidated List, US OFAC SDN and Consolidated lists, EU Financial Sanctions database and the UK OFSI list. Your bank can also screen for you.
Vessels & shipments
Check the vessel's IMO number and position on public AIS trackers and the classification society's register. Confirm B/Ls directly with the carrier.
Documents & banks
Confirm inspection certificates with the inspection company, bank letters and SWIFT messages with your own bank – never through contacts given by the counterparty.
ICC rules mentioned on this page: Incoterms® 2020, UCP 600 (documentary credits), URC 522 (collections), URDG 758 (demand guarantees), ISP98 (standby letters of credit).
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