Our Procedures

Avalon Trade Group will strictly adhere to trade process and procedures. They are implemented to support our suppliers and clients ensuring a smooth process for commodities trading, fraud & crime prevention.An outline of our procedures can be seen below.    

Initiation of trade with Avalon

Trading with Avalon to buy commodities are initiated by completing our initial contact form. Following this stage a trade specialist within your sector will contact you for an appointment to discuss your request in more detail. If you would like to trade with Avalon simply complete our contact form selecting your interest.

First time trading with Avalon?

If this is your first time trading with Avalon, we work within a specific framework to safeguard the interests of all parties, clients and vendors alike. This is important as managing expectations during an initial transaction are an essential part of building long term working relations moving forward.

All first time buyer transactions will be conducted lawyer to lawyer and will, depending on the type and value of your transaction involve holding of funds in escrow for the duration of the transaction.

First time transaction (buyers) of $50+ Million USD

Offering our clients a guaranteed value % below index for all soft commodities throughout the contract is what Avalon can offer all our first time clients transacting over $50m. Avalon achieves these discounts leveraging our buying capacity regularly purchasing futures contracts of commodities and holding them in storage at various strategic warehouses around the world. 

In order to benefit from this discount Avalon works through a system of escrow to ensure protection of our clients and vendors alike, managing risk and ensuring we are working with legitimate pre-vetted individuals. Moreover we recognise the cost when raising a payment instrument via the standard banking that can be substantial. 

Because our financial facilities are located in both London and Hong Kong, Avalon will elect a 3rd party top tier corporate escrow lawyer to hold funds that are transferred via SWIFT in order to prevent the expensive cost of raising an instruments for our clients as well as mitigate risk and ensure professional results. All orders are shipped on a CIF basis, all escrow fees are covered by Avalon.

  • RFO (request for offer) submitted online via our website
  • CO (corporate offer) sent from Avalon signed by both parties
  • Avalon issues a mutually agreeable term sheet 
  • Corporate resolution, Affidavit issued by client to Avalon
  • Escrow agreement issued by lawyer, client account opened in favour of client
  • Transaction contractual agreements prepared, agreed and attached to escrow agreement
  • Funds for transaction placed into escrow
  • Avalon initiates the allocation, loading of vessel and shipment of first consignment to the port of discharge (CIF)
  • Documents presented to the lawyer by Avalon and client as evidence of shipment and delivery of consignment
  • Lawyer releases payment for the first delivery to Avalon upon satisfaction of the client.

First time transaction (buyers) up to $49 Million USD

  • Lawyer to lawyer contract agreement
  • Payment Instrument will be transferable DLC or structured DLC (part of our risk management policy)
  • Depending on the commodity we may request a 30% prepayment upfront
  • DLC released upon presentation of documents to your issuing bank
  • All first time transactions under $50m are on an FOB basis only

Intermediary Policy

Avalon Trade Group will not work with internet based intermediaries. As a licensed international services group we adhere to regulatory protocol and process and will not entertain third party facilitation. Avalon will only pay their own registered trade consultants and representatives and will not make commission payments to third party internet brokers or use any commonly circulated internet based documentation.

Due Diligence Policy

Avalon Trade Group works within international guidelines to ensure we are always working within legal frameworks for the purpose of international trade. As a company that is incorporated within the United Kingdom, and trade with United States Dollars, we will carry out due diligence checks on all prospective clients and individuals we work with to ensure we are not inadvertently involved with sanctioned countries, entities, businesses or individuals. We maintain a high level of integrity and as such will not entertain trading with illegal or prohibited substances or items or processes that can potentially harm individuals or economies. 

Do you have any other questions?

Any questions about trading with Avalon can be addressed to us anytime