A Tailored approach to South Africa’s Fuel Industry
All the parties are also required to submit documentation to TradeSafe (for regulatory and compliance purposes) and have a TradeSafe user account. We will require the following documentation for regulatory and compliance purposes:
- Copy of your wholesale license
- Copy of company registration
- Proof of bank account
Please send the documentation to email@example.com and we will let you know as soon as the verification procedures have been performed.
TradeSafe requires the Buyer (the party who will deposit the funds with TradeSafe), all Wholesalers and the End-Seller (the party receiving the funds to their bank account) to be linked and be a party to the same TradeSafe transaction. This ensures that terms are agreed by everybody, that all parties are vetted, that there is complete transparency (with respect to performance) and that everybody is on the same page. When a transaction is created, all parties must be linked. TradeSafe will not link any additional parties to an already existing transaction. This is becoming quite common amongst suppliers who at the last-minute requests TradeSafe to link the actual supplier to the transaction, who in the turn the new supplier asks TradeSafe to link an additional supplier...and so on and so forth...no more. Please see below how TradeSafe assists in linking all parties to a single transaction. THE END-SELLER ON THE TRADESAFE SYSTEM MUST BE THE PARTY THAT WILL RECEIVE THE FUNDS TO THEIR BANK ACCOUNT. If they are not receiving the funds to their account, then they are not the End-Seller and must be treated as a wholesaler, Sub-Agent or other intemediary.
For the intemediaries, rest assured, Tradesafe will enforce CONFIDENTIALITY so that your parties' and any profits payable to you are protected and will never be disclosed to any other party. That is our promise!
Payment Release Mechanism
TradeSafe releases the funds upon the buyer's acceptance of either the 1) Bill of Lading (BOL), 2) Delivery Note (DN) or 3) Loading slips (or pink slips). The method of release must be clearly outlined in the agreement between the parties and must be clear in the transaction terms on the TradeSafe system. For every load that is processed, the BOL, DN or Slips must be uploaded to the system. The BOL and DN can also be used to quickly negotiate any overs/unders directly with the Supplier. We understand that this is a fast-moving industry, so we recommend for COC loads that the driver takes a photo of the BOL using a mobile device and send it direclty to the buying party so that it can be quickly uploaded to the TradeSafe system.
If the buyer fails to act on the TradeSafe system after collection/upliftment has taken place, and TradeSafe is unable to make contact with the buyer or establish a reason for the inaction, then TradeSafe may consider treating the transaction as deemed ownership acceptance and begin the process of releasing the funds to the supplier.
TradeSafe performs its daily payment runs twice every business day at 09h00 and 15h00. If authorisation to release was received at 14h30 then payment will be made at 15h00 using Real-Time Clearance that business day. If authorisation to release took place after 15h00, then payment will be made at 09h00 the following business day using RTC.
Refund Policy and Overs/Unders
Remember, the terms of the transaction are dictated by the parties. Therefore TradeSafe will classify a transaction as a non-performance if there has been a breach of the transaction terms. If a transaction clause states that the slips must be furnished within, say, 24 hours, and the supplier is unable to perform within the time period, then this will be classified as a non-performance Should there be a non-performance on TradeSafe, then the buyer will receive their funds in full at 15h00 that same day or 09h00 the following business day when TradeSafe performs its daily payment run (TradeSafe peruses Real Time Clearance so the funds should reflect immediately in the buyer's bank account).
Lastly, the buyer has the option of having any Unders of either being credited to their escrow account or being refunded directly to their bank account which will take place during the 09h00 or 15h00 daily payment runs.
TradeSafe charges a fixed rate of 1 (one) cent per litre for every transaction. This fee can be paid by either the customer, wholesaler or end-supplier or split between all three.