SOP Library
SOP NO:
TS-ES12
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Industry Services (BR)
Area:
Grains Marketing (GM)
Title:
SOP on Electronically Relayed Agricultural Products (e-TRADE) Trading System for Yellow Corn
Date Approved/Issued:
01/20/1999
Date Effective:
01/20/1999
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
Statement of Policies
A.
Individual corn farmers and Farmers’ Organizations (FO) / Farmers’ Cooperatives (FC) in the nine identified provinces who are accredited with the NFA and are holders of NFA Farmer’s Passbook or Master Passbook are eligible to participate in this project. Accreditation of new individual farmer or farmers’ organization, shall follow existing NFA system for accreditation.
B.
Corn deposits shall be evidenced by a corn GIFT Certificate (GC) corresponding to the quantity (in 50-kg bags) of the stocks deposited which shall be issued by the NFA under the name of the
seller
/depositor.
C.
Initially, only one standard of corn, which is
Grade ‘A’
of the NFA procurement standards shall be accepted for deposit under the project.
D.
Corn deposited by the
seller
can be stored at NFA depository warehouses for free for a maximum of
30 days
after which the
seller
shall be charged a daily storage fee based on predetermined rates set by the NFA
-
Provincial Office.
E.
In the event the stocks deposited are not sold within the 30-day free storage period , the
seller
has the option to either withdraw his stocks or sell the same at the best price offered in the
Buyer
s’ Board
.
F.
Payment of stocks shall be made to the
seller
/s through the
Provincial Trading Center (PTC)
. Remittances to the
PTC
s for payment to the
seller
/s shall be based on the
buyer
’s price less
marketing cost
.
G.
The
PTC
shall deduct from the remitted sales proceeds the corresponding storage fee or any other fees that the
seller
may have incurred.
H.
The initial corn stocks to be issued to the corn
buyer
s shall be taken from the existing corn stocks at NFA designated warehouses/withdrawal points which shall be replenished with stocks coming from the participating provinces.
I.
Corn users shall be provided access to the
Manila Trading Center (MTC)
. Volume of stocks and the respective price quotations from the participating provinces shall be inputted into the information exchange system for ready viewing.
J.
The
seller
s shall also be provided access to the
PTC
s and the market information relayed through the
MTC
on corn
buyer
’s requirements.
K.
Buyer
s who wish to have their offers posted on the
Buyer
s’ Board
shall pay a
commitment fee
of P0.25/kg based on their quoted volume. Should the
buyer
decide to be delisted from the
Buyer
s’ Board
while his offer has not been matched, the NFA shall refund in full the
commitment fee
paid by the
buyer
. However, the
commitment fee
shall become non-refundable once the
buyer
’s offer is matched and shall form part of the total purchase price in case the sale is consummated. It shall be forfeited if the
buyer
fails to pay the total purchase price on time.
L.
The NFA Administrator or the Deputy Administrator for Operations may waive payment of the
commitment fee
based on the
buyer
s’ track record and upon recommendation of the
MTC
.
M.
Buyer
s
who paid the
commitment fee
shall be granted a twenty one (21) - day free storage period within which to withdraw the stocks they purchased reckoned from the date of issuance of the Authority to Issue (AI).
N.
Walk-in buyers shall only be entertained when there are no offers in the Buyer's Board to match the sellers' offers at the last hour of trading. The walk-in buyer's offer shall only be matched upon execution of the Sales Order and payment of the commitment fee. Full payment of the purchased lots shall be made within 24-hours otherwise the commitment fee shall be forfeited and the offer shall be cancelled. Walk-in buyers shall be granted a seven (7) - day free storage period within which to withdraw their stocks reckoned fromt he date of issuance of the AI.
O.
In case the
buyer
fails to withdraw the stocks within the free storage period, he/she shall be charged the usual storage fee.
P.
The weight and quality of stocks purchased as indicated in the Warehouse Stock Issue (WSI) shall be considered final upon acceptance of the
buyer
or his authorized representative at the point of withdrawal.
Q.
Buying and selling transactions shall be on a spot market basis, which uses the particular trading day’s quoted
seller
’ /
buyer
’s price (Today’s Price) and
marketing cost
s.
Farmers Grains Exchange Program (FGEP)
procedures wherein NFA charges or deducts the cost of dispersal shall be adopted.
R.
Pre-arranged sales between a
seller
and a
buyer
maybe allowed under this project subject to the approval of the NFA Administrator or Deputy Administrator for Operations.
III. IMPLEMENTING GUIDELINES
A. Pilot Areas
The program shall be implemented initially in the following provinces/areas:
Seller
s’ Point
Buyer
s’ Point
1. Bukidnon 1. Metro Manila
2. Misamis Oriental
3. Gen. Santos City
4. North Cotabato
5. Maguindanao
6. Palawan
7. Sultan Kudarat
8. Zamboanga del Norte
9. South Cotabato
Subsequently, other provinces shall be included in the program.
B. Components
1.
Provincial Trading Centers
-
PTC
s shall be established to provide information updates on the following:
Offers/proposals of prospective
buyer
s with terms on quantity, quality, price and other specs;
Updated information on corn deposits in the province: owner-depositor, volume, specs, asking price;
Available corn deposits in other participating provinces:
seller
s, volume, specs, price and other terms;
Updated handling and transport cost from designated depository warehouse at the source province to NFA-designated warehouses/withdrawal points.
Initially, the following
PTC
s shall be established:
Puerto Princesa Trading Center - NFA Palawan
Dipolog Trading Center - NFA Zamboanga del Norte
Cagayan de Oro Trading Center - NFA Misamis Oriental
Malaybalay Trading Center - NFA Bukidnon
Gen. Santos City Trading Center - NFA General Santos City Isulan Trading Center - NFA Sultan Kudarat
Kidapawan Trading Center - NFA North Cotabato
Cotabato City Trading Center - NFA Maguindanao
Marbel Trading Center - NFA South Cotabato
2.
Manila Trading Center (MTC)
-
This shall be located at the NFA Central Office at the 5th floor, Annex Building. The
MTC
shall serve as the main trading floor where trading transactions shall be centered. The
MTC
maintains information updates on the available corn deposits in participating source provinces: volume, specifications, selling price ,
marketing cost
and other terms.
The Business Development and Promotions Dept. shall regularly maintain information on the historical and prevailing wholesale prices ex-Manila and the historical and prevailing wholesale prices ex-participating source provinces, which the
PTC
s and
MTC
may access through the Lotus Notes.
3.
Corn Exchange Information Center -
A corn exchange information system running through the agency’s Wide Area Network (WAN) shall be established and maintained to monitor and process information both at the
seller
s’ end and at the
buyer
s’ end.
4.
Corn Depository Warehouses -
Designated NFA warehouses in the nine ( 9 ) identified provinces which shall accept corn deposits for storage and dispersal to Metro Manila. In the identification of depository warehouses, participating NFA provincial offices must limit its number without sacrificing service to farmer-depositors, and consider strategically located warehouses in order to minimize transport and handling costs.
5.
NCR Revolving Corn Inventory -
A pilot stock inventory which shall be maintained at NFA designated warehouses for immediate issuance to
buyer
s. The revolving stock shall be taken from incoming stocks from the corn deposits in the participating provinces.
C. Organization and Management
The following NFA departments and offices shall have the following responsibilities:
1. Department for Corporate Planning
(DCP)
- shall periodically assess the performance of the project, and plan expansion to include other corn-producing and corn-using provinces nationwide.
2.
Management Services
Department
(MSD)
- shall be responsible for the configuration, set-up, maintenance and provision of technical support on the telecommunications and computer hardware and software components of the system.
3.
Extension Department
(EXD)
- shall be responsible for the operationalization of the
Manila Trading Center
which shall be manned by a composite team from the different Central Office departments.
4.
Business Development and Promotion Department
(BDPD)
- shall monitor, review and update corn industry information to be used in the implementation of the project.
5. Department for Marketing Operations
(DMO)-
in coordination with the NFA Regional and Provincial offices, shall direct movement of required stocks from source province to NCR, and shall ensure availability of warehouse space at participating production provinces.
6.
The participating
NFA Provincial Managers
shall be responsible for the operation of the Provincial Trading Centers.
Market
Development Officers (MDOs),
or the
Provincial Economist
shall man the Provincial Trading Center, in case the participating NFA Provincial Office has no MDO.
D. Application for Availment
I.
Seller
s
1. Individual corn farmers/ Farmers’ Organizations/Farmers’ Cooperatives in the nine (9) identified pilot areas who are accredited and are holders of NFA Farmer’s Passbooks (FP) or Master Passbooks are eligible as
seller
s/depositors. Issuance of Farmer’s/Master Passbook and accreditation of new individual farmers/ FOs shall follow existing systems for FP issuance per SOP No. GM-PR12 and accreditation of FOs per Memorandum No. 196 issued on December 15, 1987 titled IPP Accreditation Policies and the amendments thereof.
2. The
seller
shall fill up the program’s
pro-forma application form
indicating the volume/quantity and quality of corn the
seller
intends to deposit under the program.
The MDO shall validate the data on the application form based on the submitted farmer’s passbook or the master passbook.
3. The MDO shall recommend to the Provincial Manager the approval/disapproval
of the application
.
Upon approval of his application, the
seller
shall accomplish the
Deposit Agreement
which contains the following conditions:
a. Quality of stocks to be deposited under the program shall follow the “one- quality policy” procurement with specifications as follows:
Grade A
described as: Moisture Content = 14%
Purity = 97-100%
Maximum Damaged Kernels= 5%
b. Unsold stocks when withdrawn shall be subject to shrinkage allowance which accounts for loss in weight of stocks while in storage;
c. There shall be co-mingling of stocks at NFA depository warehouses;
d. Free storage for a period of thirty (30) days shall be allowed reckoned from the date the stocks are received at the warehouse per WSR
e. After the 30-day free storage period, a storage fee shall be charged, the amount of which shall be determined by the concerned NFA Provincial Office based on flat rate per bag of 50 kg per day;
f.
Marketing cost
shall be based on prevailing rates as determined by the NFA;
g. Payment for corn stocks to be remitted to the
seller
shall be net of the
marketing cost
and storage fee that the
seller
may incur;
h. NFA shall not buy any stocks under this project ; and
i. In the event that the stocks deposited are not sold within the 30-day free storage period, the
seller
has the option to either withdraw his stocks or sell the same at the best price offered in the
Buyer
s’ Board
;
4. NFA shall provide the
seller
with the list of NFA warehouse which shall be used as depository for their corn harvest. The list shall contain the following information: a) province, b) name of warehouse, c) address/location of the warehouse, d) available space and/or estimated capacity in bags that can be accommodated; and e) expected period the warehouse shall be available for the project.
5. The MDO/Economist shall assign a
seller
’s code to each participating farmer/FOs/Farmers’ Cooperatives using the following coding system:
The first Farmer-applicant of the Bukidnon
PTC
whose application was approved shall be assigned a code of
BKNF001
where
BKN
is the province code,
F
is for
individual farmer
and
001
is his assigned number as the initial approved participant to the project. The first FO depositor shall be assigned a code of
BKNC001
where
C
shall mean
Farmers Cooperative or FO
. The succeeding depositor shall be assigned the
next ordinal number
.
The code assigned to a particular depositor shall be permanent. As such, a code assigned to a depositor who shall withdraw from the project cannot be assigned to another depositor and shall be cancelled.
6. The MDO, based on the approved application forms, shall inform the WSII of
seller'
s preferred schedule of expected deposits and depository warehouse. Upon confirmation with the WSII, the MDO shall inform the
seller
of the final schedule of delivery and the designated warehouse where his stocks shall be deposited.
II.
Buyer
s
1. Only NFA accredited
buyer
s
shall be allowed to buy stocks under the e-TRADE Trading Project. A prospective
buyer
interested to participate in the project shall present his Bureau of Animal Industry (BAI) registration as corn user to the
MTC
for accreditation to the project
2. Each participating
buyer
shall be assigned a
buyer
’s code by the
MTC
as follows:
MTC
001
where
MTC
represents
Manila Trading Center
which initially shall process all
buyer
s’ applications, and
001
represents the first participating
buyer
. The next participating
buyer
shall be assigned
MTC
002 and so on.
The
buyer
’s code, like the
seller
’s code shall be permanent and cannot be re-assigned to another in case the
buyer
withdraws from the project.
3.
The minimum quantity that a
buyer
may buy shall be set at 50 bags of 50 kg per bag.
E. Deposit of Stocks
1. The
seller
shall deposit his stocks to the designated warehouses based on the provisions of the Deposit Agreement as scheduled by the NFA.
2. The
seller
may deposit a minimum of fifty (50) bags of 50 kg and a maximum volume equivalent to the marketable surplus indicated in the
seller
’s Farmer’s/Master Passbook.
3. The
seller
shall be responsible for the delivery of stocks to NFA designated warehouse.
4. Only Grade A corn which has the following specifications shall be accepted for deposit under the project:
moisture content = 14 %
purity = 97-100 %
maximum damaged kernels = 5 %
5. The SGOO-WSII shall check the stocks for deposit and ensure that the stocks are properly weighed and classified.
6. The stock deposits of an FO/FC, although belonging to its farmer-members, shall be considered collectively.
7. Co-mingling of
seller
s’ stocks shall be allowed in NFA corn depository warehouse. However, the piling system under the NFA Farmers Option - to- Buy Back ( FOBB ) program may be followed for large volume deposits.
8.
Seller
’s corn deposit shall not be rebagged into NFA sacks unless sold through the project.
9. In computing for the net weight of the stocks, a standard MTS Weight of 220 grams per sack shall be used for
seller
’s sacks. However,
seller
s may use NFA sacks for a fee , the payment of which may be deducted from the sales proceeds or to be paid in cash to the NFA if the
seller
withdraws from the project . Existing procedures for MTS issuance and documentation shall apply.
To document the issuance of NFA sacks for the rebagging of sold stock deposits, a separate pad of ESI shall be used. The ESI shall be issued in the name of the depositing farmer/FO indicating “e-TRADE TRADING SYSTEM” as the nature of transaction
10. Farmers/FOs participating in the project shall be informed accordingly regarding changes in the moisture content of their stocks due to natural causes which account for the reduction in weight of the deposited stocks while in storage. As such, the following shrinkage allowance based on established standards shall be deducted from the original weight of the stocks if the
seller
withdraws his unsold stocks from the project :
Storage Period (Month) Shrinkage Allowance (%)
1 0.06
2 0.36
3 0.66
4 0.96
5 1.26
6 1.56
The shrinkage allowance shall only be applied and deducted if the
seller
withdraws the stocks from the project after the 30-day free storage period. The deduction of the shrinkage allowance shall not be applied for stocks sold through the project even after the free storage period.
11. NFA shall properly maintain the stock deposits of
seller
s to ensure quality good thereof. Hence, except for losses due to natural causes, NFA shall be accountable to the
seller
for any loss/shortage incurred for the duration of storage. The responsibility of going after the accountable SGOO-WSII concerned shall rest with NFA.
12. The
seller
shall be allowed to conduct inspection of their stocks anytime during office hours.
F. Documentation Procedure for Acceptance of Corn Deposits
1. To document receipts of stock deposits, a separate pad of Warehouse Stock Receipt (WSR) shall be used. The WSR shall be issued in the name of the depositing farmer/ FO/FC indicating “e-TRADE TRADING SYSTEM” as the nature of transaction.
2. The SGOO-WSII shall indicate in the WSR the ENW Factor and the ENW in kilograms. The Moisture Content (MC) and purity of stocks upon deposit must also be reflected accurately in the WSR.
3. The WSR shall be prepared in the usual number of copies for distribution as follows:
WSR 1 -
Seller
WSR 2 - SGOO-WSII
WSR 3 - Accounting
WSR 4 - Auditing
WSR 5 - Handlers
4. The
seller
shall present his copy of the WSR to the MDO at the PTC for preparation and issuance of GIFT Certificates (GC). For the purpose of the e-TRADE Trading System, the GIFT Certificate shall only serve as evidence of FO corn deposits in designated NFA warehouse and is
non-negotiable
.
The GC under the NFA Gift Program to be used under the e-TRADE Trading System shall be stamped with “ e-TRADE Trading System”.
5. The MDO shall prepare the NFA GIFT Certificate in the name of the
seller
upon presentation of the WSR based on the number of bags received and the computed ENW in kilograms indicated therein.
6. The MDO shall indicate in the Gift Certificate the detailed information on the stocks deposited including the corresponding WSR numbers documenting such.
7. The WSII shall report daily to the MDO the corn deposits and the corresponding WSR issued for the day to be reconciled with the GCs issued.
8. The issuance of GCs shall be at a minimum of 50-bag denomination.
9. The date to be indicated in the GC shall be the date of receipt of stocks for deposit, or the date per WSR.
10. The control number of the GC issued shall be indicated in the Remarks portion of the WSR. Further, the WSR number and date of issue shall be indicated in the control portion of the GC.
11. The GC shall be distributed as follows:
Depositor’s Portion -
Seller
Control Portion - NFA- MDO
12. The Provincial Manager shall approve the Gift Certificate (GC) upon receipt by the MDO of the initial
Offer to Sell
accomplished by the
seller
. The
seller
shall also sign his name at the back of the
Offer to Sell
to acknowledge his agreement to the rules and procedures to be used in matching offers under the e-TRADE Trading System. The
Offer to Sell
shall be distributed as follows:
Original Copy -
PTC
/MDO
Duplicate - Farmer/FO/FC
13. The
seller
shall be given photo copies of the GCs covering his deposit.
14. All warehouse transactions under the program shall be included in the liquidation of stock accountabilities of SGOO-WSII. Variance in weight of stock deposits incurred from receipt of stocks to its withdrawal shall be covered by the tolerable allowance.
15. The shrinkage allowance provided based on established standards shall be used as basis in determining the weight variance between stock receipt and issue owing to the natural loss in moisture content and other factors.
16. The corn stocks deposited in the warehouse shall also be reported by the WS II in the regular Stock Inventory Report under a separate heading following the same information format used for the regular stocks.
17. In cases where the SGOO-WSII feels prejudiced in certain transactions he undertook under the program, he can file an appeal with the Tolerable Allowance Committee ubject to existing procedures.
G. Posting of Offers at the Trading Boards
I.
Seller
s’ Offers
1. Posting of stock deposit shall be undertaken only upon the issuance of the GC and the submission of the
seller
’s initial
Offer to Sell
.
2. The MDO/ Economist shall post the following information to the e-TRADE Trading System:
a. Name of Depositor
b.
Seller
’s/ Depositor’s Code
c. Depository Warehouse
d. Date of Actual Deposit
e. Quantity Deposited
f. Selling Price per kg
g. GC Control Numbers
h. Date of Latest
Offer to Sell
3. Any changes in the
seller
’s quotation as to the price and/or quantity shall be documented with a new
Offer to Sell
before said changes shall be posted in the computer. A transaction slip, generated by the MDO through the computer, shall be given to the
seller
to evidence said changes.
4. Changes on the posting shall be done at the
PTC
s. A
seller
shall be allowed to change an
Offer to Sell
only once a day, from 8:00AM to 3:00PM, Mondays to Fridays.
However, the new price and/or quantity shall only be reflected in the
PTC
and
MTC
boards on the next trading day upon receipt by the MDO of the new
Offer to Sell
..
The MDO shall regularly inform the
seller
that changes to the
seller
’s quotation shall only be valid on the next trading day and sales consummated for the day shall be based on the price quoted for that day.
II.
Buyer
s’ Offers
a.
Buyer
s shall be required to accomplish and submit to
MTC
an
Offer to Buy
indicating the desired quantity/volume and buying price. The
buyer
shall also sign his name at the back of the
Offer to Buy
acknowledging agreement to the rules and and procedures in matching offers to be used under the e-TRADE Trading System. The
Offer to Buy
shall be distributed as follows:
Original Copy -
MTC
Duplicate - Farmer/FO/FC
b. The
buyer
’s offer as indicated in his “
Offer to Buy
” shall be posted on the
Buyer
’s Board
only upon payment of a
commitment fee of P 0.25 per/ kg based on volume requirement.
The
commitment fee
may be paid in cash, Manager’s/Cashier’s Check for which a Provisional Receipt shall be issued.
The
commitment fee
shall be refunded in case the
buyer
decides to be delisted from the
Buyer
’s Board
while his offer has not been matched . However, this fee shall become non-refundable if the
buyer
's offer is matched and shall form part of the total purchase price if the sale is consummated.
If the
buyer
’s offer is matched but for any reason the sale is not consummated, the
commitment fee
shall be forfeited and shall be given to the
seller
(s) whose lot(s) were matched to the
buyer
’s offer.
c. For convenience,
buyer
s may also submit their
Offer to Buy
and pay the
commitment fee
at the nearest NFA Provincial Office. The NFA P.O. shall, in turn, inform the
MTC
immediately of the transaction through the fastest means available for posting at the trading boards.
d. A
buyer
shall be allowed to change an
Offer to Buy
only once a day, from 8:00AM to 3:00PM of the trading day. However, the said change in price quotation shall only be reflected in the
PTC
and
MTC
boards on the next trading day.
e. The MDO shall regularly inform the
seller
of the NFA policy that changes to the
buyer
’s offer shall only be valid on the next trading day and sales consummated for the day shall be based on the price quoted for that day.
H. Rules and Procedures in Matching Offers
1. The
PTC
shall receive information on interested
buyer
s in Metro Manila which the
seller
s may view and use as basis for
seller
s’ asking price. On the other hand, the
Manila Trading Center (MTC)
shall maintain information update on the available corn deposits and historical and prevailing wholesale prices in Metro Manila and participating source provinces. Through the wide area network ( WAN) of NFA, interested
buyer
s in Metro Manila can buy the posted corn stocks from the participating provinces.
2. The
buyer
s’ offers shall always be used as the basis for matching. Priority shall be given to the
buyer
with the highest offered price.
In case price offers are not equally matched, the
buyer
’s offer shall be matched with the
seller
offering a lower price closest to the
buyer
’s offer.
Basis for payment shall be the
buyer
’s quoted price for the day.
3. If the choice is between or among
seller
s offering the same lot quantity and price, the offer with the earliest posting of
Offer to Sell
shall be matched to the
buyer
.
4. In the same manner, if the choice is between or among
buyers
with the same lot and quantity requirement, the
buyer
with the earliest posting of
Offer to Buy
shall be matched to the
seller
.
5. The volume/quantity of a
buyer
or a
seller
can be matched partially or in full. Offers of
buyer
s/
seller
s whose volume have not been fully matched shall remain open for trading to the extent of the balance and shall retain their priority ranking under the first come-first serve basis.
6. The e-TRADE Trading System shall first try to match
buyer
s who posted offers before
walk-in
buyer
s
are entertained.
Walk-in
buyer
s
’ offers shall be matched at the last hour of trading and only if the
buyer
gives a
commitment fee
and pays in full the total purchase price within 24 hours.
7. Offers that are matched shall be marked
CLOSED
in the trading boards
.
The
MTC
shall immediately notify the
buyer
that his offer has been matched and shall be asked to accomplish the
Sales Order
and pay the total purchase amount
within twenty-four (24) hours upon notification of the match by the
MTC
.
If the
buyer
fails to pay the total purchase amount within 24-hours, the
seller
’s offer which was matched with his offer shall be re-opened (the mark CLOSED shall be removed from the trading boards). The
buyer
’s
commitment fee
shall be forfeited and his offer shall be cancelled/delisted from the trading boards.
8. Matched
seller
s’ stocks shall be marked “
SOLD per OR NO. ___
” on the trading boards only if full payment for the stocks has been received. No partial payment shall be allowed. Delisting of sold lots from the
Seller
’s and
Buyer
’s Boards shall be effected only after one week after the transaction has been consummated.
I. Storage Fees and other Charges
1. Corn stocks deposited by the
seller
shall be stored at NFA warehouse for free for a maximum of thirty (30) calendar days after which a daily storage fee shall be charged.
2. The storage fee shall include charges such as warehouse rental, insurance premiums, cost of pesticides, and cost of handling.
3. Storage fee rates shall be shown at the back of the GC for the FO’s information.
4. Storage fee rates shall be determined by the NFA Provincial Office which the BDPD shall periodically review for information of the
PTC
s.
J. Payments
1. The
buyer
shall pay the total purchase price in cash, Manager’s/Cashier’s Check at the
MTC
from 8:00 AM to 3:00 PM within twenty four (24) hours upon notification of the match. Based on the
Sales Order
, the
MTC
shall prepare the Authority to Accept Payment (AAP), indicating therein the amount of stocks purchased broken down as follows:
seller
’s price
,
marketing cost
,
commitment fee
paid, if any, and the corresponding Provisional Receipt No./Date Issued.
2. Payments may also be made at selected NFA Provincial Office with prior clearance from the
MTC
.
3. The
MTC
shall facilitate the payment of the
buyer
to the NFA Cashier and the handing of the corresponding OR to the
buyer
.
4. The NFA Cashier shall accept payment and shall issue an O.R. to the
buyer
, indicating the
seller
’s price
,
marketing cost
s and the
commitment fee
paid, if any.
5. The
MTC
shall indicate the sale in both the
Sellers’ Board
and the
Buyer
s’ Board
s once the
buyer
has paid for the stocks.
6. The
MTC
shall inform the
PTC
of the sale for the MDO to inform the
seller
of the sale of stocks, the payment of which shall be received by the
seller
within two working days upon
buyer
’s payment.
7. The MDO shall also cancel the Gift Certificate/s of the
seller
for the particular sold stocks.
8. The
MTC
, through the WAN, shall inform the concerned NFA Office/withdrawal point of the sale, indicating the OR number and the amount paid and shall request for the issuance of an Authority to Issue (AI) to the
buyer
or the
buyer
’s representative corresponding to the stocks purchased.
9. The concerned NFA Office/withdrawal point shall inform the
MTC
of the schedule of withdrawal and the designated warehouse. The MTC, in turn, shall inform the
buyer
of the withdrawal schedule.
K. Remittance of Sales Proceeds to
Seller
s
1. Payment of stocks shall be made to the
seller
/s through the Provincial Training Centers (
PTC
). The
MTC
shall request the DTBFM to remit to the concerned
PTC
s the payment of
seller
’s sold stocks immediately upon full payment of the
buyer
.
2. Remittances to the
PTC
s for payment to the
seller
/s shall be based on the
buyer
’s price less
marketing cost
.
The
PTC
shall deduct from the remitted sales proceeds the corresponding storage fee or any other fees that the
seller
may have incurred.
3. The DTBFM shall remit the sales proceeds to the concerned
PTC
s within 24 hours of
buyer
’s payment or may authorize the use of available CPF of the province be able to pay the
seller
within two (2) days upon full payment of the
buyer
.
L. Unsold Stocks
1. The
PTC
shall notify the
seller
every week if there are no takers for the posted stocks or no changes in the data posted. However, this does not limit the
seller
to update/revise posting anytime as a marketing strategy.
2. The
seller
, upon receipt of the notice, may make price adjustment and prepare another
Offer to Sell
to revise the prices posted in the
Seller’s Board
.
3. The MDO shall inform the
seller
at least two (2) days from the expiration of the 30-day free storage period that the
seller
’s stocks are not yet sold and the free storage period is about to expire. The
PTC
shall also inform the
seller
of the following options open to the
seller
:
a. Withdraw the Stocks, or
b. Sell the stocks on the first working day after the 30-day free storage period has expired, to the best price offered in the
Buyer
s’ Board
.
4. If
seller
opts to withdraw the stocks, the
seller
shall inform the
PTC
. The MDO shall then cancel the
Offer to Sell
and GC issued for the stocks; and issue an AI to the depository warehouse to release the
seller
’s stocks, net of shrinkage and other charges which the
seller
shall pay in cash prior to the stock’s release.
5. If stocks are sold to local
buyer
s while stocks are posted, the
seller
must inform the
PTC
for the cancellation of the corresponding GCs and
Offer to Sell
. Deposited stocks shall only be issued to the
seller
. As such, the
seller
shall accompany the
buyer
to the
PTC
for the release of the stocks to the
buyer
.
a. If stocks are sold to local
buyer
s within the 30 days free storage, the
buyer
shall pay only the handling cost.
b. If stocks are sold to local
buyer
s after the 30 days free storage, the
buyer
shall pay the accumulated storage fee and handling cost.
c. The MDO shall cancel the GC and
Offer to Sell
and authorize the issuance of stocks to the
seller
upon full payment of applicable storage and /or handling fees.
6. Payment of storage fee shall be in cash only.
M. Accounting Procedures
1. All activities involved in the e-TRADE Trading System shall be treated as Special Project under activity code # 173.
2. The account to be used are as follows:
a. LCC - collections and depository fund account
for the collections of sales proceeds
b. CPF - drawing account for the payment to farmers.
c. Miscellaneous Trust Liability - e-TRADE Trading System - This is
the liability account to record the receipt of payment from
buyer
s.
This shall be closed upon payment to Farmer/FO
seller
s. A
subsidiary for each individual farmer/FO shall be maintaned.
3. The pre-positioning of stocks at NCR shall follow the regular dispersal operations and shall be recorded based on the SOP on Cost Accounting for Stocks.
4.
Remittance to field offices and stock transfers shall follow the usual interbranch transactions, while disbursement procedures shall follow the existing SOP on Voucher System.
5. Issuance of stocks to
buyer
s shall be recorded as negative debit entry to Inventory- Items for Sale.
6. Transport costs deducted from proceeds shall be treated as deduction/negative debit entry to e-TRADE Trading System expenses.
Please see
Annex B for the Pro- Forma Journal Entries
N. Reporting and Monitoring System
Through the WAN, the
MTC
shall generate the following reports for the monitoring and evaluation of the e-TRADE Trading System
.
Report Title User / Frequency
1.
Daily Sellers Report
(Exhibit 6)
MTC
/ PM/RD / Daily
2.
Daily Sales Report
( Exhibit 7)
MTC
/ PM/RD / Daily
3.
Daily
Buyer
s Report
(Exhibit 8)
MTC
/ PM/RD / Daily
4.
Weekly Status Report
(Exhibit 9 ) AO cc: ODAO, DMO, EXD,
DTBFM, DCP, BDPD &
DAS/ Weekly
*Reports 1,2 and 3 are available for viewing and printing of the concerned
PTC
and its Regional Office. These reports shall be updated daily. Report 4 is generated/printed before 12:00 am every 7th, 15th , 22nd and end of the month.
III. RESPONSIBILITIES
IV. FLOW CHART
Annex A - e-TRADE TRADING SYSTEM
- Application and Posting of F/FO's Price Quotation
at the Seller's Board
e-TRADE TRADING SYTEM -
Posting of Buyer's Price Quotation at the Buyer's Board
e-TRADE TRADING SYSTEM -
Buying Process, Withdrawal of Stocks and Remittance of Payment
to PTC
e-TRADE TRADING SYSTEM -
Remittance of Sale Proceeds to Sellers
Top Page
EXHIBITS
e-TRADE TRADING SYSTEM-Seller's Application Form
ETS-Deposit Agreement
ETS-Offer to Sell
e-TRADE-Offer to Buy
ETS-Sales Order
ETS-Daily Sales Report
ETS-Daily Buyers Report
ETS-Weekly Status Report
ETS-Daily Sellers Reports
Pro-forma Journal Entries
e-TRADE Trading System - Annex A
e-TRADE-Annex A page 2
e-TRADE -Buying Process, Withdrawal of Stocks and Remittance of Payment to PTC- Annex A page 3
e-TRADE -Annex A page 4