Make informed decisions before committing to an agricultural trade.
A practical due-diligence guide for buyers and suppliers working across borders. Use it to check counterparties, clarify specifications, understand costs and document responsibilities before funds or goods are committed.
Check the people, product and paperwork
Cross-border commodity transactions involve several parties and requirements. Work through these checks at a pace that matches the value and complexity of the proposed transaction.
1. Verify the counterparty
Confirm the legal or registered business name where applicable, physical contact details, authorised representative and consistent communication channels. Independently check registration details using the relevant official registry where available.
2. Confirm the product and origin
Specify the exact commodity, proposed country of origin, grade, crop or production period where relevant, condition and any measurable acceptance criteria. A product listing alone does not confirm current stock or origin.
3. Put quantity and packaging in writing
Record the quantity and unit of measure, tolerances if agreed, bag or bulk format, net weight, labelling, palletisation and loading expectations. Make sure the quotation and contract use the same units.
4. Agree the inspection plan
If inspection, sampling or laboratory testing is needed, identify who will perform it, when and where it happens, the standards or methods used, who pays and how results affect acceptance. Verify the service provider independently.
5. Check documents and regulations
Identify which commercial, customs, origin, transport and product-specific documents may apply. Requirements depend on the commodity, country of origin, destination and route; confirm them with customs authorities and qualified professionals.
6. Confirm the logistics plan
Clarify the named delivery location or port, loading point, expected schedule, shipping method, insurance responsibility, handling needs and what happens if there are delays. Treat schedules as estimates until confirmed by the responsible provider.
Make payment and responsibilities clear
Do not rely on verbal assumptions for important terms. Ask questions, review the documents and seek independent advice where needed.
Review the full cost
Request a written breakdown of product price and any applicable packaging, inland transport, handling, inspection, certification, port, freight, insurance, banking or other charges. Clarify which amounts are estimates and which are confirmed.
Agree payment terms
Record currency, payment method, due dates, deposit or milestone structure, bank charges and the documents or milestones associated with payment. Independently verify changes to bank details using a known, trusted contact channel.
Define acceptance and remedies
Where appropriate, the contract should explain how quantity or quality differences are assessed, the timeframe for raising concerns, the evidence required and the agreed process for resolving disputes.
Read the trade terms carefully
If Incoterms® or other delivery terms are used, specify the exact rule, named place or port and applicable version. Make sure each party understands its responsibilities; ask a qualified trade adviser if uncertain.
Keep a written record
Retain the quotation, contract, approved specification, correspondence, inspection reports, invoices, payment records and transport documents. Ensure amendments are acknowledged by the parties who have authority to agree them.
Use independent professional advice
For significant transactions, consider advice from qualified legal, customs, tax, banking, inspection or logistics professionals who understand the relevant jurisdictions and commodity.
Before you authorise payment or shipment
Use this list to identify gaps. Not every item applies to every transaction, and the parties should agree the final requirements in writing.
Buyer checklist
□ Counterparty and authority checked
□ Product, origin and specifications documented
□ Quantity and packaging agreed
□ Price, currency and all known charges clarified
□ Payment and delivery terms understood
□ Inspection and acceptance process agreed
□ Destination-country requirements checked
□ Contract and supporting documents reviewed
Supplier checklist
□ Buyer identity and authority checked as appropriate
□ Product capacity and availability verified before commitment
□ Specifications and tolerances understood
□ Packaging, marking and loading requirements clarified
□ Documents and permits applicable to the shipment checked
□ Costs and responsibilities allocated in writing
□ Payment milestones and communications verified
□ Logistics plan and contingencies discussed