US PPI Certificate Instructions
A policy proof of interest certificate (PPI) may be issued by a seller to a buyer when the goods aren't present. The certificate acts as a guarantee that the goods are available. Once the PPI is issued, the purchaser is more assured that the goods actually exist. If they do not, legal remedies are available. A PPI is issued to a bank, which then issues a more official document detailing the transaction.
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Instructions
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Advise the end buyer to fill in the details of the PPI. These details will include information about the buyer.
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Make sure a signature is received from the end buyer. This now forms a contract and the buyer has agreed to the terms.
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Advise the buyer that the intermediary will accept the PPI, fill in the blanks and then deliver it to the buyer's bank. The bank will then replace the PPI with a documentary letter of credit — or DLC — which is more active and valuable.
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Note that the PPI requires no verification, but only needs to be issued. The buyer can then call to make sure the inventory is available at the supplier within 72 hours of being issued the PPI.
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Tips & Warnings
If the information contained in the PPI is false, the seller risks being charged with fraud.
