10 Simple Steps to Buy Dangerous Chemicals
Dangerous chemicals are crucial inputs to daily manufacturing and processing. This blog outlines how you can purchase dangerous/dual use chemicals legally and in a fast way.
If you are an end user of dual use chemicals and need support in procuring industrial chemicals, please reach out to us for FREE consultation
What are Dangerous Chemicals?
Any chemical that has the potential to cause harm is referred to as a hazardous or dangerous chemical. There are several classifications including explosives, gasses, flammable liquids, flammable solids, oxidizing substances and organic peroxides, toxic substances, radioactive substances, and corrosives.
Metallic drums used to export sodium cyanide which is a dual use chemicals
What are Dual-Use Chemicals?
Dual-use chemicals are substances that have applications in both peaceful and military contexts.
Dual use chemicals used in major industries like agriculture, pharmaceuticals, and petroleum.
These chemicals can also be used in the production of weapons and explosives.
The term "dual-use" emphasizes their dual nature.
In international trade, these chemicals require governmental approval and close monitoring due to their potential for both civilian and military use
Multiple IBC Drums of Dual-Use Hydrochloric Acid ready for Export
How to Successfully Purchase Dual-Use Chemicals
The process of purchasing dual use chemicals begins with the conclusion of the commercial terms between a buyer and seller.
IBC drum used to export Hydrochloric acid which is a dual use chemicals
1. Buyer Accepts Seller’s Proforma Invoice
The Proforma Invoice is a preliminary invoice that is sent by the seller to a potential buyer before a finalized transaction. It serves as an estimate or quotation of the final cost of the goods and services.
A proforma invoice usually includes details such as the description of the goods or services, the quantity, total amount, taxes or fees, and the payment terms. Information about the seller and buyer are typically included also.
Typically, the invoice is used as the initial point for negotiations between the buyer and seller. Since this is not a formal document, negotiating helps both parties on the agreement of the terms of the transaction before a formal contract is established. It is often advisable to communicate any wanted changes or modifications to the proforma invoice before proceeding with a legally binding document.
2. Both Buyer & Seller Sign Sales Contract
After the proforma invoice is issued and both parties reach an agreement on the terms, a formal sales contract is drafted. The sales contract outlines the finalized terms and conditions of the transaction, incorporating any negotiations or adjustments made after reviewing the proforma invoice. It's important to note that while the proforma invoice serves as a preliminary agreement, it's not a legally binding contract. The sales contract, on the other hand, is a legally binding agreement that governs the rights and responsibilities of both the buyer and the seller.
Example of Sales Contract
Dual-Use Chemicals Sales Contract Document
3. Buyer Pays Deposit Payment
After reviewing and accepting the negotiated contract, the seller (Camachem) will usually request a deposit payment from the buyer .This deposit serves partially as a pre-payment of the total cost of the goods or services.
4. Buyer Provides a Summary of the End User Company Description
In many cases for dual-use chemicals, the end user may need to provide a description or details towards the supplier. The “description” provided may include information about the intended use, quantity, handling or storage requirements, and other relevant information. This will help the supplier in ensuring that they are providing an appropriate product for the situation.
5. Buyer Completes End Use Certificate Form
Due to their versatile applications and their potential for illicit purposes, dual-use chemicals are subject to special regulations and controls by both national and international authorities. In order to prevent misuse and in maintaining global security, licensing requirements and end-use certificates are required when exporting these items to another country.
The End Use Applications usually consists of:
- End User Name: This refers to the individual or services designed for that will ultimately use the dual-use chemical. It’s crucial to determine the legitimacy of the end user and the intended purpose of the chemical. This information helps verify that the recipient is a legitimate entity and not involved in any prohibited activities.
- End Use Certificate: Is an official document used in international transfers issued by the importing country’s authority. It provides an affirmation that the imported dual-use chemical will be used for its stated purpose and that the buyer is the final recipient of the materials. The end-use certificate typically includes information about the goods, the end user, the intended use, and any conditions or restrictions imposed by the exporting country. It is signed by both the exporting and importing parties.
Example of End Use Certificate
Dual use chemicals end user and end use certificate example
In order to purchase dual-use chemicals, both the buyer and exporter must completely sign the above document which formally assures the relevant authority about the intended use of the chemicals.
6. Buyer Couriers Original Stamped Documents to the Seller
After the end-use certificate is signed for the dual-use chemicals, The brief description, signed contract, and End User and End Use Certificate are securely packaged and sent via Post to China for further processing. With all the signed documents in hand, the exporter (Camachem) will then proceed with the necessary preparations for the shipment of the dual-use chemicals.
7. Seller Applies for Export License with Local Authorities
After all documents are signed and in place, the exporter (Camachem) will then apply for an exports license for the dual use chemicals. Obtaining a license before exporting dual-use chemicals is a crucial step in maintaining global security and preventing the misuse of these substances. Licensing ensures that exports comply with international laws, regulations, and agreements, thereby safeguarding against potential risks. The application is evaluated by the relevant authorities who are responsible in determining whether the export is in compliance with the relevant regulations. This will take around 15 days to process.
Example of Export License
Dual use chemicals export license example
8. Seller Prepares Goods for Shipping
While the export license application has been submitted and is under review, the exporter (Camachem) will begin preparing the goods. This includes activities such as:
- Production of goods
- Packaging the goods according to safety standards
- Arranging for transportation and storage
9. After Export License is Issued, Buyer Remits Final Payment
After obtaining the export license and preparing the goods for export, the exporter (Camachem) will notify the client for the final payment. The notification will include:
- The remaining total balance due
- Details of any payment methods and instructions for making the payment
- The timeline for payment
- The buyer needs the original export license to clear the goods in their own country
- This is because dual-use chemicals have both legitimate and potentially harmful applications
Watch our Youtube Video on the Main Uses of HCL Acid
10. Seller Books Vessel Licensed to Carry Dangerous Goods
After the buyer makes the final payment as specified in the given notification, the exporter (Camachem) will identify a suitable vessel for transporting the chemicals. They will take into consideration factors including capacity, route, and compliance with necessary regulations.
11. Seller Provides Final Custom Clearance Documents to the Buyer
Once the products are securely loaded, the exporter (Camachem) will prepare and send necessary customs clearance documents. These documents include:
- Commercial Invoice
- Packaging List
- Bill of Lading or Airway Bill
- Any other relevant documentation
- Export License
- Entry form for customs
Dual-use chemicals are important due to their versatility, impact on various sectors, and the need to strike a balance between benefiting humanity and preventing potential harm. Proper management, regulation, and oversight are essential to harness their positive potential while minimizing their risks.
The above export process for dual use chemicals is important due to several reasons such as global security, safety, and international regulations.
This process plays a critical role in maintaining global security, preventing the spread of weapons of mass destruction, and fostering international cooperation.
Export controls help strike a balance between facilitating legitimate trade and mitigating the potential risks associated with the misuse of these versatile substances.
Camachem will guide you through the entire process to ensure that you receive your product while adhering to all the required regulations.
Please reach out to us for a FREE consultation on how to purchase industrial chemicals