1. Starting the Process: Legal Paperwork/SOP
As with nearly all transactions, large or small, there is a process that buyers and sellers need to follow in order to complete the transaction. In the case of purchasing large quantities of PPE, sellers usually have what is called their Standard Operating Procedure ("SOP"). The SOP may differ from seller to seller, but generally you will first need to prepare the following to begin the process:
Non-Circumvention Non-Disclosure Agreement ("NCNDA")
Letter of Intent ("LOI");
Proof of Funds ("POF") - MT-199/Bank Confirmation Letter ("BCL"), Letter of Attestation ("LOA"), and/or Know Your Customer ("KYC") ; and
Irrevocable Corporate purchase Order ("ICPO").
*NOTE: The above information is general in nature. The SOP and/or required paperwork may vary depending on the product and seller. Please contact us for more specific information or paperwork.
"Before anything else, preparation is the key to success."
- Alexander Graham Bell
"Your positive action combined with positive thinking results in success."
- Shiv Khera
2. If it is too good to be true...it is probably a fraud.
- Ron Weber
Since the start of the Covid-19 pandemic, unscrupulous scammers have been taking advantage of PPE and glove shortages. This has caused businesses and individuals millions of dollars in losses and has deprived them of desperately needed PPE. Some of the more common schemes involve:
Robocalls making fraudulent offers to sell masks or other medical devices with no intent to deliver;
Telephone calls to individuals and entities, including state and local governments offering to sell large amounts of PPE and demanding advance payments with no intent to deliver;
Counterfeiting, tampering with, or otherwise fraudulent PPE sales;
Use of fake or unauthorized documents;
Offering suspiciously low prices when compared to actual products; and
Offering implausibly large quantities of gloves or masks, especially OTG.
*NOTE: This is a non-exhaustive list. If you or somebody you know has been the victim of Covid-19 Fraud, contact the National Center for Disaster Fraud Hotline: 866-720-5721 or Justice.gov/DisasterComplaintForm. (https://www.justice.gov/coronavirus/combattingfraud)
3. Billions of boxes of gloves OTG is not realistic!!!
Visualization of 144 Million boxes of 3M Cardinal Gloves.
-Illustration by: https://demonocracy.info/
When you hear of Billion and Trillion box lot sizes of gloves on the ground ("OTG"), typically there is a small percentage of the lot that is OTG. The rest is typically futures and/or production contracts. See https://www.linkedin.com/pulse/visualization-3m-cardinal-gloves-otg-comparison-money-adam-russell/ for a more in depth analysis on this subject.