Trade Finance & Logistics Compliance
Trade Finance & Logistics Compliance.
Every Basilio Trading Co. transaction is structured to eliminate counterparty risk, satisfy Tier-1 Canadian bank documentary requirements, and comply fully with CFIA export protocols and international Incoterms. Capital protection and execution certainty are non-negotiable.
Risk Mitigation Architecture
Basilio Trading Co. operates as a principal trading firm — not a broker. We take title to the commodity, manage the full logistics chain, and deliver to the buyer's port of discharge under internationally recognised Incoterms. This structure eliminates ambiguity, protects both producer and buyer, and ensures every shipment is backed by a documentary package that satisfies the requirements of Tier-1 Canadian financial institutions.
Our trade finance desk works exclusively with Tier-1 Canadian banks — Royal Bank of Canada, TD Bank, Scotiabank, BMO, and CIBC — to issue and advise Transferable Letters of Credit. The Transferable LC structure allows us to back-to-back finance origination from producer to buyer without double financing, reducing cost and eliminating the need for the buyer to engage directly with the producer's banking relationship.
Transferable Letters of Credit
All transactions are settled under Transferable Letters of Credit issued through Tier-1 Canadian financial institutions. The LC is structured to be transferable, allowing Basilio Trading Co. to assign payment obligations to the originating producer without exposing the buyer to producer-level counterparty risk. Documents are presented in strict compliance with UCP 600 rules governing documentary credits.
- Issued by RBC, TD, Scotiabank, BMO, or CIBC
- Advised via SWIFT MT700 / MT710
- UCP 600 compliant documentary presentation
- Transferable structure — no double financing
Incoterms 2020 — CIF / CFR / FOB
All Sales Contracts and Letters of Credit specify the applicable Incoterm in accordance with ICC Incoterms 2020 rules. CIF (Cost, Insurance & Freight) is the standard term for most transactions, placing the obligation for freight booking, marine cargo insurance, and export clearance on Basilio Trading Co. CFR and FOB terms are available for buyers with established freight relationships.
- CIF — standard term; Basilio arranges freight and insurance
- CFR — buyer arranges insurance; Basilio arranges freight
- FOB — buyer arranges freight and insurance from load port
- ICC Incoterms 2020 — written confirmation in all contracts
Marine Cargo Insurance
All CIF and CFR shipments are covered by all-risk marine cargo insurance arranged through a Lloyd's of London syndicate or equivalent A-rated insurer. Coverage is issued under Institute Cargo Clauses (A) — the broadest available standard — at CIF value plus 10%, as required under UCP 600 for LC-backed transactions. Insurance certificates are presented as part of the standard documentary package.
- Institute Cargo Clauses (A) — all-risk coverage
- CIF value + 10% as standard under UCP 600
- Lloyd's of London syndicate or A-rated equivalent
- Certificate of Insurance presented with shipping documents
CFIA Export Certification & CETA Compliance
All agricultural commodity exports are processed under the Canadian Food Inspection Agency's Export Certificate Programme. Phytosanitary certificates, grade certificates, and commodity-specific export permits are obtained through CFIA-accredited inspection bodies. For shipments to EU member states, EUR.1 Movement Certificates are issued to qualify for CETA preferential tariff treatment at EU ports of entry.
- CFIA phytosanitary certificate — all export shipments
- Independent grade certificate — SGS, Bureau Veritas, or Intertek
- EUR.1 Movement Certificate — CETA-eligible EU shipments
- Fumigation certificate where required by destination country