DKE GOLD GENERAL TRADING FZC

Address: Commercial Quay, 84 Commercial St, Leith, Edinburgh EH6 6LX, United Kingdom License#: 4832 Import/Export Code#: 55679

info@dkegoldfzc.com www.dkegoldfzc.com

Definitions
The following definitions have the following meaning in these website pages and will also be used throughout
any Agreement between Dke Gold General Trading FZC and the Seller.

“Advance Payment” means other than its literal meaning, that the Seller may need some money to pay for
the taxes, insurance, transportation, etc. to be able to ship his goods to the Buyer;

“ARDLC” means Auto Revolving Documentary Letter of Credit. This is rarely used, since if an
ARDLC is issued auto revolving for 12 months, it would mean that the full funds for
all 12 months have to be deposited and blocked by the issuing bank. So, if for example
a monthly shipment is for $10 million, and is auto revolving for 12 months, then $120
million must be deposited and held as collateral by the bank. That is why always a
SBLC is issued that needs only funds for one month/shipment and when the payment
is transferred for this shipment, then you can always have the SBLC auto revolving
every month;
“Assayer” means an assayer or assay company nominated by the Buyer and licensed by the
Governmental authorities of the Import and/or Export Country in order to assay the
Gold Bars in their offices or at the Buyer’s nominated Security Company’s Bonded
Warehouse;
“Assay Result” means the results issued by the Buyer’s Nominated Assayer (following an assay of a
given shipment of Gold Bars to be performed by the Buyer’s Nominated Assayer in
their laboratory or in the Bonded Warehouse) ascertaining the specifications
(including purity) of each shipment of Gold Bars;
“ASWP” means Any Safe World Port/Airport;
“AU” means Gold - Aurum Utallum (AU);
“BBO” means Buyer’s (Bullion) Bank Officer;
“BCL” means Bank Capacity/Comfort Letter;
“Bonded Warehouse” means a secured building owned or leased or operated by the Buyer’s nominated
Security Company or bank fully licensed by the Import Country’s Authorities for (a)
storage, acceptance and release of shipments upon receipt of formal instructions;
and (b) third party inspection and assaying;
“BRL” means a Bank Reference Letter issued by the Buyer, Seller or Financier and sent
only via bank to bank Swift MT799
“Bullion” Bullion refers to precious metals in bulk form which are regularly traded on
Commodity Markets. The value of bullion is typically determined by the value of its
precious metals content, which is defined by its purity and mass.
The specifications of bullion are often regulated by market bodies or legislation. In the
European Union, the minimum purity for gold bullion, which is treated as investment
gold with regards to taxation, is 99.5% for gold bullion bars.
“Business Day” means a day on which banks are open for business in the United Kingdom or the
UAE or Cyprus or the country of Import or Export;
“Buyer” means the person or company that is the direct buyer of the commodity from the

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 Seller;
“CIF” means Cost, Insurance, Freight, each being expenses covered by the Seller;
“CIS” means Client (or Customer or Broker or Financier, as the case may be) Information
Sheet that must be submitted prior to any financial transaction;
“Day” or “day” means a calendar day;
“DGCX” means Dubai Gold and Commodities Exchange;
“DGD” means the Dubai Good Delivery standard that was developed by DMCC in 2005 as
an international benchmark for quality and technical specification in the production of
gold and silver for the DGCX. The objective of the standard is to increase confidence
in the industry, create opportunities for trade finance activities and to provide the
technical robustness in line with globally accepted best practices. The DGD standard
for the DGCX prescribes 1kg gold bars of 99.5% or better purity and standard silver
bars ranging from 900-110 ounces at a minimum 99.9% purity. This standard further
complies with both DMCC’s Practical Guidance for Responsible Sourcing and the
Signet Responsible Sourcing Protocol in the US. Hallmarked Gold Bars from
Refineries with only the DGD standard are acceptable to the UAE banks.;

“DMCC” means Dubai Multi Commodities Centre (www.dmcc.ae), a strategic initiative of the
government of Dubai with a mandate to provide the physical, market and financial
infrastructure required to set up a commodity market place in Dubai;
“EDT” means Electronic document transmissions which shall be deemed valid and
enforceable in respect of any provisions of this Contract. As applicable, this
agreement shall be:- Incorporate U.S. Public Law 106-229, ‘‘Electronic Signatures in
Global and National Commerce Act’’ or such other applicable law conforming to the
UNCITRAL Model Law on Electronic Signatures (2001) and ELECTRONIC
COMMERCE AGREEMENT ( ECE/TRADE/257, Geneva, May 2000) adopted by the
United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT).
EDT documents shall be subject to European Community Directive No. 95/46/EEC,
as applicable. Either Party may request hard copy of any document that has been
previously transmitted by electronic means provided however, that any such request
shall in no manner delay the parties from performing their respective obligations and
duties under EDT instruments.;
“Export Country” means the country where the Seller will export the Gold Bars (commodity) from;
“FCO” means the Full Corporate Offer sent by the Buyer or Seller on their company
letterhead and indicating all terms and conditions including the quantity and the
discount based on the LBMA prices being offered, etc. and is usually signed by the
Seller and the Buyer before proceeding with a CIS, BRL, SPA, etc.;
“Final Commercial means the Final Commercial Invoice that is issued by the Seller after the commodity
Invoice” finally arrives, then the net weight report will be issued and together with the assay
results, the LBMA price and all the rest of the expenses are known, then the Final
Commercial Invoice would be issued by the Seller, which must be signed by both
the Seller and the Buyer in the presence of one of the Buyer’s Bank Officers or any
other party that is listed in the SPA;
"Fixing" means the Second Fixing, whereupon the price of gold is fixed on the Gold Market at
3:00 P.M. London local time, in accordance with the rules of the London Bullion
Market Association (LBMA);
“Financier” means an entity (bank, private company or individual) that provides the financing to
the Seller (or occasionally to the Buyer), in order for the Seller to either buy the goods
locally, or pay any expenses and then ship to the Buyer. Usually the Buyer issues the
SBLC to the Financier after receipt from the Financier of a PB and the Financier
transfers a percentage of the funds to the Seller, either from his own reserves or via
a credit line or loan from a bank;
“FOB” means Free or Factory on Board to represent that the Buyer covers all expenses up
to his Import Country;
“GLD” means Good London Delivery and this term relates to a set standard of gold bullion

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 that regulates bar size, weight, acceptable Hallmarks (stamp of the refiner), serial
numbers, year of manufacture and of course fineness (purity level).
“Gold Bars” means Gold or Gold Dore Bars, Aurum Utalium (“AU”);
“Government” means the Government of the Country of Import or Export;
“Governmental means the Parliament or Congress of the Import or Export Country or the
Authorities” Government, any ministry, statutory body or office, authority (including any regional,
state, local or municipal authority) or division thereof or any quasi-governmental or
independent regulatory body or any agency, inspectorate or corporation (other than
the Buyer) owned or controlled by the Government of the Import or Export Country,
or any sub-division thereof (including any regional or local authority), or acting
pursuant to authority granted to it by the Laws of the Export Country;
“Hallmark” means an official mark or seal applied only by a registered Refinery accepted by the
banks after the item has been assayed to determine that its purity conforms not only
to the standards set down by the law but also with the maker’s claims as to gold
content. Any inaccuracy would mean the loss of the Refinery’s license.
“ICC” means International Chamber of Commerce;
“ICPO” means Irrevocable Corporate Purchase Order;
“IMFPA” means Irrevocable Master Fee Protection Agreement;
“Import Country” means the country where the Buyer will import the Gold Bars into;
“Incoterms 2010” means International rules for the interpretation of the most commonly used trade terms in
international trade, published by the International Chamber of Commerce in 1936 and
amended in 1953, 1967, 1976,1980,1990, 2000 and 2010.
“Intermediary” means a person or company acting as an agent/mandate of the Seller and
sometimes the Buyer as well;
“Kg” means Kilogram, which is equal to = 1,000 grams, or equal to 32.15 troy ounces;
“KPC” means Kimberley Process Certificate that is mandatory to accompany rough
diamonds;
“KYC” means Know Your Client (or Customer or Broker or Financier, as the case may be)
that must be submitted prior to any financial transaction and is similar to CIS;
“LBMA” means the London Bullion Market Association;
“L/G” means Bank Letter of Guarantee issued by the bank and sent via Swift MT760 under
URDG 758 rules or latest version (since the ISP 98 rules are usually used only for
SBLC’s);
“LC” means a fully cash backed Letter of Credit via MT760 under the ISP98 Banking
rules or via MT700 under the UCP 600 rules, to be decided by the Buyer’s Bank;
“LoI” means Letter of Intent/Interest;
“Manifest” means, among other meanings, a manifest for diamonds which is a list of each
diamond specifying the number of carats, the colour, the clarity, the shape, the price,
etc.;
“MT103” means a SWIFT message format used for making payments. MT103 SWIFT
payments are known as international wire transfers, telegraphic transfers
“MT199” means a is an Interbank Message used between two banks to transmit a SKR or a
free format message engaging two bank’s readiness to move forward with a
transaction, usually a private one.
A MT199 swift message is easily explained as a “chat” message. Basically you use
this format
▪ when a transfer order has been sent and you want to “notify” the beneficiary
bank in order to sort out something,
▪ or to find out if funds have been applied,
▪ or basic other info.
“MT760” means a SWIFT Message Type that Bank Guarantees are sent and received by
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 inter-communicating banks. When sending a Bank Guarantee by SWIFT, the SWIFT
Operator will enter the details on this Message Type relating to the specifics of the
Guarantee. It is only Bank Guarantees that are
sent with this Message Type 760.
“MT799, MT999” means a simple text message, sent bank to bank. This is used for a bank to bank
proof of funds, only. The MT799 is not a form of payment and it is not a bank
undertaking or promise to pay. It is simply a bank to bank confirmation of the funds
on deposit, nothing more.
Different formats may include bank letters, phone/fax verification, online account
access, verification of deposit form (VOD), bank to bank Swift, Certificates of Deposit
(CD's) and/or account statements.
For beginners, both are classified by SWIFT as “free format message” , the difference
is that for an MT799, banks must exchange a so called BKE authenticator… which
means a test key is automatically coded into the sent message, and decoded at the
receiving end. So, an MT799 is approved by two Bank Officers and
thus is authenticated. An MT999 is the same
as MT799, just without this test code, therefore its considered unauthenticated, and
MT999 messages have no value whatsoever, unless confirmed via a separate test
key. The MT999 is approved only by one Bank Officer.

“NCNDA” means Non Competing Non Disclosure Agreement that is usually valid for three years
and prohibits any of the parties in the agreement to separately try and do business
with the third party in the agreement;
“Net Weight Report” means a report from a third party nominated by the Buyer with the final and
accepted by both parties (Seller and Buyer) net weight of the commodity;
“Nominated means any airport nominated by the Buyer, where the Seller would ship the
International Airport” commodity;
"Ounce" means troy ounce, which is equal to 31.1034768 grams, or 1 Kilo being equal to
32.1507466 troy ounces;
“Party(ies)” means the Seller, the Buyer and sometimes the Financier and/or the Intermediary
that usually also sign the SPA;
“PB” means Performance Bond (Bank Letter of Guarantee) accepted ONLY from a top
100 global bank via Swift MT760 under URDG 758 rules or latest version;
“PoF Blocked” means Proof of Funds usually via a bank L/G with funds being blocked from the
Buyer’s account and under administrative hold for the Seller, and released to the
Seller only after all the terms and conditions of the SPA are met;
“PoF Unblocked” means Proof of Funds of the Buyer and sent by a bank via a letter or a bank to bank
swift, in order to prove to the Seller that the Buyer has the funds available for the
agreed transaction and the Buyer will not need to find the funds from other sources
other than his own accounts;
“PoP” means Proof of Product sent by the Seller’s bank to the Buyer’s bank via a bank to
bank swift;
“Preliminary Assay means, in respect of any shipment of Gold Bars, the assay report and certification
Report” ordered by the Seller and obtained from a state assay office in the country of origin
or export country of the Gold Bars prior to the sale;
“Price” means the final price of the commodity as calculated according to the agreed terms
and conditions of the SPA;
“Product” means AU Gold Dore Bars;
“Proforma Commercial means an invoice that is issued based on the information known only to the Seller
Invoice” prior to shipping the commodity to the Buyer’s nominated destination and is usually
issued for Customs purposes only, and for issuing the Performance Bond (PB) prior
to issuing the SBLC;
“Purity” means the percentage of concentration of Gold (AU) in a Gold Dore Bar;
“Purity Adjustment” means an amount in relation to the purity of the Gold Bars which is equal to the
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 difference between pure gold content of 999.9 % purity and the purity ascertained by
the Assay Result, in case the declared fineness (purity) ascertained by the Assay
Result is less than 999.9%. As an illustrative example, if a specific shipment is
ascertained by the Assay Result to have a purity of 92.50%, then the Purity
Adjustment shall be - 7.50% (99.99 % pure gold purity – 92.50% Assay Result Purity
= - 7.49%);
“Refine” or “Refining” means refining (cleaning) the gold to a Purity level of 99.50% or better;
“Refinery” means any Refinery nominated by the Buyer and licensed by the Import Country’s
Governmental Authorities (doing smelting and/or assaying and/or the refining and
conversion of gold bars to refined gold of 99.5% or better purity) and located in the
Import Country or any “Good Delivery" (GD) listed London Bullion Market Association
(LBMA) member or registered and recognized affiliate thereof, or “Dubai Good
Delivery” (DGD) listed by DMCC in the UAE;
“RWA” means Ready, Willing and Able sent via bank to bank Swift MT799;
“SBLC” means a fully cash backed Stand By Letter of Credit via MT760 under the ISP98
Banking rules or via MT700 under the UCP 600 rules, to be decided by the Buyer’s
Bank.
“SBO” means Seller’s (Bullion) Bank Officer
“Security & Transport means an internationally recognized Security, Transport & Bonded Warehouse
Company” Services Company licensed either by the Import Country or by the Export Country
Governmental Authorities to be selected and designated by the Buyer or the Seller
with mutual consent. In the UAE, the only acceptable companies are Brinks, G4S,
Via Mat and the Government owned Transguard;
“Seller” means the person or company that is the direct seller of the commodity to the
Buyer;
“SCO” means Soft Corporate Offer it is identical to the FCO, and it is usually an unsigned
version of the FCO;
“SKR” means Safe Keeping Receipt to be sent to the Buyer by the Security Company that
is storing the commodity or sent via a bank to bank swift confirming that they have in
their possession/storage the commodity;
“Smelting Company” means a company nominated by the Buyer that smelts gold into bars in a weight
determined by the Buyer;
“SPA” means Sales & Purchase Agreement;
“Spot Market Bid” means the spot market bid price (as given on the KITCO website – www.kitco.com –
or other related industry websites)
“Specifications” means the detailed specifications of the commodity including quantity, quality,
packaging, etc.;
"Tonne" means one (1) metric tonne (or “Metric Ton”), and it is abbreviated as “MT”
“T/T” means Telegraphic Transfer or Telex Transfer, often abbreviated to TT, is a historic
term used to refer to an electronic means of transferring funds overseas.
Historically "T/T," meant a cable message from one bank to another in order to affect
the transfer of money. Prior to the existence of electronic payment networks this was
often directly between banks via a Telex message.

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“TTM” means Table Top Meeting among the Bullion Officers of the Buyer and Seller and/or
their lawyer without the presence of any Intermediaries or Mandates (usually held at
the Seller’s bank offices where the commodity is held and can be inspected and at
the same time, the Seller can present his PoF);
“UAE” means the United Arab Emirates;