****This process has been suspended since August 2020 due to rampant fraud in the 3M Market.Our Team currently represents 1-2 3M Distribution Channels, as legal representatives.We have a revised policy that in the interests of transparency, Buyers should demand a proper Bank Performance Guarantee from the Sellers against real payments, They should be able to demand paid samples and LOT numbers upfront.Also due to the influx of fraudulent buyers and brokers trying to hoard PPE and simple phish for information, we will not allow or accept ridiculous requests for 1 billion OTG masks, or for dubious brokers to offer LIVE proof of funds.A proof of funds, must ethically be made to the real Seller and it should be clearly stated that this document cannot be ‘Shopped’ and its validity will expire within 24 hours of being furnished.For anyone offering you deals of any mask quantity commitments over 3-4 million without a sworn statement from their Distributors warehouses, please deal at your own risk.
If anyone (real pharmacies, not brokers) needs 10,000 Masks or 100,000 Masks or even 1 million masks , our law firm will guide you to one of our recommended authorized resellers close to your region, whose documentation, certification and everything else has been checked in its entirety.If you are approaching us as a broker, we have an extra set of due diligence steps to carry out, before we decide to engage with you.
Our Law firm reserves the right to report any dubious parties to FBI, or the local law enforcement forums and channels.To elaborate, no amount of non-disclosure agreements will protect thieves, money laundering parties and unethical PPE hoarding groups who have no end-User to deliver PPE to’*****.
3M BUYER PROCUREMENT PROCESS
- Signing of Mutual Non-Circumvent, Non-Disclosure Agreement (NCNDA) with our law firm.
- Prequalification of buyer and discussion of volume of supply with the legal team as per 3Ms terms and conditions
- 24 Hour-Preliminary Review by our 3M Network colleagues of the Letter of Intent, Bank Comfort letter and other documents supplied with this Memorandum.
- Letter of Intent (LOI) 1) This needs to be in the name of the actual buyer made out to “3M Distributor”. 2) Needs to be up-to-date and cannot be more than 3 days old.
- Highly recommend putting Not to Exceed (NTE) price to give us maximum flexibility to We will find the best price / terms available. You can always say no if market price that day is too high but without a reasonable “spread” we will be limited and must ask you for revised paperwork repeatedly.
- If you want additional orders after NTE price, please use “including rolls and extensions”. Do not alter 14-day closing date in LOI template.
iii. Our advice is not to date your LOI and send in as that starts the 3-day clock. Gather ALL your documents then date your LOI last and hit submit all documents together.
- Letter of Authorization (LOA) for end user (Hospital, Government, Humanitarian). If buyer is procuring on behalf of end users, buyer will need to get a “Procurement Authorization Letter” with verbiage on template provided on end-user’s letterhead signed by authorized personnel with specific up-to number of masks needed. Regardless of the number of end users, LOAs will be needed for specified amount to match the total amount on LOI. Must be on end user’s letterhead on “Buyers Letter of Authorization” (LOA) template. A list of end users provided on the buyer’s letterhead is not acceptable unless buyer is end user.
THIS IS KEY. Our legal team and the 3M procurement teams to verify will contact end user. Please notify the end user in advance. Lots our network can secure can be Restricted (Hospital / Gov’t), Unrestricted (anyone in need) or Private sales (controlled by non-3M parties). If you do not provide an LOA we can only assume this is procurement for non-Hospital / Gov’t. At times un-restricted and private sales can be slightly more expensive.
Letter of Attorney Attestation (LOAA)/Info – In addition to BCL / POF request the LOAA from buyer’s attorney is a requirement. Please copy and paste from template provided. This will need to be provided on attorney letterhead.
BCL -Proof of Funds – 3M is no longer accepting attorney attestations for POF’s. 3M require a bank comfort letter (BCL). Acceptable POF documentation includes BCL or LC. There is an exception for government agencies to request attorney-to-attorney validation. All others will need this to be accepted.
LETTER of CREDIT OPTION For large transactions over $50 Billion, buyer may provide an option of a Letter of Credit.
Some BCLs will have sensitive information others will simply attest to the funds being available for the transaction. See the sample BCL template if needed however most banks use their own format.
Purchase Order (PO) – This can be submitted to increase the chances in securing lot allocations. In some cases, the price on the PO may change once an allocation of lot has been confirmed and secured for hold.
Passport – Buyer or Authorized Buyer’s Employee or Agent will need to provide copy of Passport as part of initial paperwork submission.
KYC Documentation – 3M version will be provided to you on A<>A call. This is especially important for On-the-Ground (OTG) product to move the deal along faster. This is a compliance mandate per 3M policies. Please note that pricing for even OTG products cannot be given in advance.
Onboarding to the 3M Distributor Network (timeline 24-48 hours) Review & Clarify LOI, LOA, BCL – POF, PO and complete any outstanding items or revisions needed.
Provide Expectations to our Legal team and 3M Network Affiliates
Process (Reiterate current stages of process).
Timeline (full process estimated 3-4 days).
Discuss time for Attorney-to-Attorney Call where time zones differ.
Procurement Consultant Service Agreement in the form of an irrevocable Master Fee- Share Agreement (IMFA) must be signed and clarified at this stage as lack of clarity upfront will lead to a failed deal. The IMFPA is filed with the 3M Distributor who will as a part of their commitment to our Network Partners, ensure that this is enforced and honored.
IMFA is signed between all parties.
Paymaster Agreement is also signed between all parties outside of buyer and seller.
The Network Partners will now arrange for 3M Distributor Attorney-to-Attorney call to verify documentation and BCL-POFs. This process will involve a KYC process to validate end user, BCL-POF, LOAA, Buyer Background Check, and product allotments available for specific deal.
3M/Distributor approves Buyer.
Final Purchase Order issued by Buyer for direct price from 3M or Distributor.
** Escrow will need to be funded at this time to Seller’s Escrow and Consultant’s Escrow (Paymaster) for amount on PO and IMFA / Paymaster Agreement.
Sale Purchase Agreement (SPA) issued by 3M Distributor executed. 3M Respirator LOT numbers, SGS report, and address of warehouse location provided. VERIFICATION OF LOTS: **you will not be provided with this until this stage. PLEASE DO NOT ASK as this is the 3M Distribution Policy which we must follow.
Logistics supply delivery/pickup schedule arranged and confirmed directly with 3M distributors.
Final inspection and approval by Buyer’s agent on site or provided SGS.
Funds released/distributed per SPA 3M distributor escrow and IMFA Consultant Escrow (paymaster).
Close out 3M contract / or extend contract for repeating order cycle – “rolls & extensions”.
Review of entire supply chain cycle and logistics with the 3M Team.