1）  Both buyer and seller concluded an intention of off-exchange EFP; 

 

2）  Both buyer and seller submit an application for EFP via their respective members: buyer submits the buy-in intention while seller submits warrant 

 

3）  The Exchange closes out relevant futures positions after review and approval;

 

4）  Buyer’s customer submits payment for goods via tis member while the Exchange releases warrant after confirming the receipt of such payment

 

5）  Seller issues VAT invoice to seller’s member; seller’s member issues VAT invoice to the Exchange; the Exchange issues VAT invoice to buyer’s member; buyer’s member issues VAT invoice to buyer’s customer;