Procedures
Buyer issues the Letter of Intent (LOI) including a target price and banking information. This will show the necessary funds are available for the transaction.
Seller issues Draft Contract. Buyer reviews it and makes amendments if necessary. Then signs, seals, and returns to seller.
Buyer issues copy of the payment instrument (LC or BG).
Upon acceptance of payment instrument, seller issues the final contract.
Within 5 banking days after contract is signed, the buyer forwards the Non-Operative Letter of Credit (LC) or Bank Guarantee (BG) to the seller's bank.
Within 7 days after confirmation of the LC or BG, acceptable to the seller, he issues a 2% Performance Bond (PB) and the Proof of Product (POP) that automatically activates the LC or BG.
The first shipment commences 30-45 days after receipt of the activated LC or BG. This time frame allows for the loading of the vessels, and placing you on the shipping rotation for an annual contract. Monthly shipments than continue as per an established schedule. Payment to the seller’s bank is released after the following documents are received by the buyer’s bank. After receipt of funds, the ships leave the port of loading for destination port.
Bill of Lading -"Clean On Board" and marked "Freight Prepaid“ signed by shipping captain showing destination port.
SGS Report -showing weight, quantity, and quality. This is performed at the loading dock.
Certificate of Origin -issued by Chamber of Commerce from the country of Origin
Inspection Certificate of the vessel
Signed Commercial Invoice in the name of the buyer.
Shipments -12,500, 25,000 or 50,000 metric tons per vessel.
Certificate of Insurance –each vessel is insured for 110% of its shipment value.
The LOI or ICPO must be issued from the End Buyer only on his letterhead and must state the payment instrument from his bank is Transferable. This enables the seller to use the funds from the LC to pay the sugar refinery of which he is contract with, as well as the shipping company. There is no middle man involved in this process.
The seller will then issue the Draft Contract to the end buyer.
If the buyer wishes to inspect the sugar at the loading port, he will be given written permission from the seller to do so.
I have read and agree to these procedures and hereby state that our company is the End Buyer and the payment instrument will be issued directly from the bank shown on our LOI.
Sign and seal _________________________________
PLEASE DO NOT CONTACT IF YOU ARE NOT END BUYER OR MANDATE.DON`T WASTE YOUR TIME AND ALSO OURS.
BATU OZKAN
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Product Type:
Sugar
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Type:
Cane Sugar
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Color:
White
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ICUMSA:
45 RBU MAX.
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