SUGAR ICUMSA,India price supplier

PAYMENT TERMS:

For 12 month contract: Payment shall be by irrevocable, unconditional, confirmed, open and unrestricted Auto-Revolving Documentary Letter of Credit for total value of the first month shipment valid for the contract term.

or

Stand-By Letter of Credit (SBLC) for total value of the first month shipment valid for the contract term and thereafter a revolving MT 103.

or

T/T every month for the term of the contract against documents required by the bank

For SPOT payment: Payment shall be by irrevocable, unconditional, confirmed, open and unrestricted Documentary Letter of Credit (DLC)

 

or

MT 103/23

or

T/T issued for total value of the shipment of supplies for the term of the contract against documents required by the bank.

PROCEDURES:

1. Buyer issues ICPO/LOI with full coordinates.

2. Seller issues the draft contract for review, minor corrections, signature, seal, date, and exchange by e-mail first. Buyer’s approved copy of the returned draft contract must be accompanied by a draft copy of financial instrument that will be issued.

3. Seller and Buyer sign and exchange final contract. Final contract will be sent in PDF format electronically. Buyer approves final contract, prints four copies, signs, seals, dates, and forwards by courier to the seller. Seller will sign, seal, date and return two copies to buyer by courier. Contracts are filed with the buyer’s and the seller’s respective banks.

4. Within two (2) international banking days, the buyer's bank will issue the payment instrument for the first month shipment in favor of the seller at seller's bank.

5. Seller issues bank to bank proof of product (POP) and a 2% performance bond (PB), drawn on Sellers bank as guarantee of shipment, the issuance of the POP and 2% PB shall activate the financial instrument.

6. Seller sends title to buyer via email and/or courier service within 24 hours of receiving and confirming operative banking payment instrument.

7. Shipment (s) start as per schedule as agreed in the contract.

8. Sight pay, upon loading of the specified Icumsa 45 at departure port (sight pay), seller delivers the shipping documents required (see below) along with an invoice for payment to buyer's bank.

9. The Seller guarantees on his account that each shipment of ICUMSA 45, will be provided with inspection of weight and quantity and quality at the time of loading. Certificates shall be provided by SGS or similar authority at the Seller’s expense and shall be binding for both parties. Seller instructs such authority to carry out the inspections in strict rules and in accordance with the specifications  in Annex A or the International Chamber of Commerce rules (Incoterms 2000 latest edition, with all amendments).

 

10. Upon completion of the first shipment, payment with the agreed financial instrument as applicable will be automatically extended for the second shipment and further to be extended, until the contract is completed totally for the quantity of ICUMSA 45 standards as specified in the contract, (Annex ”A”).

11. Upon receipt of shipping documents for (each shipment) required for the payment, buyer's bank will make the payment as required to seller's bank within the contract specifications.

12. Seller provides 110% Insurance in favor of the buyer.

THIS PROCEDURE AND PAYMENT TERMS SHOULD APPEAR IN THE ICPO/LOI.

 

 

  Doc u m e n t s :

 

 Provided By Supplier

 

1.  Commercial Invoice.

2.  Certificate of Ownership.

3 .  Certificate of Origin.

4.  Inspection report.

5. Certificate of quality and quantity

6. Original copy of bill of lading

7. Certificate of NON Radiation