27/12/2011
We are directly to the seller mandate for Sugar
Please copy this procedures and conditions in your LOI :
We, do hereby confirm with full corporate responsibility that we ######XX
as full Mandate for #####################are willing and able to enter
into sales and purchase agreement with your esteemed company to deliver the below:
Product: Refined White Cane Sugar Icumsa 45
Origin: Brazil
Specification: ICUMSA 45
Quantity: XX,### METRIC TONS
Terms: SPOT/CONTRACT
Destination: ######
Delivery: 30-45 days upon receipt of financial instruments.
Price: US$### /- M ton CIF ($XX commission)
Total Amount: US$ X,###,### (US Dollars ###X Million ###X and ###X Thousand
###X Hundred US Dollars Only)
Inspection: SGS. At the loading port at seller’s costs
Payment terms: Irrevocable, Transferable, Divisible Documentary Letter of Credit,100% at sight
at Port of Loading./unconditional MT 104 from top 25 world banks.
THIS IS A SAMPLE DOCUMENT AND IS NOT INTENDED FOR
COMMERCIAL USE
> #####################X
> #####################X
> #####################X
>
> Transaction Procedures
> 1. Buyer sends LOI.
> 2. Seller sends SCO/FCO with full banking details.
> 3. Buyer signs SCO/FCO and returns to Seller within 24 hrs.
> 4. Seller sends draft contract to buyer for review and signing.
> 5. Seller sends pro-forma invoice.
> 6. Buyer puts up the financial instrument within 24hrs.
> 7. Seller starts loading vessel as per contract terms.
> 8. Seller then sends:
> vv SGS Certificate of weight, quantity and quality
> vv Certificate of Origin, issued by Brazilian Authorities
> vv Commercial Invoice in 3 copies
> 9. One original set of the above documents will be sent directly to your bank & 3 non-negotiable
> original sets will be couriered to you.
> 10. Bank follows instructions on the instruments and releases the funds
> Insurance:
> As mentioned the company is now using Lloyds of London to provide our Performance Compliance Guarantee (PCG) of 2%. In doing they are now providing comprehensive insurance for all of our shipped commodities. Our refinery, previously coordinated our insurance directly, therefore it was included in our contracts (CIF) and mentioned within the Letter of Credit. We still provide 110% cover on the policy, however due to our new arrangements with the PCG we provide cover separately. We will pay for the insurance on behalf of the buyer and forward all policy information to the buyer direct. This will be clearly stated in the contract.
> Please note the Letter of Credit will not be conditional on insurance cover being offered by the refinery, and therefore will not be mentioned as a condition of the Letter of Credit becoming operational.
> Performance Bond:
> The 2% Performance Compliance Guarantee will be issued by Lloyds of London, as we discussed, our organisation has many contracts in play and due to the large sums of money being locked up for 1 year and 1 day we have found a commercially sensible method of providing this guarantee. Lloyds, as part of our insurance policy for each contract will offer full bond guarantee to your bank and in the event we do not perform to the conditions as set out in the contract, the buyer will receive the full payment of 2% of the Letter of Credit value per shipment. The PB will be valid for the duration of 1 year and 1 day, unless extension is requested. The PGB will be issued to the buyer prior to the operational Letter of Credit being submitted to Durakem's account.
> Documentation: (POP)
> As part of our policy with Lloyds we are now able to provide the buyer with a registered allocation certificate in the buyers name and becomes operational upon receipt of the operational letter of credit. These documents will be attested and registered by out attorney in New York, USA. This will gives the buyer complete peace of mind knowing that the order is live and is subject only to receipt of the L/C.
