LETTER OF INTENT - REFINED WHITE SUGAR (ICUMSA 45)
We hereby confirm that we are ready, willing, and able to purchase Brazil sugar ICUMSA 45, based on the following conditions as stated herein:
Commodity : ICUMSA 45
Origin : Brazil
Type : Term contract
Quantity : XXXXXXXX metric tons per month Total contract quantity is XXXXXXXX MT
Duration : 12 months
Shipment : CIF ASWP XXXXXXXXX
Price : Our Buyer's target price is US$ XXXXXX per metric ton
Payment Terms : This LOI is for a contract with a (transferable) Auto- Revolving Documentary Letter of Credit (ARDLC) for total value of the first month shipment valid for the contract term. Instruments are irrevocable and confirmed where applicable from top 50 world bank.
Performance Bond : 2% Performance Bond is issued by Seller's bank on every per shipment basis.
Inspection : By a reputable independent surveyor, such as SGS, or equivalent at the port of loading.
Packing : 50 kg PP BAGS, with inner linings, per international standards.
PROCEDURES:
1. Buyer issues LOI with full coordinates.
2. Seller issues the draft signed contract for review, mediation, 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 execute final contract: Seller sends final contract electronically in PDF format. An electronically executed final contract can stand. Contract is lodged with the buyer's and the seller's respective banks.
4. Within fifteen (15) international banking days, the Buyer's bank will issue the non-operative payment instrument acceptable to Seller for the first month shipment in for of the Seller at Seller's bank.
5. Seller issues bank to bank 2% performance bond (PB) drawn on Seller's bank as guarantee of shipment; the issuance of the PB shall activate the financial instrument and make it fully operative.
6. Seller sends title to buyer within 24 hours of receiving and confirming the operative payment instrument.
7. Shipment (s) start as per delivery schedule agreed in the contract.
8. The Seller guarantees on his account that each shipment 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 under strict rules and in accordance with the specifications in the contract and or the International Chamber of Commerce rules (INCOTERMS 2010 latest edition, with all amendments).
9. 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 as specified in the contract.
10. 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 terms and conditions.
11. Seller provides 110% Insurance in for of the buyer.PRODUCT DOCUMENTATION PER LIFT:A full set of the following documents will be issued for payment:
1. Three sets of three (3/3) of BILL OF LADING, "CLEAN ON BOARD" and marked "FREIGHT PREPAID" (three [3] originals + three [3] copies).
2. Certificate of weight, quantity and quality issued by SGS or compatible authority.
3. Certificate of Origin, issued by the Chamber of Commerce of the country of origin.
4. All necessary certificates issued by SGS or other designated inspectors.
5. Inspection certificate for the vessel
6. Signed commercial invoice in name of buyer.
7. Packing list of shipment (+/-5%)
8. Freight forwarding agent certificate stating that original signed copies of certificates, of foreign and phyto s[收起]
