This offer is valid untill the end of May, 2008. After that period this offer and the prices may or may not be available. I will not revisit this page, so please contact me if you need a fresh quote.
Product: Brazilian ICUMSA 45, Sparkling White Refined Cane Sugar
Specifications
Polarization: 99.8% Minimum
Ash Content: 0.04% Maximum
Moisture Content: .04 % Maximum
Solubility: 100 % dry and free flowing.
Color: Sparkling White
Radiation: Normal and within international limits. Certified without the presence of iodine or cesium.
Granulation: Medium to fine crystal size.
Crop: From 2007 and 2008 crop.
Country of origin: Brazil
Packaging & Marking
Sugar will be packed in fifty kilogram bags (net weight). Packaging bags made out of polypropylene, polylined ethylene, or an internationally accepted equivalent.
Sugar Quantity: 1,200,000 metric tons
(One million, two hundred thousand metric tons, subject to a margin of error of five percent per shipment.)
Sugar cost: $230 USD per metric ton
Two hundred and thirty US dollars per metric ton, including shipping and insurance (CIF) to any US non-sanctioned safe world port.
Delivery Schedule & Contract Period
Delivery of sugar is to commence within a time frame of twenty eight to forty five days from the activation of the buyer’s financial instrument. Delivery of sugar is contingent upon shipping availability and conditions at the port or ports of discharge.
Monthly shipments of one hundred thousand metric tons (100,000 MT) are to be made until the full contracted amount of sugar has been shipped. This is estimated to be within a twelve month time frame.
Inspection Conditions
SGS inspections are to be carried out at the seller’s cost at the port of loading. The following conditions shall be attested to in the SGS certificates:
- Hold and hatch cleanliness
- Weight per shipment
- Quantity and quality of the sugar are tested
- Weight and quality of sugar match those which are stated in the contract
- Certificate of Radioactivity, which states that radioactivity falls within acceptable boundaries
Payment Terms
Payment may be made through the following instruments:
DLC (Documentary Letter of Credit) This must be revolving, irrevocable, transferable, divisible, cumulative, and issued or confirmed by one of the top 25 world banks. This DLC must cover the full amount for one month’s shipment, and be in US dollars. The DLC should revolve by amendment for the entire period of the contract. After drawing on the DLC after each shipment, the amount will be reinstated by means of amendment, and the expiration date will be shortened by 15 days from the current expiration date.
As guarantee of buyer’s intent to fulfill the entire contract, the seller also requires a BG (Bank Guarantee) this should be a cash backed unconditional bank guarantee, or alternatively a FFSBLC (Fully Funded Standby Letter Of Credit). In either case, the document must be issued by or confirmed by a major world bank in the top 25. This document should be written for the value of one months shipment, being USD $ 23, 000, 000. This is to be returned at the end of the contract unless the buyer breaches the contract or defaults on the contract. The seller prefers the FFSBLC unless the BG is drawn on a European Bank.
All financial instruments must be payable at the seller’s bank at the counter, and should be advised through the seller’s bank.
Financial Instruments are all subject to the 2007 Revision of Uniform Customs and Practice for Documentary Credits, UCP 600, (ICC Publication No. 600.)
Seller’s Performance Bond
Upon receipt of the buyer’s financial instruments, the seller will then provide to the buyer a performance bond which will be equal to two percent of the replacement value of an average monthly shipment. This performance bond will be issued to the buyer in the form of a SBLC, and will be irrevocable and valid for the duration of the contract and for thirty days after the contract finished.
Contract Procedures
1. Buyer completes buyer’s banking information and returns the FCO (full corporate offer) to the seller.
2. Seller provides the buyer a draft contract within three banking days. The buyer and seller then enter into negotiations by amending the draft contract and sending it back and forth until both parties are satisfied. When an agreement has been reached, the buyer signs the draft contract and returns it to the seller for signing.
3. The seller signs the draft contract and returns it to the buyer within three banking days. Please note that during this time the draft contract may be exchanged via fax or email, but once signed is legally enforceable.
4.Upon receipt of the signed contract from the seller, they buyer has five banking days to instruct their bank to SWIFT by MT-799 and indicate that the bank is, on behalf of the buyer, RWA (ready, willing and able) to issue the buyer’s financial instrument, and to request approval from the seller’s bank.
5. Also within five banking days of receiving the signed draft contract from the seller, the buyer must supply the seller with a proposed shipping schedule. This schedule is then subject to the seller’s approval, and the refinery’s approval.
6. Upon receipt of the RWA notice from the buyer’s bank, the seller’s bank will respond that it is RWA to issue a proof of product (POP), and PB, and it will either accept or send an amended version of the financial instrument.
7. When all the necessary documentation is approved and received, the seller must then produce six hard copies of the final contract and attach the shipping schedule, the financial instrument, and any other pertinent documentation. These documents must all be signed and sealed before being sent to the buyer.
8. The buyer then has two days to initial each page of the final contract and the appendices and to sign and seal four of the copies and return them to the seller.
9. Within the same time frame, after receiving the signed contracts, the buyer’s bank must also SWIFT the non-operative financial instrument to the seller’s bank.
10. The seller’s bank then has five days to SWIFT the proof of product to the buyer’s bank. The proof of product is made up of the following documentation:
- Export License issued by the Brazilian Government
- Approval for export also issued by the Brazilian Government
- Warehouse Receipts / Commitment from refinery to product the product if it has not yet been refined
- Shipping agreement for transport
11. In the same time frame, the seller’s bank issued the performance bond to the buyer’s bank. Receipt of this performance bond activates the buyer’s financial instruments.
12. The buyer may then opt to inspect the storage facility and or the refinery where the sugar is made. If the buyer chooses to waive this option, they must inform the seller in writing.
Shipments will then begin to be sent within the aforementioned twenty eight to forty five days after these procedures have been completed. The shipping schedule for the first ninety days is to be supplied by the buyer, but must be supplied forty five days in advance of the first shipment.
Product Documentation
Supplied with the shipment will be:
- Certificate of Origin
- SGS Certificates
- Phytosanitary Certificate
- Loading and Stowage Certificates
- Crop Certificate
- Packing List
- Clean Bill of Lading
- Commercial Invoice (Signed)
- Shipping Company Statement
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