BUY SUGAR NOW
Internet resource for buying sugar internationally
Internet resource for buying sugar internationally
Download Sample Bank Capability Letter
Download Sample Letter Of Intent
ASWP
Any Safe World Port
This is to inform the seller that the buyer has the financial capacity to issue such Letter of Credit subject to bank formalities, should the buyer contract for the (name of commodity).
BASIC FORM
This is a preliminary form to obtain a soft CIF quote.
(CIF) - COST / INSURED/ FREIGHT
(CIF) - COST / INSURED/ FREIGHT
Cost, Insurance & Freight – The seller (exporter) is responsible to
insure on behalf of the buyer until goods arrive and are unloaded at the
port of destination.
OCEAN BILL OF LADING Ocean
Bill of Lading model
This is a contract between an exporter and an international carrier for
transport of merchandise to a specified foreign market overseas.
A bill of lading is a document which is issued by the transportation carrier to the shipper acknowledging that they have received the shipment of goods and that they have been placed on board a particular vessel which is bound for a particular destination and states the terms in which these goods received are to be carried. Separate bills of lading are issued for the inland or domestic portion of the transportation and the ocean or air transportation, or a through bill of lading can be obtained covering all modes of transporting goods to their destination.
Bills of lading, whether inland or ocean, can be issued in either non-negotiable (straight) form or in negotiable form. If the bill of lading is specified as being non-negotiable, the transportation carrier must deliver it only to the consignee named in the bill of lading, thus the bill of lading acts both as a receipt of goods and as an agreement to transport these goods to a specific destination and consignee in return for payment of the transportation charges. If the bill of lading is specifically labeled as being negotiable, ownership to the goods and the right to re-route the shipment are with the person who has ownership of the bill of lading properly issued or negotiated to it. Such bills of lading are issued to shipper's order, rather than to a specific, named consignee. Where collection and payment is through banking channels, such as under a letter of credit or documentary collection, negotiable bills of lading are required (except for air shipments). The exporter must endorse the bill of lading and deliver it to the bank in order to receive payment.
(PB) PERFORMANCE BOND
IF THE LETTER OF CREDIT IS REVOLVING THAN THE PERFORMANCE BOND SHALL REVOLVE
MONTHLY FOR TWO (2%) PERCENT OF THE MONTHLY FINANCIAL
INSTRUMENT VALUE.
DRAFT CONTRACT
Preliminary, unconfirmed version of the contract, usually drawn up by the
seller’s solicitor and sent to the buyer’s solicitor for approval.
FORMAL CONTRACT
A formal contract is a contract where the parties have attempted to spell
out all the terms,
(LOI) LETTER OF INTENT/(ICPO) IRREVOCABLE
CORPORATE PURCHASE ORDER (LOI)
(ICPO) Model
Is a document that describes the preliminary understanding between parties
who intend to make a contract or join together in another action.
PRIME BANK
An older term for a well known (top-25, top-100) international bank. The
term should be avoided and replaced by "money center bank" or "international
bank
PROFORMA INVOICE
A “Proforma Invoice” (Proforma) is an official price quote — a “step up”
from a published price list that allows the customer to present the Proforma
Invoice to their Accounting Department and to arrange a prepayment. Customers
pre-paying orders via bank money transfer before shipping an order most
commonly request it. It is used by customers to formalize the terms of
sale (price, shipping, CIF, location, shipping date,
etc.) and properly allocate and/or transfer the funds needed for the
purchase. The Proforma guarantees a price and terms for a 60 days period
of time while the customer acquires and/or transfers the funds.
SOFT PRICE QUOTE
SUGAR
WHITE REFINED SUGAR ICUMSA 45, fit for human consumption.
See PRODUCT SHEET.
SGS INSPECTION www.sgs.com
SGS is the world’s leading inspection, verification, testing and certification
company. SGS is recognized as the global benchmark for quality and integrity.
The core services offered by SGS can be divided into three categories:
* Inspection Services. SGS inspects
and verifies the quantity, weight and quality of traded goods. Inspection
typically takes place at the manufacturer’s/supplier’s premises or at
time of loading or at destination during discharge/off-loading.
* Testing Services. SGS tests product quality and performance
against various health, safety and regulatory standards. SGS operates state
of the art laboratories on or close to customers' premises.
* Certification Services. SGS certifies that products, systems
or services meet the requirements of standards set by governments (e.g. GOST
R), standardization bodies (e.g.ISO 9000) or by SGS customers. SGS also develops
and certifies its own standards.
DEFINITION OF LETTER OF CREDIT
Is a legal document issued by a buyer’s bank that upon presentation of
required documents payment would be made. Usually confirmed by the seller's
bank, protection is given to the seller that payment will be made if
the goods are shipped correctly, and protection is given to the buyer
that the goods will be shipped before payment is made.
A bank's written payment undertaking, on behalf of a buyer, to pay a seller, a given sum of money, upon presentation of documents representing the supply of specified goods, these documents meeting the terms of the letter of credit, and being presented within a specified time, and at a specified place.
Types of letter of credit
DIVISIBLE LETTER OF CREDIT
DOCUMENTARY LETTER OF CREDIT
IRREVOCABLE CONFIRMED LETTER OF CREDIT
Bears the further payment undertaking of another bank, usually the advising
bank, called the Confirming Bank here since it adds its confirmation
to the letter of credit. In addition to buyer risk, this type also protects
against country risk. This may also be used if the issuing bank is of
unknown or doubtful standing to the seller
RREVOCABLE LETTER OF CREDIT
A letter of credit where payment is guaranteed as long as the seller meets
all conditions stipulated.
Irrevocable confirmed letter of credit: Bears the further payment undertaking of another bank, usually the advising bank, called the Confirming Bank here since it adds its confirmation to the letter of credit. In addition to buyer risk, this type also protects against country risk. This may also be used if the issuing bank is of unknown or doubtful standing to the seller.
PRE ADVICE DLC- NON OPERATIVE LETER OF CREDIT
Transferable letter of credit: This is the favorite instrument of the traders and middlemen to offer secure terms of payments to third parties such as their suppliers (second beneficiary in the letter of credit). When the buyer pays the letter of credit, part of the proceeds is transferred to the second Beneficiary.
REVOLVING LETTER OF CREDIT
Single letter of credit covering a series of similar transactions
STANDBY LETTER OF CREDIT
Under this instrument, credit is called if the buyer defaults on the previously
agreed form of payment.
DEED OF ASSIGNMENT
Banking arrangement, under a letter of credit, whereby the Beneficiary
of a letter of credit assigns part of the proceeds to a third party,
e.g. a supplier.
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