Questions and Answers
How Can I Obtain A Soft Quote?
We are happy to provide a soft quote upon your request. In order for us to provide a soft quote, we need the details of the order that you would like a quote for. Specifically, we need to know the grade and type of sugar you are seeking to purchase, the amount of sugar you require, the intended destination of the shipment, and your preferred form of payment.
What Is The Best Form Of Payment?
The preferred form of payment is a Bank Guarantee (BG), as this provides the most protection for the seller. Other types of acceptable forms of payment include a Fully Funded Documentary Letter of Credit (FFDLC), or a Standby Letter of Credit (SBLC). In all cases, the financial instrument must be issued or confirmed by a major world bank, (one of the ‘Top 25′ world banks), be transferable, divisible, 100% payable on sight, and irrevocable. If you are seeking to purchase a large amount of sugar to be sent over several shipments, the financial instrument should also be revolving.
What Forms Of Payment Are Not Acceptable?
Revocable or non transferable Letters of Credit are both unacceptable forms of payment.
When Do I Need To Pay For The Shipment?
Payment is made at the time of shipping. Deferred payment is not possible.
What Documentation Do I Need?
There are several stages to purchasing sugar, and differing documentation is needed at each stage. The soft quote is the first documentation you will receive. If you decide that you would like to proceed and purchase sugar from the seller, then you must sign a NCND (Non Circumvention Non Disclosure Agreement). This agreement protects both the privacy of the buyer and the seller throughout the trade. When this document has been signed, the next piece of documentation required is the Letter of Intent, or LOI. This is a document sent from the buyer to the seller indicating their intent to purchase sugar. This document should be accompanied by a Bank Comfort Letter, or BCL from the buyer’s bank. Included in the LOI are the buyer’s bank details, and authorization for the seller to conduct a soft probe of the buyer’s accounts. Once this documentation has been received, and the probe successfully conducted, the seller will issue a Firm Corporate Offer (FCO) to the buyer.
Can I Send An Old Letter of Intent?
No. The Letter of Intent can be no older than ten days old at the time it is received by the seller. The Letter of Intent represents the buyer’s recent interest in purchasing sugar, and for this reason it cannot be an old letter.
Do I Have To Supply My Bank Details?
Yes. The seller requires the buyer’s bank details in order to conduct a soft probe of their accounts and ensure that there are funds in place to cover the full contract price of the sugar the buyer is wishing to purchase. This is a common procedure for most sellers, who must satisfy themselves that there is a viable sale to be made before proceeding further with a sale. Because the seller will incur freight costs as well as the costs of preparing the sugar for transport, not to mention the fact that payment is only received once the sugar has been shipped, it is essential that they are satisfied of the ability of the buyer to pay for the shipment.
How Can I Get A FCO Fast?
Many buyers understandably wish to receive a FCO, or Firm Corporate Offer, quickly. However before the seller will issue a firm corporate offer, the Letter of Intent and Bank Comfort Letter must be received, and the soft probe conducted. If you wish to obtain a Firm Corporate Offer quickly, attention should be paid to ensuring that all documentation is correct and in order before it is sent to the seller. This is the simplest way of expediting the process, as mismatched letter heads, incorrect dates, and incorrect details can cause extensive delays.
Is It Possible To View SGS Reports Before Sending The Letter of Intent?
No. SGS reports are not available in advance of sending the Letter of Intent. If you are concerned with verifying the product’s existence and quality, the time for this to be addressed is when the seller approaches the buyer’s bank for a Proof of Funds (PoF). The buyer’s bank will then request a Proof of Product (PoP) to satisfy itself of the product’s existence. This is handled Bank to Bank and does not require action on the part of the seller or the buyer.
Is It Possible To View The Sugar Before Purchase?
No. Unlike other products, sugar is very rarely found sitting in a warehouse waiting to be sold. Most contracts are sold on sugar that is yet to be refined. The seller will have a contract with the refinery in order to guarantee the supply of sugar to the buyer, but it is not possible to view the sugar itself. In the case of very large orders which are shipped over several months, it is even possible that the cane from which the sugar will be extracted and refined has yet to be harvested at the time that the sugar is purchased.
I Would Like To Order A Trial Shipment. Is This Possible?
You are free to order the shipment size that you are comfortable with. However buyers must be aware that the seller will not regard any shipment as a trial shipment, and will not reserve unsold sugar for a buyer on the basis of a successful trial.
Who Pays For SGS Inspections? Where Will The Sugar Be Inspected?
It is up to the seller to organize for the sugar to undergo SGS inspection. The seller bears the cost for this, and the inspections are carried out at the port of departure.
What Is The Standard Shipping And Payment Procedure?
The seller will ready the product for shipping, secure a carrier, and organize inspection of the sugar before it departs the port. The inspections are carried out by qualified parties, the sugar is cleared for shipping, and subsequently loaded aboard a carrier. Once the vessel departs, the seller is then to be paid in full for the shipment.
Can I Specify My Own Procedure For Shipping and Payment?
No. The standard procedure is widely regarded as being the optimal arrangement which shares risk equally between the buyer and the seller. For this reason, deviations from the standard procedure are very rarely agreed to by the seller.
How Are Broker Commissions Calculated?
A broker fee of one dollar per pound is included in the soft quote supplied by the seller. Brokers who wish to receive a higher commission will need to add this to the per pound price. Please note that all commissions are shared evenly between the seller and the broker, so it will be necessary to double the extra commission charged. For example, if a broker wishes to receive two dollars per pound, then four dollars will need to be added to the per pound price.
Can You Sell Me Millions Of Tons Of Sugar?
Yes we can. Because the investment needed in order to purchase several million tons of sugar is so extremely high, such sales are rare. If you can provide Proof of Funds and a Bank Guarantee from a ‘Top 25′ major world bank to cover the full contract price of the sugar, it may be possible to accommodate large purchases.