We will ONLY accept to start negotiations upon receipt of Buyers LOI (including full banking coordinates and authorization for soft-
probe on Buyer's account), which should be nominal, and not older than 5 banking days.
Exotech's non-exclusive offer is subject to prior sale, and it is presented on a first come and first serve basis.
The payment instrument conditions are irrevocable and non-negotiable.
The contract conditions are irrevocable, unconditional and non-negotiable.
No visit to yards or stock will be allowed prior to contract and Fee Payment Agreement signing.
No information regarding previous shipments or contracts will be provided.
The terms of the payment instrument must be approved by the Seller and Seller's Bank.
The presentation of a Full Corporate Offer (FCO) is always contingent on the presentation of the Buyer's Letter of Intent (LOI)
containing full banking coordinates and explicit authorization for the soft probe. In addition, the Buyer must present the Bank Comfort
Letter (BCL).
The Buyer also agrees that his response to this offer constitutes the acceptance of a Non-Circumvention and Non-Disclosure
The agreement, with corporate and individual responsibilities, extended to heirs, assignees, and/or successors, to be signed with our
Corporation, according to standard terms suggested by the International Chamber of Commerce (I.C.C.) 500, and valid for 5 (five)
years, or the length of the contract, whichever lasts longer.
Closing procedures:
Standard closing procedures, starting with the Letter of Intent (LOI) or the Irrevocable Corporate Purchase Order (ICPO), including
full banking information and explicit authorization to soft probe on Buyer's bank account, and fresh Bank Comfort Letter (BCL).
Refer to samples below of LOI, ICPO and BCL
The Seller responds with a Full Corporate Offer (FCO) and Draft of Contract.
Contract discussion and signing. All copies sent via email or fax are deemed legally binding. The hardcopies are exchanged via
courier;
The Buyer sends RWA or Proof of Funds (POF) via Bank to Bank (SWIFT MT799), and the Seller responds with Proof of Product
(POP) in the same fashion.
The buyer will open the agreed payment instrument, as indicated above, as pre-advice (non-operative).
The Seller issues the Performance Bond (PB) of 2% of the monthly shipment amount, which activates the payment instrument.
‘Shipments commence as per contract.
IMPORTANT notes regarding documentation submitted for consideration;
More than half of all requests we receive are rejected due to inconsistencies found in them. Therefore, to avoid frustration and
save precious communication time, please make sure the following is observed and respected.
The requests must be presented in a complete Irrevocable Corporate Purchase Order (ICPO) or Letter of Intent (LOI), in the
Company's letterhead (Corporate official stationery with full address and contact information), containing full banking information
(including Account holder, bank address and officer’s contact information, SWIFT Code, account coordinates, etc.) and must
include explicit authorization for soft-probe (not necessary for il transactions);
The Bank Comfort Letter (BCL) must be provided. A valid BCL must be issued on the Bank Letterhead, signed by two (2) bank
officers, including full banking coordinates, and stating clearly that the Account Holder is Ready, Willing and Able (RWA) to undergo
the transaction proposed (clearly identified including the product description, total volume and monthly volume transacted), and the
the total amount of the contract (clearly specified);
Note: some Sellers will agree with an RWA Letter from the Bank, which is frequently transmitted to the Seller's Bank via SWIFT MT
799. Other generic letter terms, such as simple referral letters indicating the good standing of the Account Holder in the banking
the institution has no value as BCL. In case an RWA is presented, instead of BCL, the decision to send RWA bank to bank must be
stated in the ICPO/LOI body text. The names, positions and contact information of the two (2) Bank officers signing the BCL/RWA
must be clearly indicated;
The ICPO/LOI must be signed and stamped. The names and positions of the Company officers signing the LOI/ICPO must be
clearly indicated. Otherwise, the document has no legal value;
The documents must be fresh (recent date - the most 3-5 days old max.);
VERY IMPORTANT, the letterhead of the Company requesting the commodity must correspond to the Bank Account Holder on the
banking information provided.
These points will help you in verifying the legitimacy of the documentation provided. If your documents DO NOT PASS these
verification points, please discuss them with your Buyers and get them corrected, immediately. This will save time in our process.
L O I - Letter of Intent
(This must be on Buyer's Letterhead)
Date : (Day, Month, Year)
To: Exotech
LOI Reference No :
We (company name) hereby declare and confirm that we are ready, willing and able under the act of perjury and penalty to purchase
the following commodity as specified below and certify that we have available full funding for the purchase :
NAME OF THE PRODUCT :
FULL SPECIFICATIONS OF THE SUBJECT PRODUCT :
Quantity: metric tons
Destination Port: Indicate port
Contract Duration: 1/2/3/4/5/6/8/10/12/18/24/36/ 48/ 60 months.
Rate / Size of Shipment in metric tons per month.
Packing: (Bulk in Vessel or packed in Bags/Containers)
Rate of Discharge at Destination: metric tons per day.
Target Price: ... US$ / MT CIF / C&F /
Terms of Payment (Please specify the type of L/C payment you wish to offer):
BG, SL/C, FFDL/C, FFRL/C, RL/C, DL/C, Joint Venture, Reserved Funds, Confirmed, Irrevocable, Transferable or Non-Transferable,
Divisible, 100% payable at sight, from one of 50 World prime Banks.
Performance Bond 2% max. from sellers:
Full Name of the Bank:
Full Address of the Bank:
Bank Telephone No: Bank Fax No :
Bank Account Holder or Name :
Bank Account No / IBAN :
Bank SWIFT / Sort Code / ABA No :
We understand that any and all contracts are subject to the seller’s successful soft probe of the buyer's account. We hereby give legal
authority and grant the right and permission to the seller to procure usual bank references and to conduct a soft probe of our bank
account.
Full Name of the Company:
Full Name of Signatory: |
Position of Signatory (Registered CEO of the company):
Yours truly
SIGNE: e
Signed for and on behalf of the Company rubber stamp:
1C P 0 - IRREVOCABLE CORPORATE PURCHASE ORDER
(Submitted on Buyer's Letterhead)
Date: (Day, Month, and Year)
To: Exotech
ICPO Reference No:
We, (Company Name), acting with full corporate responsibility as the potential buyer hereby submit our formal Irrevocable
Corporate Purchase Order to purchase the following goods.
By signing, we state with full legal responsibility that we are ready, willing and able to purchase the product/commodity as
illustrated below and are the legal signatory with full corporate power to produce the acceptable banking instruments to activate a
the valid sales contract between ourselves and the supplier/exporter.
Name of the Product / Commodity (Manganese Ore, Used Rails, etc.):
Specifications (Attach separate page, if necessary):
Quantity: MT/Metric Tones. Packing: Bulk, Containers
Destination Port / Country:
Delivery: CIF (input port of destination)
Rate / Size of Shipment (Optional):
Discharge Rate at Destination Port (Optional): Tones Per Day.
Inspection: By SGS or equivalent at seller's expense.
Target Price: USD CIF-destination port per Metric Ton.
Payment Terms:
Performance Bond (PB 2%):
The following commercial banking institution will function as the Primary Bank of Record for this transaction:
Full Name of the Bank:
Full Address of the Bank (Address, City, Zip, Country) :
Phone No : / Fax No:
Bank Telex No: (Optional)
Bank SWIFT / Sort Code No :
Bank's Officer : (Name / Title)
Direct Phone No: Fax No :
Bank Account Holder or Name:
Bank Account No / IBAN:
Confirming Bank Coordinates:
Full Name of the Bank:
Full Address of the Bank (Address, City, Zip, and Country)
International Trade Department Phone No: / Fax No:
Bank's Officer (Name / Title):
Direct Phone No: / Fax No:
We understand that any and all offers and/or contracts are subject to successful seller verification of funds availability. We hereby
give our written permission for the seller to seek the usual bank reference and to conduct a soft probe of our account.
By signing, we understand all offers are subject to a final agreement on the details of Commercial Invoice or other sales contracts.
By signing, we understand all offers are subject to a final agreement on the details of Commercial Invoice or other sales contracts.
Full Company Name :
Full Company Address (Address, City, Zip) :
State / Country :
Phone No : / Fax No :
Email: @
Web URL (Optional) :
Name of Signatory :
Title of Signatory (Registered CEO or Official Mandate of the Company) :
Dated (Day, Month, Year) :
Signature :
Company Stamp / Seal :
BC L - BANK COMFORT LETTER
(Submitted on Buyer's Bank Letterhead)
(Including all details: Address, Phone, Fax, E-Mail, etc.)
Date: (Day, Month, Year)
To: Exotech
Dear Sirs,
This is to confirm that our mutual clients (namely) maintain a banking account with us and s in good standing with our bank.
At their instructions we, (full name of the bank), with full authority and mandate, hereby confirm that the said client s ready, willing
and financially able to initiate the process of purchasing... tons of .. (product name) for the price of USD ... / MT during the next ...
months/years and for the total value of USD .. subject to the seller, completing the Sales & Purchase Contract.
We, (buyer's bank), confirm our ability to issue in due course and after the signing of the Purchase Contract, the required ...Letter of
Credit (..LC) on behalf of our client and for the benefit of the seller, with full assurance for the full amount of the contract.
We certify that our client named above has sufficient funds and/or has credit facilities with our bank to complete the proposed
transaction within the time period outlined in the above-referenced contract.
Our client hereby gives authority to the seller to procure usual bankers references from our bank officer ... whose direct phone
number is...
Yours truly
signed by a senior level bank officer: Full name of the signatory: Designation of the signatory: Clients’ Name as written in account:
Account No / IBAN: Bank Telephone No: Bank's Fax No: Bank Swift / Sort-Code:
Bank stamp: TR
A soft quote can be provided upon request. We will require
you to provide the details of your intended order, including the
type and grade of sugar you require, the amount of sugar you
would like to purchase, the destination of your order, and the
form of payment you can provide.
We accept two forms of payment, Bank Guarantee, Standby
Letter of Credit (BG, SBLC). Of these acceptable forms of
payment, we prefer a Bank Guarantee. Any of these forms of
payment must be issued by a major world bank (Top 25), or
confirmed by a major world bank. These act as a guarantee
that funds are in place and payments are made by TT telegraph
transfer MT103 for each shipment.
Letters of Credit that are non-transferable and revocable
are both unacceptable.
Payment shall be made when the shipment has been confirmed.
Any form of deferred payment will not be accepted.
Various forms of documentation are needed throughout the
negotiation and purchasing process. The soft quote is the
first piece of documentation that will be issued to you. If you
find the soft quote agreeable and wish to purchase sugar, we
require that you sign a NCND (Non-Circumvention Non-Disclosure Agreement). This is to protect both your
information and our own as we enter into the negotiation
process. You may then send in your Letter of Intent (LOI)
accompanied by a Bank Comfort Letter (BCL). Once we have
received and verified these documents, we will then issue a
Firm Corporate Offer (FCO.)
It depends. If your letter of intent is over seven days old, then
you will need to send a new letter of intent. The purpose of
this document is to act as evidence of recent intent to is
purchase from us, which is why it must be a recent document.
Yes, this is absolutely mandatory. We require your bank
details and also permission from you to conduct a soft probe
in order to determine that funds are available to cover the cost
of the intended transaction. This is a standard procedure for
many sellers as it protects us from wasting time and
resources on a sale which may not exist. For this reason you
will need to include in your letter of intent your bank details,
authorization for a soft probe, and the contact details of your
banking officer.
The fastest way to get a firm corporate offer (FCO), is to
provide us with the requested documentation accurately and
in a timely fashion. Ensure that the information is consistent
between the bank comfort letter and the letter of intent, and
that you have supplied us with all the details required for us to
confirm your details and conduct a soft probe. Though it may
seem that there is a great deal of paperwork to be undertaken
in order to obtain a firm corporate offer, it is essential to
ensuring a successful transaction.
No. It is not possible to see SGS reports in advance. If your
reason for wishing to see them s to obtain proof of the
product’s existence, this is covered in a bank to bank
procedure when the seller requests Proof of Funds (PoF) from
the buyer's bank, at which time a Proof of Product (PoP) is
supplied to the buyer's bank.
It is not possible to view sugar before purchase, due to the
fact that quite often the sugar is yet to be refined. This is
especially true for large orders which will be sent over a
period of several months. It is relatively rare that we store
sugar in a warehouse waiting for a buyer, as sugar is a hot
commodity and is generally sold prior to being refined, and in
some futures sales before it has even been planted.
You are free to order a smaller shipment of sugar than you
actually require by way of a trial, but we will not regard the
transaction as a trial, and cannot hold the sugar in reserve for you that has not been purchased.
Standard procedure dictates that the seller takes
responsibility for inspection of the goods, preparing them for
shipment, and for securing a vessel. Once the ship has left the
port with the cargo aboard, the seller is then paid.
No. The standard procedures are in place because they have.
been proven to provide the maximum protection for both
buyer and seller.
The sugar trading market is a global one with a great potential
for scam operations and monies being lost due to
unscrupulous buyers and sellers. The standard procedure
safeguards the interests of both parties.
The supplier must bear the cost for SGS inspections, which
are carried out at the port from which they are sent. The SGS
inspector provides several certificates which are sent to the
buyer confirming the quality and properties of the sugar.
Payment by IRREVOCABLE, CONFIRMED, TRANSFERABLE,
UNCONDITIONAL, UNRESTRICTED, UNENCUMBERED,
STANDBY LETTER OF CREDIT (SBLC) or BANK GUARANTEE
(BG) to be FULLY FUNDED to the value of the two months
shipments for a 12-month contract (to be confirmed by a Top
25 World Prime Bank, and EACH shipment payable by TT
(Swift Wire Transfer MT103/23), 100% on the sight of documents
at the Buyer's Bank.
1. Buyer issues bank-endorsed Letter of Intent (LOI) or bank.
endorsed Ievocable Corporate Purchase Order (ICPO).
2. Seller issues Full Corporate Offer (FCO).
3. Buyer signs and seals EACH page of FCO and returns to
Seller
4. Seller issues Draft Contract which will incorporate full
terms and conditions.
5. Buyer signs and seals EACH page of Draft Contract and
returns to Seller. Seller signs and seals Final Contract and
sends a copy to Buer.
6. Within 3 International banking and the Buyers Bank
ssues bank o bank pre-advise by MT 799 that they are reacy,
wiling and able to issue SBLC / BG to the value of USD
XXXXXXXXXXXXXX and that the SBLC/BG format in this Final
Contract s agreed.
7. Within 3 International banking day the Seller's Bank issues
10the Buyer's Bank by Swift MT 799 bank to bank stating that
the Seller's Bank confirm and can uarantes that the Seller
has the product and that the bank hold documentation to
support this.
8. Within 3 International banking days the Buyer's Bank issues.
an Operative, Irevocable, Transferable, Confirmed (by Top 25
World Bank), Unconditional, Unrestricted, Unencumbered,
SBLC or BG to Sellers Bank (see required format at Paragraph
17 below).
9. Within 4 International days the Seller's Bank issues to the
Buyer's Bank the 2% Performance Bond (PB) by Swift MT
799,
10. Within 15-21 days of receipt at the Seller’s Bank of the
operative SBLC/BG the shipment(s) will commence.
11. Payment by TT (SWIFT Wire Transfer MT 103/23) upon
sight of documents referred to at Paragraph 14.
A bill of lading is a type of document that is used to
acknowledge the receipt of a shipment of goods. A
transportation company or carrier issues this document to a
shipper. In addition to acknowledging the receipt of goods, a
bill of lading indicates the particular vessel on which the
goods have been placed, their intended destination, and the
terms for transporting the shipment to its final destination.
EIAs are the five Export Inspection Agencies having
headquarters at Bombay, Calcutta, Cochin, Delhi & Madras.
EIAs are autonomous bodies established by the Central
Government under the Export (Quality Control and Inspection)
Act, 1963 (22 of 1963), as the field organisation for
implementing the policies of the Central Government with
respect to quality control and/or pre shipment inspection of
export commodities from India.
1. Commercial invoice
2. Bill of lading
3. Consular invoice
4. Certificate of origin
5. Inspection certification
6. Dock receipt and warehouse receipt
7. Destination control statement
8. Insurance certificate
9. Export license
10. Export packing list
Pre-shipment inspection, also called PS, is an important and
reliable quality control method for checking goods’ quality
while clients buy from the suppliers. The pre-shipment
inspection is normally agreed between a buyer, a supplier, and
a bank, and it can be used to initiate payment for a letter of
credit. A PSI can be performed at different stages:
a) Checking the total amount of goods and packing
b) Controlling the quality and/or consistency of goods
c) Verifying compliance with the standards of the destination
country