LOI-Letter of Intent
ON LETTERHEAD OF BUYER’S COMPANY
( TEXT OF LOI ONLY FOR YEARLY CONTRACT REQUEST BY SELLER )
Date Issued: (MONTH) / (DAY)/ 2013
LETTER OF INTENT
YEARLY CONTRACT XXX.000MT X 12 MONTHS
TO : BRAZIL SUGAR CORP.
ATTN: /SELLER MANDATE
We, (BUYER) ………………………………………………ADDRESS ………………………… ……………………………………………… CITY……………………… COUNTRY …………. hereby state and represent that it is our intention to purchase, and we hereby confirm that we are ready, willing and able to purchase the following commodity as per the specification and in the quantity and for the price as specified in the terms and conditions as stated below.
COMMODITY : Refined White Cane Sugar ICUMSA 45 RBU
Product: ICUMSA 45 SUGAR
POLARITY at 20ºC: 99.80º Minimum
SULPHATED ASH CONTENT: 0.04% Maximum by Weight
MOISTURE: 0.06% Maximum by Weight
MAGNETIC PARTICLES: mg/kg 4
SOLUBILITY: 100% Dry & free flowing
GRANULOMETRY: Fine Standard
ICUMSA: Colour 45 ICUMSA attenuation index Units (Method #10-1978) Maximum
AS: 1 P.P.M.
COLOUR: Brilliant White
REDUCING SUGAR: 0.010% Maximum in Dry Mass
RADIATION: Normal w/o presence of cesium or iodine SO2: mg/kg 70
HEAVY METALS, TOXIC ELEMENTS Maximum mg / kg basis
ARSENIC 0.50 CADMIUM 0.05 COPPER 1.00
LEAD 1.00 MERCURY 0.01 ZINC 3.00
PESTICIDE TRACES Maximum mg / kg basis
DDT 0.005 PHOTOXIN 0.01 HEXACHLORAN GAMMA ISOMER 0.005
PATHOGENIC BACTERIA including SALMONELLA per 25 gram: Nil. Bacillus per gram: Nil
QUANTITY : 000.000 MT / Shipment / MONTH
CONTRACT LENGTH 12 MONTHS (ONE YEAR) With rolls&extensions
LOADING PORT SANTOS-PORT (Brazil)
DESTINATION PORT CIF AWSP
PRICE USD 000.00/MT CIF ( COST + INSURANCE + FREIGHT)
SHIPPING TERMS CIF 30/45 DAYS ( MAXIMUM )
DELIVERY TIME NO LATER THAN FORTY-FIVE DAYS FOLLOWINGS
AFTER ACCEPTANCE OF THE PAYMENT INSTRUMENT
INSPECTION QUALITY, QUANTITY, WEIGHT BY SGS AT SELLER’S COST AT LOADING PORT.
Irrevocable, Transferable, Confirmed, SBLC/ARDLC/LC MT 760 FORMAT Before Loading.
Société Générale de Surveillance (SGS) or equivalent shall issue an inspection certificate of the loaded quantity and quality for each shipment to certify that the goods are in good order and conditions and being conform to the specification herein stated. Each shipment must be having phyto-sanitary certificate from ministry of health stating that sugar are good for human consumption.
The seller guarantees that each shipment shall be provided with an inspection certificate of weight, quantity and quality at time of loading and such certificate shall be provided by Société Générale de Surveillance (SGS) or equivalent only at seller´s expense, and shall be deemed to be final. The seller shall instruct said authority to carry out the inspection in strict accordance with the International Chamber of Commerce ( I.C.C.) rules Société Générale de Surveillance (SGS) or equivalent also will provide packing condition report.
- Buyer issues LOI or ICPO +RWA or BCL
- The Seller will present the draft contract for acceptance by the Buyer. Contract goes through normal negotiation and validation period.
- Buyer returns the draft contract by exchanging it by facsimile or Email attachment, duly signed and sealed, within 24 hours, the draft copy will be deemed legal until hard copies exchanged.
- Buyer Bank issues SWIFT SBLC MT 760, to receive the Seller Bank within 5 (five) working days. Seller issues to Buyer Bank POP (3 – 5) days and 2 % PB
- The delivery and forwarding begin immediately according to the contract.
All Banking charges including confirmation from the Buyer´s Bank shall be borne by the buyer and all banking charges incurred by the Seller at Seller´s Bank shall be borne by the Seller.
DOCUMENTS REQUIRED BY BUYER:
1) Bill of Lading, three (3/3) copies.
2) Commercial Invoice, three (3/3) copies.
3) Certificate of Origin, three (3/3) copies.
4) Certificate of Quality and Quantity Issued by SGS, three (3/3) copies.
5) Phyto-sanitary Certificate, three (3/3) copies
6) Insurance Original, three 3/3) copies.
LOI VALIDITY : 5 days from the date of issuance
The following table is for Buyer’s information and banking details:
BUYER’S BANKING DETAILS:
CORRESPONDENT BANK ADDRESS BANK PHONE
Sincerely Yours, ( DOCUMENT MUST BE SIGNED AND SEALED BY BUYER PLS INSERT PASSPORT COPY OR OTHER DOCUMENT )
Sign ____________________ President, Director, etc