Procedures and Conditions for Selling ICUMSA 45 Sugar

1. Preparation Phase

Market Research:

• Check current global market prices for sugar.
• Define your demand and ensure readiness to issue financial instruments such as SBLC or LC from top 50 banks.

Document Preparation:

• Prepare a Letter of Intent (LOI) and Identification (ID) of the signatory.

2. Initial Contact

Send ICPO:

• The buyer sends an Irrevocable Corporate Purchase Order (ICPO) with the buyer’s company’s letterhead, duly signed and stamped.

3. Offer and Negotiation

Receive FCO:

• The seller sends a Full Corporate Offer (FCO) to the buyer.

Draft Contract:

• Both parties negotiate and sign the draft Sales and Purchase Agreement (SPA).
• Buyer provides proof of funds (POF) and identification documents.

4. Contract Finalization

Sign SPA:

• The buyer and seller sign the SPA, including an RWA (Ready, Willing, and Able) letter issued by the buyer’s bank.

5. Financial Instrument

Issue Financial Instrument:

• Buyer issues the financial instrument draft (SBLC or LC) within 7 business days.
• Seller validates the draft with a fiduciary firm.

SWIFT Message:

• Buyer’s bank sends a SWIFT MT760 or MT700 message to the seller’s fiduciary bank.

6. Shipment and Payment

Delivery:

• Delivery starts within 35-40 days after the financial instrument is opened.

Release Payment:

• Payment is released by MT103/TT within 3 business days after receiving shipping documents, including BL and SGS report, at the loading port.

7. Additional Considerations

Inspection:

• Only SGS inspection at the loading port is accepted for payment release. CIQ inspection at the destination port is not accepted.

Intermediaries and Brokers:

• Commissions are accepted up to 9-10K above net prices, with complete identification required before the transaction.

Summary of Key Points

• Ensure all financial instruments are issued by top 50 global banks.
• Use escrow accounts in Swiss banks if necessary, without requiring LC/SBLC instruments.
• Adhere to the timelines for issuing drafts, SWIFT messages, and delivery schedules.