CONTRACT PROCEDURES for Sugar Export

1. Buyer agrees and accepts FCO within Five (5) banking days. Buyer, then, sends the Irrevocable Confirmed Purchase Order (ICPO) back to Seller with agreement of the draft of SBLC in this FCO with Banking name and Contact details.
2. Seller issues draft contract for Buyer acceptance, within Three (3) banking days.
3. Buyer presents authorized Bank Comfort Letter (BCL)/Proof of Funds (POF) from his bank, upon verification by Seller’s bank. Seller sends Bill of Lading and/or SGS report without showing buyer name and supplier name as proof of product to Buyer.
4. Buyer signs draft contract and makes amendments if needed, subject to seller’s approval and return the draft contract duly signed and sealed within Three (3) banking days. Seller signs the contract and electronically returns to the buyer. The contract is now legally binding on both parties.
5. Within Five (5) banking days after contract sign, Buyer’s bank issues to Seller’s bank a Standby Letter of Credit (SBLC) format MT760 Unconditional, Transferable, Divisible, Irrevocable, Cash Back Int’l Top 25 Bank Classified and Valid for 1 Year and 1 Day. See attached for sample verbiage.
6. Once the SBLC has been approved, Seller sends 2% Performance Bond making the SBLC operative.
7. Delivery to being as stipulated in the contract.
8. Ship will be loaded according to shipment scheduled as per the Contract.