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Sugar Cane Brazil
Cane Sugar in bags in warehouse. The largest warehouses in Brazil store up to 100,000 MT of sugar.

Sugar Cane Brazil
Sugar Cane in 50 kg bags being loaded at a smaller terminal.

Sugar Cane Brazil
High speed sugar terminal in Brazil. Shipping more than 30 million metric tones of sugar annually is a challence in logistics. Trains are coming in with the sugar directly to the docks.

Sugar Cane Brazil
Sugar vessel. Normal vessel sizes in bulk sugar are 12,500 metric tones and 25,000 metric tones.

Shipping

Shipping terms
  • CIF Only - Cost, Insurance and Freight (CIF) to Any Safe World Port (ASWP), cf. INCOTERM 2010.
CIF includes all costs related to the acquisition of the goods, the transport to the port of loading, the loading of the vessel, all export duties and port fees, the transport from port of loading to port of destination, expenses to anchoring, approaching and mooring at the port of destination. All expenses related to unloading the vessel at the port of destination, terminal handling charges, import fees etc. are to be paid by the consignee/buyer.

Shiploads
  • 12,500 MT Vessel
  • 25,000 MT Vessel
One contract may have multiple destinations as long as each shipment is divisible by the available vessel sizes of 12,500 MT and 25,000 MT.

Bags
  • 10 kg bags - by special offer
  • 25 kg bags - by special offer
  • 50 kg bags - standard
The bags will be market with production date, expiry date, supplier name, country of origin and description of content. Ask for offer on private labels.

Packing
  • Bulk
  • 1 MT big bags - by request

Contract Type

SPOT or Annual Contract
  • SPOT - one time only
  • Annual Contract - shipping every month in one year

Futures or Stock
  • Ready to go - on loaded vessel. SPECIAL OFFERS ONLY
  • Fast Track - from warehouse: Loading in 5-7 days. SPECIAL OFFERS ONLY
  • Futures - from refinery: Loading in 15-45 days depending on quantity
Shipping time depends on port of destination but will typically be 10-25 days.

Payment Terms

  • Cash Upfront - Cash Upfront by TT (MT103).
  • CaD - Cash against Documents - Bank Confirmation Letter or Blocked Funds (MT799) as proof of funds and payment by wired transfer (TT, MT103) against shipping document or warehouse receipt (such offers NOT available on regular basis).
Please note, that Cash Upfront are SPECIAL OFFERS TO EXISTING CUSTOMERS ONLY. Cash against Documents is ONLY available as SPECIAL OFFERS.
  • SBLC/BG+TT - Standby Letter of Credit or Bank Guarantee (SBLC/BG MT760) as guarantee and wired transfer (TT, MT103) for payment. The SBLC is usually for the amount of one month shipment value.
  • (R)DLC - Non-transferable (Revolving) Documentary Letter of Credit (DLC, MT700 or MT710) as guarantee and payment. If revolving the revolving value will be for one month's shipment value.
Performance Bond (PB, MT760) as counter guarantee to Cash Upfront, SBLC+TT, BG+TT and DLC - both annual contract and SPOT. The Performance Bond is 2% of one month's value - regardless of the total value of the SBLC etc.

Procedure

  1. Buyer issues LoI or ICPO and buyer's bank issues BCL
  2. Seller issues FCO and/or Draft Contract for amendments
  3. Signing Contract
  4. Buyer's bank issues full operational SBLC (MT760) or DLC (MT700 or MT 710) to Seller's bank
  5. Seller's bank issues full PoP by MT799 (Allocation Commitment Letter) and PB2% by MT760 to Buyer's bank
  6. SGS inspects the goods at the Port of Loading
  7. Vessel is loaded
  8. The full list of shipping documents is send to the buyer (in case of SBLC+TT) or presented at the counter of seller's bank (in the case of DLC)
  9. Payment is executed by TT (MT103) from buyer's bank to seller's bank (in the case of SBLC+TT) OR transferred from buyer's bank to seller's bank (in the case of DLC)
  10. Steaming (sailing)
  11. Arrival and unloading at Port of Discharge
Not all sellers will do pre-advise, but will ask for full operational SBLC before POP+PB. Please note that the LoI or ICPO MUST be on buyer's letterhead with full information of address, company registration number, bank account details (in the name of buyer) and contact info. Please also note, that the LoI/ICPO MUST be accompanied by valid BCL not older than 7 days truly confirming the buyers capacity to execute the specified sugar transaction detailed by quantity, price, monthly value and agreed payment terms. Please note, that this is NOT for negotiation and the end-seller will NOT get involved by ANY means until the buyer has truly proven the ability to enter the specific sugar transaction. Please do not even ask for name of end-seller upfront.

Proof of Product

1. Against Proof of Funds and signing Contract
  • Product Export License & Export Document Authorization
  • Producer Identification, i.e. name & address of Mill
  • Location and Product Availability from Mill
  • Certificate of Origin issued by Chambers of Commerce
Depending on the Proof of Funds provided those documents will only be available against non-operative payment instrument. Anyway, the very best way to verify the capacity of the seller is to ask seller's bank about seller. This way the buyer will get full and reliable confirmation of the seller being an established sugar trader.

2. Against operative payment instrument (or cash payment)
  • Allocation Commitment Letter issued (or endosed) by Chamber of Commerce of Brazil
Please note, in buying futures the Allocation Commitment Letter is the true Proof of Product. However, by Brazilian law Allocation Commitment Letters cannot be issued without a (operative) payment guarantee - to prevent the same sugar from being sold twice.

3. At Port of Loading
  • Warehouse Receipt from Port of Loading
Depending on the logistics and row of events warehouse receipt may or may not be issued.

4. After loading
  • Bill of Lading issued by shipping company
  • Certificate of Analysis issued by SGS contracted laboratory based on samples taken by SGS while the vessel is being loaded.
  • Certificate of Weight issued by SGS upon inspection while the vessel is being loaded.
  • Phytosanitary Certificate issued by SGS
Please note that Certificate of Analysis and Phytosanitary Certificate will be issued by SGS 3-7 days after samples have been taken - due to processing time at laboratory. The buyer is ALWAYS entitled to have an appointed representative present at the port of loading while SGS is doing the inspection and taking samples.

Shipping Documents

  • Bill of Lading issued by shipping company
  • Commercial Invoice issued by Seller
  • Insurance Policy (pre-paid) issued by Insurance Company
  • Certificate of Origin issued by Chamber of Commerce
  • Certificate of Analysis & Weight issues by SGS
  • Phytosanitary Certificate issued by SGS

Inspection

  • Certificate of Analysis & Weight issued by SGS
  • Phytosanitary Certificate issued by SGS
The inspection by SGS is taking place at port of loading - unless agreed differently. Buyer is ALWAYS entitled to be present when SGS inspects the shipment and take samples. The Certificate of Quality is based upon samples taking by SGS and analysis conducted by SGS contracted laboratory.