Keterangan :

Buying Sugar from Brazil

20 years ago if a buyer wanted to purchase sugar from Brazil, he had to deal with one central selling agency. Now he can buy directly from the Brazilian sugar mills or even foreign companies ( investment funds) who own large sugar allocations, etc. Today the buyer can build and run his own terminals, deal in Brazilian domestic market and even invest in the sugar production process. Admittedly it is risky and the risks have to be priced accordingly but the choice now exists where it did not before.

Better education as a result of increasing wealth in developing countries has increased the sophistication of both producers and consumers. Nowadays producers and consumers often take over the role of the traditional trade houses. Middle East sugar refiners are negotiating purchase contracts directly from Brazilian producers. Russian importers buy FOBs ( free on board) and ship the sugar themselves. Brazilian producer groups deliver their sugar to the New York future exchange, etc. Nowadays everyone seems to be in the “ Do it Yourself� sugar trading business. Naturally because of that the market is full of amateur traders, brokers, agents, even scammers who throw around prices as if they are selling cookies. It is often difficult to filter out the “ noise� and find real suppliers.

95% of the enquiries we get are from “ agents� who are just fishing for info ( prices, suppliers, etc..) and have no intention or capability to actually purchase sugar. We don’ t mind working with brokers but you have to follow procedure as outlined below. If you have to use us as your source of education, there is plenty of information published on this website and you are free to use it but please understand that we have to reserve our time for the real buyers and will not reply once we determine that you ( or your buyer) cannot perform according to procedure specified below.

Sugar Ordering Procedures

( 1) Quote is issued then returned filled in as accepted ( Non legally binding)
( 2) Offer is issued – which the End Buyer returns as accepted ( Legally binding)
( 3) Draft contract is issued/ negotiated upon and returned as accepted.
( 4) End Buyer issues Pre Advised Documentary Letter of Credit as per offer/ contract
( 5) Proof of Seller’ s interests – verifications of goods advised as per contract
( 6) Pre Advised Documentary Letter of Credit reverts to a fully active Documentary LC
( 8) Performance guarantee is issued by the seller as per UCP600 Stand-by Letter of Credit rules.
( 7) Delivery is initiated by document presentation as per offer/ contract
( 8) Collection is applied per each shipment until final delivery

Payment terms:

The Buyer shall open a UCP600 Irrevocable, Non transferable, Confirmed, Pre-advised Documentary Letter of Credit, payable 100% on sight, valid for the duration of the contract period for an amount in US dollars sufficient to cover one hundred percent of one month ( 100% ) . If multi shipments are advised, the the credit shall be opened as non cumulative, revolving.

Performance Guarantee:

( LDD) Late delivery discount to apply as a Performance guaranttee if delivery is late. P.G. LDD will be advised on offer and is enforced by the contract.

The above procedures and payment terms are the least expensive of all Documentary Letter of Credit applications. Once the pre-advised credit is opened and accepted, full proof of interest is advised which converts the credit into a full active instrument.

As you are aware a Documentary Letter of Credit ( DLC) is financially worthless ( it cannot be cashed) untill all the required delivery documents have been provided and accepted by your own bank issuing the credit.

Buy Sugar from us

Please contact us through this form below and let us know your detailed requirements.