NEW 2017 Soybean # 2 GMO – Up to 100,000 Mt p/month – Origin Brazil – CIF China Basis
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FCO – Soybean # 2 GMO
Brazil
We have the pleasure to inform you that our group have negotiated this excellent option related to Soybean # 2 from Brazil.
- Seller is R, W and A to advance in faster terms to Draft Contract after receive & approve ICPO.
- Available order UP to 100,000 Mt monthly.
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Commodity: |
Brazilian Yellow Soybeans GMO, group 2, export quality (somewhat US grade #2 equivalent) |
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Validity: |
Until the 7th of September, 2017 |
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Quantity: |
1,000,000 (One million) metric tons |
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Origin: |
Brazil |
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Contract duration: |
The duration of 12 monthly deliveries of 100,000 (One hundred thousand) metric tons plus two months. |
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Delivery: |
12 monthly deliveries of 100,000 (One hundred thousand) metric tons corresponding to 2 -4 monthly shipments of between 25,000 and 50,000 metric tons. |
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Packaging: |
Bulk |
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Specification: |
See ANNEX 1, Product Specification |
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Price: |
Fixed price of 378 (three hundred and seventy eight) USD per metric tons. |
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Payments terms: |
See terms and options in ANNEX 2, Payment Terms |
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Delivery terms: |
CIF (Incoterms 2010), China, Guangzhou Port Schedule to be defined –first shipment earliest 30/45 days after the SBLC/BG is accepted by the seller’s bank. |
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(The product is available immediately) |
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Loading port: |
At seller’s discretion, but probably Paranaguá or Santarém |
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Inspection: |
By SGS at Sellers expense |
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Procedures: Contract Procedures
1. Buyer accepts the SCO 2. The seller issues FCO 3. Seller issues draft contract to buyer 4. The buyer sends RWA to seller confirming availability of funds 5. The buyer requests any alterations necessary and sends it to the seller for approval/negotiation 6. Seller issues four hard copies of the final approved contract to be signed and exchanged 7. Buyer furnishes confirmation text of draft instrument of guarantee for seller’s bank approval within three banking days from signing the contract 8. Seller approves text of guarantee within three banking days thereafter 9. Buyer issues operative, irrevocable and confirmed instrument of guarantee within five banking days thereafter 10. The seller issues a 2% performance bond 11. Delivery and shipment commence as per agreed schedule
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ANNEX 1
Product Specification for Brazilian Yellow Soybeans GMO
Based on ANEC, contract 41, 2016
ANEC: National Association of Grain Exporters
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Specification/Quality Product |
Brazilian Yellow Soybeans GMO Group 2 (as per Brazilian legislation) Export Quality – somewhat equivalent to USA Grade #2 |
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Crop |
2017/2018 |
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Oil Content Basis |
18,5% (AOCS Ac 3 – 44) with non-reciprocal allowance of 1% for each 1%, fractions in proportion, in Buyer’s favour |
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Moisture maximum |
14% |
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Foreign matter basis |
1%, maximum 2% with non-reciprocal allowance of 1% for each 1%, fractions in proportion; |
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Damaged beans basis |
8%, maximum 8.5% with non-reciprocal allowance 2:1, fractions in proportion, of which maximum 4% heat damaged and burned (being maximum 1% burned) and 6 % mouldy; |
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Broken beans maximum |
20% |
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Greenish beans maximum |
8% |
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Free from poisonous seeds / husks but tolerance 1 particle of treated vegetable seeds with unknown level of toxicity for each 1 kg sample at each lot of 5,000 metric tons loaded and maximum 0.005% castor seed and/or castor seed husks. |
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Conditions
To be final at time and place of shipment per certificate/s issued by Independent Surveyor, member of Brazilian Association of Surveying Companies, ASCB (Associação das Supervisoras e Controladoras do Brasil), cost being for Seller’s account. Other quality/condition in accordance with Brazilian Legislation ruling at time and place of shipment
Buyer has the option, at his expense, to request for joint sampling and sealing, advising the Seller in due time the name of the Independent Surveyor he is appointing.
If the difference of any of the following items between Buyer and Seller certificates does not exceed the below mentioned percentages, then the Seller’s results will be final. Otherwise, at request of either party at his expenses, within 45 days from the B/L date, a third test shall be carried out by a mutually agreed Independent Laboratory, member of Brazilian Association of Surveying Companies, ASCB (Associação das Supervisoras e Controladoras do Brasil). The average of the 2 closest analysis results shall be final under this contract and must be settled by a complementary debit note.
– Moisture 0.5%, Damaged Beans 0.5%, Heat Damaged 0.5% and Foreign Matter 0.2%
Greenish beans 0.5%, Burned 0.10% and Mouldy 0.5%
Such agreement can be settled directly between Shipper (first Seller) and final Buyer. In that case, all the parties involved in the string must be informed in writing about the agreement and at a later stage about the results. Settlement of differences to be done between each counterparty.
In case parties have not reached a mutual agreement for the third laboratory, the party requesting the third analysis has the option to send a sealed loading sample to ANEC accompanied with a bona fide copy of both Buyer’s and Seller’s certificates requesting the nomination of an independent laboratory.
ANEC shall at their discretion forward the sample to a recognized laboratory to proceed to the third test strictly in accordance with instructions received from the Buyer or Seller. All samples shall receive ANEC’s identification seal as well as each certificate. The third analysis certificate will be received by ANEC, sealed and dispatched to the requesting party. All costs will also be for the account of the requesting party.
The average of the 2 closest analysis results shall be final under this contract and must be settled against presentation of a debit note.
Irrespective of the third test result, payment of shipping documents cannot be affected or delayed.
ANNEX 2
Payment terms
Payment
For the shipments, the buyer will pay by SWIFT 103 (wire transfer) for each shipment totalling a monthly value of USD 37,800,000 (thirty seven million eight hundred thousand United States Dollars) plus/minus permitted small quantity deviations payable at sight against presentation of the shipping documents. One shipment is expected each month for twelve months of deliveries.
Contract Guarantee
SBLC or BG issued to the Seller guaranteeing four months of deliveries. The value of the SBLC/BG is 150,000,000 USD (One hundred fifity million United States Dollars).
The SBLC/BG must be accepted by the Seller and the Seller’s bank.
The SBLC/BG must be
o Irrevocable
o Operative
o Transferable
o Confirmed
o Unconditional
o Divisible
o Cash backed
o Totally released
It must be issued or confirmed by a world top 50 bank.
Please see draft verbiage in Annex 3 for an example of the required conditions.
We can also consider other payment terms if the contract is assured for a minimum of four months of deliveries.
If the contract price is changed from fixed price to a price indexed to CBOT, we can accept a two months guarantee.
ANNEX 3
Example Draft Verbiage of SBLC
MT760/710
Standby letter of credit no:
Amount:
Beneficiary:
Swift Code:
We, (name of issuing bank, branch name, address), hereby issue our irrevocable, operative, transferable, confirmed, unconditional, divisible, cash backed, totally released Standby Letter of Credit in favor of ______________________ , being the beneficiary for the amount eur/usd ________________________ only (€/$ _____ ) which is available with ourselves by payment upon receipt of BL – bill of lading.
Which has to be duly certified as correct by the applicant at our counters on the date of such claim accompanied by the following documents:
(+) manually signed original commercial invoice in one original.
(+) manually signed packing list in one original and three Copies.
(+) signed and dated beneficiary’s statement certifying that: Packing: international export packing. Packing list to evidence compliance.
(+) full set (3/3) of clean shipped on board bills of lading made out
Authenticated copy of tested telex/swift advice issued by the issuer to the advising bank for the beneficiary, confirming performance for contract xxxxx.
Any claim under this standby letter of credit can be presented not earlier than 15 days before the date of expiry but within the validity of this standby letter of credit.
All correspondent bank charges and taxes that may be assessed, if any, shall be for account of the client. Assignments of proceeds are allowed.
This standby letter of credit is valid for 1 (one) year and 1 (one) month.
This standby letter of credit is governed by and interpreted in accordance with the laws of Brazil and EUA and subject to the uniform customs and practice for documentary credits, 2007 revision, icc publication no. 600 (UCP) except so far as otherwise expressly stated in the credit.
This is an operative instrument
We will follow receipt of the above authenticated swift within 7 (seven) working days to pay you the amount specified in your authenticated swift or tested telex in compliance with the above terms.
Bank Officer 1: Bank Officer 2:
Authorized Signatory Authorized Signatory
Name: Name:
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