SOUTH PACIFIC EXIMPORT LTD.-

International Trading - Seller Mandate - Reseller - Representations and Consulting

FREQUENTLY ASKED QUESTIONS (FAQs)

 

  • When Must Payment Be Made?

Payment shall be made when shipment has been confirmed. Any form of deferred payment will not be accepted.

  • What Documentation Is Needed?

Various forms of documentation are needed throughout the negotiation and purchasing process. The soft quote is the first piece of documentation that will be issued to you. If you find the soft quote agreeable and wish to purchase sugar, we require that you sign a NCND (Non Circumvention Non Disclosure Agreement). This is to protect both your information and our own as we enter into the negotiation process. You may then send in your Letter of Intent (LOI) accompanied by a Bank Comfort Letter (BCL) or Ready willing and Able (RWA). Once we have received and verified these documents, we will then issue a Firm Corporate Offer (FCO.)

  • Do I Need To Send You A New Letter Of Intent?

It depends. If your letter of intent is over seven days old, then you will need to send a new letter of intent. The purpose of this document is to act as evidence of recent intent to purchase from us, which is why it must be a recent document.

  • Must I Supply My Bank Details With My Letter Of Intent?

Yes, this is absolutely mandatory. We require your bank details and also permission from you to conduct a soft probe in order to determine that funds are available to cover the cost of the intended transaction. This is a standard procedure for many sellers as it protects us from wasting time and resources on a sale which may not exist. For this reason you will need to include in your letter of intent your bank details, authorization for a soft probe, and the contact details of your banking officer. 

  • Can I Get a Firm Corporate Offer Quickly?

The fastest way to get a firm corporate offer (FCO), is to provide us with the requested documentation accurately and in a timely fashion. Ensure that the information is consistent between the bank comfort letter and the letter of intent, and that you have supplied us with all the details required for us to confirm your details and conduct a soft probe. Though it may seem that there is a great deal of paperwork to be undertaken in order to obtain a firm corporate offer, it is all essential to ensuring a successful transaction.

  • Can I See SGS Reports Before I Send In My Letter Of Intent?

No. It is not possible to see SGS reports in advance or past SGS, or past B/L. If your reason for wishing to see them is to obtain proof of the product’s existence, this is covered in a bank to bank procedure when the seller requests Proof of Funds (PoF) from the buyer’s bank, at which time a Proof of Product (PoP) is supplied to the buyer’s bank.

  • Can I See The Sugar Before Purchase?

It is not possible to view sugar before purchase, due to the fact that quite often the sugar is yet to be refined. This is especially true for large orders which will be sent over a period over several months. It is relatively rare that we store sugar in a warehouse waiting for a buyer, as sugar is a hot commodity and is generally sold prior to being refined, and in some futures sales, before it has even been planted. 
 
  • What Is The Standard Procedure?

Standard procedure dictates that the seller takes responsibility for inspection of the goods, preparing them for shipment, and for securing a vessel. Once the ship has left the port with the cargo aboard, the seller is then paid.
 
  • Can I Have My Own Procedures Followed?

No. The standard procedures are in place because they have been proven to provide the maximum protection for both buyer and seller.

  • What Is The Reason For Having A Standard Procedure?

The sugar trading market is a global one with a great potential for scam operations and monies being lost due to unscrupulous buyers and sellers. The standard procedure safeguards the interests of both parties.

  • Who Pays For SGS Inspections? Where Are They Carried Out?

The supplier must bear the cost for SGS inspections, which are carried out at the port from which they are sent. The SGS inspector provides several certificates which are sent to the buyer confirming the quality and properties of the sugar.

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IMPORTANT DETAILS

1) Performance Bond cannot be more than 2%;

2) Inspection by S.G.S in loading port (at Seller cost); S.G.S Group 

3) We will not provide past documents (B/L, SGS, Proforma invoice, other certification) or advanced POP. The POP, SGS inspection and shipping documents is issued ONLY bank to bank. This warrants the exist product; quality, quantity, weight and specifications of product by SGS inspection. All the documentation is sent by the Seller´s bank to Buyer´s bank only at the time specified in procedures and not before. Please do not insist;

4) Finally, we do not work with the Buyer’s procedures. A Buyer must agree to accept and follow the Seller’s procedures. The Sellers will  not alter their procedures.

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