Frequently Asked Questions
We will ONLY accept to start negotiations upon receipt of Buyer’s LOI (including full banking coordinates and authorization for soft-probe on Buyer’s account), which should be nominal, and not older than 5 banking days.
TRADBULL’s non-exclusive offer is subject to prior sale, and it is presented as first come and first serve basis.
The payment instrument conditions are irrevocable and non-negotiable.
The contract conditions are irrevocable, unconditional and non-negotiable.
No visit to yards or stock will be allowed prior to contract and Fee Payment Agreement signing.
No information regarding previous shipments or contracts will be provided.
The terms of the payment instrument must be approved by the Seller and Seller’s Bank.
The presentation of a Full Corporate Offer (FCO) is always contingent to the presentation of the Buyer’s Letter of Intent (LOI) containing full banking coordinates and explicit authorization for soft probe. In addition the Buyer must present the Bank Comfort Letter (BCL).
The Buyer also agrees that his response to this offer constitutes the acceptance of a Non-Circumvention and Non-Disclosure Agreement, with corporate and individual responsibilities, extended to heirs, assignees, and/or successors, to be signed with our Corporation, according to standard terms suggested by the International Chamber of Commerce (I.C.C.) 500, and valid for 5 (five) years, or the length of the contract, which ever lasts longer.
Standard closing procedures, starting with the Letter of Intent (LOI) or the Irrevocable Corporate Purchase Order (ICPO), including full banking information and explicit authorization to soft probe on Buyer’s bank account, and fresh Bank Comfort Letter (BCL). Refer to samples below of LOI, ICPO and BCL
The Seller responds with Full Corporate Offer (FCO) and Draft of Contract.
Contract discussion and signing. All copies sent via email or fax is deemed as legally binding. The hardcopies are exchanged via courier;
The Buyer sends RWA or Proof of Funds (POF) via Bank to Bank (SWIFT MT799), and the Seller responds with Proof of Product (POP) in the same fashion.
Buyer will open agreed payment instrument, as indicated above, as pre-advice (non-operative).
The Seller issues the Performance Bond (PB) of 2% of monthly shipment amount, which activates payment instrument.
Shipments commence as per contract.
IMPORTANT notes regarding documentation submitted for consideration;
More than half of all requests we receive are rejected due to inconsistencies found on them. Therefore, to avoid frustration and save precious communication time, please make sure the following is observed and respected.
The requests must be presented in a complete Irrevocable Corporate Purchase Order (ICPO) or letter of Intent (LOI), in the Company’s letterhead (Corporate official stationery with full address and contact information), containing full banking information (including Account holder, bank address and officer’s contact information, SWIFT Code, account coordinates, etc.) and must include explicit authorization for soft-probe (not necessary for oil transactions);
The Bank Comfort Letter (BCL) must be provided. A valid BCL must be issued in the Bank Letterhead, signed by two (2) bank officers, including full banking coordinates, and stating clearly that the Account Holder is Ready, Willing and Able (RWA) to undergo the transaction proposed (clearly identified including the product description, total volume and monthly volume transacted), and the total amount of the contract (clearly specified);
Note: some Sellers will agree with a RWA Letter from the Bank, which are frequently transmitted to the Seller’s Bank via SWIFT MT 799. Other generic letter terms, such as a simple referral letters indicating the good standing of the Account Holder in the banking institution, have no value as BCL. In case a RWA is presented, instead of BCL, the decision to send RWA bank to bank must be stated in the ICPO/LOI body text. The names, positions and contact information of the two (2) Bank officers signing the BCL/RWA must be clearly indicated;
The ICPO/LOI must be signed and stamped. The names and positions of the Company officers signing the LOI/ICPO must be clearly indicated. Otherwise, the document has no legal value;
The documents must be fresh (recent date – the most 3-5 days old max.);
VERY IMPORTANT , the letterhead of the Company requesting the commodity must correspond to the Bank Account Holder on the banking information provided.
These points will help you in verifying the legitimacy of the documentation provided. If your documents DO NOT PASS these verification points, please discuss them with your Buyers and get them corrected, immediately. This will save time in our process.
L O I – Letter of Intent
(This must be on Buyer’s Letterhead)
Date : (Day, Month, Year)
LOI Reference No :
We (company name) hereby declare and confirm that we are ready, willing and able under the act of perjury and penalty to purchase the following commodity as specified below and certify that we have available full funding for the purchase :
NAME OF THE PRODUCT :
FULL SPECIFICATIONS OF THE SUBJECT PRODUCT :
Quantity : metric tons
Destination Port : Indicate port
Contract Duration : 1 / 2 / 3 / 4 / 5 / 6 / 8 / 10 / 12 / 18 / 24 / 36 / 48 / 60 months.
Rate / Size of Shipment in metric tons per month.
Packing: (Bulk in Vessel or packed in Bags/Containers)
Rate of Discharge at Destination : metric tons per day.
Target Price: … US$ / MT CIF / C&F /
Terms of Payment (Please specify the type of L/C payment you wish to offer):
BG, SL/C, FFDL/C, FFRL/C, RL/C, DL/C, Joint Venture, Reserved Funds, Confirmed, Irrevocable, Transferable or Non-Transferable, Divisible, 100% payable at sight, from one of 50 World prime Banks.
Performance Bond 2% max. from sellers:
Full Name of the Bank:
Full Address of the Bank:
Bank Telephone No: Bank Fax No :
Bank Account Holder or Name :
Bank Account No / IBAN :
Bank SWIFT / Sort Code / ABA No :
We understand that any and all contracts are subjects to seller’s successful soft probe of buyer’s account. We hereby give legal authority and grant the right and permission to seller to procure usual bank references and to conduct soft probe of our bank account.
Full Name of the Company:
Full Name of Signatory:
Position of Signatory (Registered CEO of the company):
Signed for and on behalf of Company rubber stamp:
I C P O – IRREVOCABLE CORPORATE PURCHASE ORDER
(Submitted on Buyer’s Letterhead)
Date: (Day, Month, and Year)
ICPO Reference No:
We, (Company Name), acting with full corporate responsibility as the potential buyer hereby submit our formal Irrevocable Corporate Purchase Order to purchase the following goods.
By signing, we state with full legal responsibility that we are ready, willing and able to purchase the product / commodity as illustrated below and are the legal signatory with full corporate power to produce the acceptable banking instruments to activate a valid sales contract between ourselves and the supplier / exporter.
Name of the Product / Commodity (Manganese Ore, Used Rails, etc.):
Specifications (Attach separate page, if necessary):
Quantity: MT/Metric Tones. Packing: Bulk, Containers
Destination Port / Country:
Delivery: CIF (imput port of destination)
Rate / Size of Shipment (Optional):
Discharge Rate at Destination Port (Optional) : Tones Per Day.
Inspection: By SGS or equivalent at seller’s expense.
Target Price: USD CIF-destination port per Metric Ton.
Performance Bond (PB 2%):
The following commercial banking institution will function as the Primary Bank of Record for this transaction:
Full Name of the Bank:
Full Address of the Bank (Address, City, Zip, Country) :
Phone No : / Fax No:
Bank Telex No: (Optional)
Bank SWIFT / Sort Code No :
Bank’s Officer : (Name / Title)
Direct Phone No : Fax No :
Bank Account Holder or Name:
Bank Account No / IBAN:
Confirming Bank Coordinates:
Full Name of the Bank:
Full Address of the Bank (Address, City, Zip, and Country)
International Trade Department Phone No: / Fax No:
Bank’s Officer (Name / Title):
Direct Phone No: / Fax No:
We understand that any and all offers and / or contracts are subject to successful seller verification of funds availability. We hereby give our written permission for the seller to seek usual bank reference and to conduct a soft probe of our account.
By signing, we understand all offers are subject to final agreement on the details of Commercial Invoice or other sales contracts.
Full Company Name :
Full Company Address (Address, City, Zip) :
State / Country :
Phone No : / Fax No :
E-mail : @
Web URL (Optional) :
Name of Signatory :
Title of Signatory (Registered CEO or Official Mandate of the Company) :
Dated (Day, Month, Year) :
Company Stamp / Seal :
B C L – BANK COMFORT LETTER
(Submitted on Buyer’s Bank Letterhead)
(Including all details: Address, Phone, Fax, E-Mail, etc.)
Date: (Day, Month, Year)
This is to confirm that our mutual clients (namely) maintain a banking account with us and is in good standing with our bank.
At their instructions we, (full name of the bank), with full authority and mandate hereby confirm that the said client is ready, willing and financially able to initiate the process of purchasing of … tons of … (product name) for the price of USD … / MT during the next …months / years and for the total value of USD … subject to the seller, completing the Sales & Purchase Contract.
We, (buyer’s bank), confirm our ability to issue in due course and after the signing of the Purchase Contract, required …Letter of Credit (…LC) on behalf of our client and for the benefit of the seller, with full assurance for the full amount of the contract.
We certify that our client named above has sufficient funds and / or have credit facilities with our bank to complete the proposed transaction within the time period outlined in the above referenced contract.
Our client hereby gives authority to the seller to procure usual banker’s references from our bank officer … whose direct phone number is…
signed by a senior level bank officer: Full name of the signatory: Designation of the signatory: Clients’ Name as written in account: Account No / IBAN: Bank Telephone No: Bank’s Fax No: Bank Swift / Sort-Code:
A soft quote can be provided upon request. We will require you to provide the details of your intended order, including the type and grade of sugar you require, the amount of sugar you would like to purchase, the destination of your order, and the form of payment you can provide.
We accept two forms of payment, Bank Guarantee, Standby Letter of Credit (BG, SBLC). Of these acceptable forms of payment, we prefer a Bank Guarantee. Any of these forms of payment must be issued by a major world bank (Top 25), or confirmed by a major world bank..These acts as guarantee that fund are in place and payments are made by TT telegraph transfer MT103 for each shipment
Letters of Credit that are non transferable and revocable Letters of Credit are both unacceptable.
Payment shall be made when shipment has been confirmed. Any form of deferred payment will not be accepted.
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). Once we have received and verified these documents, we will then issue a Firm Corporate Offer (FCO.)
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.
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.
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.
No. It is not possible to see SGS reports in advance. 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.
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.
You are free to order a smaller shipment of sugar than you actually require by way of a trial, but we will not regard the transaction as a trial, and cannot hold sugar in reserve for you that have not been purchased.
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.
No. The standard procedures are in place because they have been proven to provide the maximum protection for both buyer and seller.
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.
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.
Payment by IRREVOCABLE, CONFIRMED, TRANSFERABLE, UNCONDITIONAL, UNRESTRICTED, UNENCUMBERED, STANDBY LETTER OF CREDIT (SBLC) or BANK GUARANTEE (BG) to be FULLY FUNDED to the value of the two month’s shipments for a 12 month contract (to be confirmed by a Top 25 World Prime Bank, and EACH shipment payable by TT (Swift Wire Transfer MT103/23), 100% on sight of documents at the Buyer’s Bank.
1. Buyer issues bank endorsed Letter of Intent (LOI) or bank endorsed Irrevocable Corporate Purchase Order (ICPO).
2. Seller issues Full Corporate Offer (FCO).
3. Buyer signs and seals EACH page of FCO and returns to Seller.
4. Seller issues Draft Contract which will incorporate full terms and conditions.
5. Buyer signs and seals EACH page of Draft Contract and returns to Seller. Seller signs and seals Final Contract and sends copy to Buyer.
6. Within 3 International banking day’s the Buyer’s Bank issues bank to bank pre-advise by MT 799 that they are ready, willing and able to issue SBLC / BG to the value of USD XXXXXXXXXXXXX and that the SBLC/BG format in this Final Contract is agreed.
7. Within 3 International banking day the Seller’s Bank issues to the Buyer’s Bank by Swift MT 799 bank to bank stating that the Seller’s Bank confirm and can guarantee that the Seller has the product and that the bank hold documentation to support this.
8. Within 3 International banking days the Buyer’s Bank issues an Operative, Irrevocable, Transferable, Confirmed (by Top 25 World Bank), Unconditional, Unrestricted, Unencumbered, SBLC or BG to Seller’s Bank (see required format at Paragraph 17 below).
9. Within 4 International days the Seller’s Bank issues to the Buyer’s Bank the 2% Performance Bond (PB) by Swift MT 799.
10. Within 15-21 days of receipt at the Seller’s Bank of the operative SBLC/BG the shipment(s) will commence.
11. Payment by TT (SWIFT Wire Transfer MT 103/23) upon sight of documents referred to at Paragraph 14.
A bill of lading is a type of document that is used to acknowledge the receipt of a shipment of goods. A transportation company or carrier issues this document to a shipper. In addition to acknowledging the receipt of goods, a bill of lading indicates the particular vessel on which the goods have been placed, their intended destination, and the terms for transporting the shipment to its final destination.
EIAs are the five Export Inspection Agencies having headquarters at Bombay, Calcutta, Cochin, Delhi & Madras. EIAs are autonomous bodies established by the Central Government under the Export (Quality Control and Inspection) Act, 1963 (22 of 1963), as the field organisations for implementing the policies of the Central Government with respect to quality control and / or pre shipment inspection of export commodities from India.
Pre-shipment inspection, also called PSI, is an important and reliable quality control method for checking goods’ quality while clients buy from the suppliers. The pre-shipment inspection is normally agreed between a buyer, a supplier, and a bank, and it can be used to initiate payment for a letter of credit. A PSI can be performed at different stages:
a) Checking the total amount of goods and packing
b) Controlling the quality and/or consistency of goods
c) Verifying compliance with the standards of the destination country
2.Bill of lading
4.Certificate of origin
6.Dock receipt and warehouse receipt
7.Destination control statement
10.Export packing list