PROCEDURES FOR PURCHASING SUGAR

PROCEDURES – NON NEGOTIABLE

Start. Buyer sends LOI/ICPO with KYC/CIS File and Bank Details  duly completed and signed to the seller.

1. After Compliance approval, the seller sends the FCO with all banking directions and instructions to the Buyer, who must analyze it carefully and, if in agreement with the terms and procedures, return it signed to the Seller.

2. Within 5 (five) business days after the electronic signature of all parts of the FCO, the Buyer will send the Proof of Funds which may be a MT199, (BCL or RWA) with bank liability or MT799, obligatorily via Bank to Bank through the Global Swift System, as this is the only format accepted by the seller's banks.

3. After verification of the Buyers Proof of Funds through Bank the seller will issue your SPA open for small amendments, if necessary, as usually everything is as outlined in FCO and sends it for review to the Buyer.

4. The Seller through your Bank or Lawyer will within 5 Days after approval of the Clients POF send the following Proof of Product - POP Documents to the Buyer

- CERTIFICATE OF ORIGN

- COMMITMENT TO SUPPLY CERTIFIED BY A NOTARY PUBLIC

- PROOF OF PRODUCT EXIST STATEMENT CERTIFIED BY A NOTARY PUBLIC

5. The buyer makes his amendments, sends them back to the seller and seller prepares final SPA which includes the accepted adjustments and revert to buyer.

6. If the buyer agrees, the seller starts DocuSign or familiar electronic system fixing the final SPA version for the signature of all parties involved.

7. After SPA has been signed by all Parties, Buyer issues Financial Instrument SBLC/DLC as agreed within 5 – 7 Bank Business Days or what was agreed and concluded to The Seller named Bank account as per the Proforma Invoice.

8. As soon as SBLC/DLC is received and verified from seller`s bank The Seller will issue Performance Bond of 2% max. 5 days after verifying the instrument through the Bank.

9. Within 20 – 30 Business Days logistics starts, and transportation, Packaging, Inspection, Loading, and shipping will commence.

10. The Seller will send in due Time invitation Letter to the Buyer to be present if wanted for Inspection and Loading.

11. The Seller will send complete original shipping documents to Buyer’s bank via their bank and email copy of original shipping documents to the buyer. See next paragraph.

12. Buyer instructs his bank for MT103 payment per supply when getting the agreed documents and payment must be received on seller`s bank account latest within 3 banking days.

13. As soon as seller`s bank confirms that payment is cleared in our bank account ownership of each supply changes with immediate Effect and a Certificate of Title Transfer will be issued.

14. Procedure repeats until contract settled and seller pays intermediaries involved preferred through a paymaster.

PROCEDURES FOR PURCHASING FUEL

SELLER’S PROCEDURE, CIF

1.  Buyer’s issues official Letter of Intent – LOI.

2.  Seller's issues official Soft Corporate Offer - SCO.

3.  Buyer Issues its (I.C.P.O.) in line with seller's procedure

4.  Upon Seller review and acceptance of the (I.C.P.O.), seller issues MOU to yearly contract supply (SPA Draft).

5.  After the signing of the SPA contract by the parties, seller register the product contract in OFAC. Seller issues Proforma Invoice.

6.  Buyer issues the MT199 RWA to issue a financial guarantee to cover the value of the first shipment to seller’s Bank.

7.  Upon receipt (POF), Seller issues to buyer the following beneficiary certificates below:

a.     Certificate of Origin

b.     Certificate of quality and quantity

c.      Certificate of analysis

8. Buyer issues the financial guarantee to cover the value of the first shipment to seller’s bank to seller’s bank. The Seller’s Bank issues for the Contract 2,0% Performance Bond, not PB for Trial

9. Upon confirmation of Buyer’s guarantee, Seller will issue the full POP and shipping documents and send to the Buyer as below:

a.     Product allocation export permit

b.     Allocation tittle ownership certificate

c.      Port Storage Agreement

d. SGS Q&Q (Quantity & Quality) certificate

e. Bill of Lading

f.   ETA of vessel

g. Vessel questionnarie Q88.

10. Shipment commences and upon arrival of the vessel tanker to discharge port. Buyer conducts SGS or similar inspection team within (1) day and makes operative payment. All deliveries will be paid within (3) days upon vessel arrival and Q&Q verified at port of destination

11. Seller’s Bank pays commissions to all intermediaries involved into the transaction.

SELLER´S PROCEDURE, FOB Tank to Vessel (TTV)

1. Buyer´s issues official Letter of Intent – LOI.

2. Seller's issues official Soft Corporate Offer - SCO.

3. Buyer Issues its (I.C.P.O.) in line with seller's procedure

4. Upon Seller review and acceptance of the (I.C.P.O.), seller issues MOU to yearly contract supply (SPA Draft).

5. After the signing of the SPA contract by the parties, seller register the product contract in OFAC. Seller issues Proforma Invoice (P.I).

6. Buyer issues the MT199 RWA to issue a financial guarantee to cover the value of the first shipment to seller’s Bank.

7. Upon receipt of the endorsed Commercial Invoice (C.I) and POF, seller issues the below PPOP documents:

a.  Product Passport

b. Commitment to supply

c.  Statement of product Availability

8. Upon receipt and confirmation of the above PPOP Documents, buyer, provides it’s Q88 from the shipping company to enable seller injection specialist confirm buyer vessels specification.

9. Upon receipt and confirmation of the above as stated, buyer provides Notice of Readiness (N.O.R) from its shipping company stating his readiness to receive product from seller and in return, seller issues the below Full POP Documents.

a.  Dip Test Authorization (D.T.A.) – Unconditional

b. SGS Report

c.  Reception Report

d. Product Certificate of Origin

e. Storage Reservoir Receipt

f.   Authorization to Sell and Collect (A.T.S.C.)

g.  Product Allocation Certificate

10. Upon receipt and confirmation of the above Full POP Documents, buyer provides its Port Clearance Certificate.

11. Upon receipt of the above, buyer provides its SGS officials or its equivalent to conduct Dip Test (Optional) on the product in seller's storage reservoir at buyer's expense.