LETTER OF INTENT
(DATE)
We, (BUYER’S ORGANISATION) of (BUYER’S ADDRESS), hereby confirm with full legal and corporate responsibility and under penalty of perjury that we are ready, willing and able to enter into a contract for the purchase of the commodity specified below and that funding is available, and any import/export permits needed to fulfill this purchase have been obtained.
Offer Specifications
Commodity: (PRILLED OR GRANULAR) Urea 46% N
Specifications: Nitrogen 46% N min.
Moisture 0.5% max.
Biuret 1.0% max.
Granulation (1 OR 2) - 4 MM no less than 90%
Melting point 132 degrees Celsius
Colour Pure White
Radiation Non radioactive
Physical Prilled Free flowing, treated against caking, 100% free of harmful substances and free Ammonia 160 PPM max.
Packing: (BULK OR BAGS OF 50KG IN HDPE BAGS WITH 2% EMPTY BAGS PROVIDED FREE)
Quantity: (QUANTITY NUMBERS) (QUANTITY WORDS) metric tonnes (+/- 5% as per port of loading SGS certificate)
Shipping Schedule: Individual shipments of 12,500 MT
Origin: Commonwealth of Independent States (CIS), Russia, Ukraine at seller’s option
Price: USD (PRICE) per metric ton (CIF)
Port of Discharge: (BUYER’S PORT OF DESTINATION)
Inspection: SGS at loading port at seller’s cost
Payment:
Letter of Credit: Payment shall be made by an irrevocable confirmed Fully Funded Auto Revolving, Transferable Letter of Credit with assurance for the entire contract amount. Letter of Credit will be payable 100% at sight for the shipment value, acceptable in accordance with Seller’s information about shipment quantity.
Performance Bond: 2% issued by Seller’s bank
Documents: One set of the following documents will be supplied:
Signed Commercial Invoice, three (3) originals and five (5) copies.
Full set of Clean Onboard Ocean Bill of Lading issued by the shipping company and or the Captain of the vessel, made out To Order notifying the buyer or buyer’s agent, bank endorsed, market “Freight Prepaid”, three (3) originals and five (5) copies.
Packing list showing gross/net weight and the number of Ocean Bill of Lading and packing conditions, one (1) original and three (3) copies.
Certificate of Non-Radiation, one (1) original and three (3) copies.
Certificate of Origin issued by or endorsed by the Chamber of Commerce, Department of Trade or Ministry of Industry and Trade for the country of origin, one (1) original and three (3) copies.
Certificate of Quality, Quantity and Weight issued by SGS confirmed in the port of loading, one (1) original and three (3) copies.
Statement from the shipping company stating that the vessel is not older than twenty (20) years of age.
Offer Procedure
The seller issues a soft quote.
The buyer issues a Letter of Intent. The buyer attaches a Bank Comfort Letter or full banking co-ordinates and authorisation to conduct a Soft Probe.
The seller issues a Full Corporate Offer. The buyer reviews the Full Corporate Offer and signs, stamps and returns this document indicating that they accept the offer and its terms and conditions.
The seller issues a Draft Contract. The buyer signs, stamps and returns this document within 5 business days, indicating that they accept the contract and its terms and conditions. Any facsimile or electronic copies shall be considered as the original.
The seller issues and sends by courier two (2) original Final Contracts to the buyer. The buyer signs and stamps both originals, retaining one (1) original themselves and sending by courier one (1) original to the seller.
Within five (5) banking days after delivery by courier to the seller of the signed original Final Contract, the buyer opens a financial instrument and then provides the seller with a Non Operative Financial Instrument for approval prior to being forwarded to the seller’s bank.
Within seven (7) banking days after receipt of Non Operative Financial Instrument acceptable to the seller and the sellers bank, the seller issues a fully active two (2%) percent Performance Bond of the Letter of Credit monthly value.
The Letter of Credit becomes fully active. After receipt and confirmation of operative financial instrument acceptable to the seller and the sellers bank the seller provides Proof of Product to the buyer’s bank via swift messenger.
Shipments commence as detailed in the Final Contract.
Buyer Banking Details
Name of the Bank: xxxxxxxx
Bank Account No: xxxxxxxx
Bank Account Name: xxxxxxxx
Address of the Bank: xxxxxxxx
Bank Phone No: xxxxxxxx
Bank Fax No: xxxxxxxx
Bank Officer: xxxxxxxx
We give you our permission to seek usual Bank reference and to commit a soft probe.
We hereby declare that the above addressed is and will be the one and only agent treating this deal over the next 30 days.
Offer Terms and Conditions
We the buyer acknowledge that there will be no changes made to the above procedures and by signing this Letter of Intent , we the buyer agree that we are willing and able to follow the procedure exactly as outlined above.
BUYER:
(BUYER ORGANISATION)
Company Seal:
Represented by:
(BUYER CONTACT)
(POSITION)
Date: _________________
