Brazilian Sugar Standard Procedures.

Procedures Sugar Bank To Bank:

A. Buyer sends ICPO + BCL or RWA. (BLC/RWA - Must be sent in 2-3 working days maximum.) Buyer who does not send a simple BCL - Proof of Funds. He is not a buyer. 

B. Seller Sends Spa Draft Contract.

C. Buyer accepts ‘Draft’ Spa Contract and returns it or advises seller of required changes to it.

D. Seller issues final SPA to Buyer.

E. Buyer and seller sign final SPA.

F. Buyer issues SBLC or DLC within 10 (ten) days of signing of the SPA.

G. Seller issues Proof of Product and PBG - Performance Bank Guarantee 2% about one month of shipment, within 10 days.

H. Shipments commence in 20-45 days after receiving the SBLC or DLC.

I. PAYMENT: THE PAYMENT SHALL BE MADE VIA SWIFT MT 103 TO SELLERS BANK AGAINST PRESENTATION OF ALL SHIPMENT PERTINENT DOCUMENTS TO BUYER’S BANK AT LOADING PORT.

1. DLC (DOCUMENT LETTER OF CREDIT): AT SIGHT, TRANSFERABLE, DIVISIBLE, IRREVOCABLE, INTERNATIONAL VERBIAGE AND CONFIRMED BY A TOP 25/50 BANK RENEWABLE EVERY MONTH UP TO THE END OF THE CONTRACT.

2.  BG/SBLC (BANK GUARANTEE/ STAND BY LETTER OF CREDIT) BY SWIFT MT760: AT SIGHT, DIVISIBLE, TRANSFERABLE, OPERATING, ACTIVATED, CASH BACK AND CONFIRMED BY TOP 25/50 PRIME WORLD BANK WITH INTERNATIONAL VERBIAGE AND MUST BE SENT VIA SWIFT MT 760 RENEWABLE EVERY MONTH UP TO THE END OF THE CONTRACT.

NOTE: Next, I will inform you about the fast and reliable way to do business with the companies that have shares in Raízen/Coopersucar: After the commercial company receives from the buyer ICPO + BCL or RWA, it will be the commercial bank itself, which is usually Wells Fargo, to verify and approve these documents.

When all is approved, the draft contract will be issued.

From this moment on, the buyer's bank can contact the commercial bank directly to receive information that the commercial company has the product offered and has purchase quotas in Raízen/Coopersucar.

Upon receiving this information, the buyer is guaranteed by the commercial bank, even if still informally.

After signing the agreement, the customer must open the letter of credit, which can be a LC, a DLC or an SBLC.

Upon receipt of this banking instrument, the commercial company will issue an official product proof (POP) and Performance Bond (PB) of 2% (only for 12-month contracts, for spot contracts, will be subject to confirmation).

Once this is done, remittances begin as determined in the contract.

NOTE:

-Required listed documents will be forwarded to the Buyer.

-The delivery and forwarding begin immediately according to the contract.

-All Banking charges including confirmation from the Buyer ? s Bank shall be borne by the buyer and all banking charges incurred by the Seller at Seller ? s Bank shall be borne by the Seller .

REQUIREMENT THE BUYER CLIENT SHOULD HAVE ALL IMPORT LICENSES FOR COUNTRIES DESTINATIONS.

SHIPMENT INSPECTION: BY SGS OR SIMILAR AT LOADING PORT ON SELLER’S ACCOUNT. ALL COST AT LOADING IS ON SELLER’S ACCOUNT.

PACKING: BAGS 50 KGS OR BIG BAG 1 TON.                     

INSPECTION: S.G.S INSPECTION AT SELLER’S COST AT LOADING PORT.

INSURANCE: 100% TO BE COVERED BY THE SELLER.

DOCUMENTS REQUIRED BY BUYER:

1. Commercial Invoice, three (3/3) copies.

2. Certificate of Origin, three (3/3) copies.

3. Certificate of Quality and Quantity Issued by SGS, three (3/3) copies.

4. Phyto-sanitary Certificate, three (3/3) copies.

5. Bill of Lading.

6. Packing List.

7. Insurance Certificate.

TOTAL QUANTITY CONTRACT:

PRICE: U$     /MT CIF

TOTAL VALUE OF EACH SHIPMENT: U$

TOTAL VALUE OF CONTRACT: U$

PORT OF DESTINATION: CIF ASWP – PORT :

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