BRAZILIAN SUGAR - you will fall for the scam

If you are an inexperienced importer, you are going to import sugar from Brazil for the first time, is essential that you understand how the scammer acts.

Importing sugar can be very dangerous if you don't know this market.

We have customers who have lost up to USD 500,000 to the scammer and this has profoundly damaged their business as it has impacted the company's financial health.

How does someone lose USD 500,000 to a scammer?

You lose because you are sure you are negotiating with a major supplier in this market.

Here we have prepared some guidelines for you to understand how to protect yourself.

1 - Understand the market

Do not be fooled into believing that you are going to start a sugar import operation, you are going to distribute the product in your market without doing a previous study.

• Know the types of sugar demanded in the market where you intend to operate, because buying the wrong product can cost you a lot. Another point is to approach the supplier without knowing for sure what type of product he needs, stick to the specifications.
• Understand the import costs at the port of destination;
• Define what type of operation your company will start: FUTURE MARKETS or PHYSICAL MARKET;
• Monitor the main market pricing references for sugar, such as the London and NY Stock Exchange. Please do not rely on imaginary prices published on Alibaba, nothing against the site, but the prices published on Alibaba do not reflect the reality of the market;

2 - Be ready to close deals without “handshaking”

The internet has broken down global barriers and allowed the trading of agricultural commodities to happen in a very simplified way.

To give you an idea, the Mello Commodity sales team has never personally seen 85% of regular sugar buyers. Virtually all negotiations took place over the internet.

The negotiation of a sugar sale today takes place on the website of a brokerage firm that operates in major world exchanges such as NY and London or directly with the Trading Exporter authorized in the country of origin of the product, via email, telephone and instant communicators such as WhatsApp , for example.

It is a formalized negotiation for documents recognized in international trade. These documents protect buyer and supplier, as they are issued within government platforms, or by serious certifiers, so any fraud can be easily located, but these same documents can be used to deceive you. We will explain already.

Shipment documents such as BL, commercial invoices, SGS Certification, POP (product proof), supply contracts, among others.

3 - SLAMS - what do they steal? How do they steal?

Do not underestimate the scammer, he is super prepared and is ready to trick you and your company.

He will steal your money, your reputation or use your company's documents to scam other companies.

The scammer uses the name of someone real and reputable, he rarely shows his true identity.

He also uses the names of executives at large companies, the logo, letterhead, business cards and even the website of a major sugar supplier. He will fake everything!

He will send you real BLs, previous supply contracts, photos and videos of the facilities, real SGS, the real registration number, among others. So, when you are convinced that you are negotiating with a large and serious supplier, he will pick you up, direct you to make payments in his bank accounts and the real supplier will never know of your existence.

How did he get these documents?

Certainly he was deceiving other companies, so he used the real documents to apply scams.

As he uses real data and documents that can be verified, you believe that he is in fact real, his phone is fictitious and operated by hackers, his email is similar to that of the real supplier, but with small subtleties you can verify that it doesn’t follow the domain pattern of the supplier’s website, he uses the name of great executives, but great CEOs don’t send offers by email or any other means, it’s usually a commercial team that makes this type of offer and service.

If he is unable to rob you, but is able to get a draft of the financial instrument (LC, DLC, SBLC ...) he will use this to pretend that he is a buyer warrant on behalf of your company and will strike at a real supplier.

If he is unable to steal your money, but obtains a LOI with your company's data and the buyer's passport, he will use this to plead further scams using your company name.

4 - What is the main indication of a coup?

1 - Prices below market practice. 99% chance of being scammed!

2 - Sending confidential documents like BLs, past supply contracts, SGS ... a serious supplier would not expose its customers and would not break the confidentiality clauses with other buyers.

3 - Bank accounts in the names of individuals, accounts that cannot be confirmed in the name of the supplier ... there are bank agents involved with the scammers, but this is a strong indication of a scam.

5 - Example of how the scammer will approach your company

He'll send you an offer by email, post it on social media, or send it to an Internet group. Other serious companies also take this type of approach sporadically, but it is not common to send offers with a sale price, especially if this price is far below market practice.

A well-known scammer in this market uses all the methods mentioned in this text, so I will post below an email marketing that he sent to one of Mello Commodity's clients, see:

EMAIL MARKETING SENT BY THE SCAMMER

Hi there,

?Thanks for the mail.

?Below is our official sales offer and price for your order.

?We offer premium quality Brown and White Sugar to meet the exact demands of our esteemed customers. The Sugar offered by us is known for its purity, and great crystalline shape. To keep it safe and to deliver it on time, we store Sugar in our sophisticated warehouse.

Furthermore, to keep it away from impurities, we provide it in quality and hygienic packaging.

?We are regularly Selling: sugar icumsa 45-100-150-800-1.200 . We are one of the leading direct sellers from the mills / factory here in our Country.

?

REFINED SUGAR?- ICUMSA 45: $220/Metric Ton FOB Basis

Icumsa???????????????????:???45 RBU

Polarization???????????????:???99.80% Min

Ash content???????????????:???0.04% Max

Moisture?????????????????:???0.04% Max

Solubility?????????????????:???100% Free Flowing

Radiation????????????????:???Normal Certified

Colour???????????????????:???Sparkling White

Granulation???????????????:???Fine

=========================================================================

CANE SUGAR - ICUMSA 100: $230/Metric Ton CIF Basis

Specifications:

Icumsa???????????????????:???100 RBU

Polarization???????????????:???99.50% min

Ash content???????????????:???0.15% Max

Moisture?????????????????:???0.10% Max

Solubility?????????????????:???100% Free Flowing

Radiation????????????????:??Normal Certified

Colour???????????????????:???White

Granulation???????????????:???Fine

=========================================================================

RAW BROWN CANE SUGAR ICUMSA 600-1200: $230/Metric Ton FOB Basis

Origin???????????????????:???Brazil

Icumsa???????????????????:???600 - 1200

Polarization???????????????:???96.00% Min

Ash content???????????????:???0.09% Max

Moisture?????????????????:???0.09% Max

Colour???????????????????:???Brown

Solubility?????????????????:???90% Free Flowing

Granulation???????????????:???Fine

SO2?????????????????????:???20 PPM

=========================================================================

BEET SUGAR:????????????$210/Metric Ton FOB Basis

Icumsa??????????????????:???45 - 100 RBU

Polarization???????????????:???99.80% Min

Ash content???????????????:???0.04% Max

Moisture?????????????????:???0.04% Max

Solubility????????????????:???100% Dry & Free Flowing

Radiation????????????????:???Normal without presence

of caesium or iodine

Colour???????????????????:???Sparkling White Crystal

Granulation???????????????:???Fine to Medium

Reducing Sugar???????????:???0.05% Max by weight

==========================================================================

?Minimum Order Quantity:?500 Metric Tons

?Payment Terms: T/T ( Telegraphic Transfer)

?Buyer pays 30% TT advance payment against pro forma invoice for processing,packaging and loading and 70% TT against Bill of Lading and shipping documents before vessel departure

?SURVEY :

SGS or any International Surveyor on Seller ?s expense and certificate on weight and Quantity will have to be provided as part of the delivery documents.

?We look forward to hearing from you soonest.

Best Regards.

?

Fabio Venturelli

Chief Executive Officer

Address: Fazenda Sao Martinho Pradopolis Sao Paulo, SP 14850 Brazil

Telephone: + 55 11 40404654 / +55-16-3981-9000 Fax: +55-16-3985-9000

WhatsApp:?+55 11 3197 4650

Email:?[email protected]

Website:?www.saomartinho.com.br

NOTE POINTS:

1 - The scammer uses the name of the CEO of S?o Martinho (a major supplier in the sector)

If you look on the official website of the company, you will find the name of the executive there. The website is real, the executive is also real, but a CEO would never send you a sugar marketing email, never, under any circumstances.

2 - The prices offered are much, but well below market practice and do not portray the reality of negotiations anywhere in the world.

Sugar is an agricultural commodity and the market price is directed by its FOB price and all countries that produce sugar use this metric as a price reference, which influences the price difference from one country to another are operating costs (logistics ) and taxes applied in the country of origin, so the difference is not so great from one country to another.

3 - Fake email signature

?The signature of the e-mail contains the logo of S?o Martinho, but it could easily be the logo and data of RAIZEN, COSAN, CARGILL, TEREOS, among others.

In addition to the e-mail signature containing the supplier's real logo, the address, website and correct mail are also included, but the phone numbers belong to the scammer. In addition, the e-mail was sent to the following address: [email protected], this is a domain created to imitate that of the supplier with a .com.br ending (standard in Brazil), this detail went unnoticed by our client.

The trap here is almost perfect, because if you go to the supplier's website you will see that it is a big company, the address, the email, the name of the CEO, everything is real, but the phones and emails are simulacra of reality and behind them there is a mafia that will be able to send you the proof you ask for. They have real BLs, photos of warehouses full of sugar, cargoes embarking at the port, etc. To the taste of the buyer, but an item denounces them immediately. THE PRICE.

The price of USD 210 to 260 does not exist and if you are looking for this type of price I suggest that you go back about 10 years in time, as this will be the only way to get it.

Almost every month we receive reports from inexperienced buyers who lost their fortunes in an attempt to buy “cheap” sugar. We hope this article will help other companies protect themselves. If you know any company that needs to receive this information, share it, send it as an alert.

SUGAR IMPORTS WITH VERIFIED SUPPLIERS

Mello Commodity sells sugar from three verified exporters, one of them with more than 40 years of experience in this market. So if you want to get away from scammers and quote with serious suppliers, request a quote below or speak directly to the sales team.

é muito importante que você entenda que a Mello Commodity n?o é uma usina de cana-de-a?úcar ou produtora de gr?os. N?o é uma empresa comercial de exporta??o ou um agente intermediário. Criamos nossas próprias campanhas de marketing e vendas, temos livre acesso ao portfólio de produtos de nossos fornecedores e cotamos diretamente com eles.

TO START A DEAL WITH US, YOU MUST BE THE BUYER

- Mello Commodity is not authorized to negotiate with intermediaries and cannot offer any type of commission.

Or, speak and clarify your doubts directly through WhastApp Comercial

Mr. Elias Pedrosa da Silva +55 35 991 295 296

Mrs. Jacimara da Silva +55 21 976 723 023

[email protected]

https://br.linkedin.com/in/maramello

https://www.facebook.com/mellocommodity/

www.mellocommodity.com.br

MELLO COMMODITY IS NOT AUTHORIZED TO:

1 – Negotiate with intermediaries

2 – Appoint sales representatives

3 – Offer or pay commission

4 – Authorize Over Price