#sugar_suppliers

5 useful tips how to avoid SCAMS and to find 

wholesale supplier sugar

Author: Vladislav Kamozin

In International trade in raw materials (sugar, sugar raw, oil, wheat and so on) there was a situation when with application of Internet technologies the number of swindlers has increased and not to get on them apply 5 useful tips.

First council: study rules of International trade of ICC (the International Chamber of commerce, France) that the nobility as it is correct to work. You knows rules of trade – you gets profit. You doesn't know the rule of trade – you receives a loss and judicial proceedings.

Second council: Open the account in the TOP of 50 banks of the world and demand from the seller TOP bank 50 for trade. It will secure you not to run into swindlers. World banks carefully check the clients. They value the earned reputation.

* List of TOPS banks 50 is available on demand in Kazakhstan Sugar Company.

Third council: An indispensable condition at the conclusion of the contract that there was stipulation. It is checked by the independent company SGS (Switzerland) in port of loading or port of unloading. It will secure you against risks to receive sugar supplier, not according to the specification or smaller quantity, than is written in the contract.

Fourth council: In the contract point about Insurance of freight has to be specified 110% of cost, enters (freight cost + transportation costs), at the expense of the seller. It will reduce risk to receive the damaged item during the transporting and delivery to the port for loading.

Key council: Demand from the supplier sugar, point in the contract a legal guarantee of the seller for not execution of the obligations under the concluded contract of 2% (Perfomans Bond) of cost of monthly delivery. It is exposed by bank of the seller in favor of bank of the buyer under the concluded contract. It is your key protection against SCAMS and receiving sugar in port of the buyer.

* That such results have made our customers!

Company: International Trading Company

Position: Director

SPOT (disposable delivery): 12 500 МТ (April 2015)

    Review: In Kazakhstan Sugar Company, i found best conditions (price, payment and warranty).

Conclusion: Follow advice and avoid skams!

5 benefits to buyers and suppliers sugar

when using  stand-by letter of credit SBLC

Author: Vladislav Kamozin

5 benefits to buyer sugar on use stand-by letter of credit SBLC

1. Receiving goods without advance payment.

2. Stand-by letter of credit SBLC it is used in cases, if one of the parties according to the transaction wishes to obtain the maximum guarantee of execution of contract commitments by other party.

3. Possibility of temporary use of means Bank of the Buyer Stand-by letter of credit SBLC in case of approach «guaranteed» case and inability to carry out payment in time.

4. Guaranteed by Bank of the Buyer stand-by letter of credit SBLC or first-class foreign bank ТОП 50 implementation of obligations to the Seller.

5. Possibility of the early termination of validity period stand-by letter of credit SBLC in case of implementation of obligations to the Seller.

P.S.: 2% Perfomans Bond (MT760) gives additional benefit for the Buyer for not performances of the signed contract.

    If the contract isn't performed because of the Seller, Buyer receives 2% Perfomans Bond (MT760).

5 benefits to the supplier sugar on use stand-by letter of credit SBLC

1. Double guarantee of payment for the delivered goods - from Bank of the Buyer and from foreign bank ТОП 50.

2. Speed of receiving means on stand-by letter of credit SBLC in case of failure to carry out by the Buyer of the contract commitments.

3. Possibility of shipment of goods until payment from 100% a guarantee of payment for sugar.

4. Completely minimizes risks of the Seller and he is ready to deliver sugar.

5. stand-by letter of credit SBLC, in unlike bank guarantees BG (which, as a rule, submit to the legislation of the country of delivery) submit to the Unified rules and customs for documentary letters of credit (USP 600) - it is the international document, which is obligatory for execution.

What is stand-by letter of credit SBLC ?

Stand-by letter of credit SBLC - it is the hybrid bank tool, which unites DLC - Documentary Letter of Credit by obligatory providing documents (POP)according to the delivered sugar, and BG - Bank Guarantee in that, that she it is executed only in a case inability of the buyer to pay sugar supply.

As works stand-by letter of credit SBLC ?

The buyer and the Seller conclude the contract(1) on sugar supply by rules of International trade of ICC (International Chamber of Commerce, France).

Buyer sends the statement + the contract for opening stand-by letter of credit SBLC(2) in its bank.     

    The bank of the buyer issues BG - Bank Guarantee(3), which through stand-by letter of credit SBLC ways SWIFT (MT760)(4)reaches the Seller.

   Bank of the Seller having received SWIFT (MT760), issues documents POP (MT799) and 2% Perfomans Bond (MT760)(5)and sends to Bank of the Buyer and further to the Buyer(6).

    Bank of the buyer makes payment for the put sugar(7)according to the received documents POP (MT799).

   If payment doesn't happen, that stand-by letter of credit SBLC, comes into force(9) and Bank of the Seller works according to the received notice about lack of payment + has to attach Documents POP(8), issued at the time of release stand-by letter of credit SBLC, proving that the Seller fulfilled the liabilities in full to the Buyer. It brings for payment Bank of the Buyer in favor of Bank of the Seller, for the put sugar.

   Further the Seller notifies the Buyer, what there is no payment and the contract is broken off!(10)

P.S.: 2% Perfomans Bond (MT760) works similarly with stand-by letter of credit SBLC, only in favor of Buyer for not performances of the signed contract.

   If the contract isn't performed because of the Seller, Buyer receives 2% Perfomans Bond (MT760).

Conclusion: Work with the checked bank instruments and suppliers sugar!

5 decisions on reduction of risks for buyers and 

wholesale suppliers sugar

Author: Vladislav Kamozin

Risks connected with International trade and their decision

Risk № 1. Not payments for goods which sugar suppliers can face.

Decision: Use of conditions of deliveries on open account with a covering in form of SBLC of reserve letter of credit or BG of bank guarantee on demand. Alternative: Use of DLC of documentary letters of credit in compliance of UCP 600, developed by ICC.

Risk № 2. Delivery of goods of inadequate quality with which can will face buyer.

Decision: Requirement of acts (certificates) on survey issued by official bodies. For example: SGS (Switzerland).

Risk № 3. Sugar supplier because conscientious at first sight, client will receive item, and will make after that attempts will evade from his payment.

Decision: Payment only, Top of 50 banks and confirmation from the Top of 50 Banks. Appeal to services of service ICCin fight against economic crimes.

Risk № 4. Losses, damages of goods or theft of a part of a consignment of goods of buyer.

Decision: A sufficient insurance covering of all possible unforeseen circumstances and attention to the details which are contained in the consignment. Attentive acquaintance with the contract of transportation. Requirements to packing and transportation.

Risk № 5. Non-executions by supplier sugar, contractual obligations.

Decision: To use BG (bank guarantees), SBLC (reserve letters of credit) and a guarantee of appropriate performance of contract PB (Perfomans Bond).

* That such results have made our customers!

Company: Sweets Alexandria Ltd

Position: Head division purchasing

Contract: 1 month (test batch) + 12 500 x 12 months (February 2015 - February 2016).

Review: First batch we took a trial, to see work of company.

Conclusion: Work only with reliable suppliers sugar!