LTTCO,USA

International Commodities Brokers

Doing Business With Us

A Letter of Intent (LOI) on Buyer’s official Letterhead endorsed by L/C issuing bank confirming the availability of funds addressed to LTTCO, USA to initiate the transaction with the Sellers.

No soft offer is possible prior to obtaining Buyer’s (LOI). Buyers can set their TARGET PRICE in their (LOI), BUT the actual sale price would be set forth in the Seller’s Full Corporate Offer (FCO). This actual sale price is subject to the Buyers approval and/or denial upon the signatory process of the FCO. If this price is denied by the Buyer there will be no commitment on their part in case of denial.

Letter of Intent (LOI) text Sample

If (for one reason or another) the Buyer was not able to endorse the (LOI), then a Bank Comfort Letter (BCL) must be attached to the Letter of Intent (LOI).

Bank Comfort Letter (BCL) text Sample

Some Buyers trying to avoid the endorsement and the (BCL) requirements, therefore, they requesting us to go for Bank Soft Probe, Please note that a Bank soft probe will not be possible due to the fact that:

Firstly, we are not the End-Seller, so that, we cannot approach the Bank, and

Secondly, most of the Prime Banks Policies prohibit revealing their Clients Accounts Status .

 

PAYMENT TERMS:  (The following payment terms are NOT subject to any amendments and not negotiable )

1. For individual shipment (one shipment only):

By fully funded Stand-by Letter of Credit established by Buyer’s bank. The Letter of Credit must be confirmed by a Prime World Bank and read as Irrevocable, Transferable, Divisible, unrestricted, and unencumbered for entire shipment, valid for 60 days from confirmation date, and payable 100% at sight upon presentation of the shipping documents at seller’s bank counter.

Stand-By Letter of Credit text Sample

2. For frequent shipments (two or more shipments): 

By fully funded Irrevocable, Transferable, Confirmed, Divisible, and Automatically Revolving Documentary Letter of Credit established by Buyer’s Bank. This Letter of Credit must be Confirmed by a Prime World Bank and read as Irrevocable, Transferable, Divisible, unrestricted, unencumbered allowing a frequent shipments of (——) during (——————) for (———- MT) duration (————-), valid for (—– days) from confirmation date and shall be automatically revolving to the next shipment until completion of the entire contracted quantities, payable 100% Sight at seller’s bank counter upon the presentation of the shipping documents for every shipment.

Revolving Documentary Letter of Credit text Sample

3.  Performance Bond:

A – Consumer Products: No performance Bond will be applied for any inquiry.

B – All Agricultural & Industrial Commodities: 2% of first shipment value to be provided by the seller (supplier) to activate non-operative Buyer’s payment instrument such as L/C (Letter of Credit) or BG (Bank Guarantee) into operative one upon receipt the same at Seller’s Bank Counter.

Performance Bond text Sample

INSPECTION:

Each shipment shall be provided with an Inspection Certificate of weight, quantity and quality at the time of loading. Such certificate shall be provided by SGS or by an appropriate organization at seller’s expense at Port of loading (mandatory) which shall be deemed to be final, and at buyer’s expenses at Port of discharge (optional).

COMMODITY BUSINESS PROCEDURE

1. Buyer submits either one of the following:
   1. Bank endorsed Letter of Intent (LOI).
   2. Letter of Intent (LOI) + Bank Comfort Letter (BCL).
   3. Bank endorsed Irrevocable Purchase Order (ICPO).
2.  Seller submits Full Corporate Offer (FCO).
3.  Buyer returns approved copy of the FCO duly signed and sealed.
4.  Seller issues the Sales Contract Draft for Buyer evaluation, amendments if any and approval, the final contract to be approved by both parties.
5.  Four copies of the approved final contract to be signed, sealed and exchanged by both parties.
6.  Buyer and Seller lodge the Sales / Purchase (S/P Contract) at their banks.
7.  Buyer Bank issues relevant non-operative payment instrument within (5) Five banking days from the exchanged date of the final Contract.
8.  Seller Bank activate Buyer payment instrument by posting 2% of L/C value within (5) banking days from the receipt date of the instrument.
9.  The transaction to be commenced as per the Sales / Purchase Contract terms and conditions. 

COMMODITY SHIPPING DOCUMENTS:

1. “Clean on Board” Ocean Bill Of Lading (B/L) marked “freight prepaid” (3) three originals and (3) three copies.  
2. Commercial Invoice for total value of the shipment, (1) one original and (3) three copies.  
3. Packing List, (1) one original and (3) three copies.
4. Certificate of Origin, (1) one original and (3) three copies.
5. Inspection Certificate issued by the inspection company in loading port for quality, quantity and packing, (1) one original and (3) three copies.
6. In case of Food Shipment a Phytosanitary Certificate “Fit for Human Consumption “, (1) one original and (3) three copies for the commodity.  
7. Radiation Certificate showing that the radiation element is normal, (1) one original and (3) three copies.  
8. Any other document agreed by both parties.

GOVERNING LAW:

The BUSINESS (Contract) will be governed, and interpreted in accordance with the United Nations convention for international sale of goods (UN Convention). In the event of inconsistency between the contract and the provisions of the UN convention, the contract shall further be construed in accordance with the courts of the United States of America applying the International Chamber of Commerce (ICC) rules.

If any provisions of the contract is held to be invalid, illegal or unenforceable, the validity,  and /or enforce ability of the remainder of the contract shall be in force, as such provision was not part thereof.

CONTRACT ARBITRATION:

The contract parties agree to settle all discrepancies and disputes amicably. If the settlement is not reached, the dispute in question shall be submitted to arbitration in (Paris / France). The findings in accordance with the ICC Arbitration rules shall be considered as final, irrevocable and binding upon both parties.

U.S. Grain Basic Requirements

Buyers intend to purchase US wheat or grain ( Corn, Barley, Soybeans, etc..) in order to give consideration for their inquiries; Buyers MUST fulfills the following basic requirements:

• A Prime Financial Reference (L/C, BG), preferably a major US or Western Bank. Please include the name and phone number of the financial officer to whom the Exporter should direct questions.
• Statement from the Buying Principal that your contact in USA (LTTCO, USA) is the sole and exclusive agent of the business.
• Statement from the Buying Principal that the Exporter will not be held liable for brokerages, finder’s fees, commissions, etc…
• Statement of destination of cargo.
• Full details of the inquiry, including, but not limited to the following Letter of Intent – LOI contents:
  1. Commodity type
  2. Quality: Dock-age level (max), test weight, moisture, fumigation (if required), failing number minimum, protein, sprout damage, other.
  3. Quantity: including tolerance ratio.
  4. Shipment period
  5. Price: stated bid for the commodity
  6. Delivery basis: (FOB / FOB S&T / FOB ST SF), to suit self trimming bulk carrier
  7. Vessel size
  8. Vessel load guarantee
  9. Vessel demurrage / dispatch rate as per charter party
  10. Loading range port or ports
  11. Number of allowable berths
  12. Phytosanitary certificate requirements
  13. Mycotoxin requirements
  14. Proposed method of payment. Attach a copy of the letter of credit, if that is proposed payment method.
  15. Contract terms to govern; i.e. North America Export Grain Association (NAEGA), GAFTA, etc…
• A brief company history, including the names and addresses of officers.
• Grain Exporters may require additional information prior to doing business.

* The sale of the US grain usually to be on F.O.B. basis, the Buyers need to arrange Sea Freight transportation to their destinations, LTTCO, USA can help in this matter upon the request of  the Buyer.