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PURCHASE PROCEDURE FOR SUGAR To ensure a transparent, secure, and efficient transaction for the purchase of ICUMSA 45 Refined White Sugar, we follow a structured MT103 bank transfer payment procedure designed to protect the interests of both buyer and seller throughout the entire supply chain. This process provides clear milestones from contract signing and production allocation to shipment, delivery, and final payment. The staged payment structure enables the seller to secure production, packaging, export documentation, and logistics arrangements while giving the buyer full visibility of the shipment progress through official shipping documents and cargo arrival confirmation. The following procedure outlines each step of the transaction, including documentation requirements, payment breakdown, shipment execution, and delivery at the destination port under CIF terms. Our typical transaction flow can be outlined as follows: 1. Buyer Issues LOI/ICPO Buyer submits a Letter of Intent (LOI) or Irrevocable Corporate Purchase Order (ICPO) with quantity, destination port, and buyer details. 2. Seller Issues FCO Seller sends Full Corporate Offer (FCO) including specifications, pricing, delivery terms, and payment terms. 3. Contract Signing Both parties review and sign the Sales and Purchase Agreement (SPA). 4. Initial Payment – 30% MT103 Buyer remits 30% advance payment via MT103 against Proforma Invoice. Funds are used for production allocation, export documentation, packaging, vessel booking, and logistics registration. 5. Production & Shipment Preparation Sugar is prepared, bagged, inspected, and loaded for export. Export documents are generated. 6. Shipment & Documents Cargo is shipped to the destination port. Seller provides: - Bill of Lading (B/L) - Commercial Invoice - Packing List - Certificate of Origin - SGS/Inspection Certificate - Insurance Certificate (for CIF shipments) 7. Second Payment – 30% MT103 Buyer pays 30% against copies of the shipping documents and Bill of Lading. 8. Transit to Destination Port Vessel sails to the agreed discharge port. Buyer receives shipment updates and ETA information. 9. Arrival at Destination Port Cargo arrives at the destination port. Buyer verifies arrival and prepares customs clearance. 10. Final Payment – 40% MT103 Buyer remits the remaining 40% balance upon cargo arrival at the destination port and before release of original shipping documents (if applicable). 11. Customs Clearance & Delivery Buyer clears the cargo through customs. Goods are released and delivered to the buyer's warehouse or designated facility. 12. Long-Term Supply Agreement Following successful completion of the trial shipment, both parties may execute a yearly supply contract with agreed monthly shipment schedules. This structure balances risk for both parties by ensuring the seller receives funding to perform the contract while allowing the buyer to retain a significant portion of payment until the cargo reaches the destination port.

FOB (Free on Board): sugar pricing means the seller is responsible for delivering the sugar to the loading port and loading it onto the vessel. Once the cargo is loaded, the buyer assumes responsibility for ocean freight, marine insurance, and all transportation costs to the destination country. CIF (Cost, Insurance, and Freight): sugar pricing includes the cost of the sugar, marine insurance, and ocean freight to the buyer's destination port. Under CIF terms, the seller arranges and pays for the shipping logistics, making it a convenient option for importers seeking a complete delivery solution. Which is better: FOB or CIF sugar imports? For experienced importers with established freight contracts, FOB sugar pricing may offer greater control over shipping costs and logistics. For new buyers and international sugar distributors, CIF sugar pricing is often preferred because it simplifies the import process by combining product cost, freight, and insurance into a single quotation. Why is CIF sugar more expensive than FOB sugar? CIF sugar prices are typically higher because they include: Ocean freight charges Marine cargo insurance Export logistics coordination Shipping documentation management Port handling services at origin FOB prices cover only the sugar product and loading costs at the export port. Common FOB vs CIF Sugar Example FOB Brazil Sugar Price: Product loaded onto vessel at Brazilian port. CIF Dubai Sugar Price: Product + Freight + Insurance delivered to Jebel Ali Port. CIF China Sugar Price: Product + Freight + Insurance delivered to Shanghai, Guangzhou, or Nansha Port. Benefits of CIF Sugar Supply Simplified procurement process Single supplier responsibility Predictable landed costs Reduced logistics management Faster international trade execution Benefits of FOB Sugar Supply Greater freight flexibility Independent shipping arrangements Potential freight cost savings Preferred by large commodity traders

Payment for the commodity is always made at the port of shipment (departure) after issuing the Product Certification and certificate of control, quality, inspection, verification, testing and certification and (B / L) on board bill of lading. A Bill of Lading is a transport document issued by the carrier of the goods to the client (usually a shipper or exporter) .. Shipped on board is a notation displayed on the bill of lading by the issuer of the bill of lading (usually the carrier) to confirm that the cargo has been loaded on board the ship.

Pricing variations may be due to sugar grade, origin, refinery source, production capacity, logistics costs, packaging requirements, and supply commitments.

A professional sugar offer generally includes product specifications, origin, quantity, packaging, pricing, shipping terms, estimated delivery schedule, and payment procedures.

International sugar transactions commonly utilize bank wire transfers (T/T), MT103 payment methods, staged payment structures, and mutually agreed commercial payment schedules between buyer and seller.

Most international coconut sugar suppliers accept secure bank-to-bank wire transfers (T/T), MT103 transfers, and other internationally recognized banking methods. Payment terms vary depending on order volume, customer history, and contract duration.

Sugar prices can fluctuate based on global supply and demand, weather conditions, crop yields, energy costs, currency movements, and international commodity markets.

The final CIF price includes the product value, ocean freight, marine insurance, export handling costs, destination port charges, and market freight conditions.

The final cost depends on product price, packaging, ocean freight, marine insurance, destination port charges, customs duties, and local taxes applicable in the importing country.

Typically, buyers should provide: ·         Product specification ·         Required quantity ·         Destination port ·         Packaging preference ·         Company details ·         Delivery schedule

ICUMSA 45 sugar pricing is influenced by international sugar market conditions, production costs, quantity purchased, shipping destination, packaging specifications, and freight rates.

Yes. Coconut sugar exporters frequently supply under CIF (Cost, Insurance, Freight) terms where the supplier arranges ocean freight and marine insurance up to the destination port.

Yes. Large-volume buyers, recurring customers, and annual contract holders often benefit from preferential pricing and allocation priority.

Price differences may result from product quality, certification status, production capacity, packaging options, origin, logistics costs, and level of supplier service.

Export prices are usually reviewed regularly based on raw material availability, seasonal production, transportation costs, exchange rates, and international demand.