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.