LOI

PRE-ADVICE  to assist with submitting your LOI

1. The LOI must be typed on the Principal Buyer's letterhead 
   
     
2. The LOI must be submitted the day it is dated. 
   
   
   
3. If you are familiar with the Physical Commodity Market, you will know that prices are affected by several variables. In fact, a buyer’s alternative terms, conditions or requirements may alter the price. The credit risk of a particular bank or country (as determined by our bank) may adversely affect price, and possibly whether a transaction is considered or not.
   
     
4. Paperwork must be completed in the format found in our website. Any documents submitted in any other format or with any single detail not completed will delay transactions until it is corrected or completed as required.
   
   
   
5. Buyers must consider the receiving Port/Berth(s) discharge equipment and restrictions, and confirm that it is geared and suitable to meet the required discharge rates. Buyers are responsible for ALL Destination Port costs. Should Vessel(s) be unable to discharge at nominated Port or Berths or for any reason, it would therefore be prudent to nominate a secondary backup Port of Discharge. The minimum acceptable delivery rate is 1,500 metric tons per weather working day.  
   
   
   Consequently, the Buyer should consider that large quantity orders may need additional Port Berths based on the Buyer’s receiving port, shipping schedule, and required metric tons per month. Discharge rates and discharge times per weather working day need to be confirmed by the Buyer before submitting their LOI.
   
   
   Please be aware that, at the contract stage, the Buyer will be required to warrant and guarantee that delivery to, berthing at, and discharge rate at, their designated destination port is sufficient to allow the required quantities to be delivered by the Seller and discharged at the required rate.
   
   
   
6. The onus is on the buyer to assure themselves of the exact and complete definition of their requested ICC Incoterm describing the payment and delivery terms to be included in the Sales & Purchase Contract. The inclusion of the ICC INCOTERM to contractually describe the payment and delivery terms must be stated in the following format: “incoterm, name port, name country, ICC Incoterms 2000”.
   
   
   
7. The Buyer must extract the Letter of Intent format below  and place it on the Buyer’s own letterhead, complete ALL requirements, and then submit the LOI on the day it is dated.

Please transfer onto the

BUYER’S  LETTERHEAD

Buyer means the party to whom the LOI will be issued.

AND

Never on intermediary letterhead or presented by intermediary

on behalf of the Buyer.

LETTER  OF  INTENT   (LOI)

Dated :     …………………..…………….   (Insert Date / spell out month)

To :           IBM.SE

FAX:       

Email :     ceoeurope@ibmse.eu

From:       Buyer’s Details

Company
Address
City
State / Province
Postal or Zip Code
Country
Principal Contact Details:
Nationality
Passport Number
Phone
Mobile/Cellphone
Fax
Email
Skype ID

We, (insert company name, Identification number)  of  (insert full physical business address / P.O. Boxes not accepted,) hereby states, represents, and confirms, that we are ready willing and able and it is our intention to purchase the following commodity as per the terms, conditions, specifications, and procedure stated below. I hereby confirm that under International Criminal Penalty for Perjury and Civil/Criminal Intent to Defraud, by signature below verify that our company has the financial capability, and all other necessary resources, including import permits, to complete the purchase. This representation is made with full corporate authority and responsibility of the above stated buyer.

Commodity   :   ………………………………………………………………

Product Specification :  As per the IBM.SE specification detailed under the Commodity section of this website

Origin :  Seller’s choice, unless otherwise agreed

Total Quantity  :   ……………….. metric tons over one year, +or- 5%,  or ……………….. metric tons per month  x 12 months

Contract Period  :  12 months

TARGET Price:  US$......... per metric ton      

Packaging :

Payment and Delivery

Incoterm 2000 : (“incoterm, name port, name country, ICC Incoterms 2000”)     

Shipping :   

 (insert shipment sizes) X  (insert the number of shipment months)

Loading Port :  SGS Certification for quantity, quality, weigh inspection at the seller's cost prior to loading.

Inspection            

Delivery Port/s            :   …………………………………………………………………….………….. & Country/ies

All destination costs are payable by the Buyer.

Discharge Rate :   ………....……metric tons per weather working day

Performance Bond   :    2% of the value of the shipment.

Payment Instrument  :    Buyer’s issuing Bank Name: ……………………………………………………

                                                             Address: ……………………………………………………

 <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>

 Signed on behalf of the Buyer :

Signatory’s Printed Name:__________________________Title:________________________________

(must be CEO, President, Managing Director, COO or equivalent in your jurisdiction)

Authorized Signature: ____________________________

Dated: _______________________________________