Contract Procedure for Buyers
Once the volume, delivery terms, and price have been negotiated and agreed upon, we require a Letter of Intent (LOI) and a Bank Confirmation Letter (BCL) from the Buyer.
Following the agreement on the draft contract, a final, binding contract will be executed by both parties—the Seller and the Buyer. The Seller will then issue a pro forma invoice and specify the Letter of Credit (L/C) requirements, if applicable. The Buyer must establish the L/C through a recognized international bank within 48 hours. Upon receipt of the necessary documentation at the designated bank, we will commence the process of preparing the goods and associated documents.
Please note that, as a standard practice, we operate with a transferable, confirmed, revolving L/C payable at sight, issued in favor of a reputable global bank, with the cement factory listed as the final beneficiary. The use of a transferable L/C is mandated for two reasons: first, to assess the Buyer’s payment method, and second, as many manufacturers require prepayments. After the initial two transactions, we may consider transitioning to a non-transferable L/C.
Upon fulfillment of all terms outlined in the L/C, payment will be processed upon the final loading of the shipment. All relevant shipping documents, including the Bill of Lading (B/L), Railway Bill, or CMR, will be presented to the bank for payment at sight.
Demurrage
Typically, demurrage charges are included in our quoted prices. However, for certain ports such as Tripoli and Angola, we may require additional prepayment for demurrage.
Long-Term Price Fixing
We are open to long-term agreements. To lock in prices for a period of 12 months, an advance payment of 30% of the total contract value is required. This prepayment allows for the advance procurement of raw materials. Alternatively, you may prepay for the first order and provide 11 L/Cs for the subsequent months. Please be aware that while we can fix the price for cement/clinker, freight rates will need to be renegotiated every three months.
Samples
Upon receipt of the LOI and BCL, we can provide a product sample to the Buyer upon request. The cost of the sample will be borne by the Seller, while the Buyer will be responsible for delivery charges. Please be advised that samples provided are not representative of the exact product quality as they are not sourced from the same bag, batch, silo, consignment, or shipment.