CONTRACT PROCEDURE FOR BUYERS
- Once the volume, delivery terms and the price are agreed on, we would require LOI and BCL from the Buyer.
- Upon draft contract agreement, a final contract is signed by both parties - the Seller and the Buyer.
The Seller sends a proforma invoice and the shape of the L/C (if needed) and the Buyer opens the L/C from his bank within 48 hours through a well known world bank.
Once the documents are received at the specified bank, we then start the procedure of preparing the goods and the documents.
Please note, in most cases, we work with once transferable, confirmed, revolving payable on sight L/C opened in favour of a world class bank.
The last beneficiary can be mentioned as the cement factory.
The reasons for transferrable L/C are: firstly, we need to see Buyer's method of payment and secondly, the majority of manufactures accept prepayments only.
After the first 2 deals, however, we can work on non-transferable L/C.
- If all the conditions in the L/C are met the payment is made upon the final loading of the ship and all of the documents together with the bill of the lading (B/L, Railways Bill or CMR) are presented to the bank (payable on sight).
In general, demurrage is already included in the prices that we quote.
However, for some certian ports such as Tripoli and Angola, for example, we will ask for extra demurrage prepayment.
LONG TERM PRICE FIXING
We welcome long term contracts.
If you want to fix the price for 12 months, we can do so, however, an advance payment of 30% of the total value of the contract has to be paid up front, where accordingly raw materials can be purchased in advance.
Alternatively, you can make a prepayment for the first order and provide 11 L/Cs for consecutive months.
Please note, although we can fix the price of cement/clinker we cannot fix the price of freight.
So this may have to be negotiated every 3 months.
Upon receiving LOI and BCL, we can send a sample of the product directly to the Buyer upon request.
The Seller will bear the cost of the sample and the Buyer may have to bear the cost of delivery.
However, please note, no sample will ever be from the same bag, batch, silo, consignment and order or shipment.
Any sample can easily be fabricated and does not represent a true sample of what will be received in a shipment.
SEMI FINISHED PRODUCTS
OTHER TYPES OF CEMENT