Letter of Intent= LOI+BCL
to:chensihong@cableplus.com.cn
FAX:0086-21-56069484/62769182/56943847/62765692
www.chensihong.org
chensihong@chensihong.org
MSN: chensihong86@hotmail.com Tuesday,Janurary
12,2005 FCO 20004-01- FULL CORPORATE OFFER
We
wish to confirm, based on quote from our suppliers, with full corporate
responsibility that we are willing and able to transact and provide the
commodity of Iron Ore 65.4% Fe content based on the following
specifications, terms and conditions. Sales and Purchases will be
conducted based on International procedures.
Commodity: Iron Ore 65.4% Fe Origin is Brazil
Brasil Brazilian
Pricing: Pricing is based upon
prior sale in USD $xxx per MTW CIF/CNF ASWP as follows:
Brazil Brasil BRAZILIAN ORIGIN IRON ORE 65.4%
PROCEDURE
1. Buyer Issues
LOI with softprobe OR LOI + BCL in favor of www.chensihong.org and
+“C,Inc,USA” 2. Seller Issues FCO 3. Buyer accepts FCO signs off and
returns to seller 4. Seller issues DRAFT CONTRACT with sufficient Seller
Details and complete Buyer information. 5. Buyer reviews, signs and
seals Draft Contract. 6. Seller completes the balance of the details,
countersigns, emails and faxes contract to Buyer. 7. Seller sends
signed, original email and or fax contract to Buyer. 8. Buyer signs,
seals original contract and couriers back to seller. 9. Buyer’s Bank
issues Pre-Advise text and format of the LC(s) to the Seller’s Bank for
acceptance. 10. Seller’s Bank confirms with Buyer’s Bank and confirms
that both banks are ready to issue LC and Performance Bond. 11. Buyer
may request an invitation letter for site inspection of the goods at the
loading port at the Buyer’s expense. 12. First Shipment is 21-45 days
after the Seller receives at their Bank the Buyer’s Operative Letter of
Credit.
Brazil Brasil BRAZILIAN IRON ORE 65.4%
and PRICING
BRAZILIAN Brasil Brazil
巴西铁矿砂，巴西铁矿石IRON ORE 65.4%FINES Minimum 150,000 DMT per month
Maximum (3 million DMT per month) CIF/CNF Price:150,000 DMT – below
500,000 DMT/month - $ 73.00 500,000 DMT (and above )per month - $ 71.50
(ADD $1.00 maximum commission ) SPECIFICATIONS: Fe: 65.50% Rejection
below: 64.50%Al2O3: 0.70% Rejection above: 2.00%SiO2: 3.00% Rejection
above: 5.00%S: 0.01% Max: 0.03%P: 0.03% Max: 0.06%K2O: 0.01% CaO: 0.02%
MgO: 0.03% Na2O: 0.01% TiO2: 0.08% Mn: 0.15% Sn: <0.01% Chronium: <0.005%
Zinc: <0.005% LOI: 0.08% PHYSICALCOMPOSITION (on dry basis):SIZE:0.15mm
– 3mm 30% min 3mm - 5mm 60% max 5mm -10mm 10% max Moisture:- 8.00% at
105 degrees centigrade
CONTRACT PAYMENT OPTIONS
OPTION Code: 10 - 2: Transferable/Non-Transferable 10 Months / SLC 2
Months For shipments of: Iron Ore for CIF, CNF and shipments. ·
Customer provides a Transferable or Non-Transferable, Irrevocable,
Unconditional, Confirmed, Assignable, Revolving, Fully Funded Operative
Letter of Credit, payable 100% at sight, for the first ten (10) months
of the contract. · Customer provides an Irrevocable, Unconditional,
Assignable, Standby letter of credit for the last two (2) months of the
contract. (SLC, WT, BG, MT799, Funds on deposit are in trust of Seller )
· Bank or Corresponding Bank must be Top 50 World Bank payable at the
counters of a prime American Bank. With this Contract: · Should
Inspection Documentation be required (SGS, CCIC or other Agencies) as
“Documents required for Payment”, when documents become available,
they are presented to the bank for payment after goods are loaded at the
port. · Site Visits, Yard or Port Of Loading (when allowed by the
supplier) · The Performance Bond is activated within 72 hours (3
business days) of the receipt of the Operative and the Standby Letter of
Credit. The Seller will issue the Bond naming the buyer as the
beneficiary.
OPTION Code: 12 x T: Transferable 12
Months For shipments of: Iron Ore for CIF, CNF and shipments. ·
Customer provides a Transferable, Irrevocable, Unconditional, Confirmed,
Assignable, Revolving, Fully Funded Operative Letter of Credit, payable
100% at sight for the duration of the contract. · Bank or Corresponding
Bank must be Top 50 World Bank payable at the counters of a prime
American Bank. With this Contract: · Should Inspection Documentation be
required (SGS, CCIC or other Agencies) as “Documents required for
Payment”, when documents become available, they are presented to the
bank for payment after goods are loaded at the port. · Site Visits,
Yard or Port Of Loading (when allowed by the supplier) · The
Performance Bond is activated within 72 hours (3 business days) of the
receipt of the Operative Letter of Credit. The Seller will issue the
Bond naming the buyer as the beneficiary.
OPTION
Code: 2 x 2: Two Operating Transferable/Non-Transferable LC’S and SLC
for Last 2 Months For shipments of: Iron Ore for CIF, CNF and shipments.
· Customer provides a Transferable, or Non-Transferable, Irrevocable,
Unconditional, Confirmed, Assignable, Revolving, Fully Funded Operative
Letter of Credit, payable 100% at sight. · In the first month of the
contract, the initial Operative Letter of Credit (OLC) is issued, then 2
weeks prior to the first ship sailing the second OLC is issued, the
balance of the Letters of Credit automatically renew every 30 days from
the 2nd LC for the balance of the contract. · Customer provides an
Irrevocable Unconditional Standby letter of credit (WT, BG or MT799) for
the last two (2) months of the contract. (SLC, WT, BG, MT799, Funds on
deposit are in trust of Seller ) · The Operative Renewable LC is issued
at the same time as the SLC, WT, BG, or MT799. · Bank or Corresponding
Bank must be Top 50 World Bank payable at the counters of a prime
American Bank. · The standby Letter of Credit (SLC, WT, BG, MT799)
equals the last two months of the contract. The LC is issued to the
seller and held in trust by Seller for the period of the contract.
With this Contract: · Should Inspection
Documentation be required (SGS, CCIC or other Agencies) as “Documents
required for Payment”, when documents become available, they are
presented to the bank for payment after goods are loaded at the port. ·
Site Visits, Yard or Port Of Loading (when allowed by the supplier) ·
The Performance Bond is activated within 72 hours (3 business days) of
the receipt of the Operative and the Standby Letter of Credit. The
Seller will issue the Bond naming the buyer as the beneficiary.
OPTION Code: SBL - 6: SLC; Bank Guarantee; WT;
TT; MT799; Transferable (Non Documentary). For shipments of: Iron Ore
for CIF, CNF and shipments.
This program was
originally designed for Urea customers, as prime American Banks will not
accept documentary LC’s with Urea as part of the content. The Surety
Bond also works well with the other commodity programs when guarantee or
cash instruments are used.. · Customer provides a SLC; Bank Guarantee;
WT; TT; MT799; or a Transferable Irrevocable Unconditional, Assignable,
Confirmed, Fully Funded LC, payable 100% at sight, with the documentary
requirements included with the 110% Surety Bond. · The 110% Surety Bond
is provided by Seller from prime American bank. The bond is activated
within 72 hours, (3 banking days) of the receipt of an active LC. The
bond is in force until the Port of Discharge, instead of Port of
Loading. · Bank or Corresponding Bank must be Top 50 World Bank payable
at the counters of a prime American Bank
With
this Contract: · Should Inspection Documentation be required (SGS, CCIC
or other Agencies) as “Documents required for Payment”, when documents
become available, they are presented to the bank for payment after goods
are loaded at the port. · Site Visits, Yard or Port Of Loading (when
allowed by the supplier) · The Performance Bond is activated within 72
hours (3 business days) of the receipt of the Operative and the Standby
Letter of Credit. The Seller will issue the Bond naming the buyer as the
beneficiary.
SURETY BOND PROCEDURES (ANY
COMMODITY): 1. The contract is completed with SELLER
2. The buyer issues an SLC, Bank Guarantee, TT,
Wire Transfer, Transferable Irrevocable Unconditional, Assignable,
Confirmed, Fully Funded LC to Seller with the verbiage under the
comments section: This SLC is for the benefit of “ABC Company” for
“Contract Number 999999” of Seller. The financial instrument must be
confirmed and issued from a Top 25 World Bank.
3.
Upon receipt of the negotiable financial instrument from the Buyer,
Seller will issue the Surety Bond, for 110%, of the value of each
shipment in the contract. The bond will include the terms and conditions
of the Seller “contract, number 999999” including all documents and
conditions required for payment, the same as it would be in a
Documentary Letter of Credit.
4. The Surety Bond
includes a copy of the contract; it will be issued within 72 hours (3
business days) of the receipt of the revolving Letter of Credit for each
shipment of the contract. The SB expires upon confirmation from the
shipping line that the commodity is received at the Port of Discharge.
If confirmation is not received, the bond will automatically cancel
after the balance of shipments left in the contract + 3 months from the
date of issue.
5. Upon receipt of the negotiable
financial instrument, and issuing the Surety Bond for 110%, there is no
need for Sellerto issue a 2% Performance Bond.
Date Issued: Date must be less than 5 days old
LETTER OF INTENT TO :www.chensihong.org +
C,Inc.USA
FROM : (Buyer’s Name goes here)
We, (Buyer’s Name goes here), hereby state and
represent that it is our intention to purchase, and we hereby confirm
that we are ready, willing and able to purchase the following commodity
as per the specification and in the quantity and for the price as
specified in the terms and conditions as stated below.
COMMODITY: Iron Ore ORIGIN : Brazil Brasil
Brazilian BRAZILIAN Brasil Brazil 巴西铁矿砂，巴西铁矿石IRON ORE
65.4%FINES PACKAGING: Bulk CHEMICAL COMPOSITION: Fe 65.5% Rejection
below 64.5% SiO2 3.00 % 5.0% MAX AL2O3 0.70% 2.0% MAX Phos 0.03% 0.06%
MAX Sulphur 0.01% 0 .03% MAX K2O 0.01% CaO 0.02% MgO 0.03% Na2O 0.01%
TiO2 0.08% Mn 0.15% Sn < 0.01% Chronium < 0.005% Zinc < 0.005% LOI 0.08%
Moisture 8.0% MAX (Loss at 105 degree)
Physical size: 0.15 mm - 3 mm 30% min 3 mm - 5 mm
60% max 5 mm - 10 mm 10% max
MONTHLY QUANTITY:
(insert monthly requirement here) DMT / Shipment / Month CONTRACT LENGTH
: 12 Months LOADING PORT : As per supplier DESTINATION PORT : (insert
port of delivery here)
PRICE : (Should be Invoice
Price to Buyer) PRICE REVISION : Yearly SHIPPING TERMS : CIF FIRST
SHIPMENT : will ARRIVE within 75 Days after receipt and acceptance of
LC. Balance as per final contract.
INSPECTION :
Quality, Quantity and weight by SGS certified agencies at Sellers cost
at port of loading.
PAYMENT OPTION CODE : (
select one code : 10-2 / 12 X T / 2 X 2 / SBL-6 ) Performance Bond : 2%
to be submitted by seller LOI VALIDITY : 14 days from the date of
issuance
The Buyer accepts the Following
Procedure of closing deal:
1. Buyer Issues LOI
with softprobe OR LOI + BCL. 2. Seller Issues FCO 3. Buyer accepts FCO
signs off and returns to seller 4. Seller issues DRAFT CONTRACT with
sufficient Seller Details and complete Buyer information. 5. Buyer
reviews, signs and seals Draft Contract. 6. Seller completes the balance
of the details, countersigns, emails and faxes contract to Buyer. 7.
Seller sends signed, original email and or fax contract to Buyer. 8.
Buyer signs, seals original contract and couriers back to seller. 9.
Buyer’s Bank issues Pre-Advise text and format of the LC(s) to the
Seller’s Bank for acceptance. 10. Seller’s Bank confirms with Buyer’s
Bank and confirms that both banks are ready to issue LC and Performance
Bond. 11. Buyer may request an invitation letter for site inspection of
the goods at the loading port at the Buyer’s expense. 12. First
Shipment is 21-45 days after the Seller receives at their Bank the
Buyer’s Operative Letter of Credit.
The Buyer is
aware that this LOI is being issued on (insert the actual date of the
LOI here) to Cenitech,Inc, to be presented to the Seller.
This LOI is the only current active LOI and has
been exclusively offered to Cenitech,Inc. for the release of the FCO /
Draft Contract. It takes precedence over any other LOI currently in
circulation for this quantity and product.
The
Buyer is of the understanding that any and all offers and/or contracts
are subject to successful Seller verification of funds and that said
Seller thus has written permission to conduct a soft probe of the Buyer
's account.
BANKING DETAILS
Company Name: Company Address: Contact Person:
Telephone: Fax: Email: Company Bank: (Should be Top 25 World Bank) Bank
Address: Bank Complete Telephone Number: Bank Complete Fax Number: Bank
SWIFT/ABA/Routing Number: Bank Account Number: Bank Account Holder:
Sincerely Yours,
(DOCUMENT
MUST BE SEALED AND SIGNED BY BUYER REPRESENTATIVE)
BRAZILIAN Brasil Brazil
巴西铁矿砂，巴西铁矿石IRON ORE 65.4%FINES www.chensihong.org
chensihong@cableplus.com.cn chensihong@chensihong.org
FAX:0086-21-56069484/62769182/56943847/62765692 MSN:
chensihong86@hotmail.com
