Refined white cane sugar

Structuring Bankable Sugar Deals: Payment Instruments and Procedure

In cross-border sugar trading, the payment structure decides whether a deal can be executed. At Global Food Traders (Inversions Torreguitart SL) we work with clear procedures and bank instruments that protect both parties.

1. Accepted payment guarantees

  • SBLC, SWIFT MT760. Irrevocable, subject to ISP98.
  • DLC, SWIFT MT700. Irrevocable and transferable, subject to UCP 600.
  • MT799 blocked funds. Irrevocable, blocked for one (1) year in favour of the Seller and confirmed bank-to-bank. Shorter blocking periods are not accepted.

The instrument must be issued by a bank acceptable to the Seller, cover the value of one shipment and remain valid for the contract term plus 30 days. It acts only as a guarantee: each shipment is paid by MT103 after SGS inspection at loading and receipt of the scanned shipping documents.

2. Core specification: Brazilian sugar ICUMSA 45

ParameterSpecification
Colour45 RBU maximum
Polarization99.80% minimum
Moisture0.04% maximum
Ash0.04% maximum
InspectionSGS quality and quantity at the port of loading

Full values in the sugar technical data sheet.

3. Transaction flow

  1. Buyer sends LOI or ICPO with the CIS and KYC documents.
  2. Seller validates KYC and issues the FCO.
  3. Draft SPA, signature and proforma invoice.
  4. Buyer’s bank issues the payment guarantee.
  5. Seller issues a 2% Performance Bond once the guarantee is confirmed.
  6. Preparation, SGS inspection and loading.
  7. Shipping documents sent to the Buyer.
  8. MT103 payment per shipment and release of original documents.

Each step has a defined deadline. See the complete trading procedure or send your inquiry.