In Brazilian ICUMSA 45 trading, the distance between a mill in São Paulo and a port in the Gulf is measured in risk as much as in nautical miles.
We are often asked why our banking procedure is so strict. The answer is simple: in international trade, the bank is the safeguard for both buyer and seller.
Bridging the trust gap
Shipments of 12,500 MT, 25,000 MT or 50,000 MT represent multi-million dollar values. The buyer fears paying for goods that never arrive. The seller fears shipping goods that are never paid. Standard bank instruments move that risk from individuals to regulated financial institutions.
The instruments we accept
- DLC, SWIFT MT700. Irrevocable and transferable, subject to UCP 600.
- SBLC, SWIFT MT760. Irrevocable, subject to ISP98, suited to 12-month programmes.
- MT799 blocked funds. Irrevocable funds blocked for one year in favour of the Seller, confirmed bank-to-bank. Shorter periods are not accepted.
In all cases the instrument acts as a payment guarantee. Each shipment is paid by MT103 after SGS inspection at the port of loading and receipt of the shipping documents.
Our side of the commitment: the 2% Performance Bond
Trust works both ways. Once the buyer’s instrument is operative, our bank issues a Performance Bond for 2% of the value of one shipment, callable if we fail to ship according to the agreed schedule for reasons attributable to us.
Why the issuing bank matters
A guarantee is only as strong as the bank behind it. Instruments must be issued by a bank acceptable to the Seller and authenticated bank-to-bank via SWIFT. Any instrument that cannot be authenticated is rejected.
The bottom line
In ICUMSA 45, the sugar is the product and security is the service. We manage a bank-verified pipeline from Brazil to buyers worldwide.
See our trading procedure or send your inquiry.
