ECAC and its Russian associate have negotiated a contract for a limited quantity of Agricultural Grade Prilled Urea N46. I am contacting you because in the past, you have expressed an interest in urea.
Following are the basic conditions under which this urea will be sold.
1. The LOI must be current (no more than 5-days old), addressed to ECAC, Ltd. It must be submitted with a BCL and NCND. The LOI must clean (no alterations) and clearly describe the credit that will be issued to pay for a contract.
2. The BCL must correspond to the LOI; be addressed to ECAC, Ltd; .be current (no more than 5-days old) and issued by a top bank. The BCL must confirm that the buyer has the financial capacity to complete the proposed contract.
3. THE ECAC, Ltd. FCO response to the LOI must be signed/sealed by the buyer, and returned with comments within five (5) days.
4. If there is agreement on terms/conditions, the Draft Contract will be returned no later than five (5) days after receipt of the of the signed/sealed FCO. The Contract must be signed/sealed and returned to ECAC within five (5) days.
5. After a contract has been signed; if the buyer’s bank confirms to the seller’s bank that the buyer has the financial capacity to complete the contract, and will open a non-operative credit (pre-advice) upon confirmation of product; the seller’s bank will issue confirmation of product to the buyer’s bank. This will happen before the buyer must open the non-operative credit (pre-advice.)
6. The buyer must open the non-operative credit (pre-advice) within five (5) days of said bank-to-bank confirmation of product.
7. The seller will post the 2% performance bond against the non-operative credit (pre-advice) within five (5) days.
8. The buyer will activate the credit within five (5) days and shipments shall commence per contract. All shipments will be 25,000 MT; and the minimum contract will be 100,000 MT.
The price for this prilled urea is as follows.
o The price for 100,000 MT is $US 168/MT CIF ASWP.
o The price for quantities over 100,000 MT, to 200,000 MT is $US 165/MT CIF ASWP.
o The price for quantities over 200,000 MT, to 300,000 MT is $US 163/MT CIF ASWP.
o We will not accept contracts over 300,000 MT, unless the BCL is very strong.
o We will also negotiate discounts for contracts paid by transferable documentary credit, fully funded documentary credit or performance guarantee (standby credit).
We will not be paying commission to buyer's brokers. Brokers to collect commission from buyer's. Please contact me if you have any questions
