Description features:
CementLegend:LOI -Letter of IntentLC -Letter of CreditFCO -Full Corporate OfferCIF - Cost, Insurance and FreightBecause there has never been a shortage of cement in SA before like there is now, people are in general somewhat uneducated about importing cement into SA(because previously you could just go to Lafarge, Holcim or PPC and place an order for a few million bags, no problem). These suppliers are however not signing any new contracts at the moment due to all their capacity being taken up by local demand. And now, because of the vast amounts of money it takes to pay for a few million bags of cement, and in order to pay the supplier in another country, the buyer has to have an LC from the bank in place.LC & LOI:When negotiating with cement factories or agents in other countries, they will all ask for the end buyer's LC and LOI. Without these 2 documents, it is pretty much a lost case getting any decent information out of the suppliers. We are currently working closely with a distributor of imported SABS approved cement ,and we have already gone through all the motions with an Asian group of Cement Factories. The representative of the Factories came to visit SA early in 2007, and we also met with him personally. So the prices we are offering are genuine.SABS logo will be printed on the bags, and the SABS certificate will be issued bank to bank during the LC process. Due to fraud in the past, we are weary to issue the SABS certificate to potential buyers. The SABS certificate gets issued bank-to-bank once the guarantees are in place. The suppliers do have these documents, but are unwilling to issue them to all and sundry on request. It has been conveyed to us that "potential" customers take these documents, re-do them and then issue them to their customer lists and claim them as their own. A lot of clients have been burned by this as they then believe that the supplier is geniune and deposit money in their accounts never to see a bag of cement produced. After all, if the buyer has issued LC's it will not be honoured unless the cement that pitches up on the ship at the harbour complies with SABS certification and has gone through the various checks.Soft Pricing (information purposes only)This is for CIF delivery to PE in SA, payment being by Bank LC (Letter of credit). We will be able to assist with off-loading, transport and warehousing as well, if required (see bottom):12 Month contracts:12 500 MT (250 000 bags) per month x 12 - $66.00 / MT 50 000 MT (1 000 000 bags) per month x 12 - $ 66.00 / MT 100 000 MT (2 000 000 bags) per month x 12 - $65.00 / MT 500 000 MT (10 000 000 bags) per month x 12 - $62.50 / MT1 000 000 MT + per month x 12 - $61.00 / MT5 000 000 MT + per month x 12 - $59 / MT 10 000 000 MT + per month x 12 - $57 / MTSpot Deals Once Off (Please note that our suppliers do not carry stock and that the cement is only brought in as per order):12,500 MT (250 000 bags) USD 70.00 / MT 25,000 MT (500 000 bags) USD 69.00 / MT 100,000 MT (2 000 000 bags) USD 68.00 / MTNote: MT = Metric TonneMT x 20 = Number of bagsThus, the total CIF Price if you were to order the minumum quantity (12 500MT / month) would be:USD66.00 + (USD66*1.1)*14% VAT per Metric TonIf you want us to do the clearance through the harbour, oversee the off-loading and transport the cement to our warehouse at the coast, the total cost for this will be ZAR R8.50 per bag. This includes 2 weeks storage at the warehouse. Please note that the CIF price will stay the same for delivery to all major SA ports.Thus, total price including off-loading, transport and warehousing (2weeks):USD66.00 + (USD66*1.1)*14% VAT per Metric Ton + R8-50 per bagProcedures for Importing Cement1. Client issues enquiry and supplier makes soft offer.2. Client issues LOI on original company letterhead, and it should state the required volume & the target price.3. Seller will provide FCO4. Buyer signs FCO & returns to seller together with BCL, stating the intentions & capability of the buyer to buy the commodity at the agreed volume in accordance with the agreed price.5. Seller issues Draft Contract to buyer for approval.6. Buyer returns approved draft contract whereupon seller will provide final contract. The signed contract will be sent to the buyer via Courier.7. Buyer rasies the agreed financial instrument - non operative to the seller.8. Within 24-48 hrs of receiving the non-operative financial instrument, seller will then provide proof of product (POP) and 2% Performance Bond to the buyer.9. This will activate the non operative financial instrument and the cement will be shipped to the buyer within 30-45 days.10. Insurance of loads is 110% through LLoyds.11. Cement is sold in accordance with Incoterms 2000, CIF (Cargo, Insurance & Freight) 12. Printing on the Bag:ORDINARY PORTLAND CEMENTCEM TYPE 1, Grade.......Standard:Net Weight: 50kgManufacturing Date:............. Expiry Date:...............Country of Origin:....................Manufactured for: (Buyer's Details)In the contract, it is stated that the Seller is liable for 5% of the total contract amount in the event that the Seller cannot provide the POP and the 2% Performance Bond as agreed.However, the same penalty isapplicable to the Buyer in the event that the Buyer can not provide the agreed financial instrument.This is a proven procedure, and ensures that serious buyers are provided with the best possible service, and the not so serious buyers are filtered out.If your interested and require more detail, please contact me.  Please include your contact details and company particulars so that I know with whom I am dealing.