COMMODITY: Rail Steel (HMS) from Used Rails
(Saudis do not allow selling the rails as scrap, so they have to melt the old rails and sell them as newly manufactured small pieces of look- a- like rails, and they can be used as scraps only, not as rails)
Origin: Saudi Arabia
Length: Buyer´s Option
Port of Loading: Saudi port
Price: $240/MT, CIF
Quantity: 100,000 MT/ Month for one YEAR = 1,200,000 MT/Year
Payment: By Irrevocable DLC, payable 100% at discharge port (Destination)
Performance Bond: 2% of DLC value
Port of Destination: ASWP (as long as the costs and payments of insurance and maritime freight are preserved without increases)
Inspection: SGS or equivalent inspection company, which is active, available and in operation at the time of needing the service
Validity: 8 working days, or 12 Calendar days
PROCEDURES:
SELLER ISSUES AN SCO TO BUYER TO BE SIGNED AND STAMPED AS ACCEPTANCE
BUYER SENDS A LOI & POF, INCLUDING AN AUTHORIZATION NOTE TO HAVE ACCESS TO THE BEARER, TO VERIFY THE DOCUMENTS SUPPLIED, BETWEEN BANKS OF THE PARTIES (SELLER�´S BANK: BANK OF AMERICA
SELLER, AFTER RECEIPT OF THE LOI AND POF, WILL INVITE THE BUYER AT SELLER'S COSTS TO VISIT THE YARD, WHERE THE MATERIAL IS AVAILABLE
SELLER ISSUES FCO & DRAFT CONTRACT TO BE SIGNED AND STAMPED BY THE BUYER AS ACCEPTANCE
THE REST OF THE PROCEDURE WILL BE REFLECTED AND DETERMINED IN THE CONTRACT IN REGULAR WAY
