(BUYER’S LETTER HEAD)
LETTER OF INTENT(LOI)
Date: May XX, 2012
Buyer Ref: XXXXX
I/We, the undersigned, ___(name)___, ______(designation)____ of ___(Buyer company
name & address)________, hereby state and represent that it is our corporate intention to
purchase the commodity PALM KERNEL SHELL (PKS) in the quantity and for the price as
specified in the terms and conditions as stated below and that funding is available including
any import permits needed to fulfil this purchase. This representation is made with full
corporate authority and also responsibility of the above stated buyer.
COMMODITY: PALM KERNEL SHELL (PKS)
ORIGIN: Indonesia ,or at Seller´s choice
Gross Calorific Value (ADB): 4,200 Kcal/Kg Min
Net Calorific Value (ARB): 4,100 Kcal/Kg Min
Moisture (ARB): 15% Max
Ash (ADB): 3% Max
Packing: Loose in bulk, full load vessel
Quantity: 30,000 mt (+/-5%) per month x 12 months
Port of Loading: Any Indonesian Port,or at Seller´s choice .
Port of Disch: Any XXXX main Sea port
Delivery: 1st shipment within 45-60 days from LC receipt and thereafter every 30-45
Price: USD XX/MT CIF
Price Review: Price may be reviewed every 3 months or as mutually agreed.
Inspection: by SGS/Equiv on Quality and Quantity at loading port at Seller’s
responsibility and cost and any other inspection on Quality and Quantity at
unloading port at Buyer’s responsibility and cost.
Payment: by irrevocable, Non-Transferable DLC issued from world top 25 ranked bank
(otherwise, LC is to be confirmed at buyer’s cost), payable 100% at sight
against presentation of shipping documents.
PB: Non-operative 2% PB from seller Bank upon receipt of buyer's LC pre-advise
(MT 705) by swift. Buyer's operative DLC (MT 700) will then activate the
Visit: Buyer is allowed to visit loading port before loading to observe cargo
inspection and loading operation during shipment (at Buyer’s option and
Validity: 7 days from the date of this letter to receive the draft contract from Seller.
BUYER'S BANK COORDINATES FOR ISSUANCE OF PAYMENT INSTRUMENT
Bank Name : xxx
Bank Address : xxx
Account Name : xxx
Account Number : xxx
Bank Telephone : xxx
Bank Fax : xxx
Swift Code : xxx
Bank Officer : xxx
Direct Tel/Fax : xxx
1. Buyer sends official LOI including full banking details (This letter).
2. Seller issues FCO and/or Draft Contract.
3. Buyer and seller finalize and sign the contract and exchange via fax or e-mail and/or hard
4. Buyer sends LC pre-advise (MT 705).
5. Seller bank issues non-operative 2% PB.
6. Buyer bank issues operative LC (MT 700) to activate the PB.
7. The Seller arranges 1st shipment within 30-45 days after receipt of LC.
8. Payment 100% at sight against shipping documents.
9. Regular monthly shipment follows as agreed.
For and on behalf of
(BUYER COMPANY NAME)
(Signature and seal)