On March 1 2023, company B in Vietnam sent a firm offer to Company A in Singapore with
the following contents: to sell 3,000 tons of cashews of Grade 1, at a price of USD 450/MT,
payment by immediate L/C, L/C opened 10 days after the contract is signed, delivery in May
2023. The goods will be delivered using FOB Hai Phong Port, Vietnam, Incoterms 2020
1. Name of goods
Cashews, Grade 1, North Vietnam, crop season 2022-2023
2. Quantity
3,000 MT +- 7%, the buyer will decide the tolerance. The tolerance price will be in
accordance with the contract price.
3. Quality
- Moisture: below 7%
- Color: Yellow brown
- The goods must be in accordance with the sample’s quality agreed by both parties at
the time the contract is signed. Sample is an indispensable annex of the contract.
- The Certificate of Quality issued by Vinacontrol at the unloading port has the ending
validity.
4. Price
- Unit price: USD 450/MT, FOB Hai Phong Port, Vietnam, Incoterms 2020
- Total price: USD 1,350,000
- In words: one million and three hundred thousand United States dollars.
- Loading and packaging charges are included; however, unloading price is not included
5. Shipment
- Time of shipment: May 2023
- Term of delivery: FOB Hai Phong Port, Vietnam, Incoterms 2020
- Port of loading: Hai Phong Port, Vietnam
- Port of unloading: Singapore Port
- Notice of shipment:
The seller must inform the buyer immediately when the goods are ready to be delivered
The buyer must inform the seller at least 24 hours before the arrival of the vessel at Hai
Phong Port about the following information: Name of vessel, Vessel’s number, Estimated
time of arrival (ETA)
Within 24 hours from the time when the goods are loaded onto the vessel at Hai Phong
Port, the seller must inform the buyer about the goods’ conditions and the date of delivery.
6. Payment
Payment is made using immediate Letter of Credit (L/C) in US dollars, with the Letter of
Credit amount equals to 100% of the total contract value (1,350,000 USD). The Letter of
Credit will be opened at Citibank, Singapore, with notification through Vietcombank
Hoan Kiem branch, Hanoi, Vietnam. The Letter of Credit will be opened within 10 days
from when the contract is signed and will be valid for 45 days from the date of shipment.
The Letter of Credit will be paid when the seller submit the following documents:
- Bill of Exchange
- Original set (3/3) of the perfect Bill of Lading
- 3 originals, 3 copies of signed commercial invoice
- 3 originals, 3 copies of Certificate of Quality and Quantity issued by Vinacontrol
- 3 originals, 3 copies of Certificate of Origin issued by the competent authority in the
seller’s country
