USA NUMBER 1 WHEAT
About 50% of U.S.-grown wheat is exported to overseas customers, accounting for almost a third of the international wheat market each year. The U.S. is the world’s only dependable supplier of a wide variety of wheat classes - delivering superior quality at competitive prices.... |
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U.S. REGULATIONS:
U.S. exporters and importers are subject to regulations which restrict
the export or re-export of commodities to certain destinations.
Exporters must present to the carrier or the U.S. Customs service a
"shipper's export declaration" which names the ultimate and
intermediate destinations of the cargo. The cargo cannot be delivered
to any country that is not named on the declaration.
In addition, a "destination control statement" must be entered on the
originals and all copies of the bill of lading and commercial invoice.
This means the importer must agree to accept documents bearing the
destination control statement.
For example:
"United States law prohibits distribution of these commodities to
Libya, North Korea, Cambodia or Cuba, unless authorized by the
U.S. government."
U.S. exporters also are subject to U.S. regulations on restrictive trade
practices or boycotts. Exporters may not engage in transactions that
require the exporter to refuse to do business with a country or
individual for boycott reasons.
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PURCHASING UNDER DIRECT NEGOTIATION:
The Invitation for Bid (IFB) is a standard, rigid document that allows
all exporters invited to offer a known commodity for a fixed
shipment (or delivery period). Parties using the IFB method of
procurement almost always buy the cheapest offer from those
presented with no negotiation. While this is acceptable to some
buyers, many importers like to play a more active role in negotiating
the terms and conditions of the purchase contract. These importers
often engage in direct negotiation with one or more suppliers.
The individual pieces of the final contract (the quality, quantity,
shipping terms, and so forth) must still be addressed by the buyer
and the seller in a direct negotiation. However, purchasing directly
allows the seller to suggest alternatives or options to the buyer that
may significantly reduce the importer's purchase price.
For example, an exporter may be able to provide an importer with a
discounted price for a slightly later shipment period, or the importer
may benefit from taking a slightly higher moisture content in a
particular purchase. Importers can compare prices and determine the
best time and entity to purchase from. However, it should be noted
that most exporters can easily figure out whether or not an importer
is a serious buyer.
Regardless of the method used in the procurement process, the
following standard form contracts are normally a part of any U.S.
feed grains export transaction, and any potential importer should
read these forms and understand them thoroughly prior to initiating
any discussions with potential trading partners.
Sample Contract NAEGA FOB #2
Standard Contract Terms
Once a buyer and seller agree on all the terms and conditions of an
IFB, and a price is fixed, the IFB is converted into a formal grain
contract and a contract confirmation is exchanged. Generally, the
full-term agreement includes the IFB or, in some cases, the
importer's standard terms and standard contract language such as that
contained in the North American Export Grain Association's contract
form No. 2 (NAEGA 2) or the Grain and Feed Trade Association's
contract form No. 27 (GAFTA 27). Detailed descriptions of these
two standard contracts follow.
GO TO VSE SELLING PROCEDURES PAGE 3
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USA CORN NUMBER 1
Corn is the world’s renewable golden resource. Each year U.S.
farmers devote 1 in 4 arable hectares or acres to its production. No
other country can match U.S. productivity in growing corn or its
efficiency in harvesting corn’s energy potential. |
