ICPO-Draft-Example Cement Print

Company Limited

Attn. K.

P.O. Box 18...


United Arab Emirates

Name :

Mobile :

E-Mail :

Ref. No. :

Date :


We, ____ [Company Name] ____, confirm with full legal responsibility and under penalty of perjury that we are ready, willing and able to buy COMMODITY on the following terms and conditions:

  1. Commodity : Ordinary Portland Cement 42.5 R/N
  2. Quality : Grey Ordinary Portland Cement 42.5 R/N – according to


· United States Standard ASTM C-150 or

· European Standard EN 197-1: 2000 or

· Russian Standard GOST N/R or

· SON Conformity Assessment Program (SONCAP) or

· SABS Certification SANS 50197 or

· Emirates Quality Mark Certification, SASO Certification

  1. Specification : Details see as mentioned below
  2. Origin : Seller’s choice (not China)
  3. Quantity : 300,000 MT
  4. Delivery : 12 months x 25,000 MT
  5. Delivery Port : ____________ Port
  6. Shipping Terms : CIF according to INCOTERMS 2000
  7. Shipments : 12,500 MT; 25,000 MT (+/- 5%)
  8. Discharge Rate : x.xxx MT per working day
  9. Packing : 50 kg bags or bulk or buyer’s option

12. Price : xx.00 USD per MT

SABS CERTIFIED Add $7 /MT to above price

GHOST Certified Add $20/MT to above price

52.5 Add $5 /MT to above price

32.5 Minus $5/MT from above price

Clinkers Minus $5/MT from above price

Bulk Delivery Add $2 /MT to above price

Non-Transferable L/C Add $2 /MT to above price

  1. Total Value : xx,xxx,xxx USD (Basis Price)

14. Payment Terms : Please mark clearly the payment option required:

(A) Irrevocable, Divisible, Confirmed, Transferable, Documentary Letter of Credit, 100 % payable at sight at the seller’s Bank for eleven months with a face value of one month’s shipment (+/- 5%). This Payment Instrument will be guaranteed by Irrevocable, Assignable Stand-by Letter of Credit (SBLC) or Bank Guarantee (BG) for a one month shipment value. Payment for the last shipment will be drawn against the SBLC or BG.

(B) Irrevocable, Divisible, Transferable, Monthly Auto revolving Documentary Letter of Credit (MRDLC)

All these instruments will be valid for 14 months and 16 days based on a 12 month contract and issued or confirmed by a TOP 25 Western Bank.

  1. Performance Bond : 2% of the value of buyer’s banking instrument
  2. Initial Shipment : Within 30 days after the Financial Instrument is in

place at seller’s bank and, thereafter, according to the
Agreement schedule

  1. Inspection : SGS Report or similar
  2. Insurance : 110% of shipment value issued in favor of Buyer


Bank Name :

Bank Address :

Account Holder :

Account Number :

Swift Code :

Bank Officer : Mr.

Bank Telephone :

Bank Fax Number :

Buyer’s Banking costs are for Buyer’s Account. The Seller’s banking costs are for the Seller’s account.

This LoI has the validity of 14 days from the time that it is sent. In addition, the procedures, form of payment and soft probe authorization are to be included in this LoI.

Should you have any questions, please do not hesitate to contact us.

Yours sincerely,



[Company Name]

Attachment 1


1) Buyer sends Letter of Intent (=LoI) with Soft Probe Allowance Letter to Seller not older than 3 days of issuance

2) Seller sends Soft Offer to Buyer

3) Buyer issues an Irrevocable Corporate Purchase Order (=ICPO) and sends it together with Bank Comfort Letter (=BCL) to Seller not older than 3 days of issuance.

4) Seller sends Full Corporate Offer (=FCO) to Buyer.

5) Buyer signs, seals FCO (on each page) and returns to Seller

6) Seller submits the Draft Contract with full terms and conditions

7) Buyer signs, seals and returns the legally binding Contract to Seller

8) Seller signs, seals and returns the Contract to Buyer

9) Seller will send eight original Hard Copies of the final contract via courier to the Buyer’s address as stated in the contract.

10) Immediately upon receipt of the Seller’s signed and sealed hard copies of the contract the buyer will sign and seal the hard copies and will send back the hard copies of the contract to the Seller.

11) Within 3 banking days after signing the legally binding draft contract (=step 8) Buyer issues non-operative, confirmed financial instruments.

12) Seller sends Proof of Product and issues Performance Bond of 2% of the monthly shipment value which activates the non-operative financial instrument

13) Delivery will start within 30 days after Banking Instrument is active and, thereafter, according to delivery schedule of the contract.

Attachment 2


Chemical Composition

Silicon Dioxide (SIO2) 21.00

Aluminium Oxide (A12O3) 5.30

Ferric Oxide (FE2O3) 3.30

Calcium Oxide (CaO) 65.60

Magnesium (MGO) 1,10

Sulfur Trioxide (SO3) 2.70

Loss of Ignition 0,90

Tricalcium Silicate (C3S) 60,00

Dicalcium Silicate (C2S) 15.00

Tricalcium Aluminate (C3A) 8.05

Tricalcium Alumino Ferrice (C4AF) 9.76

Physical and Mechanical Properties

Blain CM2/GR 3.250

Autoclave Expantion 0.02

Initial setting time (VICAT) 105 minutes

Final setting time (VICAT) 135 minutes

Compressive strength @ 03 days 230 kg/CM2 and @ 07 days 305 kg/CM2 and @ 28 days 420 kg/CM2

Compressive strength mortar Mpa (N/mm”):

Strength Class: 42.5 N

Early Strength: 2 days ^10.00

Strength Class: 42.5 R

Early Strength: 2 days ^20.00

Standard 28 days strength: Minimum 42.5 Maximum 62.5