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Sales Policy of Cocobod

The major sales objective of the Company is to sell to the external and local markets at the best prices obtainable and to undertake its marketing function in a manner which will maximise the foreign exchange revenue that will accrue to the country.

Registration
All sales by the company are made only to firms registered by the Company as buyers. (Sales made under bilateral arrangements to countries are not covered by this registration requirement).

Firms wishing to be registered as buyers for Cocoa beans and Cocoa Products are required:

• To apply in writing direct to the Managing Director of the Company.
• To provide evidence that they have usefully been employed in some capacity in the cocoa trade in a consuming country or thoat they are organised in such a way that they can effectively handle the commodity on the International Market.
• To furnish the Company with the name(s) and address(es) of their bankers to enable it to ascertain the Firm’s financial capacity for buying at last 2,500 tonnes per crop year (1st October to 30th September).
• To provide evidence of their membership of the Federation of Cocoa Commerce Limited and or the New York Cocoa Merchants Association, even if they are members of other Cocoa Associations.
  Companies satisfying the above requirements are issued with buying licenses, which are renewable for each crop year.

Negotiation
Sales by the CMC are made by private treaty on the basis of World Cocoa Market values at the best prices obtainable. Negotiations are governed by normal commercial considerations only, without any kind of discrimination in favour of or against any individual firm or particular company.

Payments
Sales by the company, except those made under special trade agreements, are effected on the basis of Cash Against Documents on first presentation payment terms in either New York or London. The Company, however, reserves the right to insist on the establishment of Letters of Credit whenever it deems it necessary to do so. Sales under trade and payment agreements are made against Letters of Credit. Sales by the CMC are negotiated on a net basis and all local bank charges are for the account of the Buyer.

Contract Quantity
The minimum quantity of cocoa beans for a contract to all main ports of discharge is 50 tonnes. The minimum quantity for cocoa products is 20 tonnes. In certain circumstances, however, the Company can insist on a larger tonnage if that serves as an incentive to carriers.

Shipment
Sales/exports are made usually on a Cost, Insurance and Freight (CIF) basis. Occasionally, Free On Board (FOB) and Cost and Insurance (C&I) bases are also allowed. Sales of cocoa beans are made for three-monthly shipment periods, e.g., October-December; November-January, December-February, etc. In the case of cocoa products sales are made for two-monthly shipment periods, e.g., February-March, March-April, etc. In both cases, the sales are made on the basis of main UK ports. Exports to major open ports in overseas destinations are allowed, subject to the payment of the appropriate freight differential. The Company, however, reserves the right to reject declared ports which are not easily accessible.

Buyers are required to declare ports of destination at the time of negotiation or, at the least, two clear calendar months prior to the commencement of the contract shipment period. Requests for change of destination are entertained, but each request is dealt with on its own merit.