Sugar FOB Santos offers: how to check them
By the Vanguard Verify desk · Published 2026-10-25 · Updated 2026-10-25
Short answer: a sugar FOB Santos offer is only credible if the seller is a Brazilian-registered company (or a trader with a verifiable contract with one) that can show it controls sugar at a named terminal in Santos, and if you, the buyer, are able to nominate and pay for your own vessel. Under FOB the buyer arranges the ship. If the seller asks for fees before you can verify the company and the cargo, stop.
Santos is Brazil's main sugar export port, and both raw sugar (VHP) and refined sugar (often offered as ICUMSA 45) are shipped from there. Raw sugar is also the benchmark for the ICE Sugar No. 11 futures contract, which settles by physical delivery FOB receiver's vessel at a port in the country of origin. That is why FOB Brazil terms are common in real offers, and why they are also copied into fake ones. For the spec side, see is an ICUMSA 45 offer real?
Steps to check the offer
- Identify the seller. Ask for the full legal name and CNPJ (Brazil's company tax registration number). Check the CNPJ status on the Receita Federal service: the name, address and activity codes should match the offer, and the status should be active ("ativa").
- Check that the signatory can bind the company. Ask for the company's articles or a power of attorney. A "mandate" with no company documents is not a seller.
- Confirm the terminal. A real FOB offer names the loading terminal in Santos and a loading window. Contact the terminal operator yourself (using contact details from its own website, not from the offer) to ask how they verify cargo for a buyer's nominated vessel.
- Confirm you can perform FOB. Under Incoterms 2020 FOB, the buyer contracts the ship and bears risk once the goods are on board. If you have no chartering capability, an FOB contract is not for you.
- Agree independent inspection at load port. Name an inspection company and allow the buyer to appoint or witness it. Check the report with the issuer, as in how to verify an SGS report.
- Use bank-to-bank payment. A documentary LC under UCP 600, paying against the bill of lading and inspection certificate, protects both sides. The buyer gives proof of funds; the seller gives proof of product.
Red flags
- The offer says FOB but the seller insists on "FOB with tank-to-tank" or other mixed terms that do not exist in Incoterms 2020.
- You are asked to pay "port fees", "allocation fees" or a "dip test" deposit before you have verified the seller.
- Prices well below the current market with huge "rolling" monthly volumes and no first loading date.
- No CNPJ, or a CNPJ whose registered activity has nothing to do with sugar or trading.
- The seller asks for your bank's proof of funds before giving any proof of product.
- Banking details in a third country with no link to the Brazilian seller.
FOB Santos: who does what
| Task | Seller | Buyer |
|---|---|---|
| Export clearance in Brazil | Yes | No |
| Deliver goods on board at Santos | Yes | No |
| Charter / book the vessel and pay freight | No | Yes |
| Marine insurance | No obligation | Buyer's choice (recommended) |
| Risk after goods are on board | No | Yes |
This page is general information, not legal or trading advice.
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FAQ
What does FOB Santos mean for sugar?
Under Incoterms 2020 FOB, the seller delivers the sugar on board the buyer's nominated vessel at the port of Santos, Brazil. The buyer arranges and pays for the ship and bears risk from that point.
How do I check a Brazilian sugar seller?
Ask for the company's CNPJ and check its status, name and address on the Receita Federal service, then confirm the signatory's authority and the loading terminal directly.
Should I pay fees before seeing proof of product?
No. The buyer gives proof of funds and the seller gives proof of product. Do not pay fees to an unverified seller.
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This answer is general information, not legal or financial advice.