How to verify an ICUMSA 45 sugar seller
To verify an ICUMSA 45 sugar seller, confirm that the company legally exists and has export history, that it owns or has a written right to sell the sugar, and that it can prove product (POP) through the right channels — before you sign anything that commits you, pay any fee or open an LC. If a seller cannot pass these checks with documents you can confirm independently, treat the offer as unproven, however good the price looks.
This guide is written by Vanguard Verify (by Vanguard Trade Capital, Dubai), an independent checking service for commodity buyers, brokers and suppliers. We are not the buyer, the seller or their broker.
Why ICUMSA 45 offers need extra care
ICUMSA 45 (refined white sugar) is one of the most widely offered commodities online, and many of the offers in circulation are copies of the same text passed through long broker chains. Typical signs are very large “monthly” volumes on 12-month contracts, prices well below the market, and procedures that ask the buyer for proof of funds and bank letters before the seller has shown anything at all. Real mills and trading houses do sell refined sugar, but they usually work through known buyers, normal contract terms and bank-to-bank instruments.
The rule to remember: the buyer shows proof of funds (POF); the seller shows proof of product (POP). Both sides prove something. If only one side is asked to prove anything, ask why. See also how to check a proof of funds before you send an LOI.
ICUMSA 45 specification: what a real offer states
ICUMSA 45 is refined white sugar (cane or beet) with a colour of no more than 45 ICUMSA units (IU), measured by the ICUMSA method. A serious offer also states polarisation (commonly 99.80° minimum), moisture (commonly 0.04% maximum), ash (commonly 0.04% maximum), granulation, packing (for example 50 kg bags) and inspection at loading by an independent surveyor. Compare these figures with the draft contract and with a recent inspection report for that specific lot. A spec sheet with no lot number, date or named issuer proves nothing.
9 practical checks before you commit
1. Check the company in the official register.
Get the full legal name, registration number and address. Look it up in the official company register of its country (for a Brazilian company, the CNPJ can be checked on the Receita Federal website). Check the registration date, legal status and declared activity. A company formed a few months ago, or registered for something unrelated to sugar or trading, needs a good explanation.
2. Check who signs.
Ask for the name and position of the person signing the FCO or contract and confirm they appear in the company records as a director, partner or authorised signatory. A “mandate” or “representative” should provide a written mandate on the seller’s letterhead that you can confirm directly with the seller.
3. Confirm the email domain and contact details independently.
Find the company’s website and phone number yourself, not from the offer. Call the main number and ask to be put through to the person named. Free email addresses, recently registered look-alike domains and mobile-only contacts are common in fake offers.
4. Identify the source: mill, refinery or trader.
Ask exactly where the sugar comes from: the name of the mill or refinery, and whether the seller owns the product or has a supply contract. If the seller is a trader, it should be able to show its right to sell (for example an allocation or supply agreement), with sensitive figures blacked out if needed. A seller who “cannot reveal the source” at any stage is asking you to trust it completely.
5. Test the volume against reality.
Ask for the loading port, shipment size and schedule. Real refined sugar is usually sold in specific lots tied to vessel or container bookings. Offers of very large tonnages every month for a year, from a seller with no visible export history, are a warning sign. Ask for previous bills of lading or export records (names can be blacked out) to show the company has shipped before.
6. Read the FCO line by line.
Check that the specification, packing, Incoterm, loading port, price basis and payment terms are consistent. Copy-paste FCOs often contain the same paragraphs found in hundreds of other offers, mixed-up ports or Incoterms, or a different company name left in by mistake. A quick web search of a few unusual sentences from the FCO can show whether it is a template doing the rounds.
7. Check the payment terms and the procedure.
Normal terms are a confirmed irrevocable documentary letter of credit (DLC) or another bank-to-bank method where money moves against shipping documents. Be very careful with procedures that ask you to pay for “documents”, “export licences”, “SGS booking” or “legal fees” before you see the product, or that require your bank to send messages to a bank the seller chooses before any POP.
8. Verify the inspection documents at the source.
If the seller sends an SGS or other inspection report, a certificate of origin or a quality certificate, do not rely on the PDF alone. Contact the inspection company or issuing office directly, using contact details you find yourself, and ask them to confirm the reference number, date and quantity.
9. Ask for a bank-to-bank POP route — and let your bank handle it.
Real POP is confirmed between banks or through documents your bank or inspector can verify. Your bank’s trade finance team should review any instrument or message before you act on it. Never send your bank’s details, account statements or POF to a seller you have not checked.
For instruments, see how to verify an SBLC / MT760. For the offer itself, see is this commodity offer real? 7 checks.
Red flags
- Price clearly below the current market, with no reason given.
- Huge tonnage offered “monthly x 12” from a company with no export history.
- Seller demands your POF, bank letter or ICPO before giving any proof of product.
- Any upfront fee before product is shown — for documents, licences, inspection booking or “registration”.
- The seller “cannot disclose” the mill, refinery or loading terminal at any stage.
- Free email address, look-alike domain or contact only by WhatsApp.
- The FCO text matches offers from other companies word for word.
- Inspection or quality documents that the issuing company cannot confirm.
- Pressure to sign today because “the allocation closes” or “another buyer is waiting”.
- Long broker chains where nobody can name the actual seller.
Example (illustrative only — names and details invented)
A broker in East Africa receives an FCO for 50,000 MT per month of ICUMSA 45 for 12 months, CIF, at a price well under the market. The seller asks for the buyer’s ICPO and a bank comfort letter first, and gives only a WhatsApp number. Checks show the company was registered seven months earlier with a declared activity of “consulting”, the named director does not appear in the register, and three paragraphs of the FCO match offers from other companies online. The broker pauses, asks for the mill name and a bank-to-bank POP, and gets no reply. Nothing was signed and no fee was paid.
FAQ
Who gives POF and who gives POP in a sugar deal? The buyer gives proof of funds (POF); the seller gives proof of product (POP). Both sides prove something, usually bank to bank or through documents a bank or inspector can confirm.
Can I trust an SGS report the seller sends me? Not on its own. Contact the inspection company directly, using details you find yourself, and ask them to confirm the report number, date, quantity and quality. A PDF can be edited; the issuing office's confirmation is what counts.
Should I pay a fee to secure an ICUMSA 45 allocation? Upfront fees before you have seen any proof of product are one of the most common warning signs in sugar offers. In a normal deal, money moves bank to bank against shipping documents, usually under a letter of credit. Discuss any fee request with your bank before you act.
How long does it take to check a sugar seller? Basic checks — company register, signatory, contact details and FCO consistency — can often be done in a day. Confirming the source, export history and inspection documents takes longer because it depends on third parties replying.
What does ICUMSA 45 mean? ICUMSA is the International Commission for Uniform Methods of Sugar Analysis. "45" is the maximum colour of the sugar in ICUMSA units: the lower the number, the whiter and more refined the sugar. ICUMSA 45 is the usual grade name for refined white sugar in international offers.
Can I check an ICUMSA 45 seller for free? Yes. Use the free basic check at verify.vtcgw.com with the seller's company name, email address and offer text. It flags common warning signs. For a Deal Check of the company, documents and bank details (USD 8.88), see our plans or email [email protected].
Related: ICUMSA 45 seller check · How to read an FCO in 10 minutes · Fake proof of funds (MT799): 7 red flags
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This guide is general information, not legal or financial advice.