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The question

Is it permissible for us to sell sugar to a customer for $220 per ton, knowing that we own it for $210 per ton, provided that we inform him of that, especially since he will open a transferable letter of credit and we will reverse the credit to the seller?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

The answer to this question involves details:

If the transaction is a sale: It is a condition that the sugar must be owned by the seller, otherwise, it would be selling what one does not own, which is impermissible.

If it is a promise to purchase: There is no objection to it, and the sale is completed after acquiring ownership of the commodity.

If it is a forward sale (salam): It is a condition that the capital be received at the contracting session, and that the item being delivered is precisely defined by a description that prevents ambiguity. So, if the price is received at the contracting session, and the type and quantity of sugar are agreed upon, and a known deadline for the forward sale is set, and then this transaction is conducted with the same regulations with the first supplier; then the transaction is valid, and it is a parallel forward sale (salam muwazi).

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
71703
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy