PROCEDURES OF TRANSACTION (CIF)
1) Buyer receives SCO. NB: Please note that we are only able to issue SCO to Buyers who submit official written enquiries as LOIs.
2) Upon receiving the SCO, Buyer responds with official ICPO and Company Profile (CP). The Seller will then issue a Full Corporate Offer (FCO).
3) The Buyer signs the FCO and returns signed FCO with Bank Comfort Letter (BCL) to the Seller; and the signatories exchange the registration certificates of their respective companies and copies of their passports.
4) The Seller will issue the Sales and Purchase Agreement (SPA) and the Pro Forma Invoice (PI).
5) The Buyer and the Seller shall attach their signatures and company seals to the SPA and exchange it via email in PDF and MS Word formats. The Buyer signs the PI and the contract commences.
6) The Buyer issues a non-operative Standby Letter of Credit (SBLC) or a Documentary Letter of Credit (DLC) fully funded or any other guarantee such as MT758 or MT700. Buyer’s instrument is activated and made operative by the Seller’s bank issuing a 2% Performance Bond (PB) within two days after accepting the SBLC.
7) The Seller coordinates with the Refinery and the loading of the product starts. The time frame is estimated to be between 4-10 days (after the activated payment tool). Seller sends to buyer PPOP including IMO/MMS Vessel (s) names as well as quality test . The Refinery conducts a dip test within 24 hours before loading.
8) The Refinery confirms readiness of the registered Vessel for LAYCAN and notifies the Buyer.
9) The Seller issues a complete, original Proof of Product (POP). The Refinery will issue a clearance for the Vessel (s) to set sail according to the Buyer’s nominated port, undertaking that the Buyer has provided a Tank Storage Agreement (TSA) and all costs to the CIF named WA port waters are covered by the Seller. The Charter Party Agreement, the Bill of Loading (BL) and the title will be transferred to the Buyer upon receipt of the payment at the off-loading port.
10) The Telegraphic Transfer (TT) via the MT103 SWIFT format will be made within 3-5 banking days at the delivery port after inspection by SGS and/or SAYBOLT.
Penalty Clause: If the Buyer fails (after the SPA has been signed by both parties) to proceed to issue the nonoperative SBLC, the Buyer shall be liable for a USD $250,000 penalty. Should the Seller fail to issue the agreed 2% Performance Bond (PB) after receiving the non-operative SBLC from the Buyer, the Seller will be liable for a USD $250,00 penalty
Please note that seller does not accept request for proof of past performance, refinery visit, table talk meeting (TTM) etc. It is deemed that the procedure is sufficient to convey to the Buyer that he is protected from loss as seller does the following;
a) Seller accepts DLC MT700 and not only SBLC.
b) Seller accepts non-transferable DLC
c) Seller requires buyer to issue non-operative DLC which is only activated when seller issues his 2% performance bond.
Other products we offer
We work with a range of sellers who can offer the following products;
D2 GASOIL (GOST 305-82) 500 PPM
RUSSIAN VIRGIN FUEL OIL D6
DIESEL EN590 10 PPM
AGO AUTOMOTIVE GAS OIL FLASHPOINT 66 deg C
Enquiries can be made by issuing an LOI or email stating the following:
1. Name of the product
2. Quantity required (in correct units please)
3. CIF or FOB Delivery basis and port
4. Contract term e.g 12 months
5. Name and country of Buyer’s bank.
6. Expected date of first delivery.
7. Buyer to please confirm whether he can issue an SBLC MT760 or DLC MT700.
Please do request for quotation for one product at a time.