EN590
DIP AND PAY
1. Buyer Issues An Official ICPO along With Company Registration Certificate, Passport Copy And Tank Storage Agreement (TSA).
2. Seller Issues Commercial Invoice (CI) For the Agreed Quantity to the Buyer. Buyer Signs and Returns the CI Along With a Letter of Guarantee of Performance.
3. Seller issues an ATV (Authority to Verify) document to the buyer's tank storage company. This document authorizes the inspection and verification of the product storage facility and tank readiness for product injection.
4. Seller Provides The Buyer With Partial Proof Of Product (Pop) Documents, Including:
• Fresh SGS Report (Quality & Quantity Inspection)
• Certificate Of Origin
• Authority To Verify (ATV)
• Dip Test Authorization Letter (DTA)
• Tank Storage Receipt (TSR)
5. Buyer Sends Minimum Two to Five Representatives with Passports to Attend Dip Test at Seller's Tank Farmand Conduct SGS Inspection at Buyer’s Expense.
6Upon Successful Dip Test Confirmation, Seller Arranges Injection Of Product Into Buyer's Tank(S).
7. Buyer Makes Payment In Full Via Mt103 Wire Transfer Or TT For The Total Injected Product After Dip Test Confirmation.
8. Seller Transfers All Title Of Ownership And Shipping Documents To The Buyer.
9. Seller Settles Payment to All Intermediaries and Parties Involved Within 24 To 72 Hours of Receiving Buyer's Payment
10. On Successful Completion Of The First Transaction, Buyer And Seller May Enter Into Long-Term Supply Agreements.
FOB TRANSACTION PROCEDURE (TANK-TO TANK)
1. The buyer issues an official ICPO, CIS and tank storage agreement (TSA).
2. The seller issues a commercial invoice "CI" to the buyer; the buyer signs and returns the commercial invoice to the seller.
3. The buyer sends the seller a Notice of Readiness (NOR) authorized by the buyer's tank storage company to confirm buyer’s storage availability to receive product.
4. Seller schedules the injection and verifies the buyer's tank storage company.
5. After approval of the scheduled injection programming from the buyer's storage facility and tank verification from Seller, the seller issues the below complete POP document to the buyer for their verification:
• Product certificate of origin.
• Injection Report.
• Tank Storage Receipt (TSR) with hub access code
• 24-48 Hour SGS Report
• Authorization to sell and collect.
• NCNDA/IMFPA
6. (Optional) Buyer SGS team re-conducts inspection on the product in the seller's shore tank at buyer’s expense.
7. Upon successful verification of POP and Dip Test in the seller’s tank, the buyer provides tank details and their Tank Storage to the seller and the seller injects product into the buyer’s tanks, and the buyer makes the payment for
the product via MT103.
8. The product's ownership and title are transferred to the buyer by the seller.
9. After a successful trial lift (first lift), the seller issues a SPA or contract for 12 months with R&E to the buyer for processing.
10. According to the signed NCNDA and IMFPA, the seller pays commissions to all engaged intermediaries for the initial lift and any future lifts.
FOB TRANSACTION PROCEDURE (TANK TO VESSEL)
1. The buyer issues an official ICPO, CIS and Chartered Party Agreement (CPA).
2. The seller issues a commercial invoice (CI), the buyer seals and signs, and returns the commercial invoice back to the seller.
3. Buyer requests a 1-day tank extension invoice fee from the seller to prepare for injection from seller’s tank to buyer’s vessel. Upon receipt of payment, the seller issues the following POP documents to the buyer:
• Statement of Product Availability
• Commitment Letter to Supply
• Unconditional Dip Test Authorization (UDTA)
• Authorization to Sell and Collect (ATSC)
• Authorization to Verify the Product in the Seller’s Tanks (ATV)
• Fresh SGS Report
4. All parties involved in the transaction sign the NCNDA/IMFPA/IMFPA.
5. The buyer has the option to conduct a dip test on the product and makes the payment for the total value of the product injected into the buyer’s vessel through the means of MT103-TT.
6. The seller pays commissions to all intermediaries involved in the transaction, and subsequently, monthly shipment continues as per the terms and conditions of the commercial invoice and extension of the transaction by issuing a 12-month contract (SPA) to the buyer for proceeding.
FOB TRANSACTION PROCEDURE 2 (TANK TO VESSEL)
1. The buyer issues an ICPO addressed to the seller along with a Charter Party Agreement (CPA).
2. Seller acknowledges buyer's ICPO and issues a commercial invoice; buyer signs and returns the commercial invoice (CI).
3. The seller provides the buyer with the below-listed PPOP:
• Tank to Vessel Injection Agreement (TTVIA): "To be signed by the buyer and the shipping company".
• Authorization to Sell and Collect (ATSC)
• Irrevocable Commitment Letter to Supply
• Injection payment invoice
4. (NCNDA/IMPFA) to be signed by all intermediaries involved in the transactions, and the buyer makes payment for the injection cost from tank to vessel.
5. Upon confirmation of the buyer's payment for the injection cost, the seller provides the buyer with the following POP documents:
• Unconditional DTA.
• 24 Hour SGS Report.
• Injection Report.
• Tank Storage Receipt
• Product Origin Certificate.
• Product Passport.
• Authorization to Verify (ATV)
6. Buyer SGS team re-conduct inspection on the product in seller storage tank on seller’s expenses. (Optional),
7. The buyer, within 24 hours after a successful dip test in the seller's tanks, provides Q88. The seller proceeds with tank-to-vessel injection and provides the buyer with an SGS report and injection reports upon completing the injection
of the product into the vessel.
8. Buyer makes payment for the total cost of product injected into the vessel through MT103, and seller transfers title ownership to buyer with all exportation documents required of buyer for the transactions.
9. Upon the conclusion of every lift transaction, the seller pays all intermediaries involved in the transaction according to the signed NCNDA or IMFPA and proceeds with the signing of the contract with the buyer.
CIF TRANSACTION PROCEDURE
1. Buyer issues Irrevocable Corporate Purchase Order (ICPO) to the seller's refinery, accompanied by a scanned copy of the buyer's passport
2. The Seller will verify the buyer's irrevocable corporate purchase order and issue a commercial invoice for the first trial shipment. Note: The sales and purchase agreement will be jointly signed after the trial shipment.
3. Seller issues to Buyer via email the following transaction documents:
a. Commitment to supply
b. Statement of product availability
c. Certificate of origin
d. Product Passport
e. ATSC,
Buyer confirms the receipt of the documents by mail and issue confirmation letter within 24hrs
4. Seller arranges for the chartered freight with a renowned shipping company for the transportation of the product to buyer designated discharge port, both Seller and Buyer sign the Charter Party Agreement (CPA) together with the shipping company (A three party CPA) this is applicable only for 1st shipment. (Seller & Buyer) jointly pays CPA cost 50/50 via T/T wire transfer directly to the shipping company. Fee would later be refunded /deducted when Buyer is paying for the total product cost).
5. After completion of the above, Seller issues to Buyer product title transfer agreement, Buyer signs and returns. Seller legalizes the Contract with the authorities in charge and sends
6. Seller issue to buyer the legalized contract, the certificate of product title transfer and then proceeds with the port & custom clearance of product and all internal routines operations accordingly.
7. Upon completion of the above and confirmation of this export approval by the Authority to Seller with the endorsement of the Charter Party Agreement (CPA) and the Shipping Schedule by the Port Authority, to enable Seller release the below Proof of Product Documents:
a. Legalized Charter Party Agreement (CPA) with the Loading Port Authority.
b. Injection Report
c. Product Allocation Certificate.
d. Export License
e. Export Approval
f. Tank Receipt.
g. Dip Test Authorization.
8. Seller issues the commercial invoice and sends to Buyer and within 5 working days, Buyer’s bank issues to Seller’s bank swift operative Standby Letter of Credit (SBLC) via Swift MT760 or Documentary Letter of Credit (DLC) via Swift MT700 for the entire 1st shipment total product value, and for Seller to lodge and activate a 2% PB (Performance Bond/Performance Guarantee) in the favor of the Buyer. If Seller fails to supply the cargo/shipment of the product to the Buyer this 2%, Performance Bond will be paid/forfeited to the Buyer.
9. The product SGS inspection charges will be borne by Seller at the loading port. Seller invites buyer for visitation to witness the final inspection and TTM for negotiation of future transaction (Optional to Buyer). Seller signs NCNDA/IMFPA between all intermediaries involved with the notarized copy sent to Seller's bank.
10. Loading & Shipment of product commences as per schedule. Upon Vessel’s arrival and finalization of SGS at destination port, Buyer release payment via swift fund transfer within 3 to 5 banking days to Seller for total.
VESSEL TAKE OVER (VTO) PROCEDURE
1. Buyer issues Irrevocable Corporate Purchase Order (ICPO) with Guarantee Letter to take over Title of the product.
2. Seller issue draft (MOU) agreement to Buyer counter-sign and return to the seller.
3. Seller acknowledge signed MOU.
4. Seller sends to Buyer the following documents for Buyer's confirmation.
A. Seller's Registration Certificate
B. Bill Of Lading
C. Vessel Tanker Details.
D. Product Passport-Dip-Test Report.
E. Proforma Invoice.
F. 5% Payment deposit Invoice.
G. Cargo Manifest.
H. Cargo Ullage Report.
I. Q88
5. Buyer confirms the goods documents and makes a 5% down deposit which stands as an Allocation and Security Guarantee payment to the seller nominated bank by T/T Wire Transfer within 3 banking days to enable the seller to
change every document to buyer’s name and instruct the vessel captain to re-route the vessel to the new buyer’s destination port. The 5% deposit Payment made shall be deducted from the total payment value of the takeover
product.
6. Seller releases a fresh dated Dip-Test Authorization-DTA to Buyer to order SGS inspection or Equivalent inspection team for Q & Q inspection upon goods/cargo arrival at the discharge port.
7. Upon the successful completion of Dip-test inspection, Buyer makes the balance 95% payment by MT103 wire transfer for the total goods value, Seller transfers Title of ownership Certificate to buyer's name as the legitimate owner of the goods and commence translating.
8. Trans-loading commences immediately.
9. Seller will release payments to the intermediaries involved within 48 hours of receiving the payment for the product from the Buyer’s bank
CIF TRANSACTION PROCEDURE
1. Buyer issues Irrevocable Corporate Purchase Order (ICPO) to the seller's refinery, accompanied by a scanned copy of the buyer's passport
2. The Seller will verify the buyer's irrevocable corporate purchase order and issue a commercial invoice for the first trial shipment. Note: The sales and purchase agreement will be jointly signed after the trial shipment.
3. Seller issues to Buyer via email the following transaction documents:
a. Commitment to supply
b. Statement of product availability
c. Certificate of origin
d. Product Passport
e. ATSC,
Buyer confirms the receipt of the documents by mail and issue confirmation letter within 24hrs
4. Seller arranges for the chartered freight with a renowned shipping company for the transportation of the product to buyer designated discharge port, both Seller and Buyer sign the Charter Party Agreement (CPA) together with the shipping company (A three party CPA) this is applicable only for 1st shipment. (Seller & Buyer) jointly pays CPA cost 50/50 via T/T wire transfer directly to the shipping company. Fee would later be refunded /deducted when Buyer is paying for the total product cost).
5. After completion of the above, Seller issues to Buyer product title transfer agreement, Buyer signs and
returns. Seller legalizes the Contract with the authorities in charge and sends
6. Seller issue to buyer the legalized contract, the certificate of product title transfer and then proceeds with the
port & custom clearance of product and all internal routines operations accordingly.
7. Upon completion of the above and confirmation of this export approval by the Authority to Seller with the
endorsement of the Charter Party Agreement (CPA) and the Shipping Schedule by the Port Authority, to enable
Seller release the below Proof of Product Documents:
a. Legalized Charter Party Agreement (CPA) with the Loading Port Authority.
b. Injection Report
c. Product Allocation Certificate.
d. Export License
e. Export Approval
f. Tank Receipt.
g. Dip Test Authorization.
8. Seller issues the commercial invoice and sends to Buyer and within 5 working days, Buyer’s bank issues to
Seller’s bank swift operative Standby Letter of Credit (SBLC) via Swift MT760 or Documentary Letter of Credit
(DLC) via Swift MT700 for the entire 1st shipment total product value, and for Seller to lodge and activate a 2%
PB (Performance Bond/Performance Guarantee) in the favor of the Buyer. If Seller fails to supply the
cargo/shipment of the product to the Buyer this 2%, Performance Bond will be paid/forfeited to the Buyer.
9. The product SGS inspection charges will be borne by Seller at the loading port. Seller invites buyer for
visitation to witness the final inspection and TTM for negotiation of future transaction (Optional to Buyer). Seller
signs NCNDA/IMFPA between all intermediaries involved with the notarized copy sent to Seller's bank.
10. Loading & Shipment of product commences as per schedule. Upon Vessel’s arrival and finalization of SGS at
destination port, Buyer release payment via swift fund transfer within 3 to 5 banking days to Seller for total.
COST, INSURANCE, AND FREIGHT TO ANY SAFE WORLD PORT (CIF) PROCEDURE
1. Buyer issues an official ICPO with Bank details and Company Registration & Copy Passport Buyer CEO
2. Seller issues draft SPA (Sales Purchase Agreement) to Buyer open for Amendments, Buyer review and seal & sign
mutually accepted contract and return to the Seller in word format within 5 working days.
3. Seller reviews the signed Contract and converts to PDF and sends copy to Buyer with Guarantee Letter to Supply.
4. Seller submits signed Contract to the Government Ministry for Registration, Legalization and Notarization at
Seller’s expense.
5. Seller sends to Buyer the below listed soft performance guarantee POP Documents
a. Commitment Letter to Supply
b. Availability Letter of Product c. Certificate of origin d. Product Passport
6. Buyer’s Bank issues banking instrument via SBLC MT760 or DLC MT700 for the value of first shipment to
Seller’s nominated Fiduciary Bank coordinate in a format acceptable to Seller.
Seller’s Bank within 7 banking days of Buyer receiving final approved Contract in PDF format with soft performance
guarantee POP documents to enable Seller commence trans-loading of Product with the shipping Company and
release full set of POP Documents after loading via Bank to Bank swift within five (5) working days.
NOTE: if Buyer fails to issue the Bank instrument within 7 banking days, in alternative Buyer pays via
MT103/TT US$ 350,000.00 as provisional Guarantee Performance within 72 hours and this amount will be
deducted from the Product face value when final payment is to be made.
7. Within 5 banking days of Seller’s Fiduciary Bank received Buyer’s Bank instrument, Seller’s Fiduciary Bank issues
2% PB to Buyer’s Bank account which is detailed and mutually agreed in the signed Contract. Note the 2% PB will
not be issued & sent in case Buyer’s failure to give his SBLC MT760 or DLC MT700.
8. Upon Seller’s Fiduciary Bank’s successful receipt of Bank Instrument and Buyer receipt the 2% PB from Seller’s
Fiduciary Bank or in the alternative on receipt of MT103/TT payment of UD$ 350,000.00 by Seller’s nominated
Bank, Seller commence loading of the Product within 7 days and issues full POP / Shipping documents with legalized
SPA to Buyer’s Company via bank to bank and copies via e-mail ; Buyer shall notify the seller by official written
notice of his bank receiving Seller’s POP Documents.
9. Shipment commences as scheduled in the Contract and upon arrival of the Cargo at the discharge port, Buyer’s
inspection team carry out SGS / CIQ or equivalent Inspection to ascertain Quality and Quantity of the Product
10. Seller pays all Commissions of Intermediaries involved in transaction inside IMFPA within 48 hours after Seller’s
Fiduciary Bank received Buyer’s payment of Product.