These procedures are a guideline only!

NON-NEGOTIABLE STANDARD C.I.F CONTRACT BANKING TRANSACTION PROCEDURES:

1. Buyer issues Purchase Order upon receipt in acceptance of seller’s Soft Offer.

2. Seller issues Draft Sales and Purchase Agreement Contract and, Commercial Invoice for buyer’s review and signing.
3. Buyers sign the Sales and Purchase Agreement Contract and Commercial Invoice back to the seller.

4. Seller registers and legalizes the signed Sales and Purchase Agreement Contract.

5. Seller sends legalized contract and below Partial POP Documents to buyer as listed below:

  • Certificate of Origin GOST
  • Product Passport (Q&Q Report)
  • Statement of Product Availability
  • Commitment to Supply
  • Export License issued by the Ministry of Energy.

6. Buyer and Seller sign the Title Ownership Transfer Affidavit and seller obtains for buyer the Product Allocation Export Permit for the first month shipment. This will enable the seller secure the allocation for the buyer and lodge legalized Contract to the bank.

7. Buyer issues their Financial Guarantee (SBLC MT760 or DLC MT700) to cover the first shipment to seller’s bank.

8. . If Buyer fails to issue SBLC or DLC, in alternative buyer makes guarantee deposit of 3% from total value of the Contract to seller as performance to secure the allocation which will be deducted from the first shipment.

9. Upon confirmation of buyer’s SBLC/DLC or guarantee deposit of 3% at seller’s bank, seller will issue 2% Performance Bond and Full POP with Shipping Documents as shown below:

  • Allocation Product Export Permit issued by the Ministry of Energy
  • Trans-Neft Contract to transport the product to the loading port
  • Port storage agreement and Tank Storage Receipt
  • Charter party Agreement to transport the product to discharge port
  • Customs declaration
  • Vessel Questionnaire 88
  • Clean–on–board Ocean Bill of Lading
  • SGS Quality and Quantity Certificate (born by buyer).

10. Shipment commences and upon arrival of the vessel tanker at the discharge port, buyer conducts SGS Inspection and makes operative SBLC/DLC or makes payment for the full shipment via TT Wire or MT103.

NON NEGOTIABLE TRANSACTION PROCEDURES FOR FOB ROTTERDAM PORT

1. UPON ACCEPTANCE OF SELLER’S OFFER, BUYER ISSUES PURCHASE ORDER (ICPO) AND TANK STORAGE AGREEMENT.

2. UPON ACCEPTANCE OF BUYER ICPO/TSA, SELLER ISSUES COMMERCIAL INVOICE/ICC WARNING LETTER FOR BUYER’S REVIEW AND SIGNING.

3. BUYER SIGNS THE COMMERCIAL INVOICE AND RETURNS TO SELLER, THE SIGNED CI/ICC WARNING LETTER, SELLER ISSUES THE POP DOCUMENTS AS SHOWN BELOW:

  • Q&Q Report
  • Ullage Report
  • Clean–on–board Ocean Bill of Lading/Q88
  • Lading/Q88
  • Export License
  • Cargo Manifest

4. BUYER CONDUCTS DUE DILIGENCE ON THE ARRIVING LOADED VESSEL AND UPON SATISFACTION BUYER/OR ITS ASSIGNEE ISSUES AN ACCEPTANCE LETTER CONFIRMING ITS READINESS TO SECURE AND PROVIDE ITS STORAGE TANK FACILITY DETAILS WITHIN 72HOURS (MAXIMUM) NOTE: STORAGE TANKS DETAILS WHICH MUST INCLUDE THE FOLLOWING FOR SELLER CONFIRMATION OF BUYER TANK FARM READINESS TO RECEIVE THE CARGO QUANTITY.

  • TANK RECEIPT valid for 5 days (Minimum)
  • Notice of Readiness issued by Storage Tank
  • AUTHORITY LETTER TO VERIFY / INJECT

5. UPON SUCCESSFUL Q AND Q INCLUDING DIP TEST, BUYER PAYS FOR PRODUCT BY WIRE TRANSFER / SWIFT MT-103 INTO THE SELLER’S ACCOUNT.

6. SELLER RELEASES ORIGINAL POP DOCUMENTS IN BUYER’S NAME AND TRANS-LOADING COMMENCES.

7. SELLER PAYS COMMISSIONS TO ALL INTERMEDIARIES, BOTH PARTIES PROCEED WITH THE SIGNING FOR A 12 MONTHS FOB ROTTERDAM CONTRACT UPON COMPLETION OF THE FIRST TRIAL ORDER.

TANK TAKE OVER (TTO) TRANSACTING PROCEDURES ARE AS FOLLOWS:

1. Upon acceptance of seller’s offer, buyer issues purchase order.

2. seller issues draft contract and commercial invoice for buyer’s review and signing.

3. Buyer signs the contract and commercial invoice and returns to seller, signed ci and contract, seller issues the pop documents as shown below:

  • Q&Q report
  • Bill of lading/q88
  • Certificate of quantity and quality
  • Certificate of origin
  • Product allocation certificate issued by the ministry of energy
  • export license
  • Seller certificate of incorporation; statement of product availability

4. Buyer contact the shipping company to re-direct the route of the vessel tanker to buyer’s destination port and seller transfer’s title to buyer’s name. Upon arrival of the vessel at buyer’s

Discharge port, seller issues an authorization for the buyer’s reps and inspection team to board the vessel and conduct q&q inspection.

5. Upon the successful inspection, buyer makes payment for the product via tt wire or mt103 to the seller and takes over the vessel tanker.

6. Seller issues buyer the full proof of product documents and 2% performance bond for the Monthly contract shipments.

7. Buyer issues their bank guarantee sblc (mt760) or dlc to seller’s bank guarantee the monthly Shipment.

8. Monthly shipment commences to the buyer’s discharge port and stipulated in the contract

TANK TO TANK PROCEDURE(TTT)

1. Seller issue sco and buyer issue irrevocable corporate purchase Order (icpo).

2. Seller issue commercial invoice (ci) of the available quantity in storage to buyer, buyer, sign and return to seller.

3. Seller issues to the buyer, the bellow listed proof of product documents:

  • dip test authorization (dta).
  • product passport
  •  tank storage agreement (tsa).
  • authority to sell and collect (atsc)
  • commitment to supply

4. Buyer open communication with tank farm to take over and extend seller tank for tsr to enable the sgs team proceed with dip test.

5. Upon confirmation, and successful dip test, buyer lift product from seller’s tank and seller submits the full injection report (ir) and title transfer certificate to buyer.

6. Buyer makes 100% payment by mt103 / tt wire transfer for the total product and seller pays commission to all intermediaries within 48 – hours, after confirmation of buyer’s payment

REFINERY SELLING PROCEDURES FOB ROTTERDAM/HOUSTON:

1. Buyer sends ICPO in line with seller working procedures alongside his/her Tank StorageAgreement (T.S.A.) on receipt and acceptance of Seller’s Soft Offer;

2. Seller issues Commercial Invoice (C.I.), Buyer Signs within 24 hours and returns to Seller Within its validity;

3. Upon receipt and review of the signed C.I., seller issues Dip Test Authorization (D.T.A) to be completed and signed by buyer in order for Dip Test to be conducted alongside counter signed copies of the C.I;

4. Buyer returns the Dip Test Authorization (DTA) fully completed and signed within its validity and upon successful review of the completed DTA, seller issues the below full POP documents:-

A. Fresh SGS Report (Not older than 72 hours);
B. Product Reservoir Receipt;
C. Accreditation Certificate;
D. Product Passport (Quantity and Quality Analysis);
E. Authorization to Sell and Collect Certificate (ATSCC);
F. Pre-Injection Report (PIR);
G. NCNDA/IMFPA (To be completed by all intermediaries);
H. Certificate of Product Origin;
I.  Authority to Verify (ATV) either physically or otherwise.

5. Upon receipt and confirmation of the above POP Documents, Buyer provides its testing officials (SGS or INTERTEK) and the needed test are carried out on the product in seller’s tanks;

7. Buyer upon successful Dip Test makes full payment by MT103 / TT wire transfer for the total product and Seller pays commission to all intermediaries involved in the transaction within 24 hours after confirmation of buyer’s payment and injection commences immediately;

8. Seller issues a contract for buyer’s desired duration upon successful completion of the trial order