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Standard FOB Procedures

** PLEASE NOTE: These procedures will adjust slightly based on which seller eventually tenders an offer. Seller conducts its banking transactions via the Bank of America Global Markets Trade Desk in New York; your buyer’s banking has to be either in the US or have a corresponding bank in the US.

Procedure -1

FOB Procedure:

The Buyer sends a Simple RFP or LOI on company letterhead with today's date and complete purchase request.

The Seller will send back an SCO

The Buyer will need to submit an ICPO accepting the Seller's offer along with a KYC + CP and  Notice of Readiness (NOR) from their tank farm or ship, along with the relevant documents and forms that will be sent to the Buyer. Once the terms represented therein are accepted by the Buyer, pricing discounts will be offered.

NOTE: No NOR, No deal. This is a very strict policy instituted by the refineries and must be adhered to.

The procedures are as follows:

1) Buyer tenders ICPO (with passport & CP) and POF & NOR to Seller

2) Seller responds with a Confirmation Letter of fuel availability;

3) Seller issues a Joint Participation Agreement (JPA);

4) Upon receipt of signed JPA, Seller issues CI;

5) Upon receipt of signed CI, Seller issues DTA;

6) Upon Buyer’s receipt of successful SGS report, Seller arranges fuel transfer to Buyer’s tanks;

7) Upon the Buyer confirming the complete transfer of fuel, the Buyer pays for fuel and the Seller issues POP & other relative Title docs.

Ptocedure -2

FOB Procedure:

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1. Buyer issues LOI / Simple RFP on company letterhead with today's date and complete purchase requirement.

2. Seller issues SCO 

3. Buyer issues Irrevocable Corporate Purchase Order (ICPO) and KYC + CP accepting seller's price, terms, and procedures along with signed RWA /BCL from his bank evidencing availability of funds to transact, and vaid TSA/CPA 

4. Seller issues draft of Sale and Purchase Agreement (SPA) contract along with Commercial Invoice. The buyer signs SPA and returns it to the seller along with verifiable storage tank coordinates. The seller verifies and approves Buyer’s tank farm coordinates, (TSA).

5. Seller provides the following Partial Proof Of Product (PPOP) documents via Email or Fax to the Buyer.

A. Authorization/Authority to Sell (ATS)

B. Product Quality Passport (Dip Test result of Product)

C. Letter of Commitment to Supply

D. Statement of Product Availability

E. Reservoir Storage Receipt.

F.  Allocation Transaction Passport Code Certificate

6. Within 3 days of the receipt & verification of the above PPOP documents, the Buyer provides a verifiable Tank Storage Receipt (TSR), Authorization to Inject (ATI) at the Loading port with an injection permit. Buyer issues SBLC via SWIFT MT760 to seller's bank.

7. Seller issues 2% Performance Guarantee to Buyer

8. All parties sign NCNDA/IMFPA.

9. Seller issues (DTA) Dip Test Authorization for Q&Q along with complete Fuel Injection Report from the Pipeline/ Transportation Company.

10. Upon satisfactory Q&Q/Dip Test Inspection carried out by either SGS or a similar inspection agency, the Buyer releases the full cost of the liftable product via MT103 TT wire transfer to Seller’s nominated Account within 72 hours and injection to buyer's tanks commences. 

11. Seller issues the Title Transfer of Product Ownership / Certificate of Ownership to buyer’s company along with all necessary Export Documents.

12. Seller pays all intermediaries involved in the transaction as per IMFPA/NCNDA.

Procedure -3

FOB (ROTTERDAM & HOUSTON)

TERMS AND PROCEDURES / NON NEGOTIABLE

1. Buyer issues ICPO + C/P + POF + Buyer's Passport Copy for Data File (OR) Company License.

Buyer Supplies TSA

2. Seller issues commercial invoice (CI) along with POP documents listed below to the Buyer who returns signed and

sealed Commercial Invoice (CI) to the seller.

TSR (Tank Storage Receipt)

Injection Report

Unconditional Dip-Test Authorization

Letter of Acknowledgement

Dip-Test Inspection Schedule

ATV (Authorization to verify)

3. Buyer Dip-tests in Seller's tank using SGS (or equivalent) and receives fresh Q&Q Report along with ATSC (Authorization To Sell and Collect).

4. Within 72 Hours, the Buyer provides TSR or Vessel storage for the Injection of the product into the Buyers hired tanks or vessel and returns the NCND/IMFPA signed by all parties involved on the buyer's side to the seller.

5. Buyer pays the total cost of the product via SWIFT MT103.

6. Seller confirms Buyer's payment receipt, completes injection into buyer's storage tanks/vessel, 

7 Both parties release payment to all intermediaries on each side Involved in the transaction.

8. Contract begins with Rolls and Extensions.

STANDARD CIF ASWP TRANSACTION  PROCEDURE

BUYER MUST PROVE HIS ABILITY TO RECEIVE, STORE / TRANSPORT CARGO WHILE SELLER MUST BE A TITLE HOLDER

   **Buyer Sends an RFP** 

1. Seller sends official FCO on Official Letterhead (with his company Email Address, Phone & Fax Numbers, and Tax Registration Numbers) duly signed and sealed with an official stamp incorporating his terms and transaction procedure properly addressed to the seller

2. Buyer issues Irrevocable Corporate Purchase Order “ICPO” with complete banking references, Company Profile (CP), Company Registration, Copy of Buyer's authorized signatory's Passport, and RWA Letter signed by two of buyer’s bank officers and issued to seller’s name, which stipulates that Buyer is RWA to issue financial instrument (SBLC) for payment guarantee of goods ordered.

3. On receipt of the buyer's ICPO and RWA Letter, the seller issues (amendable) draft Contract (SPA)and a copy of the  Proforma Invoice (PI) in favor of the buyer and NCND/IMFPA completed by Seller's Mandate/Broker. 

4. Buyer returns to the seller the signed and sealed Proforma Invoice and the SPA along with the IMFPA/NCNDA completed and signed by Buyer, Buyer's Facilitator/ Buyer Mandate Group, and all Intermediaries. 

5. Seller issues approved, countersigned, and sealed SPA which now incorporates the NCNDA/IMFPA as an Annexure within the SPA document. Both buyer and seller lodge the legalized SPA contracts in their respective Banks.

6. Seller issues PPOP, which will consist of the following documents: 

          I. Passport product analysis. 

          II. Notarized Authorization to Sell (ATS) 

          III. Company Registration Certificate. 

          IV. Tax Registration Certificate 

          V. Notarized Commitment to Supply 

          VI.Notarized Statement of availability of Product. 

7. Buyer verifies PPOP and if satisfied with the outcome,  issues inoperative, transferable / Non-transferable SBLC/DLC – (CHOICE IS BUYER'S)

8. Seller issues 2% PB to activate the SBLC/ DLC.

9. Seller provides FULL PROOF OF PRODUCT, which will include: 

  1. Copy of License to export (if applicable)

  2. Copy of Approval to Export    

  3. Copy of Certificate of Origin

  4. Copy of Statement of Availability

  5. Vessel details, IMO Q88

  6. CPA- Charter Party agreement

  7. Fresh SGS from the vessel at the loading port, re-make SGS/CIQ Inspection at the discharge port

  8. DTAOB- Dip Test Authorization on Board Vessel 

  9. ATB- Authority to Board

  10. B/L cargo manifest

  11. Certificate of Authenticity  

  12. Certificate of quality (Issued by nominated Inspection Agency at the Loading Port)

  13. Certificate of quantity (Issued by nominated Inspection Agency at the Loading Port)

  14. Tanker Ullage Receipt 

  15. Ship Master’s Receipt for Sample 

  16. Ship Master's Receipt for Documents

 

 

10. Ship arrives at the destination port and Q&Q inspection is conducted by a nominated inspection agency such as SGS or equivalent others on the goods and checks through the Bill Of Lading (BL) and Commercial Invoice. Upon satisfactory inspection report, the buyer releases payment via MT103/TT to the seller's bank  (100% payable for each shipment) within 3 banking days.

11. Documents from shipping on board the vessel. (To be issued after loading) 

  1. One Full Set of 3/3, Ocean Bill of Lading; 

  2. SGS Q/Q 2/2 at the port of loading;      

  3. Certificate of Origin 1/2; 

  4. Signed commercial invoice based on  the delivered quantity and quality onboard vessel; 

  5. Cargo manifest 1 original; 

  6. Captain’s receipt of all documents of the shipped product 1/1.

12. After confirmation of receipt of payment seller shall instruct the ship's captain to discharge the cargo.

13. Seller sends the title ownership documents to Buyer.

14. Seller Pays all intermediaries’ commissions as per IMFPA within 24 hours of receipt of Payment for shipment from Buyer.

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