CIF/FOB PROCEDURES
The 2 key transaction methods for the International Trade of our products.
Example of TANK TO TANK TRANSACTION PROCEDURE FOB - HOUSTON
After sending a Letter of Intent (LOI) of purchase to the seller, the seller will send a Soft Corporate Offer (SCO) to the buyer.
1. Once the (SCO) is accepted and signed, the buyer will issue an Irrevocable Purchase Order (ICPO) containing the seller's work procedure, along with the buyer's Tank Storage Agreement (TSA) and the company profile. company.
2. The seller will provide a commercial invoice (CI) for the product in tanks at the port, which must be signed by both the buyer and the seller.
3. The seller issues the Dip Test Authorization Document (DTA), which must be signed by the buyer, the seller and the buyer's logistics company.
4. The seller provides the following Pre-Product Testing (PPOP) documents:
a. Warehouse storage receipt with GPS coordinates of the tank location.
b. Injection report.
c. Certificate of origin.
d. Authorization to sell (ATSC).
and. Recent SGS report inspected at port.
F. Product passport (Laboratory Analysis Report).
5. The buyer inspects the product at his cost through SGS and submits the Tank Storage Receipt (TSR).
6. After successful immersion tests in the tanks, the product will be immediately injected into the buyer's tanks.
7. The buyer makes payment for the product through MT103/TT. The seller pays the buyer's side and broker commissions, along with all seller-side commissions and brokers for the first shipment.
Example of CIF TRANSACTION PROCEDURE
After sending a Letter of Intent (LOI) of purchase to the seller, the seller will send a Soft Corporate Offer (SCO) to the buyer.
1. The buyer issues an Irrevocable Purchase Order (ICPO) after receiving and accepting the Soft Offer from the seller, along with the Company Profile and copy of the Passport.
2. The seller issues a Draft Sales and Purchase Agreement for the buyer to review and sign.
3. The seller sends the buyer a Partial Proof of Ownership (POP) by email:
(a) Product Availability Statement
(b) Supply Commitment
(c) Product Passport
(d) Company Registration Certificate
(e ) Product Assignment Export License
4. The seller appoints and signs a Charter Agreement (CPA) with the buyer and the Shipping Company. (Shipping price is calculated at $30 PER MT. Both buyer and seller will make payment to the logistics company after signing the CPA) Buyer and seller pay the shipping company to transport the product to the final port of buyer download. The CPA will be deducted from the total cost of the products at the port of discharge; This information is included in the contract.
5. Shipping begins as scheduled in the contract and the seller sends the buyer a consignment note, the Q88 of the cargo vessel and all necessary shipping documents:
a) Copy of the export license, issued by the department of the Ministry of Energy.
b) Copy of the Export Approval, issued by the Ministry of Justice.
c) Copy of the product availability declaration
d) Copy of the refinery's commitment to produce the product.
e) Copy of the Transnet contract to transport the product to the loading port.
f) Copy of the port storage agreement.
g) Copy of the charter agreement to transport the product to the port of discharge.
h) Copy of the Vessel Questionnaire 88.
i) Copy of the Waybill.
j) SGS report at the loading port.
k) Dip Test Authorization (DTA) & AT
l) NOR /ETA
m) Ownership Transfer Certificate
n) Allotment Transaction Passport Code (ATPCC) Certificate by Ministry of Power
Upon arrival of the cargo at the port of discharge and after SGS/Q&Q inspection or equivalent, the buyer's bank releases the full value of the shipment to the seller's bank within 48 hours (two business days) by MT103.
6. The seller pays all intermediaries involved in the transaction according to the IMFPA within 48 hours.
