SGS – FOB Transaction Procedure
SGS - FOB (TTV/TTT) TRANSACTION PROCEDURE
| Attribute | Details |
|---|---|
| Product | DIESEL FUEL EN590 10PPM |
| Origin | Kazahkstan, Georgia, Azerbaijan |
| Intercoms | TTT |
| Trial Spot | 50,000 MT Up To 200,000 MT (+/-5%) |
| Contract | One year contract with RE, monthly deliveries |
| Quantity | 100,000 MT Up to 400,000 MT monthly |
| FOB Price | Ask for price |
| Commission | Seller $10 / Buyer $10 |
| Terms of Trade | FOB Tank to Vessel/ Tank to Tank |
| Destination Port | Rotterdam, Houston Port, Fujairah, JURONG |
SGS – FOB (TTV/TTT) TRANSACTION PROCEDURE | Petroleum Supplier in Fujairah, Jurong, Rotterdam, Houston
1. Buyer accepts sellers working procedure and issues ICPO to the End seller via Sellers representative.
2. Seller issues commercial invoice, and Buyer signs and returns commercial invoice on the due date along with Buyer CPA / TSA.
3. Buyer nominates independent escrow services, seller investigates and performs due dillence on the the independent escrow services. After successful verification of independent escrow service by seller, buyer proceeds to make deposit via Swift MT 103 Wire Transfer to the escrow services as security guarantee.
4. The Seller issues the following PPOP to the buyer for evaluation:
- 24 hours SGS
- Certificate of origin
- Commitment letter to supply
- Injection programming agreement
- Company Registration Certificate
- Statement of Product Availability
- Product Passport
- ATSC
After verification of SGS certificate, Independent escrow must realease the security guarantee deposit to the seller
5. Obtain Vessel Clearance Code: In case of TTV transaction, Injection Company will issue a Vessel Clearance Code, ensuring the vessel is authorized for the oil injection process.
6. Upon receipt of the signed Injection programming agreement between buyers and its storage company confirming readiness to receive the product and engage the injection from Sellers ex-tank to the Buyers Tank, (Stock Transfer). Seller issues injection report, copy of the Q&Q analysis Report, and Unconditional Dip Test Authorization letter to Buyer, Buyer orders SGS, CIQ, or equivalent inspection to conduct Dip Test of the product (Optional) in the Sellers Tank on Buyer’s expense Upon successful Dip Test,
7. Upon completion of the injection to the buyer’s tank or Vessel the Buyer makes payment by MT103 TT wire transfer for the total product upon confirmation of the product payment, the seller issues to the buyer the below documents..
a) ATCS
b) COO
c) all export documents.
8. Seller will release commission payments to the intermediaries involved within three (03) working days of
receiving the Payment for the product from the Buyer’s bank.
9. Seller issues draft Sales and purchase agreement to the buyer to review for twelve (12) monthly contract deliveries with role and extension.
10. Buyer reviews and approves the Sales and purchase agreement and issues Letter of credit, Standby letter of credit, or Documentary letter of credit (non-transferable) auto revolving for 12 months shipment value, for the length of contract and for each lift per schedule.
11. The subsequent delivery shall commence according to the terms and conditions of the contract; Seller pays commissions to all intermediaries as per IMFPA/NCNDA within three (03) working days after receiving the product payment from the buyer.