What A Fuel's Efficient Fuel Trading and Delivery Process

Procedures

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FOB - TTT PROCEDURE - 1, ROTTERDAM, HOUSTON, FUJEIRAH & JURONG PORT:

Procedure 1: FOB Tank to Tank Terms and Conditions

  1. Buyer issues ICPO containing the seller's working procedure and banking details along with buyer’s nominated TSA and company registration certificate.
  2. Seller issues commercial invoice of the product in tanks at the port; buyer signs and returns commercial invoice along with an acceptance letter.
  3. Upon signed CI return, buyer contacts buyer-nominated tank farm for a minimum of one-day tank lease to enable seller representatives to gain access to buyer tank terminal.
  4. Seller issues appointment letter for seller representative to present a fresh SGS Report (less than 24 hours) to Buyers and buyer’s logistics for verification at the buyer’s Tank Terminal; upon successful SGS verification, seller inspects buyer’s Tank for injections.
  5. Upon confirmation of successful SGS Report verification by Buyer company and buyer’s Tank Farm Company, Seller issues:
    • IPA signed by buyers and buyer’s Tank Farm
    • Authorization to sell and collect
    • Commitment to supply
    • Statement of availabilities of product
  6. Upon confirmation of the signed INJECTION PERMISSION AGREEMENT, seller issues to buyers:
    • Fresh SGS report (less than 24 hours) in buyer’s company name
    • Q&Q Report and Injection Report
    • Authorization to verify physically the product in seller’s tank (ATV)
    • Tank Storage Receipt (TSR)
  7. Buyer conducts Dip test on the product in seller’s Tank and makes payment for the total value of product via MT103-TT to enable the injection process into their nominated tanks.
  8. Seller pays all intermediaries involved in the transaction, and monthly shipments continue as per terms and conditions of the sales and purchase agreement contract between buyer and seller.

Procedure 2: Alternative FOB Tank to Tank

  1. The Buyer sends ICPO.
  2. The Seller issues Commercial Invoice (CI) for the Buyer's endorsement.
  3. The Buyer signs and returns the CI to the Seller together with TSA (for TTT) or CPA/Q88 (for TTV).
  4. The Seller issues the product ATV and Statement of Availability of the product to Buyer.
  5. The Buyer contacts the Seller Tank Administrator as per ATV to execute the Quality & Quantity inspection and to register at the Tank Farm Terminal prior to the inspection. All port health and safety insurance policy measures and protocols must be adhered to by buyer’s representatives to secure access to port facilities for product inspection and physical verification. Necessary expenses and charges related to Port Health and Safety Insurances and inspection preparation to be paid to the Port Authority by Buyer through the storage company; these charges will be deducted from the trial lift value.
  6. Seller issues to buyer Full POP Document, UDTA, ATSC, INJECTION REPORT, SGS Report (not less than 48 hours).
  7. Upon successful Dip Test Inspection in the Seller's Tank, the Buyer submits NOR/ATV from his Shipping Company or tank storage company. Seller injects the product into the Buyer Vessel or Tanks.
  8. The Buyer issues 100% payment for the total product by MT103/TT Wire Transfer to the Seller.
  9. The Seller transfers the product title with the complete POP Documents to the Buyer and pays the commission to Seller and Buyer Sides Intermediaries as per Master Fee Agreement.

Procedure 3: Alternative FOB Tank to Tank

  1. Buyer issues an official ICPO certificate along with their Tank Storage Agreement (TSA) accompanied by the company's registration certificate and valid identification.
  2. Seller issues Commercial Invoice (CI) for the quantity available in the storage tank to the buyer for signing.
  3. Buyer returns signed Commercial Invoice, and seller proceeds to issue:
    • Product Passport (Product Analysis Report)
    • Authenticated Statement of Product Availability
    • Authorization for Verification (ATV) via email or phone call
    • Notice of Readiness (NOR) (to be signed by all parties including buyer's Storage company)
  4. Buyer returns the NOR duly signed by Buyer and Buyer's Storage Company together with Port Terminal Hub Numbers and Injection Clearance.
  5. After receiving NOR signed by all parties, Port Terminal Hub Numbers, and Injection Clearance, Seller issues:
    • Unconditional Dip Test Authorization (DTA)
    • New SGS Inspection Report
    • Injection Report Certified and Approved by NCNDA/IMFPA
    • Assembly and Sales License (ATSC)
    • Tank Storage Receipt (TSR)
    • Supply Commitment Letter
  6. (Optional) Buyer's SGS team re-conducts dip test inspection on the product in Seller's storage tanks at Buyer's expense.
  7. Upon successful dip test inspection, Buyer pays the total value of the product, and Seller transfers ownership of the product to Buyer immediately along with all export documents.
  8. Seller immediately starts injecting the product into Buyer's storage tanks.
  9. Seller pays all intermediaries involved.

FOB PROCEDURE FOR TANK TO TANK/VESSEL - 1 : ROTTERDAM, HOUSTON, FUJEIRAH & JURONG PORT:

Procedure 1: FOB Tank to Tank/Vessel

  1. Buyer issues official ICPO addressed to the refinery or representative with buyer vessel details.
  2. Seller issues Commercial Invoice (CI); buyer signs and returns the signed invoice to seller with NCNDA/IMFPA.
  3. Seller provides buyer with the following PPOP:
    • Product Passport (Product Analysis Report)
    • Authorization to Verify (ATV)
    • Tank Storage Receipt (TSR)
    • Statement of Product Availability
    • Commitment and Assurance Letter to Supply
    • Authority to Sell and Collect (ATSC)
  4. Buyer extends seller’s tank, and dip test is conducted immediately with buyer’s team to obtain fresh SGS report.
  5. After successful Dip Test in Seller’s tanks, Buyer takes over seller’s tank or Seller injects product into buyer’s vessel/Tank, and buyer conducts its own DIP TEST Inspection for Q & Q of the Petroleum Products aboard vessel/Tank.
  6. After successful Q & Q Dip Test on the product, buyer makes the payment for the total value of product injected into the Vessel/Tanks through MT103-TT.
  7. Upon seller receiving the payment for the product from the buyer, seller issues to buyer the Title ownership of the product and all exporting documents of the Product.
  8. Seller pays all intermediaries involved in the transaction.

Procedure 2: Alternative FOB Tank to Vessel

  1. Buyer sends ICPO along with the Company Profile to the Seller along with:
    • Buyer banking details Certificate of incorporation
    • Company Profile (CP) and International Passport Copy along with company
    1. Seller issues a Commercial Invoice (CI) for the Buyer to sign and returns the CI with Vessel Charter Party Agreement Contract (CPA) or Tank Storage Agreement (TSA) to the Seller acknowledging Buyer is legally binding commitment to purchase under the terms and conditions herein.
    2. Seller sends the Buyer the following POP Document for Buyers verification:
      • ATSC (Authority to Sell Cargo)
      • Product Passport (Product Analysis Report)
      • Availability of the Product Letter
      • Commitment to Supply Letter
  3. Seller provides their Storage Reservoir Company details where the Seller product is stored for the Buyer to contact and sign the Tank to Vessel/Tank Injection Agreement Contract (TTVIAC)/(TTTIAC) with the Reservoir Company, for Buyer to pay Tank to Vessel/Tank Injection charges Fees. These charges will be deducted from the first lift value.
  4. Buyer issues and presents the endorsed Tank to Vessel/Tank Injection Agreement Contract (TTVIAC)/(TTTIAC) and Payment Receipt to Seller for verification and acceptance.
  5. Seller issues Dip Test Authorization document (DTA), which is countersigned & sealed by the Buyer, Seller, and Reservoir Company, along with the NCNDA/IMFPA, signed by the Seller and Buyer sides, and all Mandates and Intermediaries involved.
  6. After the countersigning of DTA by all parties, Seller provides the Reservoir Receipt, a Notice of Readiness (NOR), and injection schedule to Buyer upon injecting the fuel into Buyer’s vessel.
  7. Seller injects the total product allocation into Buyer’s vessel and furnishes Buyer the full Injection Report document to notify and show the Proof of the Products injected into Buyer’s vessel or Tanks, and Buyer pays the total product cost by MT103 T/T to Seller account. The Seller transfers the Title Ownership Certificate to the Buyer.
  8. Seller pays commission to Agents, Brokers, and Intermediaries involved in the transaction and Negotiations.

Procedure 3: Alternative FOB Tank to Vessel

  1. Buyer issues an official ICPO certificate along with their Charter Party Agreement (CPA) accompanied by the company’s registration certificate and valid identification.
  2. Seller issues Commercial Invoice (CI) for the quantity available in the storage tank to the buyer for signing.
  3. Buyer returns signed Commercial Invoice, and seller proceeds to issue:
    • Product Passport (Product Analysis Report)
    • Authenticated Statement of Product Availability
    • Authorization for Verification (ATV) via email or phone call
    • Notice of Readiness (NOR) (to be signed by all parties including buyer’s logistics company)
  4. Buyer returns the NOR duly signed by Buyer and Buyer’s Logistics Company together with Port Clearance Notification Certificate, Injection Clearance, and Vessel Laycan.
  5. After receiving NOR signed by all parties, Port Clearance Notification Certificate, Injection Clearance, and Vessel Laycan, Seller issues:
    • Unconditional Dip Test Authorization (DTA)
    • New SGS Inspection Report
    • Injection Report Certified and Approved by NCNDA/IMFPA
    • Assembly and Sales License (ATSC)
    • Tank Storage Receipt (TSR)
    • Supply Commitment Letter
  6. (Optional) Buyer’s SGS team re-conducts dip test inspection on the product in Seller’s storage tanks at Buyer’s expense.
  7. Upon successful dip test inspection, Buyer pays the total value of the product, and Seller transfers ownership of the product to Buyer immediately along with all export documents.
  8. Seller immediately starts injecting the product into Buyer’s vessel.
  9. Seller pays all intermediaries involved.

PROCEDURES CIF ASWP APPROVED STANDARD BANKING:

Procedure 1: CIF ASWP Approved Standard Banking

  1. Buyer issues an Irrevocable Corporate Purchase Order (ICPO) following the Seller’s transaction procedure, including CIS with company registration, passport, and banking details for an initial sale of [quantity] Million Barrels/Metric Tons/Gallons of [product 1] & [product 2] & [product 3].
  2. Seller provides a Deed of Agreement (DOA) along with proposed payment guarantee verbiage and CIS with company registration, passport, and banking details for an initial sale of [quantity] Million Barrels/Metric Tons/Gallons of [product 1] & [product 2] & [product 3]. Both parties sign and formalize the DOA, lodging it with their respective banks, making it a binding contract.
  3. Buyer’s bank issues an MT700 DLC & MT760 SBLC payment guarantee to the Seller’s bank within six (6) to nine (9) working days. If buyer fails to issue SBLC/DLC within this period, buyer pays $170,000 directly to the shipping company via MT103 as a transaction guarantee, which will be deducted from the product’s invoice value at destination port.
  4. After receiving the Buyer’s MT700 DLC & MT760 SBLC SWIFTED to the Seller’s bank, the Seller provides the following documents to confirm product availability within 48 hours:
    • Copy of Certificate of Origin
    • Vessel details, IMO Q88
    • CPA - Charter Party Agreement
    • Fresh SGS from vessel at loading port, re-make SGS/CIQ Inspection at discharge port
    • DTAOB - Dip Test Authorization on Board Vessel
    • ATB - Authority to Board
    • Bill of Lading/Cargo Manifest
    • Certificate of Authenticity
    • Certificate of Quality (Issued by nominated Inspection Agency at the Loading Port)
    • Certificate of Quantity (Issued by nominated Inspection Agency at the Loading Port)
    • Tanker Ullage Receipt
    • Ship Master’s Receipt for Sample
    • Ship Master’s Receipt for Documents
  5. Buyer completes a Quality and Quantity (Q&Q) Dip Test based on KAZAKHSTAN, MALAYSIA, SINGAPORE, AZERBAIJAN, NIGERIAN, RUSSIA Crude Oil specifications outlined in the DOA. (Optional) Upon positive results, the Buyer pays the Seller the full product value within 72 hours using MT103 Negotiable payment system.
  6. Seller transfers full ownership to the Buyer, delivering all necessary export documents within 48 hours post-payment.
  7. After payment, the Buyer provides either: Tank Storage Receipt (TSR) with injection authority, or Vessel (Q88) details with injection authority. The Seller then injects the product into the Buyer’s designated storage or vessel.
  8. Seller disburses commissions via MT103/TT to all intermediaries per the NCNDA+IMFPA.
  9. Buyer issues an MT700 DLC & MT760 SBLC with a validity of 365+1 day minimum for the value of the quantity required to commence the monthly delivery contract as agreed by the Buyer and Seller.

Procedure 2: Alternative CIF SBLC Procedure

  1. Buyer confirms Soft Offer and issues an official Irrevocable Corporate Purchase Order (ICPO).
  2. Seller sends Sales and Purchase Agreement (SPA) along with Seller’s SBLC MT760 Verbiage format, and Buyer reverts with the following documents properly filled out to Seller:
    • Completed SPA signed and sealed
    • Buyer’s Information Sheet (CIS) on Buyer’s letterheads, containing:
      • Copy of Company Registration Certificate
      • Passport-copy of signatory
  3. Seller releases to Buyer the following Partial POP Documents:
    • Refinery Commitment to Supply
    • Statement of Availability of Product
    • Authorization to Sell and Collect (ATSC)
    • Product Quality Passport (Analysis Test Report)
    • Commercial Invoice
    • Company Certificate of Incorporation and documents
  4. Buyer issues SBLC swift MT760 (according to the seller contract verbiage) within seven (7) to ten (10) banking days. If buyer fails to issue the instrument by the expiration of 7-10 business days, buyer issues a payment of three (3%) to four percent (4%) of the total first shipment value of the product by TT Wire MT103 within 3 business days to enable refinery to secure the following documents: Customs bond, Certificates of inspection, ATA CARNET/Temporary shipment certificates, master receipt for sample, Weight Certificate, Certificate of Authenticity, Consular Invoice. If buyer fails to issue the alternative payment after 3 business days, contract is terminated. Seller does not keep its production allocation for new buyers for more than 14 business days when other serious and regular clients need the same products.
  5. Seller signs the CPA with a shipping company and issues the Full POP documents and 2% PB:
    • Bill of Lading
    • Vessel Q88
    • Fresh SGS Report
    • Certificate of Origin
    • Ownership Certificate
    • Title Transfer Affidavit
    • Product Allocation Certificate
    • Ullage Report
    • Cargo Manifest
    • Notice of Readiness
    • Packing List
    • Charter Party Agreement
  6. Shipment commences as per contract schedule.
  7. Within 3 working days of Vessel arrival, buyer releases full payment via MT103 after CIQ/SGS at the destination port.

TERMS AND CONDITIONS FOB ESCROW

Procedure: FOB Escrow Terms and Conditions

  1. Buyer issues ICPO, company information sheet, copy of Buyer's representative's passport, and Charter Party Agreement (CPA) to Seller.
  2. Seller issues Commercial Invoice (CI). Buyer signs the CI.
  3. Seller issues Escrow Agreement providing for Buyer to place into escrow the funds required to extend and take over Seller's tank storage for days required for Injection/Inspection of Products. Escrow account will be held at a major international law firm or financial institution in USA, UK, or ASIA as allocated by Seller Company.
  4. Buyer and Seller sign Escrow Agreement.
  5. Buyer deposits funds in Escrow Account equivalent to the amount payable for a minimum of 5 days TSR. This will enable Seller company from own accounts to secure and pay for a Tank Facility solely for allocated product with all access allocated to buyer company.
  6. Upon confirmation that Buyer's funds have been deposited into Escrow Account, Seller sends the following Proof of Product (POP) documents to Buyer:
    • Commitment to Supply
    • Certificate of Origin
    • Authorization to Sell and Collect (ATSC)
    • Authorization to Verify (ATV)
    • Tank Storage Receipt (TSR)
    • Injection Report
    • Quality Certificate (Product Passport)
    • Fresh SGS Analysis Report (not older than 48 hours)
    • Unconditional Dip Test Authorization (UDTA)
  7. Within 48 hours (two business days), and upon successful verification by Buyer of above POP documents, funds in Escrow Account are released, and Seller's Tank Storage Provider issues 5-day TSR in Buyer's name.
  8. Buyer conducts Dip Test in tanks in Seller's tank.
  9. Upon confirmation that Dip Test results match product specifications, Seller injects fuel into Buyer's nominated vessel and sends injection report to Buyer.
  10. Upon confirmation of injection report, Buyer sends payment for full value of injected product by MT103 to Seller's named bank account.
  11. Upon receipt of payment, Seller transfers Ownership Title to Buyer, and immediately Seller pays Commission as per NCNDA/IMFPA.
  12. Seller issues 12-month Sales and Purchase Agreement (SPA). SPA requires non-transferable, revolving SBLC/IRDLC for the value of each monthly quantity; and that Buyer pay after Dip Test by MT103 wire transfer for each monthly quantity. Monthly deliveries continue per SPA and commission as per NCNDA/IMFPA.