Procedure A
FOB TTV / TTT – PROCEDURE NON NEGOTIABLE.
1.Letter of Intent (LOI)
The Buyer issues a formal Letter of Intent (LOI) on official company
letterhead, specifying product, quantity, delivery terms (FOB TTV/TTT), and
commercial parameters, and submits it to the Seller.
2. Full Corporate Offer (FCO)
Upon review of the LOI, the Seller issues a Full Corporate Offer (FCO)
containing full product specifications, pricing, delivery terms, inspection
standards, and validity, and transmits it to the Buyer through official
corporate email.
3. Acceptance & ICPO Submission
The Buyer accepts the FCO and submits an Irrevocable Corporate Purchase Order
(ICPO) together with:
• Certificate of Incorporation / Company Registration
• Banking Coordinates (RWA)
• Passport copy of the authorized signatory
• Sales and Purchase Agreement (SPA)
The Seller reviews the Buyer’s documents and issues a draft Sales and Purchase
Agreement (SPA) along with the Commercial Invoice (CI).
The Buyer signs and returns the SPA and CI, duly stamped, together with any
required terminal or storage agreements (TSA/CPA), wherauthorization.4.•
Regulatory & Terminal
Confirmation
The Seller lodges the executed SPA and CI with the relevant
terminal operator and/or competent regulatory authority, as required for
product lifting authorization.
5. Proof of Product (POP) Documents
Upon confirmation, the Seller provides standard Proof of Product (POP)
documentation enabling physical verification and inspection, which may include:
• Authorization to Sell and Collect
• Product Allocation Confirmation
• Tank Storage Receipt (TSR)
• Product Availability Statement
• Commitment to Supply
• Authorization for Physical Verification at Terminal
6. Inspection & Verification
The Buyer appoints an internationally recognized independent
inspection company (SGS, Intertek, Bureau Veritas, or equivalent) to conduct
dip test, quality, and quantity inspection at the Seller’s nominated terminal,
in accordance with industry standards.
7.Authorization to Transfer / Inject
Following satisfactory inspection results, the Seller issues
authorization for product transfer/injection from the Seller’s tank to the
Buyer’s nominated tank or vessel.
8.Payment & Title Transfer
The Buyer effects 100% payment via MT103 SWIFT transfer
within the agreed timeframe upon commencement of product injection or as per
SPA terms.
Title and risk pass to the Buyer in accordance with the FOB Incoterms® and SPA
provisions.
9.Lifting & Contractual
Continuity
Product lifting and subsequent deliveries proceed strictly
in accordance with the SPA.
Mandates and intermediaries, where applicable, are remunerated solely as per
the executed SPA and fee protection agreements.
PROCEDURE NUMBER TWO
FOB TTV PROCEDURE – CPA (STANDARD INTERNATIONAL PETROLEUM TRADE)
1. Soft Corporate Offer (SCO)
The Seller issues a Soft Corporate Offer (SCO) outlining product
specifications, indicative quantity, delivery basis (FOB TTV), inspection
standards, and validity, and transmits it to the Buyer through official
corporate email.
2. ICPO Submission
The Buyer accepts the SCO and submits an Irrevocable Corporate Purchase
Order (ICPO) together with:
• Certificate of Incorporation / Company Registration
• Valid Charter Party Agreement (CPA) or Terminal Storage Agreement (TSA), as
applicable.
3. Commercial Invoice (CI)
Upon verification of the Buyer’s documents, the Seller issues a Commercial
Invoice (CI) for the available quantity (e.g., XXX,000 MT) stored in the
nominated terminal tank.
The Buyer signs and returns the CI as confirmation of acceptance.
4. Proof of Product (POP) Documents
The Seller provides standard Proof of Product (POP) documentation to enable
inspection and physical verification, including:
• Unconditional Dip Test Authorization (UDTA)
• Authorization to Sell and Collect (ATSC)
• Valid Tank Storage Receipt (TSR)
• Commitment Letter to Supply
• Statement of Product Availability
• Letter of Guarantee
• Authorization to Physically Verify the Product at Terminal (ATV)
5.Inspection Arrangement
Upon verification of POP documents, the Buyer coordinates with the nominated
terminal operator to apply for inspection by an internationally recognized
independent inspector (SGS or equivalent).
The inspection request is submitted by the terminal operator to the relevant SGS
office (Rotterdam / Fujairah / Houston / Singapore).
6. SGS Inspection
SGS confirms receipt of the inspection request and contacts the Buyer
directly.
Upon confirmation of product availability, SGS issues its invoice to the Buyer.
After payment, SGS conducts dip test, sampling, and quality analysis in the
Seller’s ex-shore tanks and issues an official inspection report within
standard industry timelines.
7. Shipping & Title Documents
Upon successful inspection, the Seller provides the following standard
shipping and title documentation, as applicable under FOB terms:
• Bill of Lading
• Certificate of Origin
• Certificate of Ownership / Title Certificate
• Q88 (where applicable)
• Product Passport / Specification Sheet
• Loading or Injection Report issued by a non-embargoed authority
8. Payment
The Buyer effects 100% payment for the total product value via MT103 SWIFT
transfer to the Seller’s designated bank account, strictly in accordance with
the Sales and Purchase Agreement (SPA).
9. Title & Risk Transfer
Title and risk pass from Seller to Buyer strictly in accordance with FOB
Incoterms® and the executed SPA.
10. Commission Settlement
Seller and Buyer independently settle commissions with their respective
intermediaries within 48 hours of confirmed receipt of Buyer’s payment,
strictly as per NCNDA/IMFPA agreements.
11.Subsequent Deliveries
Subsequent liftings and deliveries
proceed in accordance with the SPA.
Mandates and intermediaries are remunerated based on monthly deliveries, where
applicable.
PRODUCT INSPECTION
Inspection is conducted by SGS or an equivalent internationally recognized
inspection company at the loading terminal, in accordance with standard
petroleum industry practice.
GENERAL BUSINESS PRACTICES
• The Seller maintains strict confidentiality and does not disclose past
performance documents, buyer identities, or transactional evidence, in
compliance with international commercial ethics.
• All business communications are conducted in writing via official corporate
channels.
• No site visits, orientation trips, or informal inspections are arranged
outside agreed contractual procedures.
• The Seller guarantees product quality, competitive pricing, and adherence to
fair-trade principles.
• All transactions are conducted through recognized banking channels. No cash
payments are accepted.
IMPORTANT NOTES
• Delivery timelines are subject to product density, terminal scheduling,
and SPA terms.
• Commission payments are governed strictly by executed NCNDA/IMFPA agreements.
• The initial transaction may be structured under a long-term SPA (e.g., 12–13
months) for buyer and seller security.
• Contractual payment instruments may include SBLC or DLC, subject to SPA
agreement and bank acceptance.
BREACH OF AGREEMENT
In the event of a breach of obligations under the SPA, the non-breaching
party reserves the right to suspend performance and seek remedies available
under applicable law and contractual provisions.
Any penalties, liquidated damages, or remedies shall be strictly as defined in
the executed SPA and governed by its dispute resolution clause.
PROCEDURE NUMBER -B
FOB
TTV PROCEDURE – CPA (STANDARD INTERNATIONAL PETROLEUM TRADE)
1.
Soft Corporate Offer (SCO)
The Seller issues a Soft Corporate Offer (SCO) outlining product specifications,
indicative quantity, delivery basis (FOB TTV), inspection standards, and
validity, and transmits it to the Buyer through official corporate email.
2.
ICPO Submission
The Buyer accepts the SCO and submits an Irrevocable Corporate Purchase Order
(ICPO) together with:
•Certificate of Incorporation / Company Registration
•Valid Charter Party Agreement (CPA) or Terminal Storage Agreement (TSA), as
applicable
3.
Commercial Invoice (CI)
Upon verification of the Buyer’s documents, the Seller issues a Commercial Invoice
(CI) for the available quantity (e.g., XXX,000 MT) stored in the nominated
terminal tank.
The Buyer signs and returns the CI as confirmation of acceptance.
4.
Proof of Product (POP) Documents
The Seller provides standard Proof of Product (POP) documentation to enable inspection
and physical verification, including:
•Unconditional Dip Test Authorization (UDTA)
•Authorization to Sell and Collect (ATSC)
•Valid Tank Storage Receipt (TSR)
•Commitment Letter to Supply
•Statement of Product Availability
•Letter of Guarantee
•Authorization to Physically Verify the Product at Terminal (ATV)
5. Inspection Arrangement
Upon verification of POP documents, the Buyer coordinates with the nominated
terminal operator to apply for inspection by an internationally recognized
independent inspector (SGS or equivalent).
The Inspection request is submitted by the terminal operator to the relevant SGS
office (Rotterdam / Fujairah / Houston / Singapore).
6. SGS Inspection
SGS confirms receipt of the inspection request and contacts the Buyer directly.
Upon confirmation of product availability, SGS issues its invoice to the Buyer.
After payment, SGS conducts dip test, sampling, and quality analysis in the Seller’s
ex-shore tanks and issues an official inspection report within standard
industry timelines.
7. Shipping & Title Documents
Upon successful inspection, the Seller provides the following standard shipping and
title documentation, as applicable under FOB terms:
•Bill of Lading
•Certificate of Origin
•Certificate of Ownership / Title Certificate
•Q88 (where applicable)
•Product Passport / Specification Sheet
•Loading or Injection Report issued by a non-embargoed authority
8. Payment
The Buyer effects 100% payment for the total product value via MT103 SWIFT transfer
to the Seller’s designated bank account, strictly in accordance with the Sales
and Purchase Agreement (SPA).
9. Title & Risk Transfer
Title and risk pass from Seller to Buyer strictly in accordance with FOB Incoterms®
and the executed SPA.
10. Commission Settlement
Seller and Buyer independently settle commissions with their respective intermediaries
within 48 hours of confirmed receipt of Buyer’s payment, strictly as per
NCNDA/IMFPA agreements.
11. Subsequent Deliveries
Subsequent liftings and deliveries proceed in accordance with the SPA.
Mandates and intermediaries are remunerated based on monthly deliveries, where
applicable.
PRODUCT INSPECTION
Inspection is conducted by SGS or an equivalent internationally recognized inspection
company at the loading terminal, in accordance with standard petroleum industry
practice.
GENERAL BUSINESS PRACTICES
•The Seller maintains strict confidentiality and does not disclose past
performance documents, buyer identities, or transactional evidence, in
compliance with international commercial ethics.
•All business communications are conducted in writing via official corporate
channels.
•No site visits, orientation trips, or informal inspections are arranged outside
agreed contractual procedures.
•The Seller guarantees product quality, competitive pricing, and adherence to
fair-trade principles.
•All transactions are conducted through recognized banking channels. No cash
payments are accepted.
IMPORTANT NOTES
•Delivery timelines are subject to product density, terminal scheduling, and SPA
terms.
•Commission payments are governed strictly by executed NCNDA/IMFPA agreements.
•The initial transaction may be structured under a long-term SPA (e.g., 12–13 trials+12
months) for buyer and seller security.
•Contractual payment instruments may include SBLC or DLC, subject to SPA
agreement and bank acceptance.
BREACH OF AGREEMENT
In the event of a breach of obligations under the SPA, the non-breaching party
reserves the right to suspend performance and seek remedies available under
applicable law and contractual provisions.
Any penalties, liquidated damages, or remedies shall be strictly as defined in the
executed SPA and governed by its dispute resolution clause.