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Procédure FOB - TRADE TO PRICE

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NOS OFFRES PRODUITS PETROLIERS : TS1, JET FUEL A1, D2, D6, Mazut, LNG, LPG,  ...
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Procédure FOB

Pétrole & Dérivés > Procédure FOB, CIF, DIP & PAY
FOB - WORKING PROCEDURE - NON-NEGOTIABLE
1)     Buyer confirms soft offer and issues ICPO, with TSA and TSR, if  he has a tank company, otherwise he must pay two days of extension to the bank of the refinery, this procedure substitutes the TSA and TSR, since it is the refinery that coordinates the whole process, both product and logistics.

2) Seller verifies and issues Commercial Invoice (CI) to Buyer for the available quantity in the storage tank to coordinate the above point process, then buyer signs and return to seller the Commercial Invoice (CI).

3) Seller verifies and issues the buyer the following documents:
I- Commitment to Supply
II- Statement of Product Availability
III- Certificate of Origin of the Product.

4)  Upon completion of verification, seller issues the pop documents:
(In the following paragraphs may exist some variation in the issued documents depending on the supplier refinery).
A. Seven 7 days Unconditional DTA
B. 48 hours Fresh SGS Report in Rotterdam
C. loading port injection report
D. Product Passport
E. Tank Receipt
F. ATSC
G. Bill of Lading

5. Upon successful verification of the POP documents, following the completion of the Dip Test and SGS, Buyer makes the 100% payment by MT103 TT-EXPRESS wire transfer for the total product, seller injects the fuel and submits the full injection report to the buyer.

6. Seller issues draft SPA to buyer to review for R&E monthly deliveries.

7. Buyer reviews and approves the SPA and issues SBLC/IRDLC irrevocable, nontransferable, auto- revolving for 12 monthly shipment value and documentary letter of credit for the length of the contract and for each lift per schedule. Buyer pays after dip test by MT103 Wire transfer on each monthly quantity.

8. The subsequent delivery shall commence according to the terms and conditions of the contract, and mandates/intermediaries receive their commissions according to monthly deliveries.



STANDARD FOB TRANSACTION PROCEDURES


PROCEDURE 1 : MERRILL LYNCH BANK OF AMERICA COMMODITY TRADE DESK PROCEDURE

The buyer will need to submit an ICPO with a 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 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 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 singed CI, Seller issues DTA;

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

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

** PLEASE NOTE: These procedures will adjust slightly based on which seller eventually tenders an offer. Seller conducts its banking transactions via the Merrill Lynch Commodities Trade Desk in New York; your buyer’s banking has to be either in the US or have a corresponding bank in the US. Is your Buyer incorporated in the US or EU and where is their banking transacted?


PROCEDURE-2 : BUYER SHOWS PROOF OF STORAGE AGREEMENT (TSA) AT FOB PORT OR IN SHIPPING VESSEL (CPA)

1. Buyer issues Irrevocable Corporate Purchase Order (ICPO) accepting seller's terms and procedures along with Buyer's Company Profile and KYC documents including a copy of Passport copy of the buyer's authorized signatory .

2. Seller issues draft of Sale and Purchase Agreement (SPA) contract along with Commercial Invoice. Buyer signs and returns to seller along with verifiable storage tank coordinates. (Tank Farm Company), Tank Storage Agreement (TSA) not older than 10 days validity from issued date, Seller verifies and approves Buyer’s tank farm coordinates, (TSA).

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

4. Within 3 days upon the receipt & verification of the above PPOP documents, Buyer shall provide storage tank that will be suitable and acceptable by seller to inject the product. Prior the actual leasing of the tank by the buyer, seller must confirm approval of the appointed tank farm to buyer

5. Buyer provides verifiable Tank Storage Receipt (TSR), Authorization to Inject (ATI) Document of his rented Shore tank at the Loading port to the seller with injection permit.

6. All parties sign NCNDA/IMFPA.

7. Seller issues (DTA) Dip Test Authorization, Complete Fuel Injection Report from the Pipeline Transportation Company.

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

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

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


PROCEDURE-3 (SOME OF OUR SUPPLIERS PROVIDE THIS OPTION

FOB (ROTTERDAM & HOUSTON)

TERMS AND PROCEDURES / NON NEGOTIABLE

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

License.

2. Seller issues C/I 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 with SGS (or equivalent) officials and receives fresh SGS Report  along with ATSC (Authorization To Sell and Collect).

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

5. Upon successful injection, Buyer pays total cost of product via SWIFT MT103.

6. Seller confirms Buyer's payment receipt and both parties’ releases payment to all intermediaries on each side Involved in the transactions.

7. Contract begins with Rolls and Extensions.















 
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