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Standard FOB

STANDARD FOB TRANSACTION PROCEDURES

Procedure 1 : Singapore Banks or Hong Kong Banks Commodity Trade 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.

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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:

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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.

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) with seller procedures along with Buyer Company Profile and Valid Passport Copy.

2. Seller issues Draft Contract along with Commercial Invoice. Buyer sign and return 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 PPOP documents via Email or Fax to Buyer.

  • I.  Authorization/Authority to Sell (ATS)

  • II. Product Quality Passport (Dip Test result of Product)

  • III. Letter of Commitment to Supply

  • IV. Statement of Product Availability

  • V. Reservoir Storage Receipt.

  • VI. 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 accepted by seller to inject the product. Prior to the leasing of the tank, seller must give approval to buyer before buyer proceeding with the leasing of his appointed tank.

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 the buyer / SGS, Seller immediately issues the Title Transfer of Product Ownership / Certificate of Ownership to buyer’s company alongside with all necessary Export Document.

8-①. Buyer releases full cost of the lift able product via MT103 TT wire transfer to Seller’s nominated Account within 72 hours and Lifting commences.

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.

  • I. TSR (Tank Storage Receipt)

  • II. Injection Report

  • III. Unconditional Dip-Test Authorization

  • IV. Letter of Acknowledgement

  • V. Dip-Test Inspection Schedule

  • VI. ATV

3. Buyer Dip-tests in Seller tank with SGS (or equivalent) officials and receives Fresh SGS Report not less than 24 Hours alongside ATSC (Authorization to Sell and Collect).

4. Within 72 Hours, Buyer provides TSR or Vessel storage for Injection of product into the Buyers hired TSR 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 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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