Trade, Banking & Delivery processes

Part One: Trade Process (Banking and Delivery)

Contract Signing:

  1. Buyer fills attestation form, (the form is the buyer’s ICPO).
  2. Seller sends official corporate offer to Buying Company (Buyer).
  3. Buyer signs and returns the FCO.
  4. Seller sends Contract (Sales and Purchase Agreement) to Buyer.
  5. Buyer signs and sends a copy the signed contract back to Seller.
  6. Seller sends Pro-forma commercial invoice to Buyer (price would be based on three days average of NWE Platts).

 

Banking Option One (MT700 DLC or MT760 SBLC):

  1. Within Five to Ten (5-10) business days, Buyer’s bank shall send pre-advice by SWIFT MT705 Documentary Letter of Credit (non-operative) covering 100% monthly cargo value for the entire duration of contract to Seller’s bank.
  2. Seller’s bank confirms and sends Two percent performance bond (2%PB) by SWIFT MT760 and Proof of product (POP) to Buyer’s bank.
  3. Buyer’s bank confirms performance bond and sends MT700 Operative Documentary Letter of Credit or MT760 Standby letter of Credit to Seller’s bank.
  4. Buyer’s bank pays 100% cargo value by SWIFT MT103/TT within two days after inspection at Buyer’s port monthly.

 

Banking Option Two (MT799 Bank Payment Guarantee for whole duration contract):

  1. Within Five to Ten (5-10) business days, Buyer’s bank shall send SWIFT MT799 blocked funds in Buyer’s name) revolving monthly covering 100% monthly cargo value for the entire duration of contract to Seller’s bank.
  2. Seller’s bank confirms and sends Two percent performance bond (2%PB) by SWIFT MT760 and Proof of product (POP) to Buyer’s bank.
  3. Buyer’s bank pays 100% cargo value by SWIFT MT103/TT within two days after inspection at Buyer’s port monthly.

 

Banking Option Three (MT799 Bank Payment Guarantee for first shipment only):

  1. Within Five to Ten (5-10) business days, Buyer’s bank shall send SWIFT MT799 Bank Guarantee covering 100% monthly cargo value for the first shipment only.
  2. Seller’s bank confirms and sends Two percent performance bond (2%PB) by SWIFT MT760 and Proof of product (POP) to Buyer’s bank.
  3. After successful delivery and 100% payment of first shipment, Buyer’s bank issues monthly revolving MT760 SBLC or MT700 DLC or MT799 BG covering 100% monthly cargo value for the entire duration of the contract.
  4. Buyer’s bank pays 100% cargo value by SWIFT MT103/TT within two days after inspection at Buyer’s port monthly.

 

Banking Option Four (ONLY APPLICABLE AFTER DELIVERY AND PAYMENT THE FIRST SHIPMENT):

  1. Within Five to Ten (5-10) business days, Buyer’s bank shall send SWIFT MT799 Bank Guarantee covering 100% monthly cargo value for the first shipment only.
  2. Seller’s bank confirms and sends ONLY Proof of Product (POP) to Buyer’s bank.
  3. After successful delivery and 100% payment of first shipment by SWIFT MT103/TT, Buyer’s bank issues monthly revolving MT760 SBLC or MT700 DLC or MT799 BG covering just 10% of the monthly cargo value for the entire duration of the contract.
  4. Buyer’s bank pays 100% cargo value by SWIFT MT103/TT within Two days after inspection at Buyer’s port monthly.

 

Delivery and Payment process:

  1. Seller sends Full proof of product by courier immediately after loading from Seller’ bank to Buyer’s bank.
  2. Vessel sails to Buyer’s port of discharge.
  3. Buyer clears vessel into port and conducts SGS or CIQ inspection.
  4. Seller gives Quality and Quantity inspection certificates issued and signed at discharge port, Commercial invoice, Bill of laden and other shipping documents
  5. Buyer makes full shipment payment by MT103/TT within Two business days after inspection.
  6. Seller confirms shipment payment and instructs vessel captain to discharge into Buyer’s tanks.
  7. Monthly loading, delivery and payment process is repeated monthly throughout the duration of contract.

 

List of Documents (POP) sent along with the Pro-forma invoice to Buyer:

  1. Registration Documents of Selling Company and Passport Data page of Director.
  2. Certificate of Origin.
  3. Statement of Product Availability.
  4. Commitment to Supply.
  5. Letter from Ministry of Justice, Russian Federation.
  6. Product Passport.
  7. Authorization to Sell.

 

List of full Proof of Product will include the following Documents and also vessel documents, this will be sent by courier Bank to Bank immediately after loading:

  1. Statement of Product Availability.
  2. Refinery’s Commitment to Supply.
  3. Certificate of Origin.
  4. Registration Document of Export.
  5. Product Passport (Dip Test Result).
  6. Storage Tank Receipt.
  7. Chemical Analysis Report of Product in Storage Tanks.
  8. Vessel documents:
  • Ocean Bill Of Lading: 1 Original Copy of 3/3 Pages.
  • SGS Q/Q Report at the port of loading: 1 Original Copy Of 2/2 Pages.
  • Certificate of Origin (One Copy).
  • Signed Commercial invoice based on the delivered Quantity & Quality of product on vessel.
  • Cargo Manifest (One Original Copy).
  • Captain’s receipt of all documents of the shipped product 1/1.

 

KINDLY REQUEST FOR OUR SOFT CORPORATE OFFER