The standard procedures are for:
# Cost Insurance Freight (CIF) the best and safe term of delivery according INCOTERMS 2010 and
# Free On Bord (FOB), if the End Buyer has vessel which we consider as suitable for SPOT LONG TERM
SPA/CONTRACT which we prefer.
We can accept also Tanker Take Over (TTO) or Tanker To Tanker (TTT) if any…
1. Facilitator/Primary Agent in the name o End Buyer send Request for Quote(RFQ)/
Offer(O)/Offer To Supply (OTS) to supplier
2. Supplier issue the Quote(Q)/Offer(o)/Offer To Supply (OTS) with company Email Address, Phone & Fax Numbers, Tax Registration Numbers, with Official Seal addressed to End Buyer .
3. End Buyer issues Offer To Purchase (OTP) mirroring the Quote(Q)/Offer(o)/Offer To Supply (OTS) with complete banking references, Company Profile (CP), Company Registration, Copy of Buyer’s Passport and RWA Letter signed by two of buyer’s bank officers and to Supplier’s name, which stipulates that End Buyer is RWA to issue financial instrument for payment guarantee of goods ordered.
4. Supplier abd End Buyer sign the Sales Purchase Agreement (SPA)/Contract with Banking coordinates,
which contains the the Facilitator/Primary Agent commision stipulated inside and completed International Payment Guarantee (IPG) for commission of Facilitator/Primary Agent as Appendix of SPA/Contract, and deposit/lodged to their banks.
The electronic sigacilitator/Primary Agent ned by both parties is considered legally binding and enforceable.
5. End Buyer’s bank issue via SWIFT PRE-ADVICE LETTER OF CREDIT, MT 799 to Supplier’s bank.
6. Supplier’s Bank issues via SWIFT 2% ACTIVE PERFORMANCE BOND, (as previously agreed on), MT 760 to End Bayer’s Bank, upon receipt and confirmation of End Buyers PRE-ADVICED LETTER OF CREDIT.
7. Supplier’s vessel issues Notice of Readiness (NOR) to End Buyer’s port of discharge and copy all parties involved.
8. End Buyer’s bank issues via SWIFT, a Non-Operative, Irrevocable, Documentary and Confirmed Letter of Credit, MT 700 to Supplier’s bank in favor of Supplier, within 3 woorking banking days, after the issuing of NOR
9. Supplier’s bank issues a 2% PB as previously agreed on, to End Buyer’s bank which automatically activates the Buyer’s IDCLC and the End Buyer’s IDCLC becomes Operative.
Upon confirmation of the activated IDCLC, Seller’s loaded vessel within 48 hours departs for End Buyer’s port of discharge.
Supplier’s bank valid shipping documents which shall include the following:
A). Notarized Commercial Receipt naming End Buyer, contract number, goods and quality indicating transfer of the title.
B). Shipping advice indicating,designated vessel name, loading port, estimated loading time, estimated time of departure, estimated time of arrival in destination port full Estimated Time of Arrival (ETA).
C). Signed commercial invoice indicating the contract number and the name of the carrying vessel. (3 originals and 3 copies)
D). Quality & Quantity certificate issued at the loading port.
E). Charter Party Agreement (CPA) and full Set (3 originals and 3 copies) of clean on-board Bills of Lading made out to order; bank endorsed and marked “freight pre-paid”, indicating the name of the carrying vessel with the End Buyer as the “Notifying party”.
10 Supplier’s loaded vessel arrives at the buyer’s discharge port and End Buyer conducts Q & Q inspection at buyer’s expenses.
NOTES
If the supplier claims that the cargo has been cleared, then he should be able to give
Charter Party Agreement (CPA),
Authority To Load (ATL),
Q88 vessel details, If China
Other things to look out for:
* Supplier’s Export Schedule
* Transport / delivery confirmation
* Port/Terminal confirmation of lifting schedule
* Export declaration of customs
1.Facilitator/Primary Agent send in the name of End Buyer, Request For quote(RFQ)/Offer/
Ofer To Supply (OTS) to Supplier,
2.Supplier issues Quote/Offer/Offer To Supply to End Buyer .
3.End Buyer issues an Offer To Purchase mirroring the Quote/Offer/Offer To Supply, with Company profile and full banking coordinates, scanned ID Copy and International Payment Guarantee (IPG) completed and signed by End Buyer .
4. Supplier abd End Buyer sign the Sales Purchase Agreement (SPA)/Contract with Banking coordinates,
which contains the the Facilitator/Primary Agent commision stipulated inside and completed International Payment Guarantee (IPG) for commission of Facilitator/Primary Agent as Appendix of SPA/Contract, and deposit/lodged to their banks.
The electronic sigacilitator/Primary Agent ned by both parties is considered legally binding and enforceable.
5. End Buyer’s bank issue via SWIFT PRE-ADVICE LETTER OF CREDIT, MT 799 to Supplier’s bank.
6. Supplier’s Bank issues via SWIFT 2% ACTIVE PERFORMANCE BOND, (as previously agreed on), MT 760 to End Bayer’s Bank, upon receipt and confirmation of End Buyers PRE-ADVICED LETTER OF CREDIT.
7.After Seller’s bank confirms the MT799, End Buyer issues Irrevocable Non-Transferable Auto-Revolving Documented Letter of Credit (IRDLC) with instruction to revolving every month
8.End Buyer proceeds with (IRDLC) with the DIP-TEST in Supplier’s tanks within 72 hours.
9.Supplier issues the following documents for Buyer and Buyer’s SGS team carry out the inspection on the secures products in the storage terminal:
* Fresh SGS report issued at tank farm
* Injection report issued at the port
10.End Buyer receives product from Refinery Storage Tank since they have their own Logistic Arrangement in the port
11.Supplier issues DIP-TEST authorization (DTA), End Buyer conducts DIP-TEST on Buyer’s expenses and upon successful result, End Buyer pays for the product by DLC at sight, immediately
12.End Buyer lifts the products from Seller’s tank immediately after inspection and payments – as per LAYCAM Time Period
13.Supplier pays commission to intermediaries involved, as per IPG within 24 hours after confirmation of End Buyers payment
14.Seller issues to Buyer all documents confirming Buyer as the owner of product
15.All Monthly Lifts are carried out as per usual procedure as outlined in detail in the SPA/Contract.
16.Seller pays commission to all intermediaries involved, monthly as per IPG within 24 hours after confirmation of Buyers payment
1. Facilitator/Primary Agent in the name of End buyer send Request for Quote/Offer to Supplier
2. Supplier issue the Quote/Offer/Offer To Supply (OTS) with company Email Address, Phone & Fax Numbers, Tax Registration Numbers, with Official Seal addressed to End Buyer .
3. End Buyer issues Offer To Purchase (OTP) with complete banking references, Company Profile (CP), Company Registration, Copy of Buyer’s Passport and RWA Letter signed by two of buyer’s bank officers and issued to seller’s name, which stipulates that Buyer is RWA to issue financial instrument for payment guarantee of goods ordered.
4. Supplier and End Buyer sign the Sales Purchase Agreement (SPA)/Contract with Banking coordinates, completed International Payment Guarantee (IPG) by Facilitator/Primary Agent, and deposit/lodged to their banks.
The electronic signed by both parties is considered legally binding and enforceable.
5. End Buyer’s bank issue via SWIFT PRE-ADVICE LETTER OF CREDIT, MT 799 to Supplier’s bank.
6. Supplier’s Bank issues via SWIFT 2% ACTIVE PERFORMANCE BOND, (as previously agreed on), MT 7600 to End Bayer’s Bank, upon receipt and confirmation of End Buyers PRE-ADVICED LETTER OF CREDIT.
7. End Buyers bank issue via SWIFT OPERATIVE IRREVOCABLE DOCUMENTARY LETTER OF CREDIT, MT 700 in favor of supplier for total cost of cargo and commission to facilitator/Primary agent.
8. Supplier confirms OPERATIVE IRREVOCABLE DOCUMENTARY LETTER OF CREDIT and issues Authority To Board (ATB) to End Buyer’s independent inspectors within 72 hours.
9. End Buyer’s inspectors go on board vessel within 72 hours after the confirmation of the buyers IRDLC, to conduct Q & Q, inspection report made available to End Buyer.
10 Re-assignment of cargo is done in End Buyer’s name and Charter Party Agreement (CPA) issued, signed by End Buyer and returned to the Supplier within 4 working days of receiving a positive Q & Q report. All Original documents handed over to the End Buyer’s bank.
11. End Buyer’s Super cargo goes on board within 3 days after the re-assignment and CPA signed.
12 Payment via swift made to the accounts in the SPA within 72 hours of Super cargo going on board and Vessel sails afterwards.
This Procedure is just a more secure way for very big transaction in value
1. Supplier and End Buyer make appointments with blue screen departments at top 25 World Bank (doesn’t have to be the same bank).
2. Supplier and End Buyer’s banks submit a letter on bank letterhead.
In this letter, the bank officers:
A. acknowledge that the bank has the capability of accessing the blue screen.
B. The letter states the name of the bank officer who is to download the blue screen, along with his title and passport are submitted as identification.
3. The Supplier’s bank officer acknowledges that the bank is to set-up an account in the name of the End Buyer to provide Proof Of Product.
4.The End Buyer’s bank officer acknowledges that the bank is to set-up an account in the name of the Supplier to provide Proof Of Funds.
5. End Buyer and Supplier’s bank officers exchange blue screen pass codes.
6. End Buyer’s bank officer verifies product.
7. Supplier’s bank officer verifies funds.
8. Supplier issues SPA/Contract
9. Shipments commence according to the SPA/Contract.
10. Payment according to SPA/CONTRACT including Facilitator/Primary Agent’s
commission.
NOTE:
# This transaction method is a bank to bank transaction, to be executed via Blue Screen transmittal transfer upon banks agreement.
# There is no need for POF or MT103 or anybody to move first.
# Blue screen is a method of closing trade deals such as petroleum products commodities.
In this business, lots of people try to use the banking information and purchase the item which want or obtain a line of credit.
Blue screen allows the End Buyer and the Supplier to view the other’s information.
The Supplier shows his proof of the product, which is usually worth a lot of money and secured in a bank (POP), while the buyer shows his proof of money ( POF).
It is just a more secure way to gather this information with blue screen.
A log in and pin number is needed to complete this transaction.
1. Facilitator/Primary Agent in the name of the End Bayer, send Request For Quote (RFQ)/Offer/Offer To
Supply to Supplier
2. Supplier issue the Quote/Offer/Offer To Supply (OTS) with company Email Address, Phone & Fax Numbers, Tax Registration Numbers, with Official Seal addressed to End Buyer.
3. End Buyer issues Offer To Purchase(OTP)with complete banking references, Company Profile (CP), Company Registration, Copy of Buyer’s Passport and RWA Letter signed by two of buyer’s bank officers and issued to seller’s name, which stipulates that Buyer is RWA to issue financial instrument for payment guarantee of goods ordered.
4. Supplier and End Buyer sign the Sales Purchase Agreement (SPA)/Contract with Banking coordinates and completed International Payment Guarantee (IPG) by Facilitator/Primary Agent, and deposit/lodged to their banks.
The electronic signed by both parties is considered legally binding and enforceable.
5. End Buyer’s bank issues PRE-ADVICE LETTER OF CREDIT, MT 799 to Supplier’s bank.
6. Supplier’s Bank posts 2% ACTIVE PERFORMANCE BOND, MT 760 (as previously agreed on) upon receipt and confirmation of buyers PRE-ADVICED LETTER OF CREDIT.
7. End Buyers bank places OPERATIVE IRREVOCABLE, CONFIRMED DOCUMENTARY LETTER OF CREDIT,
MT 700 in favor of supplier for total cost of cargo and commission to facilitator/Primary agent.
8. Supplierr confirms End Buyers Irrevocable, Confirmed, documentary Letter of Credit, issues
Notice OF Readines (NOR) LONGSIDES within 72 hours with End Buyer’s Vessel and Transships the Cargo to End Buyers vessel.
9. End Buyer’s inspectors go on board vessel within 72 hours to conduct Q & Q, inspection report made available to Seller.
10. Payment via SWIFT made to the accounts in the SPA within 72 hours of Submission of Cargo Documents, Inspection Report, Discharge Certificate and Masters report to End Buyers Bankers and Vessel sails afterward.
