TRADING PROCEDURES

TRANSACTION PROCEDURES:

1. Buyer issues LOI with with product details, destination, bank details.  

2. Buyer issues ICPO.  

3. Seller issues the SPA Draft Contract. Buyer and Seller signs the Contract by electronic signatures. 

4. Within 24 Hours of signing the Contract, it must be lodged into the respective bank by both parties.  

5. Buyer issues DLC, and Seller will respond with 2% Performance Bond

6. Seller commences loading of the vessel during the approved laycan window. Upon completion of loading, Seller arranges the SGS Inspection for determination of quantity and quality of loaded product, and send full shipping documents to Buyer.  

7. Vessel will sail to Buyer's discharge port. Upon vessel's arrival to discharge port, the SGS inspection report, within 48 (Forty-Eight) hours, Buyer makes T/T payment of the full value of the product according to the issued invoice (reflecting quantity of post-load SGS report).  

8. Upon receiving Buyer's payment, the Seller transfers Product Title Ownership to Buyer, and releases all shipping documents to the Buyer.

TRANSACTION PROCEDURES:

1. Buyer issues an official ICPO with sellers working procedure & buyer's company license

2. Seller issues a commercial invoice for first lift quantities for party’s signatures and endorsement, Buyer signs and returns to Seller. 

3. Buyer accepts to extend seller's tank in order to make the buyer liable of taking over the tank transfer and DIP TEST in seller's tank (official letter from the buyer if accepted), and Seller issues Invoice of payment for tank extension 2 days to buyer. Upon receipt of payment cost to tank farm account 

4) Seller issues full POP documents to the buyer's secured email: 

i. Tank Storage Receipt. 

ii. Product Passport 

iii. Injection Report 

iv. SGS 

5. Seller issues to buyer unconditional DTA, Buyer orders SGS to conducts Dip Test on the product in the Seller's Tank at buyers’ expenses and Buyer conducts dip test and takes over the tank. 

6. Buyer pays for the product via MT103 TT, Title of the product is transferred to the buyer alongside all exportation documentation in relation to the petroleum product. 

7. Seller pays commission within 48 hours by SWIFT MT103 to all intermediaries as signed NCNDA/IMPFA

TRANSACTION PROCEDURES:

1. Buyers issues ICPO with full banking details & company profile 

2. Seller issues commercial invoice to buyer 

3. Buyer signs/seals and returns commercial invoice with letter of acceptance to seller within 24hrs 

4. Buyer provides seller with TSA from reliable tank farm, for seller’s verification and approve. 

5. Buyer pays 5 days and seller pays 3 days simultaneously to complete 8 days to buyer’s tank farm and sends TSR to seller with authorization to verify (ATV)

6. Seller issues to buyer below PPOP documents as mentioned via email 

a) Fresh SGS report (Quality and Quantity) (24 – 72 Hours Fresh); 

b) Tank Storage Receipt (TSR) with GPS coordinates of tank location; 

c) Injection Report (Rotterdam) 

d) Authorization to verify the product in Seller's tank (ATV); 

e) Product Passport 

f) Unconditional Dip Test Authority (UDTA) 

7. Seller commences with the injection of the first month shipment quantity from the refinery storage reservation through the pipeline into storage tank in the port of loading or tank to tank. 

NB: IF THE INJECTION PROCESS EXCEEDS 8 DAYS BUYER SHALL COMPLETE THE OUTSTANDING DAYS TO ENABLE THE CONCLUSION OF THE INJECTION, THIS USUALLY DEPENDS ON THE TANK LOCATION. 

8. Upon the completion of the injection seller issues DTA, to buyer, buyer inspects with SGS agent 

9. After buyer’s successful Q&Q dip test on the product buyer makes the payment for the total value of the product injected into the tank via mt103 or TT wire transfer. 

10. Upon seller’s receipt of the full product payment from the buyer, seller issues to buyer the title ownership of the product and export documents. 

11. Seller pays all intermediaries involved in the transaction and sends SPA to buyer for one year subsequently monthly shipment continue as per terms and conditions of the sales and purchase agreement contract between buyer and seller.