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CIF TRANSACTION PROCEDURE
  • CIF TRANSACTION PROCEDURE
  • CIF TRANSACTION PROCEDURE

CIF TRANSACTION PROCEDURE

CIF TRANSACTION PROCEDURE

CIF TRANSACTION PROCEDURE 1 (SBLC Payment):
 
1.Buyer issues ICPO, along with Bank Coordinates, Corporate Certificate and the signatory’s passport copy to Seller.
 
2.Seller issues the Draft Sales Purchase Contract (Open for amendment). Buyer, upon amendment, returns the signed Contract. Seller bears the charges to Legalize the Contract within 3-4 working days and returns the legalized Contract to the buyer via email.
 
3.Buyer issues official letter of Acceptance/Acknowledging the legalized Contract; and Seller issues the below Partial Proof of Product (PPOP), such as:
·Tank Receipt For Immediate Lift Able Quantity (TSR)
·Copy of License To Export, Issued By The Department of The Ministry Of Energy
·Copy of Statement of Availability of The Product
·Copy of The Refinery Commitment To Supply The Product
·The Authorization to Verify Product Letter
·Dip Test Product Passport Analysis Report
·Charter party Agreement (CPA).
 
4.Buyer, on-receipt of above partial proof of product, issues MT760 (SBLC) Stand-By Letter Of Credit in the amount of the first trial quantity to the Seller's Bank within 10 days from date of PPOP receipt. Seller’s bank responds with 3 percent Performance Bond (3% PB).
 
NOTE: If Buyer fails to Issue MT760-SBLC within 10 Days from date of receipt of above PPOP, buyer will be task to pay 5% of the product value to the Seller OR Pay 50% Freight Estimated value to the Shipping Company to Jointly Charter Vessel with Seller Company (Buyer 50% freight fee will be deduct from Seller product after delivery and inspection at unloading port against final invoice).
 
5.Seller, on-receipt of bank (MT760-SBLC/5% Product Value/ 50% Freight Fee), arranges for the transportation of the product to the Buyer nominated port and releases the full Shipping documents, along Fresh SGS Report, to Buyer. Document to be included, such as:
 
Full POP documents the original copies are as below:
·Copy of License to Export, Issued By the Department of the Ministry of Energy.
·Copy of Approval to Export, Issued By the Department of the Ministry of Justice.
·Copy of Statement of Availability of the Product.
·Copy of the Refinery Commitment to the Product.
·Copy of the JSC AK TransNeft Contract to Transport the Product to the Port.
·Copy of the Port Storage Agreement.
·Copy of the Charter Party Agreement(S) To Transport the Product to Discharge.
·Copy of the Resource Certificate
·Copy of allocation Number.
·Certificate of Origin.
·Bill of Lading and Manifest (Buyer is the consignee)
·SGS reports of Quality and Quantity
·Vessel Q88
 
6.Upon arrival of the vessel at Buyer discharge port, Payment will be made for the product by the Buyer’s Bank via TT/ MT103 to the Seller’s Bank within Ten (10) working days, after the inspection by SGS/ CIQ /INTERTEK/CCIC/SAYBOLT at port of discharge by Buyer and the delivery to the Buyer’s Bank of all documents required. Seller issues to Buyer the Title of Ownership Certificate.
 
7.Seller pays commission immediately to the intermediaries, according to NCNDA/IMFPA after receipt of payments from Buyer. Both parties commence contract shipment as signed and sealed in the legalized contract.
 
 
CIF TRANSACTION PROCEDURE 2 (Freight Sharing):
 
1.Buyer issues ICPO, along with Bank Coordinates, Corporate Certificate and the signatory’s passport copy to Seller
 
2.Seller Draft Sales Purchase Contract (Open for amendment) Buyer upon amendment, returned signed Contract, Seller borne charges to Legalize the Contract within 3-4 working days and returned legalized Contract to the buyer via email.
*If Buyer preferred hard copy of legalized Contract (it will be done on special arrangement with the Seller legal department) but (Electronic Document Is Deem Valid) ETD.
 
3.Buyer on-receipt of legalized Contract and below Partial Proof of Product such as;
·Copy of License To Export, Issued By The Department of The Ministry Of Energy
·Copy of Statement of Availability of The Product
·Copy of The Refinery Commitment To Supply The Product
·The Authorization to Verify Product Letter
·Dip Test Product Passport Analytical Report
·Copy of the Charter Party Agreement (CPA)
·Tank Receipt For Immediate Lift Able Quantity (TSR)
 
4.Seller and buyer jointly sign the charter party agreement (CPA) with the shipping company, as the consignee to be shown on the bill of lading to whom the shipping is consigned (shipping cost shall be paid by seller and buyer) as guarantee of interest.
 
5.Shipping company confirms receipt of payment and commences loading of the product into the vessel. Seller release the full Shipping documents along Fresh SGS Report to Buyer, document to be include such as;
 
·Copy of License to Export, Issued By the Department of the Ministry of Energy.
·Copy of Approval to Export, Issued By the Department of the Ministry of Justice.
·Copy of Statement of Availability of the Product.
·Copy of the Refinery Commitment to the Product.
·Copy of the JSC AK TransNeft Contract to Transport the Product to the Port.
·Copy of the Port Storage Agreement.
·Copy of the Charter Party Agreement(S) To Transport the Product to Discharge.
·Copy of the Resource Certificate
·Copy of allocation Number.
·Certificate of Origin.
·Bill of Lading and Manifest (Buyer is the consignee)
 
·SGS reports of Quality and Quantity
·Vessel Q88
 
6.Upon arrival of the vessel at Buyer discharge port, Payment will be made for the product by the Buyer’s Bank via TT/ MT103 to the Seller’s Bank within five (5) working days, after the inspection by SGS/ CIQ /INTERTEK/CCIC/SAYBOLT at port of discharge by Buyer and the delivery to the Buyer’s Bank of all documents required, and Seller issues to Buyer Title of Ownership Certificate.
 
7.Seller pay commission immediately to the intermediaries, according to NCNDA/IMFPA. After receipt of payments from Buyer, both parties commence contract shipment as signed and sealed in the legalized contract.

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