FOB DIP AND PAY SALES PROCEDURE
Task: Buyer issues ICPO or LOI.
Scope: The buyer initiates the sales process by submitting an Irrevocable Corporate Purchase Order (ICPO) or Letter of Intent (LOI) to the Seller Company, including their ID passport Copy and TSA.
Task: Seller issues an official sales commercial invoice.
Scope: The seller prepares and issues an official commercial invoice to the buyer, along with a representative ID passport copy.
Task: Buyer signs and returns the sales commercial invoice.
Scope: The buyer reviews and accepts the commercial invoice, signs it, and returns it to the seller along with an acceptance letter.
Task: Buyer obtains a terminal access code (TAC) from the port authority.
Scope: The buyer contacts the port authority to secure a terminal access code (TAC), which allows them to physically visit the port terminal for further activities.
Task: Buyer conducts a dip test.
Scope: The buyer visits the port terminal and conducts a dip test to verify the quality of the product.
Task: Seller issues full POP documents.
Scope: Upon successful completion of the dip test, the seller provides the buyer with a full set of Proof of Product (POP) documents, including TSR, injection report, product passport report, SGS report, and unconditional DTA.
Task: Buyer pays the complete product cost.
Scope: The buyer completes the transaction by making the payment for the entire product cost via SBLC-BG to the seller’s account.
FOB PROCEDURES: CI DIP&PAY PROCEDURES
Task: Buyer sends ICPO to Seller along with CP.
Scope: The buyer initiates the process by sending an Irrevocable Corporate Purchase Order (ICPO) to the seller, along with CP (Contractual Proposal).
Task: Seller issues CI (commercial invoice) to Buyer.
Scope: The seller prepares and sends a commercial invoice (CI) to the buyer.
Task: Buyer signs and returns the CI with an acceptance letter.
Scope: The buyer reviews and accepts the commercial invoice, signs it, and returns it to the seller with an acceptance letter.
Task: Seller sends PPOP LIST to Buyer.
Scope: The seller provides the buyer with a Partial Proof of Product (PPOP) list, which includes essential documents such as Fresh SGS REPORT, Export License, TSA, & Notice of Readiness.
Task: Buyer contacts Seller tank farm and signs TSA.
Scope: The buyer contacts the seller’s tank farm, signs a Tank Storage Agreement (TSA), and pays for 5 days of tank extensions.
Task: Seller issues DTA, Tank Storage Receipt, and Pre Injection Report.
Scope: The seller provides the buyer with a Dip Test Authorization (DTA), Tank Storage Receipt, and Pre Injection Report.
Task: Buyer conducts a dip test.
Scope: The buyer confirms readiness within 48 hours of receiving the Notice of Readiness (NOR) and conducts a dip
test.
Task: Seller issues Title of Ownership Certificate and export documentation.
Scope: Upon successful dip test results, the seller issues a Title of Ownership Certificate and all necessary export documentation.
Task: Buyer makes payment by MT103 T/T wire transfer.
Scope: The buyer completes the transaction by making payment via MT103 T/T wire transfer for the total product available.
FOB PROCEDURE
Task: Buyer issues an official ICPO.
Scope: The buyer initiates the process by issuing an official Irrevocable Corporate Purchase Order (ICPO).
Task: Seller issues a draft SPA and CI to the Buyer.
Scope: The seller prepares and sends a draft Sales and Purchase Agreement (SPA) and commercial invoice (CI) to the buyer.
Task: Buyer signs and returns the SPA and CI.
Scope: The buyer reviews and accepts the draft SPA and CI, signs them, and returns them to the seller.
Task: Seller issues full POP documents.
Scope: The seller provides the buyer with a full set of Proof of Product (POP) documents, including a certificate of origin, product passport, bill of lading, vessel notice, and cargo manifest.
Task: Buyer provides TSA and TSR.
Scope: The buyer submits its lease tank storage agreement (TSA) to the seller for confirmation and provides the tank storage receipt (TSR) after TSA approval.
Task: Buyer conducts a dip test.
Scope: The buyer conducts a dip test inspection to verify the product’s quality.
Task: Buyer makes payment by TT/MT103.
Scope: Upon successful dip test results, the buyer makes payment for the total product value via TT/MT103. Task: Seller transfers the title deed of product ownership.
Scope: The seller transfers the title deed of product ownership to the buyer.
Task: Seller pays intermediaries.
Scope: The seller ensures that all intermediaries involved in the transaction are paid accordingly within 72 hours.
CIF PROCEDURE
Task: Buyer confirms the Soft Offer and issues an official ICPO.
Scope: The buyer accepts the Soft Offer and formally issues an Irrevocable Corporate Purchase Order (ICPO).
Task: Seller issues a draft contract to the Buyer.
Scope: The seller prepares and sends a draft contract to the buyer.
Task: Buyer signs and returns the countersigned contract to Seller with a letter of acceptance.
Scope: The buyer reviews, accepts, and signs the contract, returning it to the seller along with a letter of acceptance.
Task: Seller reviews the signed contract and sends a copy to the Buyer.
Scope: The seller reviews the signed contract, and once accepted, sends a copy of the signed and sealed contract in PDF format to the buyer. Both parties lodge it with their respective banks.
Task: Seller releases Partial POP Documents to the Buyer.
Scope: The seller provides the buyer with a set of Partial Proof of Product (PPOP) documents, including Refinery Commitment to Supply, Certificate of Origin, Statement of availability of product, Product quality passport (Analysis test Report), and Allocation transaction product code certificate (ATPCC).
Task: Buyer issues BG or SBLC swift MT760.
Scope: The buyer issues a Bank Guarantee (BG) or Standby Letter of Credit (SBLC) via swift MT760, as specified in the contract terms.
Task: Seller signs the CPA with a shipping company and issues Full POP documents and 2% PB.
Scope: The seller signs the Charter Party Agreement (CPA) with a shipping company, issues the Full Proof of Product (POP) documents, and provides a 2% Performance Bond (PB) to the buyer’s bank.
Task: Shipment commences as per the contract schedule.
Scope: The agreed shipment process begins according to the terms and schedule outlined in the contract.
Task: Buyer releases full payment via MT103 after CIQ/SGS at the destination port.
Scope: Within three working days of vessel arrival at the destination port, the buyer releases full payment via MT103 after inspection by CIQ/SGS.
Task: Seller pays intermediaries.
Scope: The seller ensures that all intermediaries involved in the transaction are paid accordingly within 72 hours.