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OUR GENERAL PROCEDURES |
I. Methods of Payment/Financial Instruments: RDLC
(transferable auto - Revolving Documentary Letter of Credit) |
1. Seller Mandate sends FCO to the Buyer
2. Buyer accepts FCO and returns with ICPO soft-probe or BCL to the Seller Mandate.
3. Seller Mandate provides draft contract by E-Mail to the Buyer.
4. Buyer verifies draft contract and adds his amendments, if necessary.
5. Buyers signs and seals the contract and return by protected E-Mail to the Seller.
6. Seller countersigns and seals the contract and dispatches to the Buyer in form of Fax
or E-Mail. Buyer issues 6 hard Copies of the Contract and sends them via FEDEX to Seller.
7. Seller will forward, within 48 hours, Soft POP receipts to Escrow account. Full POP documentation will be released to the buyer when the buyer puts up the non- operative L/C POF into the Escrow account.
8. Within 2 (two) banking days after confirmation, Buyer will send POF MT799 from Buyer’s bank to Escrow account or issues non- operative L/C on a bank-to-bank base.
9. The Seller send 2% Performance Bond („PB“) from the Seller’s bank to Buyer bank after receipt acceptable wording of MT 799 from Buyer’s Bank.
10. Buyers bank makes pre-advise RDL/C to become an operative Instrument as per the verbiage agreed between Seller and Buyer according to corresponding Annex to contract.
11. Within 7 (seven) days of receipt of the above referenced Letters of Credit from the Buyer’s Bank, the Seller’s Bank issues an operative performance bond equal to 2% of monthly shipment value, at the contract price. Seller shall provide satisfactory «P.O.P." (Proof of Product), which shall consists of the Good’s Producer confirming that the allocation of said product, and quantity is existing in the name of the Seller. “Transneft” ACT number documents with all relevant export permits / licenses by the department of authority, as bellow:
a) Copy of License to export issued by the Russian Ministry of Energy
b) Transfer Contract Hard Copy
c) Copy of Approval to export issued by the Russian Ministry of Justice
d) Copy of Statement of Availability of the Product, specifications as per Annex “A”. e) Copy of the producer commitment to produce the product
f) Copy of Charter Party Agreement(s) to transport the product to discharge ports Copy of the loading sea port Terminal agreement at the Buyer’s Bank acceptance.
12. Should any amendments to the Revolving Documentary L/C be requested, once the instruments has already been issued, then the party requesting the change will be responsible for the payment of the related costs, unless changes are needed to construct the instrument in compliance with The Agreement, then the costs shall be borne by the faulting party.
13. Schedule of Shipment will commence per mutually agreed schedule; Implementation of Contract with the Delivery of Product and payment of agreed Disbursements. Shipment will start according to conditions of Contract and according to agreed schedule. Payment will be released to the Seller’s Bank again shipping documents.
14. The Mandates, Brokers, Agents and Intermediaries are paid as per executed Agreements.
To accept this offer, please sign and seal this ACCEPT FORM so that procedures can be beginning.
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II. Methods of Payment/Financial Instruments: SBLC/SLC
( Stand By Letter of Credit)
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| A. Buyer sends an “Irrevocable Corporate Purchase Order (ICPO) with full banking information to Seller’s Mandate. |
| B. Seller in reply sends per E-mail FCO (Full Corporate Offer) to Buyer. |
| C. Buyer accept this Seller’s FCO with signature, seal and send it back to Seller’s mandate. |
| D. Seller sends per E-mail a draft contract to Buyer. |
Next actions as follows: |
1. Buyer/ Seller signs this draft contract per E-mail and Buyer sends 6 pre-signed contracts to the Seller and each party.
2. Buyer/Seller should both lodge the executed contract in their respective banks.
3. After signing of the electronic contract, Buyer has to send swift message (MT760-BCL) to Seller’s bank, with readiness of Buyer to provide MT760 (POF) to Seller in an amount equal to last-month’s shipment of Gas oil D2 and readiness to provide an irrevocable, auto-revolving, SBLC Letter of Credit payable 100% at sight against shipping documents to pay for each monthly shipment for the term of the agreement.
4. Seller arranges a table top meeting (TTM) to show the original POP documents to the buyer. After The Buyer issues a non opperative SBLC to the sellers bank, value of 0.000.000 MT of xxx oil at the contract price.
5. Seller, within 48 hours of receiving non-operative SBLC, delivers the non-operative 2% PB and full POP documents (Proof of Product) to buyer’s bank of the monthly shipment value of 0.000.000 MT of xxx oil at the contract price, to buyers bank.
6. Buyer’s bank issues an IRREVOCABLE, OPERATIVE AND TRANSFERABLE CONFIRMED SBLC (ICC458) for monthly payments, buyer issues revolving TT by SWIFT Wire MT103/23 after sighting of documents, except for the last month of shipment
7. Contract comes into force.
8. The Seller shall issue the first cargo delivery confirmation and date.
9. Shipment will start according to conditions of the contract and according to agreed schedule. Payment for each monthly shipment shall be by irrevocable, auto-revolving, confirmed SBLC Letter of Credit payable 100% at sight against shipping documents.
10. Each party hereto will bear its respective banking costs / charges.
12. The Verbiage of Bank Instrument (SBLC), and Performance Bond will be mutually agreed by both parties panel Bank, Any reasonable variations being acceptable.
To accept this offer, please sign and seal this ACCEPT FORM so that procedures can be beginning.
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III. Methods of Payment/Financial Instruments: BG ( irrevocable, operative and transferable assigned and confirmed Bank Guarantee (ICC458))
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| A. Buyer sends an “Irrevocable Corporate Purchase Order (ICPO) with full banking information to Seller’s Mandate. |
| B. Seller in reply sends per E-mail FCO (Full Corporate Offer) to Buyer. |
| C. Buyer accept this Seller’s FCO with signature, seal and send it back to Seller’s mandate. |
| D. Seller sends per E-mail a draft contract to Buyer. |
Next actions as follows: |
1. Buyer/ Seller signs this draft contract per E-mail and Buyer sends 6 pre-signed contracts to the Seller and each party.
2. Buyer/Seller should both lodge the executed contract in their respective banks.
3. After signing of the electronic contract, Buyer has to send swift message (MT760-BCL) to Seller’s bank, with readiness of Buyer to provide MT760 (POF) to Seller in an amount equal to last-month’s shipment of Gas oil D2 and readiness to provide an irrevocable, auto-revolving, SBLC Letter of Credit payable 100% at sight against shipping documents to pay for each monthly shipment for the term of the agreement.
4. Seller arranges a table top meeting (TTM) to show the original POP documents to the buyer. After The Buyer issues a non opperative SBLC to the sellers bank, value of 0.000.000 MT of xxx oil at the contract price.
5. Buyer’s bank issues the IRREVOCABLE, OPERATIVE AND TRANSFERABLE ASSIGNED AND CONFIRMED BANK GUARANTEE BG (ICC458) ISSUED BY A PRIME BANK, good for one year and one day, payable for last-month’s shipment, which activates the Performance Bond and causes Seller to provide complete POP documents to buyer’s bank.
6. Contract comes into force.
7. The Seller shall issue the first cargo delivery confirmation and date.
8. Shipment will start according to conditions of the contract and according to agreed schedule. Payment for each (monthly) shipment shall be ,T.T. payment by SWIFT Wire MT103/23 (or RDLC) payable 100% at sight against shipping documents.
9. Each party hereto will bear its respective banking costs / charges.
10. The Verbiage of Bank Instrument (BG), and Performance Bond will be mutually agreed by both parties panel Bank, any reasonable variations being acceptable.
To accept this offer, please sign and seal this ACCEPT FORM so that procedures can be beginning.
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CONFIRMATION OF PROOF OF PRODUCT AS BELOW:
- Copy of license to export, issued by the ministry of energy.
- Copy of approval to export, issued by the ministry of justice.
- Copy of statement of availability of the product.
- Copy of the refinery commitment to produce the product.
- Copy of Transneft or Tovalop/Pandi 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 port.
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| Moreover, Where brokers are involved, the NCNDA (Non-Circumvention and Non- Disclosure Agreement) and FPA (Fee Protection Agreement) will be required and signed by parties involved before steps A above. |
Commission (50%/50%)
- Buyer is responsible to pay commission each month for Buyer Side agents,
- Seller is responsible to pay commission each month for Seller Side agents,
till complete execution of the Contract.
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Banking Procedure for D2 SPOT ROTTERDAM :
Buyer accepts FCO signs and seals and sends back with ICPO and BCL. Upon receipt of this signed FCO and the ICPO Seller verifies the BCL and issues draft Sales and Purchase Agreement to Buyer.
1. Seller and Buyer sign Sales and Purchase Agreement and lodge a signed copy with their respective Banks.
2. Within 3 banking day, Buyer’s bank confirms by SWIFT MT-760 to Seller’s bank, Buyer’s financial capacity to perform as per terms and conditions of this Agreement. (Swift verbiage text sent to seller for approval in advance) – if Buyer’s Bank confirms payment, is verified bank to bank, and is accepted by Seller, then this step is omitted.)
3. Upon acceptance of Buyer’s bank confirmation, Seller provides to Buyer Confirmation of POP by swift from Seller’s bank.
4. Within 1 banking day, Buyer’s Bank issues Letter of Undertaking to pay 100% of the invoiced value of goods against presentation of full set of documents as stipulated in the Payment clause herein above.
5. Seller presents full set of documents at counters of Buyer’s Bank.
6. Upon receiving the ownership title and pertaining documents Buyer’s bank pays for 100 % of the value of the commodity by SWIFT wire transfer MT103 directly to the Seller’s designated bank account within 2 banking days.
7. Each party hereto will bear its respective banking costs / charges.
Note: This transaction could be closed in no longer in three (3) days.
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Banking Procedure for RUSSIAN AVIATION KEROSENE COLONIAL GRADE 54, JET FUEL JP 54-SPOT FOB EX - HOUSTON:
1. Buyer sends LOI.
2. Seller’s representative sends FCO.
3. Buyer signs and seals the FCO, returns within the valid day to confirm the deal and issues BCL (with the verbiage as given in Annex “A” of this offer, authorization letter to verify the BCL (all document has to be on seller's acceptable formats).
4. Seller issues draft contract to Buyer.IMFPA will be completed by both side representatives.
5. Buyer reviews, signs/seals the draft contract.
6. Seller returns the duly signed contact and provides transaction code. Seller and Buyer lodge the contracts to their bank respectively.
7. Seller’s bank will swift confirmation of POP to buyer’s bank after acceptance and verification of the BCL.
8. Within 5 banking days, Buyer’s bank issues conditional payment order MT103/23.
9. Seller presents full set of POP documents at counters of Buyer’s Bank.
10. Upon receiving the ownership title and pertaining documents Buyer’s bank pays for 100 % of the value of the commodity by SWIFT wire transfer (MT103) directly to the Seller’s designated bank account within 2 banking days.
11. Each party hereto will bear its respective banking costs / charges.
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| The Mandates, Brokers, Agents and Intermediaries are paid as per executed Agreements. |
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