Warning:
Any changes or modifications to this procedure will cause an automatic rejection by the seller. Time is of the essence in this contract, as banking matters and the assigned allocation to the buyer are time-sensitive.
- Buyer Confirms Price Offer & Procedure:
The buyer confirms the price offer and procedure by issuing an official ICPO, along with a copy of the CEO’s passport and company registration, including a copy of the import license. Please provide an MT199 or MT799 for proof of funds (POF). - Seller Issues Draft Sales and Purchase Agreement (SPA):
The seller issues a draft SPA to the buyer within 7 days. - Buyer Returns Signed SPA:
The buyer returns the signed SPA. - Review and Legalization:
The seller reviews the signed contract, acknowledges it, and legalizes it through the relevant ministry. The cost of legalization is to be borne by the seller. - Release of Partial POP Documents:
The seller releases the following partial proof of product (POP) documents for the buyer’s confirmation:- Commitment to supply the product.
- Certificate of origin.
- Seller’s certificate of incorporation.
- Quality and quantity report.
- Statement of product availability.
- Release of Documents:
The seller releases the above-listed partial POP documents to the buyer. - Bank Instruction:
The buyer instructs their bank to issue a DLC-MT700 / SBLC-MT760 “transferable” to the seller’s nominated bank. - Swift Confirmation:
Within five (5) days, the buyer sends the agreed SWIFT to the seller’s nominated bank. The DLC-MT700 or SBLC-MT760 shall be activated only upon presentation of the specified documents and shall not be activated until the commodity is fully discharged at the destination port. - Contract Termination:
If the buyer fails to provide the MT700 or MT760 within 3 banking days, the contract will be terminated. - Document Confidentiality:
Within 72 hours of the DLC-MT700/SBLC-MT760 confirmation, the seller signs the CPA and releases the full POP for customs formalities and a 2% performance bond to the buyer. - Shipping Confirmation:
The seller clears vessels from the commercial terminal, and the buyer confirms shipping documents with the shipmaster while the seller delivers to the buyer’s destination according to the contract schedule. - Shipment Commencement:
Shipment commences as per the contract schedule. - Payment:
Upon arrival of the cargo at the discharge port and the conclusion of the inspection, the buyer’s bank releases payment to the seller’s bank via TT/MT103 within three (3) banking days.
This procedure applies to all types of petroleum products.
