FREE ON BOARD (FOB): TANK TO VESSEL (TTV) TRANSACTION PROCEDURE (NON-NEGOTIABLE)

PRODUCT                          :  DIESEL OIL spec EN 590 10 PPM

ORIGIN                                :  NONE SANCTION COUNTRY
MINIMUM QUANTITY      : 50,000 M.T.
CONTRACT PRICE:            : DISCOUNT FROM MOB SINGAPORE.
DELIVERY                           : FOB, TTV Jurong Port SINGAPORR.
INSPECTION:                     : Inspected  by SGS
PAYMENT TERMS:            : GARANTEE, DIP TEST, TT VIA SWIFT MT103

1. Buyer Issues ICPO addressed to Seller through Seller’s Mandate / Representative along with,

    • Buyer’s Company Registration Certificate
    • Buyer’s Charter Party Agreement (CPA)
    • Buyer’s Passport Copy
    • Latest Proof Of Funds
  1. Seller acknowledges Buyer’s ICPO and issues Commercial Invoice (CI) & ICC Warning Letter. Buyer signs and returns back the endorsed Commercial Invoice (CI) & ICC Warning Letter to Seller.

*** DUE-DILIGENCE BUYER’S DOCUMENT ***

IF SUCCESSFULLY GO TO STEP – 3

3. Seller provides Buyer with the below listed PPOP Documents:

    • Authorization to Sell and Collect (ATSC)
    • Dip Test Authorization (Unconditional DTA)
    • Allocation Transaction Passport Code Certificate – Issued by the Refinery.
    • Statement of Product Availability
    • Letter of Commitment to Supply
    • Tank Storage Receipt (TSR)
    • Authorization To Verify (ATV) the existence of product from the storage tank company via email or phone call.

4. Buyer verifies the PPOP Documents and feedback to Seller within 48 hours. Buyer has optional in carrying out Dip Test Inspection on the product inside Seller’s Storage Tanks via SGS / Saybolt at Buyer’s own expenses.

5. All relevant intermediaries / parties sign LETTER OF UNDERTAKING / NCNDA / IMFPA.

6. Upon successful Dip Test Inspection, Buyer provides POA Letter to Seller for utilising CPA (Optional); Q88; Authorization to Inject (ATI), as well as Injection Notice of Readiness (INOR) to Seller.

7. Buyer disburses FULL Payment within 48 hours via TT / MT103 Wire Transfer to Seller’s Nominated Bank Account, according to the Total Commercial Invoice Value of Product to be injected into Buyer’s Chartered Vessel.

8. Seller confirms receipt of FULL Payment for the Total Commercial Invoice Value of Product from Buyer. Seller transfers the Title Ownership, as well as all relevant Exporting Documents of the Product to Buyer. Likewise, Seller arranges and allows Buyer to commence the injection of product into Buyer’s Chartered Vessel. (FREE Storage Tank Extension is allowed ONLY 3 days for 100K MT and 5 days for 200K MT / 300K MT Injection Process respectively. Buyer shall pay the Tank Storage Extension Charges, if the Injection Process had exceeded the FREE period of days given).

9. Seller disburses commission to all intermediaries involved as per the executed LETTER OF UNDERTAKING / NCNDA / IMFPA for this successful transaction within 48 hours upon receipt of FULL Payment from Buyer. (All commissions paying to related intermediaries are subject to Withholding Tax excises by the country of Payer)

10. Seller and Buyer execute the signing of Sales & Purchase Agreement (SPA) for 12 months’ supply with R&E terms. The subsequent 12 months shipments shall be continually proceeding in accordance with the same Transaction Procedures as above stipulated.

Note:

Refinery / Seller holds the right to seek FULL cooperation from Buyer in facilitating any related original document verification / authentication processes may deem necessary from time to time required by Refinery / Seller. This is to ensure smooth and successful procurement transaction for the above.

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