EN 590 10 PPM CIF PROCEDURE
COST INSURANCE FREIGHT PROCEDURES FOR SBLC AND DLC.
I. Buyer issues ICPO with a scan data page of the buyer's passport, company profile, bank credit letter and authorization to verify (BCL & ATV) Proof of Funds, and official letter of acceptance stating to adhere to the seller's transaction terms and procedure.
2. Upon approval of the buyer's ICPO, the seller issues the SPA contract to the buyer company, the buyer countersigns the SPA contract, and returns the signed SPA contract to the seller company. The seller registers the SPA contract with the legal authority and pays for the required government-associated fee for their service.
3. The seller issues a Proforma invoice containing seller verbiage to the buyer. Within 5 to 7 banking days, the buyer's bank issues a transferable (SBLC) SWIFT Operative Standby Letter of Credit via SWIFT MT760 or (DLC) Documentary Letter of Credit via SWIFT MT700 for the entire 1st shipment value and for the seller to lodge and activate a 2% PB in favor of the buyer. If the Seller fails to supply the cargo shipment of the product to the Buyer, this 2% performance bond will be paid/forfeited to the Buyer. Upon the confirmation of the buyers SBLC or DLC by the sellers bank. The seller company conveys the product to the loading port.
4. If the buyer fails to issue a transferable SBLC within 5 to 7 banking days, the buyer pays 5% as a guarantee performance bond, which will be deducted from the product value when the final payment is made.
5. The seller swiftly sent the buyer's bank or secured email the following pop/vessel documents. The vessel captain that will convey the product to the buyers discharge port will physically hand over the original copies of the listed pop documents to the end buyer.
* Statement of Availability of Product
* Commitment to Supply
* Product passport Analysis test Report
* Guarantee letter to supply the product or refund
* Seller Company Registration Certificate
* Product Allocation Transfer Confirmation
* Product Certificate of Origin
* SGS Report from the loading port
* Certificate Of Quantity And Quality (Endorsed By Loading Port Surveyor)
* Copy of license to export, issued by the department of the ministry of energy's.
* Certificate of Registry Copy of the BOL
* Vessel Q88
* Master'S Receipt Of Samples
* Vessel Registration certificate
* Ullage Report
* Cargo Manifest
* Copy to contract to transport the product to the port.
* Vessel ETA
* Copy of the charter party agreement(s) to transport the product to the discharge port.
6. Shipment commences as per the signed contract delivery schedule, and which is expected to arrive at Buyer's discharge port within 10-30 days which depends on the distance of the port. The SGS inspection will be borne by the Seller at the loading seaport and Buyer at the unloading seaport.
7. Buyer releases payment to Seller by TT/MT103 upon receipt of the shipping documents and confirmation of the Q&Q by SGS/CIQ at the destination port
NOTE
The ICPO must be in the buyer's letterhead with authorized signatory and stamp. It is mandatory that the document carries the buyer's bank and bank officer's contact information. The names and positions of the Company representative signing the ICPO must be clearly indicated. Otherwise, the document has no legal value; the documents must be fresh (recent date - the most 1-3 days old max.) The letterhead of the Company requesting the commodity must correspond to the Bank Account Holder on the banking information provided.
EN 590 10 PPM TTO PROCEDURE
TANK TAKEOVER NON-NEGOTIABLE PROCEDURE.
1. Buyer issues official ICPO with banking details and company registration certificate.
2. Seller issues MOU contract for both parties to sign within 24 hours, buyer signs and send back with guarantee letter to fulfill the contractual agreement.
3. Seller issue POP documents which were issued in the initial buyer company's name as listed below;
* Certificate of Origin.
* Guarantee letter to supply or refund
* Product quality passport (Analysis test Report)
* Bill of Lading.
* Freight Cargo Manifest
* NOR
* Vessel Q88
* Vessel ETA
* Ullage Report.
5. Upon buyer receipt of documents, buyer verifies the availability of the product on high sea and makes payment within 48 hours for the title takeover of the tanker/transaction guarantee for 5% of total product value and it will be deducted from the total product cost.
6. Upon seller's receipt ofthe title takeover payment, seller transfers the title to the potential buyer company's name and also re-issues all other outstanding documents to the potential buyer company's name and send via swift from seller's bank to buyer's bank to full prove the product.
7. Vessel arrives the discharge port and buyer carry out the CIQ/SGS inspection and upon a successful inspection, buyer makes the remaining payment by MT103 T/T for the 95% product value to the seller.