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Preferred Procedures1

1. The document outlines standard procedures for crude oil transactions between a buyer and seller, including the buyer issuing an international certificate of purchase (ICPO) and accepting the seller's procedures. 2. The seller then provides proof of product documents like a tank storage receipt and SGS report before the buyer conducts a dip test in the seller's tank. 3. Upon a successful dip test and product verification, the buyer makes full payment and lifts the product, while the seller pays any intermediaries.

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William Yang
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65 views3 pages

Preferred Procedures1

1. The document outlines standard procedures for crude oil transactions between a buyer and seller, including the buyer issuing an international certificate of purchase (ICPO) and accepting the seller's procedures. 2. The seller then provides proof of product documents like a tank storage receipt and SGS report before the buyer conducts a dip test in the seller's tank. 3. Upon a successful dip test and product verification, the buyer makes full payment and lifts the product, while the seller pays any intermediaries.

Uploaded by

William Yang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PREFERRED PROCEDURES

CI DIP AND PAY APPROVED STANDARD BANKING WORKING PROCEDURES ( A )

1. Buyer accepts seller working procedure and issue ICPO addressed to the seller /
refinery with Banking Details and Buyer Company Certificate Of Incorporation.
2. Seller issues commercial invoice. Buyer signs and returns back commercial invoice and
tank storage agreement.

3..SELLER provide buyer with the below listed PPOP

(A) Tank Storage Receipt (with Barcode) with GPS coordinate of where the tanks are
located.
(B) SGS REPORT. (Less Than 48 Hours At Rotterdam)
(C) Authorization To Sell. & Collect (ATSC)
(D) Uncond. DTA for buyer to dip test in seller`s tank.
(E) Authorization To Verify the product physically in the seller's tank (ATV)
(F) Irrevocable Commitment Letter to Supplier
(G) Injection Report (At Rotterdam)

4. Buyer conducts dip test in seller`s tank on Buyer`s expense and seller issue full POP to
buyer.

5. Upon successful dip test, Buyer makes payment by MT 103 or TT wire transfer for the total
product available within 24 / 48 hours.

6. Buyer lifts the product and Seller pays all the intermediaries involved in the transaction,
within 24 hours after confirmation of buyer's payment.

PREFERRED FOB TRANSACTION PROCEDURE ( B )

1. BUYER ISSUES ICPO WITH BANKING DETAILS UPON ACCEPTENCE OF SELLER`S PROCEDURES,
COMPANY PROFILE AND COMPANY REGISTRATION CERTIFICATE.

2. SELLER VERIFIES AND ISSUES COMMERCIAL NVOICE (CI) FOR AVAILABLE QUANTITY
IN STORAGE TANK TO THE BUYER

3.UPON RECEIVED OF THE SIGNED COMMERCIAL INVOICE


THE SELLER ISSUES THE BELOW POP DOCUMENTS AS TO ALLOW THE BUYER DIP TEST IN SELLER'S
EX-SHORE TANK:
a. DIP TEST AUTHORIZATION (DTA), UNCOND.
b. AUTHORIZATION TO SELL & COLLECT (ATSC).
c. TANK STORAGE RECEIPT (TSR), WITH BARCODE AND GPS COORDINATES

d. STATEMENT OF PRODUCT AVAILABILITY.


e. LETTER GUARANTEE – IRREVOCABLE COMMITMENT LETTER TO SUPPLY
f. ATV ( AUTHORITY TO VERIFY ) PRODUCT PHYSICALLY IN SELLER`S TANK

g. INJECTION REPORT

4.BUYER ORDERS SGS TO CONDUCT DIP TEST OF THE PRODUCT IN THE SELLER'S EX-SHORE
TANKS AT BUYERS EXPENSES WITHIN THE VALIDITY OF THE TANK STORAGE RECEIPT.

5. AFTER SUCCESSFUL DIP TEST BUYER PROVIDES LOGISTICS DETAILS EITHER THEIR VESSEL DETAILS
OR TANK STORAGE RECEIPT AS TO COMMENCE INJECTION OF PRODUCT.

6. UPON SUCCESSFUL RECEIVE OF SGS ANALYSIS REPORT OF THE PRODUCT


BUYER MAKES 100% PAYMENT BY MT 103 TT WIRE TRANSFER FOR THE TOTAL COST OF THE
PRODUCT AND SELLER AFTER TITLE TRANSFER PAYS COMMISSION TO ALL SELLER AND BUYER
INTERMEDIARIES INVOLVED IN THE TRANSACTION WITHIN 48 HOURS AFTER CONFIRMATION OF
THE BUYER’S PAYMENT.

7. SELLER ISSUES DRAFT SALES AND PURCHASE AGREEMENT TO BUYER TO REVIEW FOR ROLL
OVER AND EXTENSION MONTHLY OF DELIVERIES FOR ONE YEAR.

8. THE SUBSEQUENT DELIVERY SHALL COMMENCE ACCORDING TO THE TERMS AND CONDITIONS
OF THE SALES AND PURCHASE AGREEMENT, AND MANDATES INTERMEDIARIES RECEIVE
THEIR COMMISSIONS ACCORDING TO MONTHLY DELIVERIES

TRANSACTION AND PAYMENT PROCEDURES ( C )

1. The Buyer Issue ICPO, International Passport Copy (Data Page) to the Seller along with
the
Tank Storage Agreement (TSA).

2. The Seller issues Commercial Invoice for the available quantity in the Seller’s Storage Tank

3. The Buyer signs and returns the CI to the Seller.

4. The Seller issues the POP documents as below and send to the Buyer.

a. Certificate of Origin
b. DTA (Dip Test Authorization)
c. Fresh SGS (not older than 48 hours)
d. Tank Storage Receipt (TSR)
e. ATS –Authorization to Sell
f. Injection Report
g. Authorization to Verify (ATV).

5. The Buyer conducts Dip Test at their own expense in the Seller’s Reservoir and provide
TSR
to the Seller, to commence injection of product into the Buyer’s Vessel Tank.

6. Within Twenty-Four (24) hours, Buyer issues 100% MT103 or TT wire transfer payment to
the Seller. The Seller transfer the title ownership to the Buyer.

7. The Seller pays commission to all the intermediaries.

8. The Seller issues 12 Months Contract for the Buyer’s review and execution.
Please do not offer fakes.
Please do not request a signature from the tank farm, as everything has to be paid
for without proof of goods.
Nothing works without a qualified certificate of goods / valid SGS report, not older
than 48 hours.
Immersion test, SGS in the seller's tank or on the ship.
The TSR is then handed over.
The procedure must be followed exactly and must be reflected in the CI from the seller.
No additives are allowed and it will be handled exactly according to procedure.

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