Why buyer need to endorse DTA #154
Buyers like to ask it no upfront, how to define it what is upfront.
for example, buyer need endorsement DTA with buyer tank.. do you think it is an upfront ?
This is not an upfront payment to the seller. What the buyer needs is endorsement of the DTA by their tank farm or logistics provider. You should first ask the buyer to request the endorsement from their tank operator and to explain why the tank operator will not endorse it free of charge.
In many cases tier 1 tank or good tank operator will endorse the DTA at no charge if the buyer is a verified client with a valid TSA or an established trade record at that tank. If the buyer has no prior trading history at the tank, a fee for the DTA endorsement is common.
From the seller perspective, if the buyer cannot obtain endorsement from their tank farm, it suggests the buyer lacks an established relationship or credit/trust with the tank operator. If the tank operator will not endorse, the seller may reasonably be reluctant to provide free POP and dip test.