Standard CIF procedure

1. The buyer issues an ICPO + CP + copy of the buyer’s international passport (data page) to the seller.

2. The seller and buyer endorse the contract. The buyer issues an official letter of acceptance/readiness to the seller.

3. The seller provides the following PPOP documents to the buyer;
(A) seller irrevocable commitment to supply,
(B) statement of availability of product,
(C) certificate of origin,
(D) commercial invoice for the first value shipment,
(E) final & endorsed contract.

4. Seller makes arrangements for the chartered freight with a renowned shipping company for the transportation of the product to buyer’s designated discharge port, both seller and buyer sign the charter party agreement (CPA) together with the shipping company (a three-party CPA) this is applicable only for 1st month shipment. (Seller & buyer jointly pay CPA cost 50/50 via T/T wire transfer directly to the shipping company. The fee paid by buyer would later be deducted when buyer is paying for the total product cost.

5. Within 7 banking days upon receiving the above PPOP documents, buyer’s bank, in accordance to seller’s verbiage, sends irrevocable operative SBLC via MT760 to seller’s fiduciary bank covering one month (1) shipment value duration as guarantee of payment for the entire contract duration. Note: should buyer fail to issue payment instrument (MT760) within 7 banking days, buyer will make a deposit of 5% total value by T/T wire transfer, as allocation security guarantee to enable the allocation be retained in favor of the buyer and the affidavit of ownership be released to buyer.

6. Seller’s bank issues below POP documents to the buyer’s bank alongside with 2% performance bond (PB 2%) within 15 working days upon confirming buyer’s issued MT760: A. copy of license to export,
B. copy of approval to export,
C. copy of statement of availability of the product,
D. copy of the refinery commitment to produce the product,
E. copy of approved contract to transport the product to the loading port,
F. copy of the port storage agreement, G. copy of the charter party agreement to transport product to discharge port,
H. copy of vessel questionnaire 88,
I. copy of bill of lading,
J. SGS report at loading port,
K. dip test authorization (DTA) & ATB,
L. NOR/ETA,
M. certificate of ownership transfer,
N. allocation transaction passport code certificate (ATPCC) by ministry of energy.

7. All parties finalized the signing of the NCNDA/IMFPA. The buyer will be invited by the seller to witness the loading of the product (at buyers cost, maximum of five personals/representatives (optional).

8. Seller clears vessels from the commercial’s terminal (loading port), the buyer confirms shipping documents with ship master while seller effect delivery to buyer destination according to the contract schedule.

9. Upon the arrival of cargo at the discharge port, and after SGS/Q&Q at discharge port buyer’s bank release to seller’s bank payment by T/T/MT103 within 7 (seven) banking days. Seller release payment to all intermediaries as per signed NCNDA/IMFPA within 48 hours of receiving the payment for the product from the buyers bank.