Buyer accepts the refinery’s quotation offer and after price settlement would issue a Purchase order with these procedures along with the buyer certificate of incorporation and company CIS.
1. Supplier issues the Sale and Purchase Agreement for signing by Buyer.
2. Buyer sends back the signed and sealed contract to the refinery.
3. The signed contract (hand signed or electronically signed) will be lodged with the respective banks and
Supplier sends documents to the Buyer:
A. Performa invoice to be signed by the buyer and returned with a letter of undertaken
B. Company Registration Certificate
B. Product passport (COA) C. Consignment note
D. Sample of the RWA and SBLC text, wordings and formats.
4. The Buyer’s Bank, within the 72 (Seventy Two) hours, issues the pre-advice (RWA) in the form of MT199/MT799/MT760 via SWIFT to the Refinery nominated fiduciary Bank with the agreed wordings and texts. The text of the SBLC to follow should state the validity for 12 months in the amount of the average monthly deliveries, with the price calculated according to agreed discount from the date of issuance of the Commercial Invoice. After the acceptance of the wordings, texts and formats, within 48hrs the Buyer’s Bank issues SBLC in the form of MT760 via SWIFT to the refinery nominated fiduciary Bank.
4.1, if buyer has not the capacity of issuing bank SWIFT MT199/MT799/MT760.Buyer will make a payment by TT.
5. Upon confirming 100% SBLC (MT760) or provisional payment By TT in the refinery’s nominated Bank,
Refinery provides the shipping information: O Details of the loading port
o loading schedule
O Details of the vessel and charter / NOR
O ETA (Estimated Date of Arrival) at the port of destination
6.1 Supplier makes shipment of Product in accordance with the delivery order/schedule and conditions of the contract.
7. Loading commences within 14 -21 days, after confirming buyer’s MT103 or SBLC, and Supplier hence will Forward the full shipping documents after compliance before sailing of the vessel to the buyers
Discharge port. The shipping documents limited to:
A) Copy of the beneficiary’s unpaid final Commercial Invoice, duly signed
B) Certificate of Quality issued by SGS, Intertek, Say bolt or equivalent C) Certificate of Quantity issued by SGS, Intertek, Say bolt or equivalent D) Full set of Bill of Lading (03 original copies)
E) Marine Insurance Certificate
F) Certificate of Origin
G) Cargo Manifest
8. Upon arrival of the product at buyers destination port, the buyer conducts Inspection of the product by SGS or similar at his expense, and Buyer transfers the full payment for the refinery’s commercial invoice by MT 103 with respect to Q/Q reports issued at the port of dispatch.
Supplier transfers title and ownership to the buyer.
9. Supplier pays commission to intermediaries as per IMFPA within three (3) banking days after confirming the remittance of full payment for the contract.
10. After successful delivery of the first monthly shipment of The Product, Buyer transfers the full amount of the shipment to maintain the Letter of Credit and contract continues for subsequent months.