1. Buyer issues Irrevocable Corporate Purchase Order (ICPO) with complete banking information, Company Profile, Company Registration, Copy of Import License, Copy of Buyer’s authorized signatory’s passport.
2. On receipt of the Buyer’s ICPO, Seller issues amendable draft Contract (SPA) in favor of the Buyer. Buyer signs and returns to Seller the signed SPA. The electronic signed by both parties is considered legally binding and enforceable.
3. Seller registers and legalizes the signed Sales and Purchase Agreement contract and then both parties will present legalized SPA to own banks within 48 hours.
4. Seller issues below Partial POP documents to Buyer as listed:
A. Product Certificate of origin;
B. Company Registration Certificate;
C. Copy of Commitment to Supply;
D. Product Quantity & Quality Passport (Analysis test report) according to GOST R;
E. Proforma Invoice for DLC MT700;
F. NCNDA/IMFPA.
5. Buyer verifies PPOP, and within seven to ten (7-10) banking days Buyer instruct its bank to issue via swift Operative Irrevocable DLC via MT700 (Top 20 rated bank) in accordance with Seller’s verbiage covering one month invoice value valid for the full period of contract (30 + 1 day | 90 + 1 day | 365 + 1 day).
6. At the confirmation of the above, Seller’s bank issues 2% PB to Buyer as a guarantee of monthly shipment alongside with the full POP/Shipping documents, customs formalities to Buyer’s Bank including the SGS based on International analytical report/Bill of lading, which include:
A. Copy of Export License (if applicable);
B. Copy of Approval to Export;
C. Copy of Certificate of Origin;
D. Vessel Questionnaire 88;
E. CPA – Charter Party Agreement;
F. SGS Quality and Quantity Certificate;
G. Bill of lading;
H. Tanker Ullage Receipt;
I. NOR & ETA;
J. Ship Master’s Receipt for Sample and Documents.
7. Ship arrives at destination port and Q&Q inspection is conducted by nominated inspection agency such as SGS or equivalent others on the goods and checks through Bill of Lading (BL) and Commercial Invoice. Upon satisfactory inspection report, the Buyer releases payment via MT103/TT to Seller’s bank (100% payable for each shipment) within (3) banking days.
8. Documents from shipping on board vessel. (To be issued after loading):
A. One full set of 3/3 Ocean Bill of Lading;
B. SGS Q/Q 2/2 at the port of loading;
C. Certificate of Origin;
D. Signed commercial invoice based on the delivered quantity and quality onboard vessel;
E. Cargo manifest 1 original;
F. Captain’s receipt of all documents of the shipped product 1/1.
9. After confirmation of receipt of payment, Seller shall instruct ship’s Captain to discharge cargo.
10. Seller sends the title of ownership document to Buyer and Seller pays all intermediaries’ commissions as per IMFPA within 72 hours of receipt of payment for shipment from Buyer.
NOTE: In Point 5 – (b) Should Buyer default to issue DLC MT700 with seven to ten (7-10) banking days, alternatively to proceed with the contract, Buyer shall be responsible for the total Charter fee and the Taxes incurred on the product to enable Seller proceed with product loading and commence shipment and release BL, SGS & complete POP.
Buyer willing to issue SBLC MT760 as payment instrument, Seller requires the Buyer issuing Bank’s Bank Comfort Letter (BCL) to be submitted for verification alongside the SPA contract prior to the issuance of SBLC MT760 to Seller’s nominated Banking information.