Jet Fuel

PRODUCT : AVIATION KEROSENE JET A1 SPOT : 1,000,000 ~ 2,000,000 BBL CONTRACT : 5,000,000 BBL / MONTH WITH R&E FOB : ROTTERDAM / HOUSTON CIF : ASWP PRICE FIXED : $38 / $36 PRICE PLATTS : $12 / $10 COMMISSION : 50% Seller Side (CLOSED) – 50% BUYER SIDE (OPEN)  

FOB DIP & PAY

1. Buyer provides: o ICPO o Company registration certificate o Scanned Passport Copy of CEO. 

2. Seller issues CI and Draft contract for buyer’s review and countersign. (Commercial Invoice must be signed and countersigned by both sides with a LIVE STAMP, unless shall be rejected).

 3. Upon receipt of: o Countersigned CI o Draft Contract o Tank Storage Agreement (TSA) document; Buyer issues Tank Storage Agreement (TSA) with a minimum lease of 5 days to seller for verification.

 4. Upon final approval of buyer's Tank Storage Agreement (TSA) by seller; Buyer issues a CONFIRMATION LETTER on buyer's letterhead (to be notarized by buyer's country public notary) Confirming their readiness to proceed with their nominated tank farm facility. 

5. Buyer contact their tank farm to secure the INVOICE COPY for seller to pay for two (2) days. In addition, buyer within 72 hours should pay for rest of the days stipulated in their Tank Storage Agreement (TSA).

 6. Upon CONFIRMATION OF PAYMENT from buyer/seller side by BUYER'S NOMINATED TANK FARM; Seller issues the following Proof of Product documents to buyer o Product Passport o Commitment to Supply o Certificate of Origin o Statement of Product Availability o Letter of Affirmation o Affidavit issued by the ministry of justice o Authority to Sell and Collect (ASTC) o Injection report o Tank Storage Receipt o Société Générale De Surveillance (SGS) o Dip Test Authorization (DTA) 

7. Buyer provides Tank Storage Receipt (TSR) from his tank farm and Authorization to verify (ATV). 

8. Seller issues to buyer the Dip Test Authorization (DTA) document. 

9. Upon successful Dip Test, buyer makes payment by MT103 or TT wire transfer for the total product available and seller change Title to buyer’s name. 

10. Buyer lifts the product and Seller Pays all intermediaries involved in the Transaction. 11. Contract supply can then be negotiated on CIF basis or ASWP  

CIF PROCEDURE 

1. SELLER ISSUES SOFT CORPORATE OFFER (SCO) FOR BUYER’S CONFIRMATION SIGN/SEAL AND RETURNS TO SELLER ALONG WITH BUYER’S IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO) 

2. SELLER ISSUES (DRAFT CONTRACT) FOR BUYER’S PREVIEW, FILLS HIS BANKING INFORMATION, AND AMENDMENTS IF NECESSARY AND RETURNS TO SELLER COMPANY, SELLER ENDORSES THE (S.P.A) WITH THE APPROPRIATE AUTHORITY AND REFINERY REGISTERS HARDCOPIES AND ISSUES COMMITMENT TO SUPPLY THE COMMODITY. 

3. SELLER COMPANY ISSUES THE PARTIAL PROOF OF PRODUCT {PPOP}: a. STATEMENT OF PRODUCT AVAILABILITY b. CERTIFICATE OF ORIGIN (IN SELLER’S NAME) c. SELLER INCORPORATION CERTIFICATE d. PRODUCT PASSPORT (DIP-TEST RESULT)

 4. UPON SATISFACTION TO THE SAID, PARTIAL PROOF OF PRODUCT DOCUMENTS, SELLER–BUYER LODGE THE FINAL CONTRACT WITH THEIR RESPECTIVE BANKS.

 5. SELLER ISSUES ATTESTATION LETTER OF ACT OF TRANSFER TO BUYER. BUYER COUNTERSIGN AND RETURNS TO SELLER FOR FINAL ENDORSEMENT-NOTARIZATION.

 6. BUYER’S BANK WITHIN (5) BANKING DAYS, ISSUES STAND BY LETTER OF CREDIT (SBLC) MT760 THAT HAS TO BE ISSUE BY TOP FIFTY WORLD BANK, FOR THE FIRST CARGO AND STAND BY LETTER OF CREDIT (SBLC MT760) FOR ROLL OF EXTENSION (ROE).

 7. UPON RECEIPT OF THE BUYER ISSUED INSTRUMENT, SELLER’S BANK ISSUES FULL PROOF OF PRODUCT (POP DOCUMENTS IN BUYER’S NAME) BELOW TO BUYER BANK. a. COPY OF PRODUCTS CERTIFICATE OF ORIGIN b. COPY OF STATEMENT OF AVAILABILITY OF THE PRODUCT c. COPY OF COMMITMENT TO SUPPLY d. COPY OF EXPORT LICENSE CERTIFICATE e. COPY OF CPA TO TRANSPORT THE PRODUCT TO THE PORT f. COPY OF PORT STORAGE AGREEMENT g. COPY OF THE VESSEL QUESTIONNAIRE88 h. COPY OF THE CHARTER PARTY AGREEMENT WITH THE SHIPPING COMPANY i. FRESH CUT SGS REPORT / DIP TEST LETTER NOTE:  NO 2%PB FOR FIRST TRIAL SHIPMENT  HOWEVER, IF BUYER ALREADY COMMENCED WITH FOB SPOT, THEN REFINERY WILL ISSUE 2% PERFORMANCE BOND FOR FIRST CIF SHIPMENT.

 8. SHIPMENT COMMENCE AS PER SCHEDULE

 9. BUYER PAYS VIA (MT103) TT WIRE TRANSFER UPON THE ARRIVAL OF THE CARGO AND AFTER INSPECTION SGS OR CIQ AT DISCHARGE PORT. 

10.SELLER WILL RELEASE PAYMENTS TO THE INTERMEDIARIES INVOLVED WITHIN72 HOURS OF RECEIVING THE PAYMENT FOR THE PRODUCT FROM THE BUYER’S BANK.  

Frank