Refinery Direct Procedures for Majors-Minors-Resellers

To start the process-
We would need to do a phone call with the refinery
Buyer's name or Business name Not Needed At This Point
This refinery will work with Majors, Minors, Resellers

What we need from the buyer first before the refinery gets on a phone call-
1) Types of fuel they are looking for
2) Amounts they are looking to buy
3) Spot, Contract (this refinery can do 12 month or 5 yr.contacts)
4) What port do you want it sent to
5) Prices you are looking for
6) No buyers information needed up front (CP KYC ICPO)
7) Only Buyer Rep and Buyer on the call (No Broker Chain)
8) Once buyer and seller principles agree on the phone call formal documentation will begin

Note: Other items can be discussed, example: Dip in Seller tank, storage or transportation method, site inspection etc.

see below for procedures



Procedure for FOB Deliveries

Documentary Process
1.  Buyer sends LOI or ICPO to Seller. Seller sends SCO to Buyer. Buyer signs SCO and reverts to Seller.

Note: we will always verify each LOI or ICPO with the buyer himself. There is no way that we address any SCO or FCO to intermediaries or agents or mandates.

2.  Seller sends FCO to Buyer and Buyer reverts the following documents properly filled out to Seller:
a.   Completed FCO with Buyer’s bank data, signed and sealed.
b.   Customer Information Sheet (CIS; template provided by Seller) on Buyer’s letterheads, containing also:
I.    Copy of Company Registration Certificate
II.   Passport copy of signatory
c.   RWA letter issued by Buyer's bank (template provided by Seller)
d.   Authorization to verify the RWA letter by our bank

Note: We may receive these documents in our protected company email. Intermediaries should not send or read them if not appropriate. We forward Buyer’s confidential papers to our bank only to get their ok to proceed with the Buyer. This shall protect us from non-performing parties. In case our bank declines this Buyer we will delete his documents on our servers and inform him accordingly.

3. Seller drafts Sales & Purchase Agreement (SPA) to be lodged in both banks. Seller and Buyer execute final contract. Seller sends final contract electronically in PDF format. An electronically executed final contract can stand as original.

Guarantee/Collateral Bank-to-Bank Process
4. Buyer’s bank sends MT799/Pre-Advice (verbiage provided by Seller’s Bank) to Seller’s bank and Buyer’s sends copy immediately to Seller’s company email address. After Seller has received the copy of the transferred SWIFT and forwarded to his bank, Seller’s bank opens communication with Buyer’s bank on basis of the lodged SPA to discuss all relevant items and documents for security on the deal for both banks (Buyer/Seller).

5. After successful mutual confirmation of the MT799/Pre-Advice between both banks Seller’s Bank confirms by SWIFT MT799 (or MT999) and Buyer’s bank sends SWIFT MT760/SBLC (verbiage provided by Seller’s Bank) about the amount for the first delivery to Seller’s bank within 3 banking days.

Delivery Loop
6. Within 72 hours (depending always on SGS availability!!) after confirmation of the instrument by Seller’s bank Seller issues SGS/POP/DTA in the name of the buyer at loading port and gives Authorization To Sell (ATS, only if required) to Buyer.

7. Buyer makes Dip Test at lading port and Seller loads vessel or fills the product into Buyer’s tanks or Buyer takes over Seller’s tanks.

Note: Seller issues on his cost all necessary documents in the name of the Buyer including a fresh SGS report. In case Buyer wants to make his own dip test, it will be on his cost.

8. Buyer pays with TT/wire transfer or MT103 at loading port against presentation of the shipping documents (Bill of Lading) within 2 (two) banking days after successful Dip Test of the Buyer.

9. Seller’s Bank transfers Titleholder to Buyer.

10. Transaction closed

The final procedure may contain variations of the above depending on the individual case. Details will be discussed and agreed between Buyer and Seller.



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