PROCEDURE- CIF CHINA
1. Seller signs and seals Sales & Purchase Agreement (SPA) and delivers it to the Buyer.
2. Buyer signs and seals SPA and returns to Buyer with Buyer’s Bank coordinates along with Product Inspection company / Representative and Buyer’s Shipping gent details for the Authorization to Board (ATB). The electronic versions of these documents become legally binding and are submitted to each party’s corresponding bank.
3. Buyers bank issues pre advise to sellers bank stating willing to place MT 760 SBLC covering the entire cost of the cargo (from top 50 banks) once received 2%PB (from Top 50 banks)
4. Sellers bank on receipt of buyers bank pre advise issues 2% PB to Buyers’s Bank for the value of the first delivery of two (2) million barrels.
5. Buyers bank on receipt of 2% PB automatically issues Standby Letter of Credit (SBLC) from Buyer’s Bank,
6. Seller nominates vessel using Seller’s Charter Party Agreement. Seller programs loading of product and provides all cargo shipping documents and Authorization to Sell (ATS) in Buyer’s Name to the Buyer. For the first shipment, the transaction can be a tanker take-over. Subsequent delivery will originate from the supply port.
7. Upon confirmation of each loaded vessel Seller instructs vessel to proceed to Port of Destination (POD), as specified by the Buyer.
8. Seller instructs Vessel Charter Company (Master Vessel) to contact Buyer’s Shipping Agent with notification of ETA and to prepare for POD product inspection and discharge.
9. Buyer’s Shipping Agent provides Port Clearance to Seller and Master Vessel and confirms product inspection plan and discharge.
10. Master Vessel establishes communications with Buyer and issues Marine NOR/Final ETA to Buyer and Buyer’s Shipping Agent. As instructed by Buyer’s Shipping Agent, Vessel proceeds to POD for product inspection (Q&Q).
11. Vessel arrives in POD.
12.Seller issues ATB to Buyer. Product Inspection Company uses ATB to board Vessel and conducts product inspection (Q&Q).
13. Q&Q results are sent to both Buyer and Seller. Upon written acceptance of Q&Q by the Buyer, Seller uses Q&Q to prepare Final Commercial Invoice (CI) based on Platts, Brent three day average around the day before, the day of and the day after the BL.
14. Master Vessel directs discharge of product to Buyer’s assigned storage tanks.
15. Buyer releases payment for product to the Sellers Bank as per the SPA by MT103 wire transfer(s) within 48 hours of receiving the CI.
16. Seller sends original cargo documents and title in Buyer’s name to Buyer’s bank once final payment has been received.
17. Commission to agents shall be paid by paymaster(bank officer) at the Seller's bank(the same bank to received SBLC), based on Fee Protection AGREEMENT.
18.Next shipment of 2 million barrels continues as per the SPA.
DISCOUNT: USD 10/6
SELLER SIDE CLOSED ,BUYER SIDE OPEN
GENUINE BUYERS TO REQUEST FOR SPA THROUGH LOI.
CONTACT EMAIL: firstname.lastname@example.org