AGO SUPPLY IN WEST AFRICA
DISCOUNT : $390 LESS $10
$ 5 - SELLER SIDE CLOSED
$ 5 - BUYER SIDE FULLY OPEN
PROCEDURE: 300,000 METRIC TONS AGO-CIF. CAN SUPPLY UP TO 600,000 MT MONTHLY
1. Seller and Buyer sign contract. Buyer returns contract with details of his Tank Farm and NOR Format. Buyer specifies his delivery schedule and amount of Metric Tons per delivery. Seller issues sales invoice to Buyer.
2. Buyer blocks $15,000 (MT760) into Seller’s account for Cargo holding. Copy of Cargo documents is sent to Buyer via email. Seller will give Buyer 10 days from receipt of Cargo documents to issue a Revolving, Confirmable and Divisible Documentary Letter of Credit on Cargo.
3. Upon receipt of Buyer’s Letter of Credit, Seller bunkers Cargo to Buyer’s Tank Farm and vessel Captain issues MNOR to Buyer.
4. Upon arrival at Buyer’s Tank Farm, Buyer’s Inspectors board Seller’s vessel and conduct Quality and Quantity inspection.
5. After satisfactory Quality and Quantity report, Cargo is discharged into Buyer’s Tank. Buyer pays Seller via direct wire transfer MT103 and Seller hands over original Cargo documents to Buyer changed to Buyer’s name as owner of record.
If buyer fails to issue LC within 10 days. He loses his $15,000 for cargo holding.