MAZUT Buyers Published date: January 20, 2015 Modified date: January 20, 2015

Below is our ideal procedure. If you can offer with the same procedure, you are welcome.

CIF Procedure

1. Buyer sends ICPO to the Seller according to this format with a separate letter for soft probe Authorization.

2. Soft Probe Authorization on the Buyer’s account will be done by seller’s bank in 5 -7 International Business banking days. If the soft probe of the bank result is negative the buyer will be black listed and will not be considered for business again with the seller in future.

3. Seller sends FCO along with IMFPA/NCNDA to the Buyer then the Buyer signs and returns it to the Seller.

4. Seller provides two copies of the DRAFT Sales and Purchase Agreement (SPA) for amendments. The Buyer signs and returns with a copy to the seller. The Bank officer of Buyer and Sellers on behalf of their client to confirm each parties ability to complete the transaction after the SPA registration at the representative Bank or with Appropriate Ministries in-charge. The SPA has to be legalized and Notarized by both parties, along with passport copies.

5. The Sellers bank should send the 2% non-active Performance Bond (PB) corresponding to the value of product to be lifted AS FIRST TRIAL by Buyer to the Buyer’s bank via swift within 5 banking days after the contract is signed and lodged to the respective banks.

6. After the non operative PB is received by buyer’s bank, the Buyer’s Bank issues MT799(BLOCKED FUND) corresponding to the FIRST TRIAL LIFT VALUE in favor of the Seller by telex (SWIFT) within 72 hours and activate the Performance Bond. In the event that Seller’s bank didn’t receive buyer’s payment instrument(MT799) within 5-7 banking days after issuance of PB, Buyer will be penalized for 2% of the total value for 1 shipment which will be paid to seller and contract is automatically cancel and void.

7. Within 5 banking days after receiving the buyer’s MT799, the seller’s bank issues full POP documents to the buyer’s bank by SWIFT bank to bank transmission.

8. Shipping documents in name of the Buyer shall be sent to the Buyer within 3 working days after the Loading. The Seller should notify the buyer of the shipment, including the documents required on goods, SGS inspection report, certified documents signed by the master and the certificated documents about the goods shall be delivered to the buyer through the Bank.

The Sellers bank shall post Full POP documents listed below to the Buyer;
(a) Copy of License to Export, Issued By the Department of the Ministry Of Energy.
(b) Copy of Approval to Export, Issued By the Department of the Ministry Of Justice.
(c) Copy of Statement of Availability of the Product.
(d) Copy of the Refinery Commitment to Produce the Product.
(e) Copy of the Ojsc AK Transnet Contract to Transport the Product To The Port.
(f) Copy of the Port Storage Agreement.
(g) Copy of the Charter Party Agreement(S) in name of the SELLER, To Transport the Product to Discharge Port.
(h) SGS report, along with shipping documents from the shipping company.

9. Delivery commences as per contract schedule and the shipment should arrive at Buyer designated discharge port within 30 days after buyer payment instrument receiving by Seller’s bank.

10. On cargo’s arrival and upon SGS, quality and quantity inspection and issuance of quality and quantity Inspection certificates and receipt of all the relevant shipping documents at Buyer’s discharge port, 100% payment is release by Buyer’s Bank to Seller’s Bank within five (5) banking days via TT wire swift MT103. Seller’s appointed paymaster pay all the agents involved accordingly to IMFPA signed, within 72 hours after payment via MT103/TT is received from Buyer’s Bank.

All banking charges from the Buyer’s bank shall be borne by the buyer and all banking charges incurred by the Seller at Seller’s bank shall borne by the Seller.
Should any amendments to the Payment draft be requested once the same had been issued, then the party requesting the change will be responsible for the payment of the related costs, unless changes are needed to construct the instruments in compliance with the contract, then the costs shall be borne by the faulting party.

Buyer will not pay any fee upfront and other payments under working procedures, whether courier fee or registration fee or legalized documents fee, except normal issuance fee for MT799 as payment item.

Also not accept shipment with bunkering or stopover at any Malaysia and Singapore ports. If vessel bunker or stopover at any above ports, buyer will reject or refuse to receive the goods. Only accept shipment direct from loading port.

• Country: China

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