MAZUT Buyers Published date: April 22, 2015

7.1 The Banking transaction procedures are as follows:

7.2 Buyer issues Irrevocable Corporate Purchase Order (ICPO) along with guarantee Letter of acceptance to close deal according to procedures, and confirmation of Buyer Company before approval to supply product to Buyer Company.

7.3 Seller issue draft contract for buyer review and signing. (Contract opens for amendments if any)

7.4 Buyer counter signs and seals draft contract sends in word format via E – mail to seller (with amendments on contract if any). This means both parties have accepted SPA and will proceed.

7.5 Seller initials on the signing page and seals and returns the final draft contract direct to the buyer in PDF format and copies the intermediary. That means both parties have agreed and accepted the signed final contract and can proceed to the next step.

7.6 Seller and buyer will agree the Refinery will appoint a trusted Escrow service operating in HSBC Bank, Hongkong acceptable by all parties.

7.7 Buyer lodges cash performance bond of $500,000 (United States Dollars Five Hundred Thousand ) US dollars in the escrow account. Seller lodges cash performance bond of $500,000 (United States Dollars Five Hundred Thousand) US dollars in the same escrow account.

7.8 Seller submit the Partial POP to his bank; Company Certificate of Incorporation, Export License, Allocation certificate to Produce, Company Tax Payer Certificate, Invoice, SGS Report, Tank Receipt and Dip Test, then Seller’s bank swift to buyer’s bank the partial POP or POP confirmation via bank to bank swift.

7.9 Buyer bank received the partial POP/Confirmation, within three banking working days Seller to start arranging the first shipment.

7.10 Within seven working days Seller’s bank sends the full POP document to Buyer’s bank. As follow:

A. Bill of lading or Q88
B. Shipping Invoice/Charter Party Agreement
C. Insurance Policy
D. Certificate of Origin
E. Quantity and Quality from SGS Product Passport (Dip Test Result)
F. Shipment agent agreement letter, the original copies will be courier to the end buyer.

7.11 Delivery commence in accordance with the signed contract.
7.12 Upon product’s arrival at CIF buyer port, Buyer inspects the goods by CIQ/SGS with issuance of Quality and Quantity inspection Certificate and Buyer will make 100% payment by T/T wire swift MT103 within FIVE (5) working days and before Tank to Tank transfer in buyer destination port.
7.13 After completion of the first shipment Escrow agent refund both buyer and seller their various money back or revolving for the following shipments as per schedule in the contract.

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

• Company Name: Beijing Friendship Trading Company Ltd.

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