MAZUT Buyers Published date: May 29, 2015

We, XXXXXXXXXXXXXXXX, from xxxxxxxxxxx Represented by xxxxxxx hereby confirm, with full corporate legal responsibility that we are willing and ready to buy/purchase the product " Russian Mazut M100 GOST 10585-75 under the following terms and conditions, subject to the validity of this LOI.
ORIGIN: Russia
INSPECTION: SGS as seller’s Surveyor shall inspect the commodity at the port of loading, Same as discharge port. SGS shall issue an inspection certificate of the loaded quantity and quality for each shipment to certify that the goods are in good order and conditions and being conform to the specification herein stated as per signed contract.
LOADING PORT: Vladivostok Port, Russia.
TRIAL SHIPMENTS: 50,000 MT (+/- 5%) X 1 shipments.
CONTRACT SHIPMENT: 100,000 MT per month (+/- 5%) X 12 months with possible Rolls and Extension to three years.
SHIPMENTS: 50,000 MT as trial order with subsequent shipment 100,000 MT per shipment per month X 12 months with Rolls and Extension.
PERIOD OF CONTRACT: 12 months consecutives with R & O to three years.
PRICE: Ideal USD320.00 per MT Net CIF Huang Dao port, China.
FIRST TRIAL DELIVERY IN THE TERM OF: 15-20 days at load port.
VALIDILITY DATE OF LOI : Within 7 working days from date of Issued.
PERFORMANCE BOND : 2% PB TO BE ISSUED TO BUYER’S NOMINATING BANK AND ACTIVATE BUYER’S NON-OPERATIVE DOCUMENTARY LETTER OF CREDIT
PACKING: In Bulk/Loose or in Vessel’s tanks.

Specifications:
RUSSIAN MAZUT 100 GOST 10585-75.

Form of payment:
Payment by Telegraphic Transfer(T/T) covering basis worth commodity total monthly value for shipment to Seller’s nominating Bank and company against CIQ/SGS Certificates of quantity and quality at discharge port with term and condition as per signed agreement.

PROCEDURES:
1. BUYER sends ICPO to the SELLER.
2. SELLER sends FCO to the BUYER.
3. BUYER sign and return the FCO.
4. SELLER issue a draft contract opens for amendment.
5. BUYER sign and return the contract.
6. SELLER issues original contract for final signatory, both parties exchange hard copies of contract via Courier within five days of signing electronic version. Both parties lodge contracts in respective banks.
7. SELLER upon confirmation issues to BUYER the following Partial Proof of Product
(PPOP) below:
A. Certificate of origin
B. Certificate of quality
C. Certificate of analysis
D. Commercial invoice
E. Refinery affidavit letter. Via email open for BUYER verification.
8. Both Parties Lodge the Final Contract with their Respective Banks.Seller’s Bank issue swift free message to Buyer’s bank to inform that their bank is ready to receive Buyer’s Non operative Documentary Letter of Credit. Upon receiving seller’s bank swift free message, Buyer’s bank will issue Non Operative DLC (MT700) to Seller’s bank.
9. SELLER issue 2% Performance Bond valid for 60 days (for trial shipment) & 180 days(for contract shipments) face value of the DLC (MT700) to Buyer’s bank to activate buyer’s Non Operative Documentary Letter of Credit.
10. Seller and Buyer finalize shipment schedules with the shipping company and SELLER shall issue to Buyer’s bank the proof of product (POP) as followings:
a. Copy of the tank receipt issued by the storage facilitator.
b. Copy of license to export, issued by the ministry of energy.
c. Copy of approval to export, issued by the ministry of justice.
d. Copy of statement of availability of the product.
e. Copy of the refinery commitment ot produce the product.
f. Copy of Transneft contract to transport the Product to the Port.
g. Copy of the Port Storage agreement.
h. Copy of the charter party agreement(s) to transport the product to the discharge port.
i. Copy of tank storage receipts.
j. Copy of dip test authorization/Assignment of ownership document.

11. The SGS inspection will be borne by the Seller at the loading seaport and Buyer at the offloading seaport.
12. Shipment commences as per contract based on the agreed terms and conditions.
13. BUYER’s bank releases payment within 10 days via MT103/TT to SELLER’s bank after SGS/CIQ inspection, discharge of cargo and receipt of all relevant shipping documents for immediate negotiation at BUYER’s CIF destination sea port. Commissions will be released to intermediaries within 24 hours of Buyer’s payment confirmation as per signed SPA, NCNDA/IMFPA.

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