05/04/2024
STANDARD TRANSACTION PROCEDURE FOR CIF COST INSURANCE FREIGHT USING DEPOSIT LAW FIRM ESCROW ACCOUNT
1). Buyer issues ICPO with banking information
2). Seller issues SPA draft contract (open for amendments) to buyer for endorsement, ICC Warning Letter to be issued directly from the ICC also for endorsement by buyer and seller.
Upon receipt of signed SPA contract by both parties, seller forwards copy of contract to the nominated Escrow firm for review of the SPA contract and issuance of an agreement Escrow contract for all parties to review sign and return directly to the Escrow Firm.
3). Seller Issue:
• Commitment to supply
• statement of product availability.
• Analysis Report by GOST Standard.
• Certificate of Origin
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4). Upon receipt of the PPOP documents, buyer within 72 hours remits (5%) from the total worth of the product to the Escrow Firm as a security guarantee to enable seller charter the vessel, load the product to the vessel (this deposit to the Escrow firm will be deducted from the total cost of the product after inspection at the discharge port.
5). Upon confirmation from the Escrow Firm of buyer guarantee deposit, seller issues
• Copy of license to export, issued by the department of the Ministry of Energy.
• Copy of Approval to Export, issued by the Ministry of Justice.
• Copy of Fresh SGS Report.
• Copy of the refinery commitment to produce the product.
• Copy of contract to transport the product to the loading port.
• Copy of the port storage agreement.
• Copy of the charter party agreement to transport the product to discharge port.
• Copy of Vessel Questionnaire Q88.
• Copy of Bill of Lading.
• Dip test Authorization (DTA) & ATB
• NOR /ETA
• Certificate of Ownership Transfer.
• Allocation Transaction Passport Code Certificate (ATPCC) by Ministry of Energy. N. Seller will issue TSR upon successful verification of all documents
6). Shipment commences as per signed contract delivery schedule and the shipment should arrive at Buyer's discharge port within 5-25 days. The SGS inspection will be borne by the Seller at the loading seaport and Buyer at the unloading seaport.
7). Buyer releases payment to Seller by TT/MT103 upon receipt of shipping documents and confirmation of the Q&Q by SGS/CIQ at destination port.
8). Seller pays commission within 48 hours by swift MT103 to all intermediaries as signed NCNDA/IMPFA.
9). Further delivery shall follow, if necessary, by updating/confirming the term as written on the SPA.
