Contract Procedures

Contract Procedures

NON-NEGOTIABLE CONTRACT PROCEDURES – CIF

(No Advance / Pre-payment from buyer)

  1. Buyer Issue LOI / requirement, Seller issue FCO
  2. Buyer issue ICPO with bank details and KYC with PoF
  3. Seller issues Sales and Purchase Contract with SBLC/DLC verbiage for Buyer’s approval or amendments. After mutual agreement, Buyer and Seller sign and seal the Sales and Purchase Contract with full banking coordinate.
  4. Parties lodge final executed SPA with their respective bank officers
  5. Buyer’s bank will issue Pre-Advise (MT799) of DLC in 5 days as per agreed verbiage and ask for Seller’s bank consent for submission of 2% PB on the receipt of Operative DLC as per contract terms.
  6. DLC beneficiary’s bank will send their consent via return SWIFT for submission of 2% PB on the receipt of Operative DLC
  7. Buyer issue the Irrevocable, confirmed Operative financial instrument (DLC MT700) in 3 banking days.
  8. On the receipt of financial instrument, Seller issues the partial proof of product documents as follows to buyer via email:
    1. Commercial Invoice
    2. Statement of Product availability
    3. Commitment to Supply
    4. Draft Charter Party Agreement from Shipping company
  9. Seller issue Performance Bond Guarantee MT 760. No PB for SPOT orders.
  10. Upon the receipt of operative payment instrument, the Seller loads the vessel within 30 days.
  11. Seller’s bank will process the shipping documents
    1. Loading Port inspection for quality & quantity
    2. Country of Origin from Chamber
    3. Product Passport
    4. Ullage Report
    5. Non-Negotiable Copy of Bill of Lading
    6. Copy of Chatter party Agreement.
  12. One week before the arrival of vessel at buyer’s discharge port, buyer provides shore tank storage facility / Vessel coordinates and necessary requirements for lifting the product.
  13. Seller issues full Dip Test Authorization (DTA) to buyer for immediate proceeding of inspection by SGS at vassal on unloading terminal on the cost of buyer.
  14. Buyer arranges the SGS Inspection of product at destination port in 3 days and pays 100% for the goods delivered in 2 banking days via MT103.
  15. Seller issues the Authorization to Sale(ATS) and Transfers of Title Ownership to Buyer and starts product lifting into Buyer’s Tank at destination port OR in other Vassal under the supervision of SGS Agent. The product discharge operation and other charges i.e. Storage charges, Demurrages, Port charges, Clearance, Custom & other duties etc are under the cost and scope of buyer.
  16. Buyer may takeover of Seller’s vassal on actual cost for further transportation of Product to other destination with signing of new Chatter Party Agreement (CPA) with Shipping company on their own cost.
  17. Third party documents are acceptable except invoice.
  18. All expenses made with Buyer’s bank are for Buyer’s account, and all expenses made with Seller’s bank are for Seller’s account.
  19. Buyer will open the new financial instrument after the successful delivery of trial shipment in 7 days from the date of MT103 payment of trial shipment.