CRUDE OIL (API 30.4)


Vessel Take Over Transaction Procedure for CRUDE OIL: 1. Buyer issues Irrevocable Corporate Purchase Order (ICPO) for the first spot shipment and monthly quantity, along with buyers company registration, signatorys passport copy, corporate profile, POF, and CIS. 2. Seller issues Sales and Purchase Agreement (SPA) for first spot plus monthly quantity. Buyer reviews, amends (if necessary), signs and returns the (Draft Contract) SPA in WORD format to Seller. Then Seller counter signstheSPA, andtheSPAisloggedwith relevant banks. 3. Buyer send his representative to the loading port to verify product and attend loading
4. With the presence of Buyers Representative, Seller will issue the SGS report and provide Buyers Representative with the SGS report for the product in the sellers tank, and the Commercial Invoice for the first shipment. 5. Within 3 Banking Days, Buyers pays 10% of the first shipments Value to the Seller via MT103 to the Sellers Bank account. 6. Seller starts loading the vessel, then Seller provides Buyer with the following POP documents: a) Vessels IMO. b) Certificate of origin. c) Vessel Q88. d) Copy of Bill of Loading with the Buyers name as a Consignee. e) UDTA with vessels coordinates. f) Authority to Board (ATB). g) (UATV) Unconditional Authority to verify all documents. h) Vessels Captain contact details (Name, Telephone, Email address). 6. Within 2 working days of receiving the above documents, Buyers will contact the vessels Captain and Shipping Company to verify all documents, then send the Inspector out to the vessel at Khor Al Zubair to execute CIQ, SGS or equivalent inspection to ascertain quality and quantity. 7.Within 2 Banking days of issuing the inspection report, Buyer makes payment with the remaining 90% of the shipment value via MT103/wire transfer for liftable quantity to Sellers designated Account. Then Seller endorses the BL to Buyer and Buyer takes over the vessel in KhorAl Zubair. 8.Within 5 Banking days of executing the first spot shipment, in accordance of the Sellers acceptable verbiage, Buyers Bank issues an Irrevocable, Transferable, and Confirmed SBLC with ONE shipments value as payment guarantee, with full bank responsibility via swift MT760to the sellers bank, and provides Seller with swift copy. 9.Second and succeeding shipments continue through repeating the same above steps for each shipment as per the signed contract