Buyer issues ICPO with the following: banking details, company profile and government ID copy.
Seller issues Sale & Purchase Agreement (S.P.A). Buyer reviews, amends (if necessary), signs, and returns the S.P.A to Seller within three (3) banking days along with buyer’s Customer Information Sheet (CIS) and stating the exact bank issuing the Financial Instrument. Seller sends Final Approved S.P.A to Buyer along with the Proforma Invoice.
Seller makes the final copy of the S.P.A, notarizes the final copy, and sends the final approved copy to the Buyer.
The Buyer sends MT705 (RWA)/MT799 pre-advice to the Seller’s designated Bank within Five (5) banking days of signing the S.P.A.
Seller issues the following Partial POP documents to the Buyer:
Certificate of Origin.
Proof of Ownership.
Statement of availability of product.
Refinery Commitment to Supply (Refinery Allocation Certificate).
Product Quality Passport Certificate.
Seller fiduciary bank details, CIS and Verbiage.
Buyer’s bank issues an Irrevocable, Transferable, Confirmed SBLC MT760/DLC MT700 from a prime top 25 bank for one-month product value valid for a period of one-year (extended up to Two Years) within Seven (7) banking days of receiving the Partial POP to Seller’s designated bank.
Upon successful exchange of payment guarantee instrument of Seller’s bank with Buyer’s bank, Seller sends POP documents to Buyer’s bank via bank to bank swift and a copy via email to the Buyer.
POP Documents:
Certificate of Origin.
Original Bill of Lading.
Charter party agreement (CPA) to transport the product to discharge port.
ATB- Authority to Board.
Copy of Vessel Questionnaire 88.
SGS Report at Loading port.
Packing List.
Upon successful exchange of Buyer’s payment guarantee (SBLC/DLC), Seller finalizes loading of product.
Shipment commences as scheduled in the contract and upon arrival of the cargo at the discharge port, Buyer’s inspection team carries out SGS or equivalent inspection to ascertain quality and quantity.
After successful inspection, Buyer’s bank releases payment for total value of the product to Seller’s designated bank via TT/ MT 103. Seller transfers the title of the product to the Buyer.
Second and succeeding shipments continue as scheduled in the Contract.
All intermediaries are paid within three (3) to five (5) working days on successful completion of the shipment and payment clearance.
