Storage Tank Take Over (TTO) – Dip & Pay FOB Procedure (#Subject to Availability#)

Incoterms: TTO FOB 2020
Delivery location: In storage tanks at loading port
Mode of delivery: Ex-Storage tanks at load port
Platts: Negotiable on PLATTS of NWE, Mediterranean, Arab Gulf (AG), Fujairah Platts, Singapore MOPS
Price basis: FOB TTO Fujairah (Fujairah Platts) / AG whichever is higher, Jurong (Singapore MOPS), Rotterdam (NWE Platts) minus agreed discount
Inspection: SGS / Intertek / Saybolt-Corelab or equivalent at Seller’s tank
Payment terms: By MT103 against verification of agreed POP documents and DIP test result
Offer: Subject to tank and product availability. Buyer must confirm availability and fix price with Seller before proceeding

PROCEDURE FOR TITLE TAKE OVER (TTO) FROM STORAGE TANK – Dip & Pay

1. Seller issues Firm Corporate Offer (FCO): Seller submits signed FCO including:
   • Signatory’s passport/ID copy (notarized).
   • Complete Company Information Sheet (CIS).
   • Government-issued Fuel Export License (valid, notarized copy).
2. Buyer issues Irrevocable Corporate Purchase Order (ICPO): Buyer countersigns FCO and submits:
   • ICPO with full banking coordinates.
   • Signatory’s passport/ID copy (notarized).
   • Complete Company Information Sheet (CIS).
   • Buyer’s Tank Farm Lease Agreement (TFLA) or readiness letter to lease tanks at same terminal.
3. Seller issues Commercial Documents:
   • Draft Sales Purchase Agreement (SPA) open for amendments.
   • Pro-Forma Invoice.
   • RECAP summarizing transaction terms.
4. Execution of SPA and Issuance of Full Proof of Product (POP): Upon mutual signing of SPA (electronic signatures acceptable if followed by hard copies within 3 banking days): Seller provides verifiable POP (all documents in Buyer’s corporate name and not older than 48 hours): a) Fresh SGS/Intertek/Saybolt-Corelab Q&Q Report stating:
   • Composite samples drawn by the inspection agency from named storage tanks.
   • Exact quantity assessed by agency in tanks.
   • Tanks sealed by agency; tank numbers & seal numbers indicated.
   • Report issued in Buyer’s name. b) Tank Storage Receipt (TSR) issued by terminal operator (not seller) with:
   • Tank numbers, seal numbers, product grade, exact volume (BBLs/MT).
   • Verifiable terminal contact details and online portal access code. c) Injection Report confirming product pumped into tanks (with pipeline/barge details). d) Certificate of Origin (non-sanctioned origin, notarized). e) Authorization to Sell & Collect (ATSC) in Buyer’s corporate name explicitly authorizing Buyer to take title, sell, and collect payment. f) Authorization to Verify (ATV) allowing Buyer’s inspectors terminal access. g) Terminal Access Code (TAC) and Dip Test Permission Letter in Buyer’s name.
5. Tank Extension & Dip Test Protocol (3 Banking Days – Cost Borne by Seller Initially):
   • Seller extends TSR validity for 3 banking days at own cost and re-issues TSR, TAC, and Dip Test Permission in Buyer’s name.
   • Buyer appoints SGS/Intertek/Saybolt-Corelab (at Buyer’s cost) to conduct independent dip test within 48 hours of receiving updated TSR/TAC.
   • Dip test mandatory; no payment until positive result.
   • If dip test fails, transaction terminates; Seller bears extension cost.
   • If dip test passes, Buyer reimburses Seller’s 3-day extension fee (invoiced separately, max USD 15,000) via same MT103.
6. Payment and Title Transfer:
   • Within 24 hours of receiving positive dip test report (in Buyer’s name), Buyer releases 100% payment via MT103 to Seller’s nominated bank.
   • Upon confirmation of funds, Seller simultaneously:
     • Transfers title via terminal operator.
     • Issues Change of Ownership Certificate.
     • Issues Product Allocation Certificate.
     • Provides updated TSR in Buyer’s name (unsealed).
7. Lifting and Commission Payment:
   • Buyer lifts product within 5 banking days of title transfer.
   • Seller pays all intermediaries within 48 hours of funds clearance via agreed NCNDA/IMFPA.
   • Parties may execute Roll-over & Extension for 12 months with mutual consent.

IMPORTANT NOTES (NON-NEGOTIABLE)

1. All POP documents must be:
   • Issued in Buyer’s corporate name (or End-Buyer if via Ametheus).
   • Not older than 48 hours at time of presentation.
   • Verifiable online via terminal/inspection agency portals.
2. ATSC must explicitly state:
   • “[Buyer’s Name] is authorized to take title, sell, and collect payment for the product in tanks [Nos.]”.
3. No advance fees except dip test (post-verified POP) and reimbursed extension (post-positive dip).
4. Transaction governed by ICC rules, English law, arbitration in London.
5. Any deviation from above renders offer null and void.

Buyer Credential Verification Policy

To ensure a secure and reliable transaction process, the financial capability of buyers intending to purchase fuels will be thoroughly verified.

• Individual Buyers: Credentials of the buyer must be provided for financial assessment.

• Joint Ventures (JV): If the buyer is importing fuels in partnership with another financially robust entity, both parties must submit their credentials for verification.

All provided information will be reviewed to confirm the buyer’s ability to fulfill the financial obligations of the purchase.

Indemnity Clause: In the oil procurement process, we strictly adhere to our established procedures, which are designed to be neutral, transparent, and structured to prevent scams and fraud in the oil trade. These processes ensure compliance, security, and fairness for all parties involved. Our procedures apply solely subject to the availability of the product.
Disclaimer : We hereby declare that we do not accept or source any fuel or petroleum products from Russia, Iran, or any other sanctioned country.

[email protected]