In oil buying process we strictly adhere to our established procedures, which are neutral, transparent, and structured to prevent scams and fraud in the oil trade. Our processes are designed to ensure compliance, security, and fairness for all parties involved.

Step-by-Step CIF Transaction Procedure

A. Initial Offer & Documentation Exchange

1. Quotation Issuance
   • The seller/reseller provides a formal quotation, including seller or shipper’s company credentials, registration, and contact details, with an official seal, addressed to the buyer.
2. Seller Issues Full Corporate Offer (FCO)
   • The seller provides an FCO along with:
     • Signatory ID/Passport Copy
     • Complete CIS (Customer Information Sheet)
     • Government-issued Fuel Export License copy

B. Exchange of Agreements:

1. Buyer Issues letter of Intent (LOI) to Purchase
   • The buyer submits an Irrevocable Corporate Purchase Order (ICPO) along with:
     • Signatory ID/Passport Copy
     • CIS (Customer Information Sheet)
2. Seller Shares RECAP & Issues Pro-Forma Invoice and SPA:
   • The seller provides a RECAP summary.
   • The seller issues the Pro-Forma Invoice & Sales Purchase Agreement (SPA) for buyer review.

C. Commercial Invoice & Proof of Product (POP)

1. Commercial Invoice Agreement
   • Both the buyer and seller sign the Commercial Invoice (CI), which includes freight and insurance costs.
2. Provision of Proof of Product (POP)
   • The seller provides the following POP documents to verify product authenticity and readiness:
     • Authorization to Sell and Collect (ATSC)
     • Certificate of Origin and EUR1 Certificate
     • Product Passport (Quality Analysis)
     • Recent SGS Report
     • Injection and storage documentation at the loading port
     • Unconditional Dip Test Authorization (UDTA) at the loading port

D. Due Diligence & Payment Instrument Setup

1. Verification and Dip Test Scheduling
   • The buyer verifies documents within 2–3 business days.
   • The buyer arranges a Dip Test with SGS (or equivalent) at their own expense.
2. Offer to Purchase (OTP) Submission
   • The buyer issues an OTP containing:
     • Banking references
     • Company profile and registration details
     • Buyer’s passport copy
     • RWA Letter signed by two bank officers

E. SPA Execution & Financial Instrument Setup

1. Sales Purchase Agreement (SPA) Execution
   • Buyer and seller sign the SPA/Contract, including commission agreements.
   • Facilitator/agent commission details are appended and bank-registered.
2. Pre-Advice LC (MT 799) Issuance

• The buyer’s bank issues a Pre-Advice Letter of Credit (MT 799) to the seller’s bank, signaling intent to pay.

F. Shipment Preparation & Execution

1. Notice of Readiness (NOR)

• The seller’s vessel sends the Notice of Readiness (NOR) to the buyer’s port and all involved parties.

1. Irrevocable Letter of Credit (MT 700) Issuance

• The buyer’s bank issues an Irrevocable Documentary LC (MT 700) to the seller’s bank for payment guarantee.

1. Shipment & Documentation Submission

• Upon receipt of the LC swift, the seller’s vessel departs within 7 days.
• The seller sends shipping documents to the buyer’s bank, including:
  • Notarized receipt and shipping advice
  • Commercial invoice and Q&Q certificate
  • Charter Party Agreement (CPA) and Bills of Lading (BL)

G. Delivery & Final Inspection

1. Vessel Arrival & Final Q&Q Inspection

• The vessel arrives at the buyer’s port.
• The buyer conducts Q&Q inspection at their own expense.

H. Important Considerations

• Supplier Credentials: Ensure the supplier provides all necessary export schedules, terminal confirmations, and customs declarations.
• Risk Mitigation:
  • Verify CPA, ATL, and vessel Q88 details.
  • Use secure banking instruments to protect funds.
• Buyer Expenses: Buyers are responsible for inspection and verification costs (SGS and Q&Q).
• TSA Requirement: Buyer must have a valid TSA at the unloading port.