FOB TTO – Dip & Pay Procedure

Incoterms: FOB 2020 Fujairah, Jurong, Rotterdam
Product location: In storage tanks at Fujairah, Jurong, Rotterdam
Mode of delivery: Ex-Storage tanks at load port- Fujairah, Jurong, Rotterdam (Tank to Vessel)
Price basis: Negotiable on PLATTS NWE/ Asia-pacific/Arab Gulf market scan FOB TTV
Inspection: SGS/Intertek/Saybolt-Corelab or equivalent at seller’s tank
Payment terms: By MT103 against verification of agreed POP documents.



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

1. Seller issue FCO with signatory ID/Passport Copy with full CIS and Government issued Fuel Export License copy.
2. Buyer issues ICPO + Signatory ID/Passport Copy+ CIS
3. Seller share the RECAP and issue Pro-Forma Invoice & SPA.
4. Seller issues POP documents, including but not limited to:
a) Fresh Q&Q report by SGS or Saybolt-Corelab or Intertek, which must be:
1) Current & Compliant (under 48 hours old)
2) State composite samples were drawn by the Inspection Agency from the shore tanks
3) Quantity in shore tanks was assessed by the Inspection Agency
4) The shore tanks are sealed by the Inspection Agency and, tank nos. & seal nos. are indicated on the Report.
b. Valid TSR (tank storage receipt) with actual verifiable data to identify the physical tank.
c. Injection report from the storage tank
d. Certificate of origin (non-sanctioned) and euro5 certificate
e. ATSC (authorization to sell & collect) in the name of the buyer
f. ATV (authorization to verify)
g. Terminal access code (tac)
5) As the buyer will not cover the cost for a 3-day tank extension or send SGS or Intertek for a dip test without valid verification of the product in the tank. So, seller’s team extends the tank for 3 days and obtain new TSR, terminal access and permit in buyer’s name to enable the buyer to conduct the dip test to have a fresh SGS. This three day extension cost will be paid by the buyer if Test result comes positive.
6) This dip test by the buyer should be done within 48 hours of receiving TSR.
7) After a successful dip test buyer make 100% product payment via swift MT and lift product.
8) Seller issue buyer CHANGE OF OWNERSHIP CERTIFICATE and PRODUCT ALLOCATION CERTIFICATE. All intermediary is paid within 48 hours and seller and buyer may roll and extend the contract for future business.

Important Notes:
1. Q&Q report must be current and prepared from either SGS, SAYBOLT or Intertek including composite sampling, sealed tank details, tank number and seal numbers. Last injection report when the product was injected to the seller’s tank.
2. Full Proof of Product (POP) and Fresh SGS must be in the Buyer’s name.
3. ATSC must clearly authorize the Buyer to sell and collect the product.