Storage Tank Title Take Over (ST-TTO) – Dip & Pay FOB 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 TITLE TAKE OVER (TTO-ST) FROM STORAGE TANK – 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 storage 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 storage 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 issued in name of Ametheus/Exit Buyer.
3. ATSC must clearly authorize the Buyer to sell and collect the product.

Diesel Trade Process with TTO-ST (Dip & Pay)

Color Key:
🟦 Seller Action | 🟩 Buyer Action | 🟨 Joint/3rd Party | ⚠️ Decision Point

1. Contract & Documentation Phase

flowchart LR
    A[🟦 Seller Issues: FCO + ID/Passport + Export License] --> B[🟩 Buyer Responds with ICPO + ID/CIS]
    B --> C[🟦 Seller Sends: RECAP, Pro-Forma Invoice, SPA]
    C --> D[🟦 Seller Provides POP Documents]
    D --> E[🟨 SGS/Intertek Verifies Q&Q]

Seller’s POP Checklist (Must Include):

• ✅ Fresh Q&Q Report (<48h old) with tank seals & numbers
• ✅ Valid TSR (Tank Storage Receipt)
• ✅ ATSC (Authorization to Sell/Collect) in buyer’s name
• ✅ Terminal Access Code (TAC) for buyer’s inspection

2. Tank Access & DIP Test

flowchart TD
    F[🟦 Seller Extends Tank Storage for 3 Days] --> G[⚠️ Buyer Pays Extension Cost if DIP Passes]
    G --> H[🟩 Buyer Conducts DIP Test within 48h]
    H -->|🟨 SGS/Intertek| I{Q&Q Matches Contract?}
    I -->|Yes| J[🟩 Proceed to Payment]
    I -->|No| K[🟦🟩 Dispute Resolution]

Critical Rules:

• Buyer must test within 48h of receiving TSR.
• Seller covers extension cost upfront; buyer reimburses only if test passes.

3. Payment & Title Transfer

flowchart LR
    J --> L[🟩 100% Payment via SWIFT MT]
    L --> M[🟦 Issues: Change of Ownership Certificate]
    M --> N[🟦 Product Allocation Certificate]
    N --> O[🟩 Lifts Product]
    O --> P[🟦 Pays Intermediaries in 48h]
    P --> Q[🟦🟩 Optional: Contract Extension]

Post-Payment Documents:

• 📜 Change of Ownership (Legal title transfer)
• 📜 Product Allocation (Buyer’s lifting rights)

Full Process Flow (Simplified)

flowchart TB
    subgraph Seller
        A --> C --> D --> F
    end
    subgraph Buyer
        B --> H --> L --> O
    end
    subgraph Verification
        E --> I
    end
    A --> B --> C --> D --> E --> F --> G --> H --> I --> J --> L --> M --> N --> O --> P --> Q

Key Notes for Both Parties

⚠️ Risk Mitigation:

• Buyer: Verify sealed tanks and ATSC in your name.
• Seller: Ensure Q&Q reports are current (<48h) to avoid disputes.