VESSEL TANKER TAKEOVER (VTO) PROCEDURE

Incoterms: FOB 2020 FOB VTO
Product location: In Vessel tanks on high seas.
Mode of delivery: Vessel Tanker Take Over (VTO)
Price basis: Negotiable on PLATTS Asia-pacific/Arab Gulf market scan FOB VTO Fujairah/Jurong Gasoil 10 ppm (AFUJP00).
Inspection: SGS/Intertek/Saybolt-Corelab or equivalent at seller’s tank
Payment terms: By MT103 against verification of agreed POP documents.

VESSEL TANKER TAKEOVER  (VTO) TRANSACTION TERMS AND PROCEDURE:

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, Buyer accept the proforma invoice and sign the SPA.
4. Seller issue Commercial Invoice (CI) for the Buyer to review, sign, and return to the Seller within 24 hours .
5. Seller releases following full sets of POP Documentation:
– CPA copy ( Charter Party Agreement Copy)
– Contact Detail of the Shipping line who has booked the Vessel.
– Bill of Lading
– Cargo Manifest
– Certificate of Origin (COO)
– Product quality passport (Analysis test Report)
– Q&Q certificate with full report issued by SGS/Intertek/Saybolt – Corelab or Equivalent.
–  Vessel Q88.
– Ullage Report
– NOR.
– Time Log Sheet.
– Ship’s Tank Dry/Cleanliness Certificate.
– Master’s Receipt of sample & Documents.
–  Product release note.
– Seller’s Product Export License
– Seller’s company registration
– Custom Clearance documents from last port for shipping agent to verify
– Commitment to Supply.
– Commercial Invoice
– ATSC

6. Buyer verifies POP and request for DTA, ATB & Physical ATV from seller
7. Buyer conducts DIP TEST AT BUYER EXPENSES, and Seller submits Commercial invoice , certificate of origin (COO) and other papers to buyer’s bank including an affidavit to transfer titleholding after payment.
8. Buyer bank transfers payment within 72 hours and seller transfers titleholding to buyer.
9. Buyer parallelly completes Vessel tank takeover (VTO) paperwork with the shipping company.

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 vessel’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.

gks@ametheus.com