POP (Proof of Product)
The basic set of documents that actually proves oil and petroleum products exist — and the checks to run before any money leaves the account.
Field report for buyers, mandates and trading desks. FOB and CIF. A practical article for publication — not a legal opinion. Procedures vary by port and contract.
1. Why POP is not optional
In international wholesale trade — including crude and refined petroleum products — cargo moves across ports, tanks, ships and companies that the buyer never sees. The only working proof that a lot exists, is titled correctly, and can clear customs is a set of documents issued by people other than the seller.
That set is what the market calls POP — Proof of Product. It has two jobs. First, it is the paper trail destination customs will require. Second, and earlier, it is the filter that stops a buyer wiring money against a story.
Fraud in this market is rarely theatrical. It is a PDF that looks finished: a tank receipt on the wrong letterhead, an SGS report the laboratory will not recognise, a bill of lading for a ship that AIS shows in another ocean. The defence is not more enthusiasm. It is a short list of papers that third parties will confirm on a published telephone line.
2. What “send POP” actually means
There is no single official form called POP. When a desk says “provide POP,” they mean: send the certification pack for this lot. The pack confirms three things only:
- The product is physically in a named tank or on a named ship, in the stated volume and specification.
- The person offering it is the titleholder, or holds a written authority from the titleholder of that exact lot.
- Customs and the discharge port can process the cargo.
A seller’s commitment letter, an “allocation” letter, or a scan of someone else’s tank receipt does none of those jobs until an independent issuer repeats the facts.
| WORKING DEFINITION
POP is not a PDF bundle that looks official. It is a set of statements that named third parties — terminal, inspector, carrier, chamber of commerce — will repeat back to you from their own records. |
3. FOB pack vs CIF pack
Every deal is different. Incoterms, load port, discharge port and the SPA decide the exact list. In practice the market still splits into two working packages.
| Package | When it applies | What extra paper it must contain |
| FOB | You buy inside the load port or tank farm. No ocean freight in the price. Title usually passes at the tank or the ship’s manifold. | Port and tank-farm paper: tank storage receipt, injection report, authorisation to verify, dip-test authority, fresh tank Q&Q. |
| CIF / CFR | Seller delivers to the buyer’s discharge port. Freight, and on CIF insurance, sit in the price. | Ocean paper: bill of lading, Q88, cargo manifest, ETA, NOR, authority to board, load-port and discharge Q&Q. |
Keep two folders on every file. Folder A is relationship paper: LOI, ICPO, FCO, SPA, invoice, payment instrument, KYC. Folder B is product POP. A signed ICPO does not replace a missing tank confirmation.
4. PPOP first, full POP later
Suppliers often will not release a full pack on first contact. That is not automatically fraud. Titleholders have a real problem: some “buyers” shop tank numbers, B/L numbers and SGS reports around the broker market. The working compromise is two stages.
| Stage | What you receive | What you give in return |
| PPOP — Partial Proof of Product | A short list agreed in writing. Enough to show the lot is real. Must include at least one item an independent party can confirm the same day. | Nothing that costs money. Company profile and, if you choose, ICPO or LOI. No deposit. No tank-lease fee. No procedure fee. |
| POP — full pack | The complete set for that lot. After this, new surprise documents should not appear as a condition of performance. | Only after PPOP checks out: SPA, the agreed instrument, inspection booked in the buyer’s name. |
The common fraud inverts the sequence. The seller sends a partial pack made of letters nobody else can confirm, then asks for an advance against paper that “looks good.”
5. The money rule
| DO NOT START SPENDING
Do not pay a deposit, SPA fee, tank lease, NCNDA fee, allocation fee, or inspection fee to the seller until the partial POP contains at least one document that an independent third party can confirm today. That third party is SGS or another major inspector, the port or tank farm, the carrier or load-port agent, or the chamber of commerce — not the seller’s own letterhead. A letter of guarantee from the seller tells you only that the seller can produce a letter. If the intention is to cheat, the letterhead will be as polished as required. |
| MINIMUM VERIFIABLE PPOP
FOB: terminal-issued tank storage receipt, injection report, Q&Q not older than 72 hours with the tank number, and an ATV that names the terminal. CIF, cargo already loaded: bill of lading or agent-confirmed mate’s receipt, load-port Q&Q showing the B/L number and vessel IMO, and a Q88 that matches AIS. |
6. FOB documents that matter
Use this as the request list and as the file checklist.
| Document | Who should issue it | What it must prove | Treat as red flag if |
| Commitment letter / statement of availability | Seller | Willingness to deliver a stated grade, volume and window | It arrives alone, with no tank number and no terminal paper |
| ATV — authorisation to verify | Titleholder | You may check the lot with the terminal | It only allows you to email the seller’s own desk |
| ATSC — authority to sell and collect | Titleholder to mandate | A broker is actually connected to the lot | The name on the ATSC is not the name on the TSR |
| DTA / UDTA — dip test authorisation | Titleholder / terminal | Your inspector may sample the tank. UDTA means no extra conditions | Dip test is allowed only after you pay the seller |
| TSR — tank storage receipt | Terminal / tank farm | A named tank is leased and holds product: tank no., GPS, dates, volume | Issued on seller letterhead, or the farm is not on the port map |
| Injection report | Terminal / pipeline operator | Product was pumped into that tank on a date, from a named source | Volume exceeds tank capacity, or the date sits after TSR expiry |
| Certificate of origin | Chamber of commerce (usually) | Country of production — customs and sanctions | Chamber name is wrong, or origin does not match the refinery passport |
| Product passport / refinery COA | Producer | Specification at the refinery gate | Older than the injection, or off the contract spec |
| Fresh tank Q&Q (SGS or equivalent) | Independent inspector | Quantity and quality in the named tank on a stated date | Older than 72 hours, or the lab will not confirm the report number |
What a usable ATV should allow
- Terminal name, tank number, product and approximate volume.
- Buyer or named inspector may telephone the terminal’s published operations desk.
- Buyer may present the TSR and injection report to the terminal.
- Physical access for the inspector, subject to terminal HSE rules.
- Validity through the agreed dip-test date.
Ask also, where the file needs it: storage-contract extract covering the window, terminal statement of product in tank, tank calibration table, last-cargo or clean-tank certificate, and a power of attorney if the signer is not a director on the company registry.
7. CIF documents that matter
Separate the commercial relationship from the cargo. The list below is the cargo.
| Document | Who should issue it | What it must prove | Treat as red flag if |
| Certificate of origin | Chamber of commerce | Production country | A restricted origin dressed as another country |
| Product passport | Producer | Specification at load refinery | Window does not match the SPA spec |
| Load-port Q&Q | Independent inspector | Quality and quantity at load, with B/L number, vessel and voyage | No B/L number, or vessel name disagrees with Q88 and AIS |
| Bill of lading | Carrier / master / agent | Receipt of cargo and, on an order B/L, the title document | Endorsed to a company that is not the seller you are paying |
| Q88 | Master / owner | Ship identity and technical status | AIS puts that IMO in another region on the load date |
| Cargo manifest | Load-port agent | Full cargo list for customs and freight | Tonnage disagrees with the B/L |
| ETA | Master / agent | Arrival window so the buyer can book the jetty and shore tank | Issued only by a broker, with no agency letter |
| NOR — notice of readiness | Master | Ship is ready to discharge; may start laytime | Tendered before the ship is in the agreed place |
| ATB — authority to board | Master (often by SATCOM) | Buyer’s inspector may board for DIP / sampling | Issued by the seller instead of the master |
| Discharge Q&Q | Buyer’s inspector | Quality and quantity at destination | Seller blocks destination inspection after a poor load report |
Common extras: clean-on-board or last-cargo certificate; charter-party extract or freight-payment evidence; cargo insurance on CIF from a first-class underwriter; shore-to-ship injection report; commercial invoice and any local certificate the discharge authority requires.
You cannot board a tanker on a broker message. The master needs ATB. Late NOR, a wrong terminal or a shore tank that was never booked is how demurrage starts. Treat ETA and NOR as operational documents with money attached.
8. Numbers that must match
On a CIF file, print this and tick it. One hard mismatch is a reason to hold payment.
| Field | Must be identical on |
| B/L number | B/L, load-port Q&Q, cargo manifest, insurance, commercial invoice |
| Vessel name and IMO | B/L, Q88, Q&Q, manifest, AIS, NOR, ATB |
| Voyage number | B/L, Q&Q, manifest |
| Product and spec | SPA, invoice, B/L, Q&Q, passport |
| Gross / net quantity | B/L, Q&Q, manifest, invoice — and the SPA must say which figure is contractual |
| Load and discharge ports | B/L, itinerary, manifest, insurance, ETA / NOR |
| Shipper / titleholder | B/L shipper box, invoice seller, SPA party, and any tank paper in the chain |
| Consignee / notify | B/L versus SPA versus letter of credit. A mismatch blocks discharge. |
9. Same-day authentication
Run the file in this order. Stop at the first hard fail.
A. File hygiene — five minutes
- Open file properties. Created date, author, software. An “SGS Rotterdam, 4 March” file created on 20 March in another country is not automatic proof of forgery. It is a reason to call SGS before anything else.
- Seals and signatures at 200% zoom. A stamp with different compression from the page is often a composite PDF.
- Letterhead consistency across the pack.
- Names: seller on the SPA equals shipper on the B/L equals customer on the TSR. Any third party needs an ATSC or mandate in the same pack.
B. The issuer is real — fifteen minutes
- Company registry: status, directors, address.
- Sanctions lists on company, directors, vessel, owner, manager, origin and banks.
- Laboratories: only published contacts on the inspector’s own site. Never a mobile that exists only on the PDF.
- Terminals: official port website or published operations number. Confirm the tank-number series is one they use.
- Certificate of origin: chamber portal or published chamber email.
- Vessel: IMO on Equasis; AIS position consistent with the claimed voyage and date.
C. The issuer confirms this document
Attach the PDF. Ask only what their records can confirm.
| Document | Who you contact | What you ask |
| SGS / Q&Q | The inspector’s published office for the port on the report | Report number, date, tank or vessel, product — and that the PDF is theirs |
| TSR / injection | Terminal operations on the port site | Tank number, product, customer name, date and volume on their system |
| Bill of lading | Load-port agent named on the B/L, or the carrier | B/L number, vessel, cargo, shipper |
| Certificate of origin | Issuing chamber | Certificate number and exporter |
| Insurance | Underwriter or broker on the certificate | Certificate number, voyage, cargo |
| ATB / NOR | Master via the named port agent | That they issued it and the window is current |
D. Title chain
A real cargo with a fake seller is a standard file. The company on the TSR or in the B/L shipper box must be the company on your SPA. If not, you need a clean chain: titleholder → written authority → mandate → you. Pay only the titleholder account named in the SPA.
SGS is a brand, not a magic stamp. Fake reports use the logo because buyers stop reading. The report number and the local office are what matter. Fresh means fresh: a tank Q&Q from three weeks ago describes a tank three weeks ago. Product moves. Water settles. Tanks get swapped.
10. Patterns that fail in real files
| Pattern | What you see | What you do |
| Unverifiable PPOP plus urgent deposit | Polished letters, tank photographs, “SGS next week,” pay a five- or six-figure sum to book a tank or activate an SCO | Refuse. Ask for terminal TSR and a live Q&Q. If they cannot produce them, close the file |
| Rented documents | A real SGS or B/L belonging to another principal. Seller name is not the customer or shipper | Call the issuer. Ask who the principal is. Do not deal with the forwarder of the PDF |
| Composite PDF | Stamp sharper than the page, seal on a different background, photo-editor metadata | Reject. Ask the issuer to send an original to you direct |
| Ghost terminal or ghost lab | Website and WhatsApp only. No listing on the port authority site | Stop. Real terminals sit on port maps and publish operations numbers |
| Origin wash | Certificate of origin from a third country; vessel history points elsewhere | Sanctions screen and counsel before any instrument is issued |
| Ship elsewhere on AIS | Q88 and B/L name a vessel AIS shows idle in another region on the load date | Treat as fabricated until the carrier confirms the B/L |
| Pay to inspect | DTA only after a dip-test fee or tank lease hits the seller’s account | Book and pay the inspector yourself |
| Moving lot | Tank number or vessel changes each time you ask to verify | Close. A real lot has a stable tank or B/L identity |
A mandate without ATSC from the name on the tank or the B/L is a storyteller. Do not pay a broker a “POP fee.”
11. Request language you can send today
| PPOP request — FOB
Please send PPOP for the offered lot, limited to documents we can verify with the issuer the same day:
1) Tank Storage Receipt issued by the terminal, with tank number, product, volume and validity dates. 2) Injection report for that tank, issued by the terminal or pipeline operator. 3) Fresh Q&Q dated within 72 hours, showing tank number, product and quantity. 4) ATV naming the terminal and authorising us and our inspector to confirm items 1–3 with the terminal and to attend for dip test. 5) Certificate of Origin and product passport if already available.
We will not remit any deposit, tank-lease fee or procedure fee against letters issued only on seller letterhead. Full POP can follow after verification and SPA. |
| PPOP request — CIF, loaded vessel
Please send PPOP for the named vessel and lot:
1) Bill of Lading, or mate’s receipt plus booking confirmation if the B/L is not yet released, showing shipper, vessel, IMO, B/L number, cargo and ports. 2) Load-port Q&Q showing the same B/L number, vessel, voyage, product and quantity. 3) Q88 and current itinerary consistent with AIS. 4) Certificate of Origin and product passport. 5) Cargo manifest and, if CIF, insurance certificate. 6) Authority to board from the master for our inspector at the agreed port.
Please confirm we may verify the B/L with the load-port agent and the Q&Q with the issuing inspector. |
| Verification request — inspector
We are reviewing a report that appears to be issued by your office. Please confirm from your records only:
— Report / job number — Date and location — Vessel or tank — Product and quantity shown — That the attached PDF corresponds to a report you issued
We do not need an opinion on the commercial deal. A yes or no on authenticity is enough. The PDF we received is attached. |
| Verification request — terminal
We hold an ATV from [company] and the attached TSR / injection report for tank [number] at your terminal.
Please confirm from your system: — That tank [number] is currently leased or nominated to [company name exactly as on the TSR] — Product and approximate volume on the date of the attached injection report — That the attached TSR / injection report was issued by your terminal
Our inspector is [name / company]. We request a dip-test window on [date] subject to your HSE rules. |
12. File checklists
FOB — tick before any payment
- Counterparty on the company registry; signatory is a director or a power of attorney is on file.
- Sanctions screen on company, directors, tank farm, product origin and banks.
- SPA parties match the TSR and injection report, or the ATSC chain is complete.
- TSR issued by a terminal that exists on the official port map.
- Terminal confirmed TSR and injection on a published number or email.
- Tank number, product and volume consistent across TSR, injection and Q&Q.
- Q&Q dated within 72 hours; inspector confirmed the report number.
- ATV allows contact with the terminal, not only with the seller.
- DTA or UDTA in hand; inspector booked and paid by the buyer.
- Dip test completed before the instrument or balance is released.
- Certificate of origin and passport consistent with spec and sanctions policy.
- Payment only to the titleholder account named in the SPA.
CIF — tick before any payment
- Vessel IMO exists on Equasis; AIS fits the claimed voyage dates.
- Q88 matches Equasis closely enough to be the same ship.
- B/L number identical on B/L, load Q&Q, manifest, invoice and insurance.
- Shipper on the B/L is the SPA seller, or a documented title chain exists.
- Load-port inspector confirmed the Q&Q report number.
- Load-port agent or carrier confirmed the B/L number.
- Certificate of origin verified with the chamber if origin is material.
- CIF insurance confirmed with the underwriter; voyage and cargo match.
- ATB received from the master or named agent, not only from the broker.
- ETA and NOR come from the master or named port agent.
- Discharge inspector booked in the buyer’s name.
- No deposit demanded against unverified letters.
How to use this report on a live file
- Open two folders: deal paper and POP paper.
- Send the FOB or CIF request above as the PPOP list. Do not accept a substitute list that drops the verifiable items.
- On receipt, run the same-day checks. Log who you called, the official number you used, and the answer.
- Tick the checklist. An empty box on a must-have item is a stop.
- Only then move money or instruments.
- Keep the verification log with the file. If the deal fails, that log is what a bank, insurer or counsel will want.
| BOTTOM LINE
If the terminal, the laboratory or the carrier will not repeat the statements in the pack, you do not have product. You have a story. |
This report is a commercial aid. It is not legal advice, sanctions advice, or a substitute for local counsel and a competent inspector. Rotterdam, Houston, Fujairah, Singapore and other ports each add local exhibits. Write those into the SPA.
