Tank to Tank (TTT) FOB against TSR Procedure [#Subject to Availability#]

1. Submission of TSR (Tank Storage Receipt) by the buyer. FOB transaction procedure for petroleum products, tank-to-tank within the port.

A key feature of this procedure is that the supplier – before showing the original documents for his goods to the buyer – requests the buyer to provide TSR, the rent receipts for the tanks that the buyer intends to use to pump the goods.

Risks: the buyer pays for the storage tank before he sees the goods. Consequently, there is a risk that the supplier does not have the goods and the buyer has already rented and paid for the storage tank.

SAMPLE TEXT OF THE PROCEDURE:

  1. Seller confirms procedure and pricing to the buyer directly.
  2. Buyer sends irrevocable company purchase order (ICPO), and tank storage agreement (TSA) to Seller.
  3. After acceptance of the ICPO, and a positive due diligence (DD), on the buyer, the refinery issues a commercial invoice (CI) for the availability quantity in the seller storage tanks.
  4. Buyer signs CI and returns it to Seller for seller’s approval.
  5. The buyer will contact their oil storage facility and obtain a TSR valid for at least 6 days and give a copy of the TSR to the supplier for verification.
  6. Seller provided (below) proof of product (POP) documents to the buyer.
    LIST OF DOCUMENTS PROVIDED.
    6.A. AUTHORIZATION TO PHYSICALLY VERIFY PRODUCT (ATV).
    6.B. THE UNCONDITIONAL DIP TEST AUTHORISATION (UDTA), TO BE ENDORSED BY BUYER’S TANK FARM.
    6.C. PRODUCT PASSPORT.
    6.D. COMMITMENT AND GUARANTEE LETTER TO SUPPLY.
    6.E. AUTHORIZATION TO SELL AND COLLECT (ATSC).
    6.F. FRESH SGS REPORT, LESS THAN 48 (forty-eight) HOURS OLD.
    6.G. TANK STORAGE RECEIPT (TSR).
  7. Buyer verifies SGS report and has the option to elect to book retest with SGS (at buyer’s expense) in seller’s storage tank. Buyer will provide Q&Q reports to the seller free of charge.
  8. Within 24 (twenty-four) hours, buyer makes 100 % (hundred percent) TT wire transfer payment, seller changes title of ownership to the buyer at the same time of receiving full payment.
  9. Subsequently monthly shipment continues as per terms and conditions of the CI, and extension of transaction by issuing 12 (twelve) months contract to buyer for proceeding. Payments by MT 103.
  10. Seller issues 12 (twelve) months contract to be signed with all parties and allocation license.

Buyer Credential Verification Policy

To ensure a secure and reliable transaction process, the financial capability of buyers intending to purchase fuels will be thoroughly verified.

  • Individual Buyers: Credentials of the buyer must be provided for financial assessment.

  • Joint Ventures (JV): If the buyer is importing fuels in partnership with another financially robust entity, both parties must submit their credentials for verification.

All provided information will be reviewed to confirm the buyer’s ability to fulfill the financial obligations of the purchase.

Indemnity Clause: In the oil procurement process, we strictly adhere to our established procedures, which are designed to be neutral, transparent, and structured to prevent scams and fraud in the oil trade. These processes ensure compliance, security, and fairness for all parties involved. Our procedures apply solely subject to the availability of the product.

Disclaimer : We hereby declare that we do not accept or source any fuel or petroleum products from Russia, Iran, or any other sanctioned country.

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