2 MILLION BARRELS OF A1 JET FUEL TO ASWP

TRANSACTION: CIF

INSTRUMENT: SBLC

DISCOUNT: -7.5% (PLATTS)

PROCUREMENT & DELIVERY PROCESS

1. Request
1.1. “The Buyer” issues a Letter of Interest or the Request for Product Application.

• The Letter of Interest or the Request for Product Application shall consist of Product Name, Volume, Discharge/Retrieval Port, Specification(s), Collateral Instrument issuing Bank Name, Company Information, etc.

2. Commercial Offer
   1. 2.1.  “The Seller” issues a Commercial Offer.
   2. 2.2.  “The Buyer” formalizes and returns the Commercial Offer within (3) Business Days.
   3. 2.3.  “The Buyer” submits a Banker Signed Ready Willing and Able (RWA) letter.
3. Sales Agreement
   1. 3.1.  “The Seller” issues the Sales & Purchase Agreement.
   2. 3.2.  “The Buyer” formalizes and submits the Sales & Purchase Agreement within (3) Business Days.
4. Banking
   1. 4.1.  The Sales & Purchase Agreement is lodged with the “The Buyer’s” and “The Seller’s” Bank.
   2. 4.2.  “The Buyer’s” Banker transmits a Pre-Advice (‘Preliminary Notice’) via SWIFT MT799.
   3. 4.3.  “The Seller” issues a Price Lock Notice (a discount is set on this day per the Platts Assessment of the day)
   4. 4.4.  “The Buyer’s” Banker transmits a Standby Letter of Credit (‘Payment Guarantee’) via SWIFT MT760.
   5. 4.5.  “The Seller’s” Banker issues a 2% Performance Bond.
5. Loading/Documentation
   Subsequent to the receipt & validation of the Standby Letter of Credit, “The Seller” shall:
   1. 5.1.  Charter the vessel/barges (by or before the 25th day).
   2. 5.2.  Berth the vessel/barges (by or before the 28th day).
   3. 5.3.  Load the vessel/barges (by or before the 31th day).
   4. 5.4.  Submit the Product & Delivery Documentation (by or before the 31st day).[1]
   5. 5.5.  Dispatch the vessel/barges to the destination (by or before the 32nd day).[2]
6. Delivery/Discharge – [COST, INSURANCE & FREIGHT (CIF)] – [The above procurement process Point 1 to 5 remains same]
   1. 6.1.  The vessel Captain transmits a Pre-Arrival Notification every 72, 48, & 24-hour intervals.
   2. 6.2.  The vessel is berthed per Harbormaster’s directives.
   3. 6.3.  The Seller issues the Authorization to Board (ATB) & the Dip Test Authorization (DTA).
   4. 6.4.  Port Authority, Customs Clearance, & Import activities are carried out.
   5. 6.5.  The Buyer, at their discretion; conducts a third-party Quality & Quantity Inspection.
   6. 6.6.  The product is discharged & shore tanks are injected.
   7. 6.7.  The Buyer executes a Wire Transfer via MT103 within 24 hours subsequent to discharge & shore tank injection.
   Or if buyer prefers: –

6. Delivery/Discharge – [VESSEL TAKE OVER (VTO)] – [The above procurement process Point 1 to 5 remains same]

1. 6.1.  “The Seller” issues the Authorization to Board (ATB) and the Dip Test Authorization (DTA).
2. 6.2.  “The Buyer” executes an MT103 Wire Transfer within (24) hours subsequent to the Quality/Quantity Inspection (Optional) and in accordance to the final Invoice.
3. 6.3.  “The Seller” transfers the Certificate of Ownership (Title) subsequent to the receipt of payment.
4. 6.4.  “The Buyer” assumes control and dispatches the vessel.

Or if buyer prefers: –

6. Delivery/Discharge – [SHIP-TO-SHIP (STS)] – [The above procurement process Point 1 to 5 remains same]

1. 6.1.  The vessel Captain transmits a Pre-Arrival Notification every 72, 48, & 24-hour intervals.
2. 6.2.  The vessel arrives & is stationed at the STS Transfer Zone.
3. 6.3.  The Seller issues the Authorization to Board (ATB) & the Dip Test Authorization (DTA).
4. 6.4.  Mooring, Positioning & Pre-Transfer checks are carried out.
5. 6.5.  The Buyer, at their discretion; may conduct a third-party Quality & Quantity Inspection.
6. 6.6.  Transfer hoses are connected & product transfer is carried out.
7. 6.7.  The Buyer executes a Wire Transfer via MT103 within 24 hours subsequent to product transfer.