TRANSACTION: FOB (DIP & PAY)
DISCOUNT: PLATTS MINUS $110
FOB DIP & PAY TRANSACTION PROCEDURES: (TANK TO TANK / TANK TO VESSEL)
1. K & R International Trading Company (K&R), or one of its agents, sends Commercial Term Sheet (CTS) to the Buyer for buyer’s review. Buyer signs the CTS, as confirmation for acceptance of price and procedures of the Seller, and sends a copy back to K&R along with a Letter of intent (LOI). LOI has to be on the letterhead of the buyer’s company, to include: Company Name, Address, Registration Number, and the name and contact information (Email Address, Phone Number, Title) of the person responsible for handling of the transaction. Complete details of the product requested, including exact volume of the first-lift and 12-months contract, the target price as indicated in the CTS, has to be clearly stipulated in the LOI. The Buyer needs to send the LOI directly from the email of the company to Corporate Email of K&R. (LOI sent by the intermediaries, or via WhatsApp is not acceptable and will not be processed);
2. K&R issues Official FCO against Buyer’s LOI and send it to the buyer along with format of ICPO;
3. Buyer signs the FCO, put the ICPO on the letterhead of their company, completes all the company and banking information, sign/stamp, and send both documents back o K&R, along with Company Profile (Company Profile should have the year of establishment, founders, and a history of major projects completed) CIS, Passport copy of the authorized signor for the company, Certificate of Registration and a valid TSA or CPA. In the ICPO it should be stipulated that what kind of Proof of funds the buyer will provide to K&R;
4. K&R issues Proforma Invoice (PI) to the buyer if the buyer will issue MT199/MT799;
5. Buyer proves its financial capacity to execute the transaction by issuing Proof of Funds (POF) Via MT199/MT799, or a valid updated Bank Statement/BCL/RWA + ATV addressed to K&R. Bank Statement or BCL/RWA has to have the contact information of both a bank officer and bank manager (Phone Number and Email Address) and sent with an ATV directly to K&R email address. Note: Any other financial information such as audited financials, statement of profit and loss, will help to assess the Buyer’s financial capacity faster and expedite the process;
6. As soon as K&R receives a pdf copy of issued MT199/MT799, or a valid Bank Statement, BCL/RWA + ATV from the Buyer and was able to asses the financial capacity of the Buyer, Supplier/Title Holder (the “Seller”) issues Commercial Invoice (CI) to the Buyer, which needs to be signed/stamped by the Buyer and return a copy back to the Seller;
7. All Parties sign NCNDA-IMFPA and returns to seller for Seller’s bank endorsement;
8. Seller Sends Proof of Product (POP) documents as listed below to the Buyer;
A. Fresh SGS Report, not older than 48 hours
B. Unconditional Dip Test Authorization (UDTA)
C. Injection Report
D. Tank Storage Agreement (TSA)
E. Tank Storage Receipt (TSR)
F. Tank Farm Bar-Code Information
G. Letter of Commitment to Supply
H. Passport of the Product (Q & Q)
I. Certificate of Origin Report
J. Registration Certificate
9. Within no later than 24 hours of receiving the POP documents, the Buyer has the option to conduct Dip Test Inspection in the seller’s tank. Upon conducting Dip Test, or decision not to do so, the Buyer submits TSR from his Tank Farm or NOR from his Shipping Company. The buyer shall indicate in his email if a representative will be present in the port of destination (Rotterdam or Fujairah) to handle the unloading, if not, then the Buyer should provide a detailed plan for appointing one;
10. Seller inject the product into the Buyer’s Tank or vessel;
11. Within 24 (twenty-four) hours of completion of injection of the product, the buyer makes 100% payment for the total value of the product via MT103/TT wire transfer, according to Commercial invoice, to the seller’s Bank account;
12. Seller transfer the product title to the Buyer;
13. Seller pays commission to all intermediaries involved in the transaction;
14. Seller issue 12-month delivery contract to be reviewed and signed by the buyer. A revolving IRDLC/MT700 or SBLC/MT760 with a value of one month shipment will be required to be issued for the full term of the Contract;
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