WE WORK WITH THE FOLLOWING STRAIGHT AND FAIR TERMS, ACCORDING TO AGREED INTERNATIONAL STANDARDS
- Delivery: FOB PORT OF ROTTERDAM - CI DIP&PAY or/and contract.
- Pricing: PLATTS minus Discount (gross/net). Please NO Fix-Price-Offers.
- Quantity: We buy from 250.000 Barrels per Spot or with contract per month. Sweetspot is 1-2 Mio. Barrel per Spot or per month with contract.
JET FUEL - ACTUAL required Quality is Jet Fuel A or Jet Fuel A1
DIESEL - ACTUAL required Quality is EN 590 with 10 ppm Sulphur
1. TRANSACTION DELIVERY TERM FOR
OIL DERIVATES ON DIP & PAY BASIS (SPOT) AND FOLLOWING CONTRACT
- Seller issues FCO.
- Buyer signs and returns FCO.
- Seller issues CI with Tank farm details and provides ATV.
- Buyer signs and returns CI.
- Seller issues fresh SGS Report max. 48hours old, with Tank Receipt, Tank Storage Agreement, Product Passport issued by SGS, Injection Report, Certificate of Origin and Dip Test Authorization (DTA).
- Upon the successful verification of the PPOP by the Buyer, Buyer orders SGS to conduct the Dip Test of the product in the Seller Tank on Buyers expense.
- Upon successful Dip Test by the Buyer, Buyer makes immediately 100% payment by MT103 TT wire transfer for the total product.
- According to usual agreements, Seller pays commission to all intermediaries involved on the Seller side and Buyer pays commission to all intermediaries involved on the Buyer side in the transaction, 24 hours after confirmation of Buyers payment.
- Upon successful Dip Test and payment, Buyer provides vessel details or Tank details for injection of the goods.
- Buyer issues SBLC/IRDLC irrevocable, auto revolving for one year, documentary letter of credits for length of contract and for each lift per schedule.
- Buyer pays after Dip Test by MT 103 wire transfer on each delivery.
2. TRANSACTION DELIVERY TERM FOR
OIL DERIVATES ON CONTRACT AND CIF BASIS,
- WITHOUT SPOT AS FIRST LIFT OR
- WITHOUT SPOT AS SEPERATE UPFRONT DEAL
PRICE AND PAYMENT PROCESS FOR CIF ROTTERDAM PORT
- The contract price (“Contract Price”) shall be e.g. for JET A1 NWE, Code PJAAU00 less Discount of XX USD / BBL gross to buyer.
- Commission for Buyers intermediaries will be paid by the Buyer. Sellers intermediaries will be paid by the Seller.
- The Parties agree that prices fixed in USD will be converted to Euro as per the exchange rate USD versus Euro of the day of the Commercial Invoice and payment will be in Euro currency (if required).
- The purchased Product will be paid after discharge and according the Q&Q report by SGS with the MT103 (payable within three days) to the bank account of the Seller promptly after transfer of the Payment Documents to the Buyer’s bank. The letter of credit remains as a guarantee for the duration of the contract. The draw on the letter of credit is due if buyer fails to pay with MT103 within banking three days.
- The Buyer shall pay all correct invoices without offset, counterclaim or deduction after completion of unloading upon transfer of the Payment Documents. In the event that the payment due date falls on a banking holiday, then payment shall be made on or before the nearest preceding business day to the due date.
TERMS AND PROCEDURES FOR CIF ROTTERDAM PORT
- Seller sends the FCO on CIF basis with seller signature, Certificate of Registration, Product Supply Guarantee to specified ports to the buyer and the buyer returns it with signatures together with an ICPO.
- Seller sends the draft SPA to Buyer. The Parties sign the SPA during a TTM in Buyers office and the buyer provides evidence to the seller of the availability of the finances for the transaction (RWA).
- With receipt of the signed SPA, the seller will load the first vessel and seller will provide the following POP documents:
- Proforma Invoice,
- Name of the vessel + IMO,
- Loading documents including SGS report,
- Data of the shipping company
- Data of the captain
- A complete set of shipping documents
- Authorization to contact the shipping company and the captain
- ATB, (Authorization to board the vessel, by SGS, Intertec or Saybolt).
- Buyer contacts the Shipping Company and Captain of the vessel, to verify the Bill of Lading, product availability and ownership and all other relevant matters that need verification.
- Buyers bank issues non-operative SBLC, DLC fully funded or any other guarantee to seller's bank by Swift MT760 or DLC MT 700 activated by 2% PB for 100 % of the product quantity of the shipment.
- Buyer provides to the seller the data for his storage facilities with full contact details of Tank location and Tank coordinates and the name of the operator so that laycan can be arranged or vessel information.
- Upon vessel arrives at destination port, buyer arranges for port clearance and product will be transferred into buyer's Tanks and/or vessel.
- Buyer appoints SGS for Q&Q and sends copy of SGS report to seller.
- Seller will issue Final Commercial Invoice and send full POP documents to the buyer and payment will be released against transfer of Title of Ownership.