Procedures of petroleum products

Representative document and payment sequence

1. The buyer issues an ICPO together with a copy of the international passport data page for the seller’s verification.
2. The seller issues a commercial invoice (CI) for the available quantity in the seller’s storage. The buyer signs and returns the CI with a signed tank storage agreement (TSA) for the seller’s verification; the seller returns the signed CI and inspection letter so the buyer may inspect the tank farm before release of full PPOP with a fresh SGS report.
3. The seller issues partial POP documents, typically including: (i) fresh SGS (not older than 48 hours); (ii) certificate of origin; (iii) authorization to verify (ATV); (iv) unconditional DTA; (v) commitment to supply; (vi) tank storage receipt (TSR); (vii) ATSC; (viii) injection report — exact list per transaction.
4. The buyer conducts inspection by SGS at the buyer’s expense where applicable.
5. The seller issues NCNDA/IMFPA to intermediaries involved for endorsement.
6. Upon successful dip test, the seller commences injection to the buyer’s tank or vessel; the buyer pays via MT103 and the seller transfers title per agreed Incoterms.

1. Buyer issues ICPO and tank storage agreement (TSA).
2. Seller issues commercial invoice (CI); buyer signs and returns the CI.
3. Seller lodges the finalized CI with the bank, verifies and pays two (2) days of buyer tank storage as commitment to supply; upon confirmation by the tank operator, buyer pays additional days to obtain the total tank storage receipt (e.g. five days) required for the transaction in the buyer’s name.
4. Seller injects product and provides POP including: 48-hour fresh SGS (Q&Q), injection report, DTA (dip test authorization), certificate of origin, ATSC, statement of availability, ATV.
5. NCNDA/IMFPA are signed by intermediaries with seller bank endorsement.
6. After confirmation of POP and product in tanks, buyer pays total product value via MT103; seller transfers title and may issue an annual contract per agreement.
7. Seller settles intermediaries per executed NCNDA/IMFPA.

1. Buyer issues official ICPO to the refinery or representative with vessel details.
2. Seller issues CI; buyer signs and returns with NCNDA/IMFPA.
3. Seller provides PPOP: product passport / analysis, ATV, TSR, statement of availability, commitment letter, ATSC.
4. Buyer extends seller’s tank; dip test with buyer’s team for fresh SGS.
5. After successful dip in seller’s tanks, buyer takes over tank or seller injects into buyer’s vessel/tank; buyer may conduct independent dip test for Q&Q.
6. After successful Q&Q, buyer pays total value via MT103/TT.
7. Upon payment, seller transfers title and export documents.
8. Seller pays intermediaries per agreement.

Illustrative commercial steps; deposit amounts and timelines are negotiated per transaction and contract.

1. Buyer issues ICPO with banking details.
2. Seller issues complete TTO draft for loaded consignment; buyer vets, signs, and returns for notarization/endorsement.
3. Seller endorses TTO and returns a copy with PPOP issued in the buyer’s name, typically including: certificate of product origin; ETA of vessel; bill of lading; tanker Q88; ullage report; freight/cargo manifest; notice of readiness; and any agreed down-payment invoice.
4. Buyer verifies PPOP and remits the contract down payment within the agreed period to the seller’s nominated account; the deposit is applied to total lift value unless otherwise stated.
5. Upon receipt of down payment, seller transfers title as claimant/consignee, provides certificate of ownership and shipping documents re-issued for the buyer, and coordinates with master/agent for port entry as applicable.
6. Seller re-routes vessel if agreed and issues master authorization-to-board (MATB) and DTA for buyer or agents to board and conduct SGS inspection after port formalities.
7. At discharge port, customs/pre-inspection and hazardous-waste checks (e.g. SGS/CIQ/CCIC) proceed as required; balance payment (e.g. 97%) is made before discharge per contract.
8. Seller settles intermediaries within the agreed window after buyer payment; buyer banking coordinates per SPA.

Houston, Rotterdam, Jurong, Fujairah, China ports (indicative)

1. Buyer submits ICPO with company registration or valid ID and CPA/TSA for seller/refinery verification.
2. Seller issues draft CI; buyer signs and returns.
3. Seller sends draft TTM appointment request for approval by buyer’s logistics company.
4. Buyer returns approved TTM letter so inspectors can meet at the designated terminal.
5. Upon approval, meeting covers: ID verification; buyer POF; seller hard-copy POP and fresh SGS; seller inspection of buyer tank/vessel for injection.
6. Optional additional dip test in seller’s tank at buyer expense.
7. Seller issues NCNDA/IMFPA to intermediaries.
8. Seller injects into buyer tank/vessel.
9. Buyer pays full amount per CI.
10. Seller transfers ownership per buyer instructions.
11. Seller pays intermediaries; monthly contract continues per SPA if agreed.

Jurong, Rotterdam, Houston, Fujairah — structure illustrative

1. Buyer issues formal ICPO with company profile.
2. Seller issues CI; buyer returns verified CI in final PDF.
3. Parties submit signed CI to jointly selected escrow counsel; counsel issues escrow agreement for signature. Counsel may be in Hong Kong; fees split or borne per agreement.
4. Buyer and seller sign escrow agreement and return to counsel.
5. Each party may post a performance bond to escrow (amount per deal); bonds may be credited or released per immersion-test outcome and contract.
6. Seller authorizes buyer to conduct immersion (Q&Q) tests and provides POP: ownership certificate; availability statement; product passport; certificate of origin; fresh SGS; injection report; supply guarantee; authorization for sales collection; immersion test authorization; ATV.
7. Buyer completes immersion test; seller injects into buyer vessel/tank after successful Q&Q; buyer pays per agreed instrument and timeline after final injection report.
8. Upon payment, seller transfers ownership and issues transfer and insurance certificates as agreed.
9. Brokerage and fees per NCNDA/IMFPA and SPA.
10. Parties may execute an annual contract as agreed.