IMPORTANT INFORMATION

 

STEP (1)

Documents sent to seller mandate GPA GAS Ltd

Buyer or buyer mandate sends Letter of Intent specifying product, specifications, quantity and term (spot, annual contract), incoterms and delivery port, as well as terms of payment.

 

Seller sends Soft Corporate Offer for the buyer.

 

Buyer issues Irrevocable Confirmed Purchase Order (ICPO) with company profile, company contact details and bank details. Bank details only authorize the Seller’s bank to contact the Buyer’s bank for a soft probe at this point. The documents must be signed by the legal representative of the Buyer’s company.

 

Seller sends Full Corporate Offer for buyer acceptance and signature.

 

STEP (2)

From this point forward, buyer and Seller are in direct contact.

Seller issues draft contract and pro-forma invoice for negotiation. The draft contract includes PPOP information, in order for the Buyer to check product availability.

 

STEP (3)

Buyer and Seller sign contract, following successful negotiation.

The signed contract and signed invoice are sent to respective banks.

IMPORTANT: The contract consists of 2 sub-contracts: one with Seller and one with Agent that Seller assigns for each delivery.

After the final contract** and the pro-forma invoice are signed, including transaction code reference number, Buyer's Bank issue for each cargo, an MT 103/72

CONDITIONAL CREDIT TRANSFER, via SWIFT, regarding the conditional, non-transferrable and revolving letter of credit.

 

A copy must be sent to the Seller’s secure E-mail.

**The Buyer has the right to have a representative at the site of the Loading Port, so that Buyer can complete inspection of the product at his full satisfaction, verify that product is loaded onto the Vessel and all steps previously described are complete, before releasing the payment.

Along with the Contract of Sale, at the moment of signature, the Buyer may issue a formal written request, that the Buyer or Buyer’s representative may be at The Loading Port of the shipment, so the Seller may issue the appropriate authorization to the Buyer or his representative, to be on the Loading dock, in situ, at the precise moment that product is being delivered and loaded into the Vessel, before the payment of the product is released by The Buyer.

 

STEP (4)

Upon confirmation of receipt by the Seller’s bank, of the revolving and conditional bank instrument, or conditional wire transfer ( through SWIFT MT 103/72), the

Seller issues within approximately 5 banking days, all the documents regarding the product. In particular:

 

• The Dip Test Authorization, tank storage, receipt and survey report made by SGS or IASC Tanker Ullage report at loading port, with time log and

Shipmaster report.

• Certificate of Origin, countersigned by a local Chamber of Commerce.

• Notice of readiness (NOR) lodged by Shipmaster at loading port, countersigned for acceptance by terminal’s representative.

• Signed commercial invoice, based on the delivered quantity/quality, including name of vessel, date of completion, loading quantity and state of delivery.

• Master sample receipt at loading port.

• Any other documents pertaining or related to the current transport.

• Certificate of Insurance Coverage with payment confirmation, issued by Insurance Company

• Copy of license to export issued by the Ministry of Energy from the country of product origin.

• Copy of registration with Ministry of Justice --- Export Duty Control

• Copy of statement of allotment availability of the product by the refinery

• Copy of the refinery commitment to produce the product

• Copy of the contract to transport the Product to the Port

• Copy of the Port Storage agreement

• Copy of the charter party agreement(s) to transport the product to the discharge Port

• Assignment of ownership documents

• Q88 of vessel

• SGS Q/Q certification issued by Seller as well as Tank Storage Receipts and Dip Test result

Product is ready for inspection at loading port, 5 to 15 days after bank confirmation. Exact time depends on quantity ordered.

The Seller activates a 2% Performance Bond (PB) on the Net Selling Price for CIF (NOT valid for spot and FOB)

 

STEP (5)

Once the Buyer has received all the documents, he has 5 (five) banking days to check and verify the product and all the documents (including the DIP test).

Once the DIP TEST is done successfully, the Seller issues COMMERCIAL INVOICE to the Buyer. When the Buyer approves all the documents, the product will be loaded into the vessel. Buyer receives the Charter Party agreement with the shipping company, the insurance (110% of the value of the product) and the Q88 of the vessel.

 

STEP (6)

Seller issues Bill of Lading within 24 hours upon completion of vessel loading.

 

STEP (7)

After the vessel is completely loaded and before the vessel undocks the port, Buyer instructs his bank to release the payment (MT103 wire transfer) against all relevant documents agreed and titles transfer in the name of Buyer.

Time of delivery is calculated based on the Q88 vessel average speed of 12 to 20 knots.

 

 

DIP & PAY PROCEDURE (SPOT)

1) Buyer sends Company Profile (CP) and an Irrevocable Corporate Purchase Order (ICPO) to the seller

2) Seller issues a Commercial Invoice (CI)

3) Buyer signs CI

4) Seller provides/issues Tank Storage Receipt (TSR), SGS and Dip Test Authorization (DTA)

5) Buyer sends Q88 (vessel information), Charter Party Agreement (CPA), Port Clearance Certification (PCC)

6) Seller loads shipment

7) Buyer pays via MT103 in exchange for the Full Title Transfer to the buyer.

In the event that an annual contract is to proceed, an SPA is sent to buyer open for contract negotiation.