Procedure for FOB Deliveries
1. Buyer sends LOI or ICPO to Seller. Seller sends SCO to Buyer. Buyer signs SCO and reverts to Seller. (This stage can be skipped and collected into the next)
Note: we will always verify each LOI or ICPO with the buyer himself. There is no way that we address any SCO or FCO to intermediaries or agents or mandates.
2. Seller sends FCO to Buyer and Buyer reverts the following documents properly filled out to Seller:
a. Completed FCO with Buyer’s bank data, signed and sealed.
b. Customer Information Sheet (CIS; template provided by Seller, for Seller's Bank only) on Buyer’s letterheads, containing also:
I. Copy of Company Registration Certificate
II. Passport copy of signatory
c. BCL/RWA letter issued by Buyer's bank (optional -
Note: There were too many attempts from Flippers and Resellers without funds and we lose our good ranking from our banks with failed operations. In case the Buyer sends this Bank Confirmation Letter on earlier stage we can skip the FCO and get immediately to the SPA. The BCL/RWA can be addressed to the Buyer himself. No need to address it to our company. It is not only the Buyer involving his bank – we also have to communicate each operation to our bank.
3. Seller drafts Sales & Purchase Agreement (SPA) to be lodged in both banks. Seller and Buyer execute the final contract. Buyer sends the final contract electronically signed in WORD or PDF format. An electronically executed final contract can stand as original.
4. Within 5 working days after signing the SPA Buyer’s bank sends MT799/Pre-
5. After successful mutual confirmation of the MT799/Pre-
6. Within 10 to 14 days (or longer, depending on availability of products) after the confirmation of Reseller’s instrument or accordingly after the completed payment of the last delivery before Seller issues Commercial Invoice (CI), Tank Storage Receipt (TSR) or Vessel documents, fresh SGS Inspection Report, unconditional Dip Test Allowance (DTA), and (optional) Authority to Sell & Collect (ATSC) to the Buyer or Reseller at delivery port.
Note: Seller issues on his cost all necessary documents in the name of the Buyer including a fresh SGS report. In case Buyer wants to make his own dip test, it will be on his cost.
7. Buyer (or his Exit-
8. Buyer pays against Title within 2 (two) banking days after (Exit-
9. Transaction closed
The final procedure may contain variations of the above depending on the individual case. Details will be discussed and agreed between Buyer and Seller.