Fuel and GNL →
We provide ongoing advice on pipeline projects and natural gas purchase and transportation contracts, as well as on bidding processes and development of liquefied natural gas projects.
COST INSURANCE FREIGHT (CIF)-TRANSACTION PROCEDURE
1. Buyer issues ICPO with Buyer’s details and company registration certificate.
2. Seller Issues Sale & Purchase Agreement (SPA), Buyer review, amend (if necessary), signs and return the SPA in WORD format to Seller within 3 banking days. Seller sends final SPA to Buyer in PDF format; Buyer confirms final SPA and issues letter of acceptance of the final SPA.
3. Seller issues via email the following PPOP documents to the buyer:
Statement of Product Availability. Export License.
Certificate of Origin.
Company Certificate of Incorporation.
Buyer acknowledges the PPOP documents and issues confirmation letter within 24 hours in order for the seller to proceed.
4. Seller makes arrangement for the chartered freight with a shipping company for the transportation of the product to buyer’s designated discharge port, both the Seller and the Buyer signs the Charter Party Agreement (CPA) together with the shipping company. (Seller & Buyer jointly pays CPA cost 50/50 via T/T wire transfer directly to the shipping company. Starting with the second shipment, the buyer no longer has to pay 50% of the CPA cost in advance.
NOTE: This is applicable to only buyers dealing with the refinery for the first time and Fee would later be deducted or refunded when Buyer is paying for the total product cost.
5. Upon the completion of both parties making payments, Seller issues Buyer product title transfer agreement to the buyer, Buyer signs and returns. Seller issues the commercial invoice and sends to Buyer the certificate of product title transfer. Seller legalizes the Contract with the authorities in
charge and sends to buyer the legalized contract and then proceeds with the port & custom clearance of product and all related logistics accordingly.
6. Seller lodges and activates a 2% PB (Performance Bond/Performance Guarantee) in the favor of the Buyer. If Seller fails to supply the cargo/shipment of the product to the Buyer this 2% Performance Bond will be paid/forfeited to the Buyer.
7. Seller signs NCNDA/IMFPA between all intermediaries involved with the notarized copy sent to Seller’s bank. The product SGS inspection charges will be borne by Seller at the loading port. Seller issue invitation letter and arrange to invite the Buyer & Buyer’s delegates to come and physically inspect the goods, view Seller’s facility and witness loading at the loading port in Russian Federation («Optional» if the Buyer decides not to come as it can still be skipped).
8. Seller issues FULL POP Documents to Buyer via bank to bank, namely;
Copy of Approval to Export certificate.
Company Registration Certificate of Incorporation.
Copy of Bill of Lading.
Fresh SGS report
Copy of Commercial Invoice.
Copy of the Transneft Contract to Transport the Product to the Port. Copy of the Port Storage Agreement.
The customs formalities and test report to Buyer’s bank.
Certificate of Origin.
Copy of Vessel Questionnaire 88.
Dip Test Authorization.
Tank Receipt.
9. Loading & Shipment of product commences as per schedule. Upon Vessel’s arrival and finalizationof SGS at destination port, Buyer release payment via swift fund transfer within 3 to 5 banking days to Seller for total shipment value after discharge of product at destination port and receipt of the entire relevant shipping documents(The CPA fee paid advance will be deducted). Seller within 48hours pays the intermediaries involved according to signed & notarized NCNDA/IMFPA.