Product:
Aviation Kerosene Colonial Grade *4 (JP*4) or Jet
A*1
Product
Origin:
Russian Federation
Quantity:
Spot of 1,**0,**0 to 2 million barrels; Monthly deliveries up to *0
million bbls x *2 months
Delivery:
FOB Rotterdam; FOB Novorossiysk
Price:
For SPOT only Price is NWE Platts minus $6/$5 per
barrel
For immediate CONTRACT Price is NWE Platts minus $*2/$*1 per
barrel
Procedures
for Transaction-Simple Dip and Pay:
1.
The Buyer issues a LOI or ICPO with full banking coordinates and
bank confirmation letter (BCL) confirming $**0 million financial
capability from a prime (Top *5) bank addressed to the End-Seller..
* see BCL letter template for one spot lift or BCL letter for spot
plus F.O.B. contract. Buyers bank must be a Top *5 Bank. (
will send along with Offer to Buyer )
2.
For Spot Only: Seller issues commercial invoice, TSR, SGS and
DTA to the Buyer.
For
Contract: Seller issues CI, TSR, SGS, DTA and draft
contract. Minimal changes can be made within the Draft
Contract, but THE PAYMENT METHOD & INSTRUMENT: SBLC, or BG via
MT**0 or MT**3 Conditional from a prime bank are NEITHER NEGOTIABLE
nor IS THE VERBIAGE ALTERABLE.
3.
Upon the signature of the DRAFT CONTRACT AND THE PROFORMA INVOICE,
(or the CI only for single spot takers) from the Buyer and once the
buyer has received all the documents, the Buyer has max. *4 hours
to Check and verify the product and all the documents (Including
the DIP test report). This at the loading port. Once the DIP test
is done successfully, the Seller issues the dip test results to the
buyer and his bank. Buyer approves all the documents and instructs
his bank to release the payment via MT **3. The product is then
allowed to be loaded or injected and Title transferred to the
Buyers name.
4.
After first successful lift, Buyer and Buyers bank are responsible
for lodging the approved and operative instrument to the Sellers
bank as payment guarantee for the contract portion. The
seller immediately issues their 2% performance bond that is
immediately operative on the buyers bank instrument.
5.
Next shipment gets prepared for those taking up the
contract.
