Cost Insurance Freight (CIF) Transactions
DLC with Alternate Performance Guarantee

The Buyer issues an Irrevocable Corporate Purchase Order (ICPO) incorporating this procedure, along with the Buyer’s valid company registration certificate.

The Seller provides the Buyer with a Draft Sale & Purchase Agreement (SPA).

The Buyer reviews, signs, and returns the signed SPA to the Seller.

The Seller acknowledges the executed SPA and proceeds to legalize it through the Ministry of Energy of Kazakhstan at the Seller’s cost.

The Seller provides the Buyer with the following PPOP documents:

• Statement of Product Availability

• Product Passport

• Commitment to Supply

• Certificate of Origin

• Export License issued by the Kazakhstan Ministry of Energy

Upon receipt of the Partial PPOP, the Buyer must issue a Documentary Letter of Credit (DLC) within seven (7) working days to the Seller’s nominated bank.

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(Extension is strictly prohibited.)

If the Buyer fails to issue the DLC within the specified timeframe, the Buyer must instead make a guaranteed deposit of USD 150,000 (One Hundred & Fifty Thousand United States Dollars) toward the total contract value.

• This performance deposit secures the allocation and will be deducted from the first shipment invoice.

• Within twenty-four (24) hours of confirmation of the deposit, the Seller will:

   

  • Transfer Allocation Title Ownership

  • Obtain Cargo Export Permit

  • Sign the Charter Party Agreement

  • Release the full PPOP documents together with a 2% Performance Bond in favor of the Buyer

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Full PPOP Documents include:

• Allocation Title Ownership Certificate

• SGS Quality and Quantity Certificate

• Transneft Transportation Contract

• Tank Storage Receipt

• Charter Party Agreement

• Port Storage Agreement

• Vessel Q88

• Bill of Lading

The Seller and intermediaries complete and sign NCNDA/IMFPA agreements for commission protection and allocation.

Shipment commences as per schedule. Upon vessel arrival at the discharge port, the Buyer conducts SGS/CIQ inspection and settles the remaining balance to the Seller via TT Wire or MT103.

The Seller pays all intermediaries their respective commissions in accordance with the duly signed NCNDA/IMFPA agreement.