Cost Insurance Freight (CIF) Transactions
DLC with 3% Performance Bond

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

• The Seller issues the draft Sale & Purchase Agreement (SPA).

• The Buyer reviews, amends (if necessary), signs, and returns the SPA in WORD format within three (3) banking days.

• The Seller finalizes the SPA, sends it to the Buyer in PDF format.

• The Buyer confirms the final SPA and issues a formal Letter of Acceptance.

The Seller provides the Buyer with the following transaction documents via email:

a. Product Quality Passport / Quality Certificate

b. Certificate of Product Origin

c. Product Availability & Commitment Letter (issued by the Ministry of Energy)

d. Authority to Sell and Collect (ATSC)

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The Buyer acknowledges receipt within twenty-four (24) hours by email confirmation letter.

• The Seller arranges chartered freight with a reputable shipping company.

• Both Seller and Buyer jointly sign the Charter Party Agreement (CPA) together with the shipping company (a three-party agreement). Applicable for the first shipment only.

• CPA cost is shared 50/50 by Seller and Buyer via T/T wire transfer directly to the shipping company.

• The CPA fee will be deducted/refunded when the Buyer settles the full product cost.

• Upon completion of the above, the Seller issues the Product Title Transfer Agreement.

• The Buyer signs and returns it.

• The Seller legalizes the Contract with the relevant authorities and provides the Buyer with the legalized version.

The Seller delivers to the Buyer:

• The legalized contract

• Certificate of product title transfer

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​The Seller then completes port and customs clearance, together with all internal operational routines.

Once export approval is granted by the Authorities and endorsed by the Port Authority, the Seller releases the following Proof of Product (POP) documents:

• Legalized Charter Party Agreement (CPA) with Loading Port Authority

• Injection Report

• Product Allocation Certificate

• Allocation Title Transfer Certificate

• Export License

• Export Approval

• Tank Receipt

• Dip Test Authorization

• The Seller issues the Commercial Invoice.

• Within five (5) banking days, the Buyer’s bank issues to the Seller’s bank either:

   

  • Standby Letter of Credit (SBLC) via SWIFT MT760, or

  • Documentary Letter of Credit (DLC) via SWIFT MT700,

    covering the full value of the first shipment.

   

• The Seller then lodges and activates a 3% Performance Bond (PB) in favor of the Buyer.

• In the event the Seller fails to supply the product, the 3% Performance Bond is forfeited to the Buyer.

• Seller bears the SGS inspection charges at the loading port.

• The Buyer may attend the inspection and/or hold a face-to-face meeting (TTM) for future transaction negotiations (optional).

• The Seller executes NCNDA/IMFPA agreements with all intermediaries and provides notarized copies to Seller’s bank.

• Product loading and shipment commence as per the agreed schedule.

• Upon vessel arrival and final SGS inspection at the discharge port, the Buyer releases final payment via SWIFT wire transfer within three (3) to five (5) banking days.