Trading & Operational Procedures
Transparent, structured workflows for every delivery mode — from FOB tank transfers to CIF ship-to-ship operations. Each procedure follows international petroleum trading standards.
FOB — Tank-to-Tank (TTT)
Free on Board delivery from refinery storage
ICPO & CIS Submission
Buyer issues Irrevocable Corporate Purchase Order (ICPO) together with Company Information Sheet (CIS) including banking references.
Commercial Invoice (CI)
Seller issues Commercial Invoice detailing product specifications, pricing (Platts/MOPS ± discount), volume, and delivery terms.
CI Execution
Buyer reviews, signs, and returns the Commercial Invoice with company seal and authorized signatory.
Proof of Product (POP)
Seller provides Tank Storage Receipt (TSR), SGS/Inspection Report, and Authorization to Verify (ATV) for buyer's due diligence.
Dip Test Verification
Buyer or buyer's appointed agent conducts dip test at the storage facility to verify product quantity and quality.
Injection & Title Transfer
Upon successful verification, product is injected into buyer's designated tank. Title transfers upon injection completion.
Payment Execution
Buyer executes payment via MT103 wire transfer within the agreed payment window per CI terms.
Tank Takeover (TTO)
Direct ownership transfer of stored product
Tank Verification
Buyer's representative or appointed SGS inspector verifies tank contents, product quality, and storage facility credentials.
Ownership Transfer Agreement
Both parties execute a Tank Ownership Transfer Agreement specifying product volume, quality parameters, and transfer conditions.
Documentation Exchange
Seller provides updated TSR in buyer's name, Certificate of Origin, and all applicable quality certificates.
Payment Trigger
Payment is executed via MT103 upon confirmed title transfer and issuance of new TSR in buyer's name.
Tank-to-Vessel (TTV)
Loading from storage directly onto buyer's vessel
Vessel Nomination
Buyer nominates vessel with full vessel particulars including IMO number, flag, DWT, and ETA at loading port.
Loading Schedule Confirmation
Terminal confirms loading window and berth availability. NOR (Notice of Readiness) tendered upon vessel arrival.
SGS Q&Q Inspection
Independent SGS inspector conducts quantity and quality inspection at loading port. Shore tank and vessel measurements reconciled.
Loading Operations
Product loaded via terminal pipeline. Bill of Lading issued upon completion of loading with final loaded quantity.
Title Transfer & Payment
Title transfers upon Bill of Lading issuance. Payment executed per agreed terms (LC, MT103, or escrow).
CIF / STS (Ship-to-Ship)
Delivered price including cost, insurance, and freight
SPA Execution
Sale and Purchase Agreement executed specifying Incoterms (CIF/CFR), delivery port, laycan, pricing formula, and payment terms.
Vessel Arrangements
Seller arranges mother vessel. Buyer provides receiving vessel details for STS operations or discharge port nominations.
POP Documentation
Seller provides full POP package: Bill of Lading, Certificate of Origin, SGS Quality & Quantity Report, and insurance certificate.
Delivery & Discharge
Product delivered to discharge port or STS location. Independent inspector witnesses discharge operations and issues final report.
Final Settlement
Final invoice issued based on B/L quantity or outturn quantity (as per SPA). Payment executed via LC or MT103.
Disclaimer: The procedures outlined on this website are for general informational purposes only. Actual commercial procedures may differ depending on the product type, prevailing market conditions, and the location where the product is to be received. All terms are subject to the final executed contract.
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