We offer the below terms and procedures for the purchase of:
RUSSIAN GAS OIL HSD-D2 SA OIL GOST 305-82
On a CI DIP & PAY basis FOB Vladivostok. astarakhan, bandar abbas iran, and other ports iranian and russian ports
(Can be extended into a contract FOB Rotterdam or FOB Vladivostok)
Commodity: GAS OIL HSD-D2 SA OIL GOST 305-82
Quantity: 200,000 MT to 1 MILLION MT per month.
(200,000 MT minimum first lift after completion of agreement)
Duration: CONTRACT X 12 MONTHS WITH ROLLS AND EXTENSIONS UP TO 60
Price: NWE PLATTS MINUS 10$ TO BUYER (average 3 days Platts on day of loading)
Commissions: As per agreement between participants
Delivery: Ex-Tanks into Buyers’ ships or tanks storage,
Liftable: after CI has been endorsed by the buyer’s bank and bank commitment to pay after the dip test result or injection report has been received.
fix price USD $ 435 GROSS / USD $ 425 ,ASWP , ANNUAL
FOB Price : 390 ~ 380 / Metric Ton ( Negotiable )
FIRST SPOT QUANTITY LIFTABLE: 200,000 MT
Payment: MT103 or TT before loading - with bank commitment to pay after dip test
received and/or SBLC instrument to guarantee the contract.
Performance Bond: Posted and activated as soon as the instrument from seller is activated
Many buyers ask the following question:
Can I use a DLC, or RDLC, instead of posting a SBLC or BG sent via MT760/MT700?
No. This is a Payment vs. Title sale/purchase. Once Buyer confirms the POP documents that were programmed into their name, Buyer then pays with an MT103 and receives Title in their name. The Fuel is sold FOB ex tank Rotterdam. DLCs, RDLCs, IRDLCs call for the fuel to be lifted from our tanks against DLC documents which the Supplier must then submit to Buyer’s bank. Global Banks legally have 21 days (no matter what the contract between buyer/seller stipulates) to pay! No Refinery, no Bank trade desk account and no wholesale distributor will allow DLCs either as payment or as financial assurance for FOB ex tank sales.
STANDARD FOB TRADING PROCEDURES
1. Buyer issue ICPO &cp to seller.
2. Seller issues Draft Contract and Commercial Invoice for buyer to countersign upon acceptance of the terms and conditions.
3. Seller sends to buyer, Commitment to Supply and Product Availability in Storage Reservoir, Product Passport , Transneft Contract (to pump product from refinery to loading port), Certificate of Origin and Company Registration Certificate.
4. Buyer endorse the tank storage agreement (TSA) with the hired tank facilitator of the respective port tank farm nominated by buyer or seller. Buyer has right to nominate its own tank farm. Buyer pays the tank fee to the tank farm to enable seller Pump/Inject the product into the tank
5. Seller issue Dip-Test Authorization to buyer. And upon successful diptest conducted by buyer, then buyer will pay to seller through MT103 T/T wire transfer for the total product available and lift their product to their destination port.
6. Seller pays commission to seller side intermediaries involved in the transaction