Procedures:
1. Seller issues Full Corporate Offer
2. Buyer issues Irrevocable Corporate Purchase Order
3. Seller issues draft contract, signed and sealed to the buyer and send
together with his Company profile.
4. Buyer sign, seal and return to Seller including Buyer’s Company
Profile, with SPA lodged to Buyer's Bank. Seller lodges the same with his Bank. The electronically
signed and sealed contract is legally binding and enforceable.
5. Within three banking days of receipt of the executed contract,
Seller’s bank shall send to the Buyer’s bank (in bank to bank system) a pre-advise Performance Bond
covering 2% of the invoice value and the verified under bank responsibility, set of Proof of Product
documents (as
below) confirming availability of the product and seller’s rights to sell the product . The copies of such
set Seller delivers by e-mail to the Buyer to speed up the verification process.
The Proof of Product (POP) should consist of the following documents issued in Original or copies
certified by the ICC recognized notary:
o POP allocation document issued or assigned, sealed and signed by NNPC
showing Seller as beneficiary, valid for the actual period of time
o Export License issued, sealed and signed showing Seller as beneficiary
valid for the actual period of time
o Export Permit issued or assigned, showing Seller as beneficiary, valid
for the actual period of time and showing the product particulars.
o Seller’s Company Act of Incorporation
o Loading Terminal confirmation on readiness to receive and load the product
o Pro-forma of the Commercial Invoice based on the calculated price and
quantity supported by the respective copies of Platt’s indication and Bladings if any
6. Buyer's Bank within 3 (Three) banking days after positive verification
of POP,PB and the Seller’s company if not black listed within the inter-banking system, issues
operative Non-transferable Documentary Letter of Credit (DLC) to Seller's Bank in favour of Seller
which activates Seller’s Performance Bond automatically.
7. The Seller within 5 (five) banking days confirms acceptance of Buyer’s
DLC nominates a vessel and notify the Buyer for acceptance.
8. Within 3 (three) banking days of the vessel’s acceptance by the Buyer,
the Seller assigns all POP documents through bank to bank system to the Buyer’s name provides the
electronic copies of the ASPATANKVOY Charter party agreement, available shipping documents (as
below) and information on the loaded Cargo vessel for the buyer’s independent check as to the form
of issue.
The documents that will be handed over by the Seller’s bank to the Buyer’s bank for confirmation that
the product has been discharged and shall be subject to effect the payment, are as follows:
o One (1) original and three (3) copies of the Commercial Invoice, based
on the loaded quantity and quality by SGS report. Showing name of vessel, date of completion,
discharge quantity and state of delivery
o Full set of three (3) original and non-negotiable copies of Bill of
Lading, The B/L to be signed in original by the owner and master of vessel endorsed to the Buyer
showing destination. Marked “Freight Prepaid and “Clean on Board”
o One (1) original and three (3) copies of the Certificate of Quantity
issued at the discharge port,
o One (1) original and three (3) copies of the Certificate of Quality
issued at the discharge port,
o One (1) original and three (3) copies of the Certificate of Origin,
countersigned and stamped by a local Chamber of Commerce at loading port
o One (1) original and thee (3) copies of the Master’s Receipt of samples,
o One (1) original of the Ullage report issued at loading terminal,
o One (1) original and three (3) copies of the Cleanliness Report at
loading port,
o One (1) original and three (3) copies of the Certificate of Ownership
assigned to the Buyer,
o Copy of Platt’s indication from the date of Bill of Lading to support
the Invoice value
o One (1) original and three (3) copies of the Custom Clearance at the
loading port
o Any other documents pertaining or related to this transaction, duly
signed by the authorized person(s) and as required by and specified in the Documentary Letter of
Credit
9. Upon confirmation of shipping documents’ approval by the Buyer as
issued in correct way by the Seller, the loaded ship sets off sailing to Buyer's Destination.
10. Upon Vessel arrival at Destination, the Cargo shall be inspected by
the Buyer's designated inspectors for Q & Q and product verification before the Cargo shall be
discharged.
11. Upon Verification and confirmation of the product after full
discharge, the Buyer’s bank shall settle payment with the Seller by Swift against the shipping
documentation as per contract.