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LLP Pavlodar Petrochemical Refinery

The document outlines the procedures for a monthly crude oil contract between a seller and buyer. It details 10 steps including the seller issuing a contract, both parties signing, the buyer opening a letter of credit, the seller providing documents, shipment occurring within 10-25 days of payment, inspection and payment upon delivery.

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Adnan Ismail
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800 views2 pages

LLP Pavlodar Petrochemical Refinery

The document outlines the procedures for a monthly crude oil contract between a seller and buyer. It details 10 steps including the seller issuing a contract, both parties signing, the buyer opening a letter of credit, the seller providing documents, shipment occurring within 10-25 days of payment, inspection and payment upon delivery.

Uploaded by

Adnan Ismail
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LLP PAVLODAR PETROCHEMICAL REFINERY

CIF PROCEDURES FOR THE MONTHLY CONTRACT (NON-NEGOTIABLE).

1. Seller issues Contract Draft (SPA) to the Buyer to revise, sign, stamp, and return it in
WORD format to the Seller.

2. Seller reviews the signed Contract, seals it, and returns a copy of the signed and
sealed contract in PDF format to the Buyer. Both parties lodge the Contract copy with their
respective banks.

3. Seller releases to the Buyer the Partial POP Documents as below:


a. Copy of Tax Registration Certificate (Certificate of Incorporation),
b. Product Passport,
c. Refinery Commitment to Supply,
d. Statement of Availability of the Product,
e. Proforma Invoice (with Seller Payment Fiduciary Bank details),
f. ATSC (Authority to Sell and Collect),
g. Certificate of Origin (Kazakhstan).

4. On confirmation of the receipt of the Partial POP, the Buyer must respond within TEN
(10) days to issue the Documentary Letter of Credit (DLC) Swift MT700, detailed and
mutually agreed upon in the signed Contract.
N.B. If the Buyer fails to issue DLC MT700 within TEN (10) banking days, in that case, the
Buyer shall deposit an amount of 2% Monthly Contract Value via T.T. wire transfer as a
Security Guarantee Deposit for the product loading and delivery to proceed without
requirements of DLC SWIFT for the shipment.

5. Buyer’s Bank issues a Non-Operative DLC (MT700). On confirmation and authentication


of the Buyer’s SWIFT of Non-Operative DLC (MT700), the Seller’s Bank posts a 2% PB for the
consigned quantity. The DLC shall automatically become Operative. It releases the Full POP
Documents listed below to the Buyer’s Bank.
a. Copy of Export License, issued by the Ministry of Petroleum and Energy.
b. Letter of Approval to Export, issued by the Ministry of Justice.
c. Copy of Statement of Availability of the Product.
d. Copy of the Refinery Commitment to Produce the Product.
e. Copy of Contract to Transport the Product to the Port.
f. Copy of the Port Storage Agreement and Insurance.
g. Copy of Charter Party Agreement (CPA).
h. Copy of Customs Clearance Certificate.
i. Copy of the Tank Receipt issued by the Storage Facilitator.
j. Copy of SGS Report.

6. Upon receipt of the Full POP by the Buyer's bank, the Buyer immediately notifies the
Seller of their readiness to receive the product shipment.
7. The Shipment commences as per the contract shipment’s scheduling. The delivery
vessel should arrive at the Buyer's discharge port within 10-25 days after receiving 100%
DLC MT700 from the Buyer's bank.

8. On the vessel’s arrival at the Buyer's discharge port, the Buyer's agent conducts SGS
and CIQ inspections. Upon confirmation of the quantity and quality of the product, the
Buyer makes the payment for the total shipment based on the Seller's Final Invoice via T/T
MT-103.

9. Seller releases payments to intermediaries based on the signed IMFPA within 48


banking hours of receiving the total product payment amount from the Buyer's bank.

10. After successfully delivering the first month of the Contract, the Buyer transfers the
total value of the 100% DLC (MT700) monthly shipment’s value for the following month's
delivery collateral. The Contract continues for twelve (12) months, subject to this
agreement's terms.

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