This is a very strict policy instituted by the refineries and must be adhered to. Seller issues Draft Contract along with Commercial Invoice.
Buyer sign and return to seller along with verifiable storage tank coordinates. Letter of Commitment to Supply.
What Is FOB In Shipping and How Does It Work?
Statement of Product Availability. Reservoir Storage Receipt. Allocation Transaction Passport Code Certificate. B- Injection Report. C- Unconditional Dip-Test Authorization. D- Letter of Acknowledgement.
E- Dip-Test Inspection Schedule. F- ATV. Upon successful injection, Buyer pays total cost of product via MT Contract begins with Rolls and Extensions.
Buyer issues ICPO with company registration certificate and company profile. Seller verifies the Buyers nominated shipping company and jointly signs the CPA charter party agreement and as well split the freight charges with the buyer. Refinery Product Passport. Certificate of Origin. According to signed CPA by buyer and seller. Vessel sails to the buyers destination Port.
Buyer makes payment for the total product Quantity via MT Upon Seller receipt of signed contract from the buyer, within 72 hours Seller legalizes and registered the signed contract with the ministry of energy Russian Federation. A Certificate of origin. B Refinery registration certificate.So, never use it for air shipments, for example.
PROCEDURES FOR FOB & CIF
Importers and exporters need to know the costs and risks when shipping goods. Incoterms are rules for the interpretation of the trade terms enabling global commerce. It is a global standard helping traders to establish responsibilities and duties during goods transactions. This interpretation is a consequence of the trade practices that buyers and sellers over the centuries developed to ease the exchange of goods. The following outline is a summary of the topics we cover in this article:.
Quick Introduction To Incoterms Definitions. Free On Board For Accounting. Importing From China. Search for Incoterms rule or HS Code. Free On Board Takeaways. Within Incoterms some terms have a specific meaning. The delivery of goods from one country to another may need several modes of transport. So, you must ensure you know what terms stand for to avoid any misinterpretations and disrupt your supply chain.
The following definitions state that:. Delivery is the point where the seller transfers the risk of loss or damage of the goods to the buyer. Delivery Document is any document such as a transport receipt or note proving that delivery occurred.
Carrier is the party performing the carriage of the goods according to its contract using one mode of trasport, e. Carriage is the movement of goods from the port of loading to the that of destination that a carrier performs, e. To make sure that you use FOB correctly, you must provide the documents that are part of the transaction. They are:. The FOB stands for Free on Board and it means that the seller delivers the goods on board of the named vessel at the named port and obtains export clearance.
In fact, the seller is still responsible for the goods if they are sitting in a warehouse or stowed in containers waiting at the port terminal. When goods are packed into a container, Incoterms rules do not apply. This is due to the different control you have over loading the goods inside of it.
So, if you are an importer ensure that the sales contract states the responsibilities on how goods will be loaded in the container. Besides, beware that Incoterms in general do not specify ownership transfer, prices or method of payment. As a seller you must specify these in your sales contract. Said that, another important Incoterms aspect is insurance cover. Yet and license although they can appoint a third-party to handle this.
There are two types of use. Unless you are in one of these two countries, you should never use them for international shipments. No other format is valid.
The suffix Shipping Point means that goods ownership passes to the buyer at the origin shipping point. The sale of goods you ship to your buyer completes when they reach your shipping dock.FOB"Free On Board", is a term in international commercial law specifying at what point respective obligations, costs, and risk involved in the delivery of goods shift from the seller to the buyer under the Incoterms standard published by the International Chamber of Commerce.
FOB is only used in non-containerized sea freight or inland waterway transport. As with all Incoterms, FOB does not define the point at which ownership of the goods is transferred. The term FOB is also used in modern domestic shipping within the United States to describe the point at which a seller is no longer responsible for shipping cost.
Ownership of a cargo is independent from Incoterms. In international trade, ownership of the cargo is defined by the bill of lading or waybill. The term is always used in conjunction with a port of loading. Indicating "FOB port " means that the seller pays for transportation of the goods to the port of shipment, plus loading costs.
The buyer pays the cost of marine freight transport, insuranceunloading, and transportation from the arrival port to the final destination.
The passing of risks occurs when the goods are loaded on board at the port of shipment. For example, "FOB Vancouver" indicates that the seller will pay for transportation of the goods to the port of Vancouverand the cost of loading the goods on to the cargo ship this includes inland haulage, customs clearance, origin documentation charges, demurrage if any, origin port handling charges, in this case Vancouver.
The buyer pays for all costs beyond that point, including unloading. Responsibility for the goods is with the seller until the goods are loaded on board the ship.
Once the cargo is on board, the buyer assumes the risk. The use of "FOB" originated in the days of sailing ships. When the ICC first wrote their guidelines for the use of the term in the ship's rail was still relevant, as goods were often passed over the rail by hand. Inin the case of Pyrene Co. Scindia Steam Navigation Co. Only the most enthusiastic lawyer could watch with satisfaction the spectacle of liabilities shifting uneasily as the cargo sways at the end of a derrick across a notional perpendicular projecting from the ship's rail.
In the modern era of containerizationthe term "ship's rail" is somewhat archaic for trade purposes, as with a sealed shipping container there is no way of establishing when damage occurred after the container has been sealed.
The standards have noted this.It usually takes a couple days to receive an answer on approvals because buyers are checked against Russian refinery blacklists and their non-perfomer files. Buyer needs to complete the new buyer information sheet and the buyer's mandate information form if a mandate is involved. Without these basic items, we cannot get a product SCO issued by the refinery.
While the buyer is selecting a procedure for their purchase.
It's currently the largest area of scams in Rotterdam and knowing your tank storage company is essential to your success. If you are using your own tank company and you have never done business with them before, we encourage you to go to Rotterdam and meet the tank company that is going to receive your fuel. Establish a relationship with the tank company operator and get to know how to reach them by phone.
You should meet them personally and confirm their identity before you send them any money. Colonial Grade Trading has procedures that will allow the buyer to inject to their tanks or, if the buyer cannot locate suitable verifiable storage, seller will put it in tanks at their nominated facility at seller's expense for a tank take over procedure.
Another option is to select a Q88 procedure and lift with your vessel, but please note injection charges and discharge port taxes to the Port of Rotterdam will apply as well as the export taxes when the shipment leaves Rotterdam. After the buyer has submitted their CP with the new buyer information form, the mandate information sheet, and the selected procedures, the seller will issue their product SCO to the buyer which includes the product, trial quantity, price, and the selected procedures.
Once the Commercial Invoice is fully executed and returned to the refinery, the buyer may be receiving POP documents depending on the procedures that were selected. We recommend this because our experience has been brokers and first time buyers can't perform simple due diligence to verify the POP documents.
Have our trade desk contact you today! Jet Fuels. Diesel Fuels. Fuel Oils. Product Specifications. Rotterdam Blacklist. Contact Us. Gasolines Gasoline Fuel Oils Virgin D6 Diesel. Reference Acronyms Terminology. Home Jet Fuels.NefteGaz Consultant. E-mail: neftegazconsultant yandex. We currently serve any world port. If you are a buyer or direct mandate to a performing buyer please feel free to contact us. Please contact us via our official email address. Hello, We are please to inform your esteem buying company the petroleum products you are looking for is available in our storage tanks and reservoir for immediate delivery.
We are expert in exportation of Russian Petroleum Product around the globe. Regards; Krivtsov Afanasy skype: krivtsovoilandgasconsultant email: krivtsovoilgasconsultant mail.
BlueHost is ultimately the best website hosting provider for any hosting plans you require. Quantum Binary Signals Get professional trading signals sent to your cell phone every day. We are authentic buyer mandate seeking to connect with authentic seller mandate with verifiable mandate from end-seller.
We are verifiable if your are verifiable. Hello, we are real Seller of Russian oil products, we are verifiable but we must also check who is the End Buyer, in the past we have closed contracts but then the bayer was a fake despite having provided credible documentation. Maksim Yaroslav Mr. EMAIL: neftegazconsultant yandex.
I personally know the provider. If you are genuinely seeking bank instruments. Contact me and i will furnish you with details. They deal with issuing of instruments such as Bank Guarantee and Standby letters of credit also Letters of credit.
I only want serious buyers then i will put you in touch with the provider directly.
Contact :Robert Glen Email: robertg. Our bank instruments can serves as collateral as the case may be, which will enable you get loans from your bank so as to embark on any projects such as Aviation, Agriculture, Petroleum, Mining, Telecommunication, Construction of Dams, Real estate, Bridges, Trading, Importing and exporting and Other Turnkey Project s etc. Also these instruments can be put in PPP, etc. Please do let me know of your willingness to proceed and I will email you our terms and condition upon request.
We are financial service company in Leicester,United Kingdom, we assist our clients mainly corporate bodies in meeting their financial needs by raising Bank Guarantee and SBLC for lease and purchase which can be used for a variety of purposes like collateral for loans at banks, guaranteeing performance in a contract among other things.
Kindly contact for genuine inquiries and I can provider you with the needed information. Email: chowdutpal gmail. Instruments offered can be put in all forms of trade and can be monetized or discounted for direct funding. We offer certifiable and verifiable bank instruments via Swift Transmission from a genuine provider capable of taking up time bound transactions.E-mail: neftegazagent yandex. Vladislav Yakov Skype: neftegazagent Thank You. Maksim Yaroslav Mr. EMAIL: neftegazconsultant yandex.
Oilgaztreyd LLC has been in business of production, marketing and exporting of all petroleum and petrochemical products for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction. We have never compromised on the quality and the services provided to the customer. We believe in keeping the customers happy and providing them with products at a very competent price.
We have an excellent staffs who will guide you with their best ideas by keeping in constant touch with your company and informing about the market trends. We are also interested to establish a mutual business relationship with buyers, facilitators and resellers all over the world with basic aim of supplying them with our products such as follow D2, jetFuel A1,JP54,Mazut M,D6,Base Oil and Bitumen. Also we work with other foreign partnered refineries in allocation production. Regards, Julian Alessandov Email:oilandgaztreyd mail.
Only for real buyers. Flippers and Joker Brokers are not welcome with "fantasy" pricingand will not be entertained. Offer-Only for real buyers. Also CIF proceudre on first trial shipment available. Kindly contact us with this Email: xcon. Kindly contact us for our procedure and terms of services.
Kindly contact us with this Email: russianstateoilandgas list. We are a serious buyer, but would like NON-Russian fuel direct from a refinery. We would like fuel at Rotterdam or Huston, Texas.
CIF vs. FOB: What's the Difference?
If you can get us Non-Russian fuel, please contact me. Looking for 1 to 2 M Bbl weekly at each port at a good price. Thank you, Larry Adams. We would also consider buying a "failed contract" if the jet fuel is less than a week old.
Dip Test on Seller tank before injection into buyer hire tank. Seller issues Contract Open for Amendments. Buyer counter signs and Seal the contract and sends via email to seller.First soft offer available issued the 30th August and valid until xxxxxxxxxxxxx Ref. Seller issues commercial invoice CIBuyer signs and returns back commercial invoice with tank storage agreement TSA.
Seller transfers title ownership to buyer with all exportation documents required for the transaction. Upon conclusion of first lift transaction seller pays all intermediaries involved in the Transaction and proceeds with the signing of a contract with Buyer.
As part of this offer, T. As such, Mr. Second soft offer available issued the 20th August and valid until September 29, Ref. Third soft offer available issued the 25th August and valid until September xxxxxxxxxx Ref. Buyer signs and returns back to seller. Buyer conducts Dip-test of the product in seller's leased tank at buyer cost. Upon successful dip test, seller commences loading of buyer vessel. Once Vessel completes loading, buyer releases full payment within 48hours by TT for total value of the product.
Seller hands over ownership to buyer. Seller issues to Buyer the following Transaction Documents: a. Statement of Availability of Product b. Product Passport Dip Test Result c. Pre-injection Report PIR. Buyer presents to Seller NOR from its tank farm confirming their readiness to receive the product.
Tank Storage Receipt Valid for 3 days b. Dip test Authorization letter DTA c. Injection Report Rotterdam IR d. Authority to Verify ATV.