Naft Minerals | CIF – PROCEDURE
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CIF – PROCEDURE

CIF

The key to our success is the clearly defined procedure we and our banks are working with. This is the only process to supply you Gas & Oil from our refineries and tanks.

1. LOI or ICPO

Buyer sends LOI or ICPO to seller. Seller sends SCO to buyer. Buyer signs SCO and reverts to seller.

2. FCO

Seller sends FCO to buyer and buyer reverts the following documents properly filled out to seller:

  • Completed FCO with Buyer’s bank data, signed and sealed
  • Customer Information Sheet (CIS – template provided by Seller) on buyer’s letterheads, containing the Copy of Company Registration Certificate and passport copy of signatory
  • RWA letter issued by buyer’s bank (template provided by seller)
  • Authorization to verify the RWA letter by our bank

3. SPA & CI

Seller drafts Sales & Purchase Agreement (SPA) and Commercial Invoice (CI) to be lodged in both banks. Seller and buyer execute final contract. Seller sends final contract electronically in PDF format. An electronically executed final contract can stand as original.

4. SENDING MT799 / PRE-ADVICE

Buyer’s bank sends MT799/Pre-Advice (verbiage provided by seller’s bank) to seller’s bank and buyer’s sends copy immediately to seller’s company email address. After seller has received the copy of the transferred SWIFT and forwarded to his bank, seller’s bank opens communication with buyer’s bank on basis of the lodged SPA to discuss all relevant items and documents for security on the deal for both banks (buyer/seller).

5. CONFIRMING MT799 / PRE-ADVICE

After successful mutual confirmation of the MT799/Pre-Advice between both banks seller’s bank confirms by SWIFT MT799 and buyer’s bank sends SWIFT MT760/BG/SBLC (verbiage provided by seller’s bank) about the amount for the first delivery to seller’s bank within 3 banking days.

6. LOADING OF VESSEL

Within XX days (depends on the product and other parameters) after confirmation of the instrument by seller’s bank and depending on SGS inspection timeline loading starts as per delivery schedule agreed in the contract.

7. SHIPMENT & DIP TEST

Vessel sails to destination Port. Seller gives DTA at discharging port and buyer makes Dip Test / SGS/ CIQ or similar organisation

8. PAYMENT AGAINST SHIPPING DOCUMENTS

Buyer’s bank pays for each shipment 100% by TT or MT103, at sight in the discharging port against presentation of the shipping documents.

9. TRANSFER OF TITLEHOLDER

Seller provides 110% insurance in favor of the buyer and herewith the transaction is closed.