Buyer sends LOI or ICPO to seller. Seller sends SCO to buyer. Buyer signs SCO and reverts to seller.
Seller sends FCO to buyer and buyer reverts the following documents properly filled out to seller:
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.
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).
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.
Within 72 hours (depending on SGS availability) after confirmation of the instrument by seller’s bank, seller issues SGS/POP/DTA in the name of the buyer at loading port and gives Authorization To Sell (ATS, only if required) to buyer.
Buyer makes Dip Test at lading port and seller loads vessel or fills the product into buyer’s tanks or buyer takes over seller’s tanks.
Buyer pays with TT/wire transfer or MT103 at loading port against presentation of the shipping documents (Bill of Lading) within 2 (two) banking days after successful Dip Test of the buyer.
Seller’s bank transfers titleholder to buyer and herewith the transaction is closed.