Bonny Light Crude Oil (BLCO) CIF: Europe – USA – Singapore – India with N D Preston

Bonny Light Crude Oil (BLCO) CIF: Europe – USA – Singapore – India with N D Preston

  • Posted by ndpreston
  • On March 28, 2021
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BLCO TRANSACTION PROCEDURE ON CIF – EUROPE – USA – SINGAPORE – INDIA 

  1. THE BUYER ISSUES LOI/ICPO
  • THE SELLER ACKNOWLEDGES THE LOI AND ISSUES THE SPA; THE BUYER AND SELLER SIGN THE SPA. 
  • THE SELLER APPROVES THE SIGNED SPA, SENDS ACKNOWLEDGEMENT LETTER WITH ACCOUNT TO RECEIVE THE BUYER’S SBLC VIA MT760 (TOTAL OR PARTIAL FACE VALUE)
  • BUYER AND SELLER LODGE CONTRACT IN THEIR RESPECTIVE BANKS. BUYER SUBMITS INSPECTOR/SHIPPING AGENT DETAILS AND ATB/NOR FORMAT TO THE SELLER AND PROVIDES THE KYC /CIS OF THE ACCOUNT HOLDER TO ISSUE SBLC.
  • THE BUYER’S BANK SWIFTS PRE-ADVICE MT799 TO SELLER’S BANK. SELLER CONFIRMS THE PRE-ADVICE MT799 VIA REFERENCE SWIFT.
  • WITHIN 72 HOURS ISSUES A STANDBY LETTER OF CREDIT (SBLC) MT 760 IN FAVOR OF SELLER TO SELLER’S BANK.
  • SELLER CONFIRMS SBLC AND THEN THE VESSEL’S CAPTAIN ISSUES ETA TO THE BUYER’S SHIPPING AGENT, HARBOR MASTER IN THE POD /DISCHARGE PORT ONCE THE VESSEL IS CHARTERED AND LOADED AND MOVES TO THE PORT OF DESTINATION (POD).
  • VESSEL SAILS TO THE PORT OF DESTINATION WATERS FOR Q&Q. THE LOADED VESSEL WILL ANCHOR IN INTERNATIONAL WATERS PENDING CLEARANCE FROM BUYER’S SHIPPING AGENT. ANY EXPENSES, SUCH AS PORT CHARGES, LEVIES, SECURITY, TUGGING ETC., THAT MIGHT ARISE AS A RESULT OF VESSEL COMING INTO THE PORT OF TAKE OVER COUNTRY HARBOR/PORT/TERMINAL/STORAGE OR WATERS WILL BE BORNE BY THE BUYER. ALL CLEARING PROCESSES WILL BE CARRIED OUT BY THE BUYER’S SHIPPING AGENT.
  • AT THE POD, THE VESSEL’S CAPTAIN ISSUES ATB TO INSPECTORS/SHIPPING AGENT TO BOARD THE VESSEL AND COLLECT SAMPLES. NNPC ISSUES UDTA /CLEARANCE TO INSPECTORS/SHIPPING AGENT TO BOARD THE VESSEL PERFORM Q&Q
  1. Q&Q REPORT SUBMITTED/RELEASED TO BOTH BUYER AND SELLER.
  1. SELLER ISSUES COMMERCIAL INVOICE ACCORDING TO THE REPORT OF THE Q&Q AND PAYMENT IS MADE BY SWIFT MT103 FOR THE FULL CARGO TO SELLER’S SPECIFIED ACCOUNT. TITLE IS TRANSFERRED TO BUYER WITHIN 72 HOURS.  CONCURRENTLY. 
  1. VESSEL CAPTAIN CONNECTS BUYERS TO SHIPPING COMPANY FOR BUYER’S TANK FARM FOR DISCHARGE.
  1. THE BUYER AND THE SELLER SIGN AND AGREE ON 12 MONTHS DELIVERY SCHEDULE.

WE DO NOT ACCEPT ANY ICPO OR LOI or SPA WITH DIFFERENT PROCEDURE THAN THE SELLER’S.

*Seller reserves the right to reject any Buyer’s CP & ICPO/LOI, SPA, Logistics after DD or Request Payment