CFR Terms and Procedures.

1- Buyer issue LOI/ICPO to seller with company profile,

  • Seller issues oil products sale soft corporate offer.
  • Seller issues Draft Contract to buyer opening for amendments

2- Buyer sends an irrevocable corporate purchase order that states that he agrees that an irrevocable letter of credit – BG/SBLC or cash payment shall be the payment method and include /attach the following documents/ information as listed below to enable seller process the order:

  • Product refinement specifications given on Buyer's letterhead addressed to seller.
  • Product volume on Buyer's letterhead addressed to seller.
  • Logistics at the CFR discharge port of delivery (vessel berth capacity).
  • Proposed timetable for delivery.
  • Facilities at the destination port.

Seller's procedures as enumerated below without change :

3.The Seller shall then issue a contract that is signed by the buyer .

4.The buyer must sign the contract and return it within 2 working days.

  • The contract will be long-term, not Spot.

5. After signed by both parties and exchanged via electronic mail within three business days.

6. The buyer must open a Bank Guaranty /SBLC equivalent to his one-month purchase for the seller's account Bank .

7. Payment will be done after each respective shipment via MT 103/TT within maximum two business days after the discharge at the port following SGS inspection.

8. The next shipment will be done according to the contract schedule and payment of the previous shipment .

9. The Buyer shall send the Seller a Free In and Free Out permit for the Seller's vessels at the discharge ports, within three business days .