SOCAR REFINERY
PROCEDURES
NOTE 1: WE ONLY ACCEPT ICPO FROM END BUYERS. NO PROXY BUYERS
NOTE 2: All ICPOs must be addressed to the refinery/end seller through our company, as their official representative. All transactions are managed directly by the refinery/end seller.
F0B TANK TO TANK (TTT)
PROCEDURES
1. Buyer issue ICPO with the seller terms and conditions and their TSA.
2. Upon seller satisfaction of the ICPO from the buyer, the seller issue commercial invoice (CI).
3. Buyer study and signed the commercial invoice within 3 working days and return back to the seller
4. Upon the seller received the signed copy of the commercial invoice from the buyer, seller issue to the buyer the below PPOP document:
(A) Statement of availability
(B) Commitment Letter to supply
5. Upon buyer receiving the PPOP document seller Request the buyer to provide TSR from their storage company with GPS coordinate
6. Upon receiving the TSR AND GPS coordinate from the buyer tank farm seller shall issue the Dip Test Authorization (DTA) and Authorization To Verify (ATV)
7. Upon seller issuing the DTA to buyer seller shall immediately start injection and submit to buyer the daily injection report
8. Upon the completion of the injection seller shall commence dip test and issue to the buyer the following POP Document:
(A) Authorization to sell and collect
(B) Certificate of Origin
(C) Fresh SGS Report
(D) Affidavit of Transfer of ownership of product
9. Upon buyer receiving the POP document buyer signed the affidavit of transfer of ownership certificate
10. Buyer makes 100% payment by MT103/TT wire transfer for the total product and Seller pays commission to all intermediaries Involved in the transaction within 24 hours after confirmation of the buyer's payment then seller issues buyer the Tittle of Ownership.
11. Seller issues draft Contract for buyer to review for R&E monthly deliveries.
12. Buyer reviews and approves the contract and issues SBLC/IRDLC irrevocable, non- transferable, auto revolving for 12months, Shipment value, documentary letter of credit for the length of contract and for each lift-able as scheduled.
13. Buyer pays after Dip Test by MT103 Wire Transfer on each monthly quantity.
14. The subsequent delivery shall commence according to the terms and conditions of the contract, and mandates/intermediaries receive their commissions according to monthly delivery.
FOB CI DIP AND PAY
PROCEDURE
1. Buyer sends ICPO to Seller on receipt of Seller's Soft Corporate Offer.
2. Seller issues Commercial Invoice (CI) for the available quantity to Buyer, Buyer Signs and returns CI to Seller.
3. Upon Receiving the CI Buyer signed and returns and asks for invoice for payment for three days to seller tank.
4. Seller provides buyer the invoice and buyer pay for three days extension to conduct dip test.
5. Upon the confirmation of the buyer payment by seller bank, Seller issues Dip Test Authorization (DTA) letter signed by all parties.
6. Upon the countersigning of the DTA, Buyer orders SGS or INTERTEK to Conduct Dip test on the product in Seller's Tank at Buyer’s expense, upon successful dip test of the product in the Seller's tank.
7. Seller shall immediately submit the (SGS or INTERTEK) inspection Report along with the full Proof of Product (POP) to the Buyer including Notice of Readiness to Inject:
A. Fresh SGS Analytical Report
B. Product Passport,
C. Certificate of Origin of the product, D. Title of Ownership Certificate
E. Authorization to sell and Collect (ATSC)
F. Notification of Readiness to commence injection of the products
8. Seller commences injection into Buyer vessel and issues Injection Report to Buyer.
9. Upon the confirmation of the total quantity Injected into Buyer's vessel, Buyer makes 100% payment by MT103 TT wire transfer for the total product.
10. Seller pays commission to all intermediaries involved in the transaction within 24 hours after payment from the Buyer
APPROVED NON-NEGOTIABLE SPOT CIF
PROCEDURES
1. BUYER ISSUE ICPO MUST BE WITH BUYER COMPANY LETTERHEAD AND BUYER BANKING INFORMATION.
2. SELLER ISSUE DRAFT CONTRACT TO BUYER.
3. BUYER SIGN AND RETURN BACK TO SELLER.
4. SELLER ISSUE THE PPOP DOCUMENTS TO BUYER VIA EMAIL ADDRESS SUCH AS:
A) STATEMENT OF AVAILABILITY OF PRODUCT
B) COMMITMENT TO SUPPLY
C) CERTIFICATE OF ORIGIN
D) PRODUCT QUALITY PASSPORT (ANALYSIS TEST REPORT) BY AZERBAIJANI STANDARD GOST AZS.
5. WITHIN 5 BANKING DAYS BUYER'S BANK ISSUE ESCROW PAYMENT ACCORDING TO SELLER'S FIDUCIARY BANK VERBIAGE TO SELLER NOMINATED FIDUCIARY OFFSHORE BANK ACCOUNT FOR FIRST MONTH SHIPMENT, SHOULD BUYER FAIL TO ISSUE PAYMENT INSTRUMENT WITHIN 5 BANKING DAYS, BUYER WILL MAKE CASH DEPOSIT OF $350,000 BY TT WIRE TRANSFER FOR SECURITY.GUARANTEE TO ENABLE SELLER CHARTER VESSEL AND COMMENCE SHIP MENT, AND THIS PAYMENT WILL BE DEDUCTED FROM THE TOTAL COST OF PRODUCT AFTER INSPECTION AT DISCHARGE PORT, SELLER'S BANK ISSUES FULL POP DOCUMENTS TO THE BUYER'S BANK ALONGSIDE WITH THE 2% PERFORMANCE BOND (PB) TO THE BUYER:
a) Copy of license to export, issued by the department of the Ministry of Energy, of AZERBIJANI.
b) Copy of Approval to Export, issued by the Ministry of Justice, AZERBIJANI.
c) Copy of statement of availability of the product
d) Copy of the refinery commitment to produce the product.
e) Copy of Transnet contract to transport the product to the loading port.
f) Copy of the port storage agreement.
g) Copy of the charter party agreement to transport the product to discharge port.
h) Copy of Vessel Questionnaire 88.
i) Copy of Bill of Lading.
j) SGS Report at loading port.
k) Dip test Authorization (DTA) & ATV
l) NOR /ETA.
m) Certificate of Ownership Transfer.
n) Allocation Transaction Passport Code Certificate (ATPCC) by Ministry of Energy.
6. THE SHIPMENT SHOULD ARRIVE AT BUYER'S DISCHARGE PORT WITHIN 10-15 DAYS.
7. THE SGS INSPECTION WILL BE BORNE BY THE SELLER AT THE LOADING PORT AND BUYER AT THE UNLOADING SEA PORT.
8. BUYER RELEASES PAYMENT TO SELLER BY TT/MT103 OR RELEASE THE ESCROW PAYMENT TO SELLER BANK UPON RECEIPT OF THE SHIPPING DOCUMENTS AND CONFIRMATION OF THE Q&Q BY SGS/CIQ AT DESTINATION PORT.
9. SELLER PAYS COMMISSION WITHIN 48 HOURS BY SWIFT MT103 TO ALL INTERMEDIARIES AS SIGNED NCNDA/IMPFA.
TANK TO VESSEL (TTV)
PROCEDURE
1. The buyer issue ICPO and the CPA
2. Seller release the commercial invoice (CI) within 48 hours
3. The buyer sign and return the CI to seller along with their Notice of readiness (NOR) from their shipping company
4. Seller issue the PPOP document as below:
A) Product Quality passport
B) Certificate of origin
C) Commitment to supply
D) Statement of product availability
5) The Buyer provides ATI and Q88 from his or her shipping company
6) Seller issue unconditional dip test authorization, TSR to buyer, buyer conduct dip test in seller tank at buyer cost
7) After the successful dip test, injections commence to buyer vessel
8) After the successful injection seller issue
A) Allocation license
B) Title ownership transfer affidavit
C) Tax Registration certificate
9. The buyer make 100% of the payments of the fuel via Mt103/TT to the seller in 24 hours, once 100% payment received all intermediaries are paid by Seller. Seller and buyer sign a one-year delivery
TANK TO VESSEL (TTV) WITH TTVIA
PROCEDURE
1. Buyer issue ICPO and CPA
2. The seller issue commercial invoice (CI) to the buyer
3. Buyer sign and return the commercial invoice
4. Seller issue to buyer Tank To Vessel Injection Agreement (TTVIA) to be endorse by both seller, and buyer and buyer Logistics Company. (NOTE IF PAYMENT IS NEEDED TO GET THE TTVIA SIGNED BY THE BUYER LOGISTIC COMPANY BUYER AND SELLER SHALL MAKE THE PAYMENT TO THE BUYER LOGISTICS COMPANY SELLER SHALL MAKE 30 PERCENT WHILE BUYER MAKE 70 PERCENT OF THIS PAYMENT TO BUYER LOGISTIC COMPANY).
5. upon returned of the TTVIA, seller release to the buyer the following PPOP document:
A. Commitment Letter to Supply
B. Seller tank storage receipt TSR
C. statement of availability
D. Unconditional dip test Authorization letter (UDTA)
E. Product passport.
F. Injection Notification
G. Authorization to verify the product via email and telephone from seller logistic company
6. Upon the buyer received the PPOP document, the buyer and his vessel company issue to the seller the following document:
A. Notices of readiness (NOR) to allow seller proceed with the injection schedule.
B. Q88
C. Authorization to Inject (ATI)
7. Upon seller receiving the following document from buyer logistic company, seller proceed with the injection of the product into buyer vessel.
8. Upon the completion of the injection of the product into buyer vessel, the buyer and his team proceed with the dip test.
9. Upon the completion of the dip test by the buyer seller issue the below POP document:
A. Authorization to sell and collect
B. Certificate of Origin
C. transfer of ownership certificate
D. fresh SGS report
10. Upon the buyer received the POP document the buyer in 48 hours make payment to the seller and seller pays all intermediary.
FOB TANK TO TANK (TTT)
WITH SGS REPORT
PROCEDURE
1. Buyer issues ICPO along with Buyer’s Company Certificate of Registration with Banking Information & Passport Copy.
2. Seller issues Commercial Invoice (CI), Buyer Signs & Returns back the CI along with Buyer’s Tank Storage Agreement (TSA).
3. Seller submits a 48 -hours old hard copy of fresh SGS Report to the buyer Tank Farm Company in for verification of the SGS Report.
4. Upon confirmation of SGS Report by Buyer’s Tank Farm Company in, Seller requests for Buyer Active & Operational TSR for Injection Program. (TSR days depend on the Quantity to be Injected), Seller injects product to Buyer ‘s Tank and Issues following POP documents to the buyer:
a. Q&Q analysis Report done by Indigenous Lab at the Port of Origin.
b. Full Injection Report.
c. ATV/UDTA.
d. Copy of Product Certificate of Origin.
e. Copy of Product Export License to Port.
f. Allocate Transfer Certificate.
g. Authority To Sell & To Collect (ATSC).
5. Buyer conducts DIP TEST on the product at the buyer’s cost for the reconfirmation.
6. Upon confirmation of the SGS Test by the Buyer for the Quantity & Quality. Buyer makes 100% payment via MT103 T/T wire transfer for the total Product injected into the buyer’s tank.
7. Seller pays all Intermediaries involved via NCNDA/IMFPA and subsequently. Monthly Shipment continue as per terms & conditions of the sales and purchase agreement contract between the Buyer and the Seller.
TITTLE TAKE-OVER (TTO)
TRANSACTION PROCEDURE
