If you’re looking to streamline the process for Diesel CIF (Cost, Insurance, and Freight) transactions, follow these detailed steps to ensure smooth and efficient operations:
Step-by-Step Diesel CIF Procedure:
- Buyer Issues LOI
The Buyer begins the process by issuing a Letter of Intent (LOI). This document should include detailed product specifications, the destination, and the Buyer’s bank details. - Buyer Issues ICPO
Following the LOI, the Buyer provides an Irrevocable Corporate Purchase Order (ICPO). - Seller Provides SPA Draft Contract
The Seller responds with a draft of the Sales and Purchase Agreement (SPA). Both the Buyer and Seller must sign this Contract electronically. - Contract Lodgment
Within 24 hours of signing, both parties must lodge the signed Contract with their respective banks. - Issuance of DLC & Performance Bond
The Buyer issues a Documentary Letter of Credit (DLC). In response, the Seller provides a 2% Performance Bond to secure the transaction. - Loading and Inspection
The Seller begins loading the vessel during the approved laycan window. After loading, the Seller arranges for an SGS Inspection to verify the quantity and quality of the loaded product. The Seller then sends the complete shipping documents to the Buyer. - Vessel Dispatch and Payment
The vessel sets sail to the Buyer’s designated discharge port. Upon arrival, the SGS inspection report will be generated within 48 hours. The Buyer must make a Telegraphic Transfer (T/T) payment for the full invoice value, reflecting the quantity verified by the SGS post-load inspection. - Transfer of Title and Documents
Upon receiving the payment from the Buyer, the Seller transfers the Product Title Ownership and releases all related shipping documents to the Buyer.
Important Notice:
All Transaction Support Agreements (TSAs) submitted by customers will be verified for authenticity. Inauthentic or forged TSAs will be grounds for legal action.
Following these procedures will help ensure that Diesel CIF transactions are handled efficiently and with minimal risk for both parties