EN 590 10PPM Oil platform for buyers and sellers

EN590 10PPM CIF transaction procedures
1 The platform company signs a sales contract with the refinery. The refinery takes the contract to the Ministry of Energy of Russia for stamping together with the invoice and PPOP (half set of product certificates: 1. product certificate of origin 2. supply commitment 3. product declaration certificate 4. product export license 5. product specifications) Send it to the platform company for verification.
2 The platform company issues MT799, and issues MT760 or MT700 documentary letter of credit (with a period of at least three months) within 7 to 10 working days after receiving the PPOP to the account of the third-party company designated by the refinery. If the letter of credit cannot be issued within the specified time, it is necessary to remit USD 700,000 or 2% of the payment within three working days (according to the requirements of different refineries). After receiving the letter of credit from the platform company, the receiving bank of the refinery issues 2% PB (2% counter-guarantee) to the issuing bank. At the same time, the refinery will send the POP (full set of product certification documents) to the issuing bank of the platform company through the receiving bank.
3. The following is the POP file (POPs of different refineries are slightly different):
a) Copy of the Port Storage Agreement.
A copy of the port storage agreement
b) Copy of the CPA, to Transport the Product to Discharge Port.
A copy of the charter party is used to transport the product to the port of discharge.
c) Vessel Q88.
Vessel Q88
d) Original BL (full set).
Original bill of lading (full set)
e) Copy of SGS Report. A copy of SGS Report
f) Tank storage receipt
g) allocation title ownership certificate product allocation ownership certificate
3.1 After the oil refinery confirms receipt of the platform company’s letter of credit, the goods arrive at Qingdao Port within 21 days.
3.2 After the refinery gave the POP and the ship left Vladivostok, the captain immediately contacted the Chinese shipping agency and provided the following 14 shipping documents to the Chinese side.

  1. Quarantine Declaration for Arrival.
    Arrival quarantine declaration
    2.Ballast Water Declaration.
    Ballast water declaration
  2. Maritime Declaration of Health.
    Maritime Health Declaration
  3. C. O. W. Application.
    C.O.W. application
  4. Ship’s Routing System in xxx (China) Water Area.
    Ship route system in XXX (China) waters
    6XXX port (China) VTS Guide for Users.
    XXX Port (China) VTS User Guide
    7.Data Report Format for the Energy Consumption of Ships.
    Report format of ship energy consumption data
    8.XXX port (China) VTS Safety Administration Regulations (Interim).
    XXX Port (China) VTS Security Management Regulations (Temporary)
  5. Implementation Scheme of the Global Marine Fuel Oil Sulfur Limit by 2020.
    Implementation plan for global marine fuel oil sulfur limit in 2020
  6. Confirmation Letter of Ship Master.
    Confirmation Letter from Captain
  7. New CA
    new CA
    12.Crew Effects Declaration.
    Statement of Crew Effects
  8. Report On Ship’s Particulars.
    Ship Information Report
    14.NOR (Notice of Readiness) /ETA (Estimated Time for Arrivals)
    NOR (Notification of Readiness) / ETA (Estimated Time of Arrival)
    4 After the Chinese party receives the 14 documents listed in 3.2 above, it will successfully file with the local maritime bureau within 24 hours, and pay 10% of the purchase price to the platform company within three working days after the successful filing. At this stage, the platform company does not need to pay any payment to the refinery.
    5 It takes about 7 days for the ship to go from Vladivostok to Qingdao Port, and about 5 days for unloading and CIQ quality inspection. After confirming the product according to the CIQ quality and quantity report of the destination port, the Chinese side will ship within 5 working days (usually within the third working days) to pay 90% of the balance to the platform company. The platform company pays 100% of the payment to the bank designated by the refinery via MT103 on the fifth working day.
  9. After both the refinery and the platform company have received payment from the Chinese party, the platform company instructs the refinery to transfer the rights to the goods from the platform company to the Chinese party.

Remarks: 1. After the goods arrive at CIQ, the Chinese party can also directly remit 100% of the payment to the designated bank of the refinery, and at the same time remit the profits of the platform company to the bank account of the platform company on the same day.
2. The above is that the platform company signed a sales contract with the refinery, and signed a sales contract with the Chinese side at the same time.
3. The second cooperation mode is that the Chinese party directly signs a sales contract with the refinery and entrusts the platform company to issue a license.
4. Regardless of the model, the certificate of the platform company is only used as a guarantee, because the contract signed with the refinery is issued as a mortgage, and the payment is made through MT103 when the goods arrive.
5. The platform company is only responsible for issuing the L/C, and the sales are arranged by the Chinese side.
6. To sign a one-year contract, the platform company only needs to issue a letter of credit with a value of 200,000 tons as collateral, and the refinery will deliver 400,000 to 600,000 tons of goods every month (different refineries vary).
The following is the 2% counter-guarantee provided by one of the Chinese partner refineries to the platform company.