CIF Procedure DLC, SBLC

1. Buyer issues ICPO and acceptance letter with sellers delivery procedures on buyer company letterhead along with buyer banking information & company registration certificate.

2. Seller issues sales purchase agreement to buyer

3a. Buyer signs and returns the SPA to seller with guarantee of compliance, seller issues partial proof of products to buyer:
(a) export license.
(b) certificate of origin.
(c) irrevocable commitment to supply.
(d) proforma invoice for the first value month.
(e) statement of availability of product.

3b. Within 7 banking days, buyers bank sends transferable irrevocable operative sblc via MT760 or dlc via MT700 according to sellers fiduciary bank verbiage to sellers nominated fiduciary bank account for first month shipment, should buyer fail to issue payment instrument within the 7 banking days,the buyer must make cash deposit of 3% the total quantity of the first trial shipment by MT103 tt wire transfer, for security guarantee to enable seller secure a charter vessel and commence shipment. 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 buyers bank Alongside with the 2% performance bond (PB) and ttm will be held in buyers designated safe location upon arrival of cargo at buyer’s discharge port.
(A) NOR/ETA
(b) bill of lading.
(c) official export license.
(d) vessel questionnaire 88.
(e) port storage agreement
(f) SGS report at loading port.
(g) certificate of ownership transfer.
(h) dip test authorization (DTA) & ATB.
(I) charter party agreement to transport the product to discharge port.
(j) copy of transnet signed contract to transport the product to the loading port.
(k) allocation transaction passport code certificate (ATPCC) by ministry of energy.

4. Shipment commences only upon confirmation of buyers payment of security guarantee and the shipment should arrive at buyers discharge port within 5-25 days. The sgs inspection will be borne by the seller at the loading seaport and buyer at the unloading seaport.

5. Buyer releases payment to seller by TT/MT103 upon receipt of the shipping documents and confirmation of the q&q by sgs/ciq at destination port.

6. Seller pays commission within 48 hours by swift MT103 to all intermediaries assigned NCNDA/IMPFA

7. Seller/buyer proceeds on yearly basis as per signed draft contract.