CIF INCOTERM PRODUCT PRICE AND PROCEDURES WITH LC
1. Buyer confirms Procedure / SCO, buyer issues an official ICPO and copy of CEO's passport identification.
2. Seller issues Draft Sales and purchase Agreement (SPA/MOU) to buyer.
3. Buyer writes a letter of guarantee to perform precisely in accordance with the SPA/MOU unanimously accepted transacting procedure. The letter to be presented in a signed /stamped letter of request on the buyer company's letter headed paper.
4. Buyer returns signed SPA with the security guarantee acceptance letter to seller for legalization.
5. Seller reviews signed contract acknowledged and legalize it through the ministry of energy. Cost of legalization must be borne by the Seller.
6. The below notarized listed PPOP by the Kazakhstan Export Control Department is released for buyer's confirmation.
(a) Refinery Commitment to Supply
(b) ) Certificate of Origin
(c) Seller Certificate of Incorporation
(d) Quality and Quantity Report (Product Passport)
(e) Statement of Product Availability
7. Seller releases to buyer the above listed Partial POP Documents.
8. Buyer instructs his bank to issue DLC-MT700 / SBLC-MT760 to seller's nominated bank account.
9. Buyer, within Ten {7} banking days sends agreed swift, negotiable to sellers nominated account. The DLC-MT700 or SBLC-MT760 shall be payable upon presentation of the documents specified in the procedure, and shall not be activated unless and until the commodity is complete discharged at the destination port(s), and the Buyer confirms the quantity and quality of the commodity through CIQ/SGS inspection report. If buyer fails to issue DLC- MT700 within 7 working days, the Seller shall issue an invoice to Buyer for the remittance security guarantee deposit of 3% via TT Wire MT103 of the total value of the product cost to the sellers fiduciary bank account to secure the allocation which will be deducted from the final payment after delivery.
10. If buyer fails to make the 3% guarantee deposit within 3 banking days, contract will be terminated.
11. Within 72hrs of the DLC /SBLC or 3% guarantee deposit Confirmation, Seller Signs CPA and release full POP document and 2% Performance Bond (PB) to Buyer as guarantee of monthly shipment, alongside the below list full POP Documents, customs formalities to Buyer's Bank,
(a) Ship Certificates
(b) ) Cargo Declaration
(c) Fresh SGS Report
(d) ) Charter Party Agreement
(e) Ownership Certificate
(f) Title Transfer Affidavit
(g) ) Product Allocation Certificate
(h) Ullage Report
(i) Notice of Readiness
(j) Customs Declaration Certificate.
(k) Bill of lading
(l) vessel Q88
12. All parties finalized the signing of the NCNDA/IMFPA and Seller clears vessels from the commercial's terminal, Buyer confirms shipping documents with ship master while Seller effects delivery to Buyer destination according to contract schedule.
13. Shipment commences as per contract schedule
14. Upon arrival of cargo at discharge port, and the conclusion of CIQ/SGS/Q&Q at discharge port, Buyer's Bank activates the DLC as per clause 9.0 or release to Seller's Bank the complete 97% payment by TT/MT103, within five (5) bank working days only if buyer fails to issue bank instruments.
15. Seller release payment to all intermediaries in accordance with the signed NCNDA/IMFPA within 48 hours of receiving the payment for the product from the Buyers bank..