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Buyer should send LOI Address to the End Seller, Through: KAPTAAN BUSINESS SOLUTIONS, Email: firstname.lastname@example.org
Note: If buyer asks for past performance or SGS report from the seller then buyer needs to send Past Buying Performance Report in ICPO then only seller will provide past performance after buyer opens MT799)
1. Buyer issues ICPO together with the Buyer’s company profile, copy of passport and Certificate of
2. Seller conducts due diligence, approves, and issues draft Contract (Sales & Purchase Agreement)
and Performa Commercial Invoice for one month cargo face value, for all parties’ review,
amendment and endorsement.
3. Buyer approves, signs, seals, and sends the Sales & Purchase Agreement to Seller via email along
with copy of the buyer company registration, signatory passport copy and Proforma Commercial
4. Buyer’s issuing bank issues SWIFT MT-799 pre-advice to Seller’s nominated fiduciary bank
irrevocably confirming with full bank responsibility that Buyer’s issuing bank, in behalf of their
Buyer/client, is ready, willing and able to issue and deliver the financial instrument,
DOCUMENTARY LETTER OF CREDIT (DLC) via SWIFT MT-700or STAND-BY LETTER OF CREDIT (SBLC)
via SWIFT MT-760 in accordance with the Seller bank’s verbiage in favour of the Seller’s
beneficiary. within three (3) working days after receipt of the signed Sales and Purchase
Agreement from the Buyer.
5. Seller registers, legalizes, and notarizes the hard copy of the signed and sealed Sales and Purchase
Agreement at Seller’s expense and sends via email the scanned certified true copy to Buyer as an
6. Both parties lodge the final Contract with their respective banks.
7. After confirmed receipt by the Seller’s bank of Buyer bank’s SWIFT MT-799, Seller issues and
sends the below Partial POPs (Proof of Products) to the Buyer via secured-mail:
a. Certificate of Origin
b. Signed Commercial Invoice
c. Statement of Product Availability
d. Commitment to Produce and Supply the Product
e. Export License
f. Product Passport
8. Buyer’s bank issues and sends an Irrevocable, DOCUMENTARY LETTER OF CREDIT(DLC) via SWIFT
MT-700 or STAND-BY LETTER OF CREDIT (SBLC) via SWIFT MT-760 in the amount equivalent to one
month cargo delivery’s face value to Sellers nominated fiduciary bank within five (7) working days
from receipt of the PPOPs from the Seller. Should Buyer fail to issue said bank instrument within
five (7) working days, Buyer will make cash deposit of $450,000 USD via SWIFT MT-103/TT/Wire
Transfer for security guarantee to enable Seller to charter vessel and commence shipment. This
payment will be deducted from the total cost of product after inspection at discharge port,
otherwise legal action will be taken against the Buyer for default.
NOTE: Should the Buyer not be able to fulfil said financial obligations, all costs incurred by the Seller
will be subject to recovery from the Buyer in full favour of the Seller.
9. Seller’s bank issues 2% Performance Bond to Buyer’s bank. Seller issues NCNDA/IMFPA to all
10.Seller issues the below Full POPs (Proof of Products) to the Buyer’s secured email:
a. Product Allocation Export Permit
b. Allocation Title Ownership Certificate
c. Contract to transport the product to the loading port.
d. Port Storage Agreement
e. Charter Party Agreement to transport product to discharge port.
f. Tank Storage Receipt
g. SGS Quality and Quantity Certificate
h. Bill of Lading
I. Vessel Questionnaire 88
j. Dip Test Authorization
k. Authority to Board
l. Authority to Verify
11. Shipment commences within 5 (five) working days from the receipt and acknowledgment of the
Buyer’s financial instrument or Buyer’s security guarantee deposit (should the Buyer fails to issue
financial instrument), and arrival of the vessel tanker at the discharge port will be 15 to 28
calendar days (depending on the location of the discharge port). Upon arrival of the cargo at the
discharge port, the Buyer conducts Dip test or Q&Q inspection at Buyer’s cost.
12.Seller transfers the Title Ownership to Buyer. Buyer’s bank upon arrival of the cargo at the
discharge port, issues full payment for the total product via MT103/TT Wire Transfer within three
(3) working days after confirmation of the Q & Q by Independent surveyor /CCIC (successful dip
test) on the vessel at discharging port.
12.Succeeding shipping commences as per contract.
(a) Original quantity and quality certificates plus two (2) copies as issued at the designated Port in Russia by an Independent Surveyor Company.
(b) Certificate of Origin plus two (2) copies countersigned by a local Chamber of Commerce
(c) Signed Commercial Invoice based on the delivered quantity/quality as determined by clause of this Contract and Owner Title
(d) Statement of Product Availability
(e) Commitment to Supply the Product
(f) Seller Registration Certificate
(g) Seller’s Export Permit
(h) Copy of the Charter Party Agreement/s to transport the product to discharge port
(i) Vessel Questionnaire 88 (Q88)
(j) Copy of Bill of Lading
(k) Nominated international Surveyor Company Report /Fresh at loading port
We usually complete documentation procedure for our buyer’s orders within 7 working days including SPA contract. Make sure you are ready with Buyer’s ICPO, Bank Draft Verbiage and Banking Instruments like SBLC/DLC etc. If buyer is ready with all required documents and ready to order, then you can contact us now.