RUSSIAN D2 CIF 3/21/2007
Conditions, Price and Payment Terms:
1.Seller is a USA based company, which makes it easier and safer to deal with.
2.Delivery is CIF ASWP(CHINA N/A)
3.Price is US$495.00 p/mt, where our commissions are being paid by seller, US$10.00/MT, (50% seller side, 50% buyerªs), no FPA needed from the buyer.
4.Quantity wise, is 250,000MT/month, 12 month contract, renewals to be discussed on due time.
5.Price is fixed, for the whole extension of the contract.
6.Seller offers 2% PB,
7.Payment terms: seller accepts Non Transferable Irrevocable Revolving Documentary L/C(sellerªs bank is Top 5 bank) and, since itªs an American company, they want the bank issuing the L/C to have confirmation of the L/C either through a top 30 American bank, or any top 30 world bank with branch in the USA, being the L/C payable at USA s branch bank counters, for the issuing or confirming bank against loading shipping documents.
PROCEDURES Seller vs. END-BUYER
1. Buyer sends LOI with soft banking probe or BCL with contact permission
2. Seller responds with FCO
3. Buyer signs and returns
4. Buyer and seller negotiate and sign contract
5. Buyer sends POF, wording to be agreed upon between buyer and seller to seller bank via SWIFT MT 799. Seller is waiting for suggested language to come from the buyer. Below is a suggested language, however not yet sent to seller for approval:
Sample MT799 Text
We (the bank), acting per request of our client hereby confirm that arrangements have been made for the commitment of funds required for the issuance of Revolving Letter of Credit for the purchase of 250,000 metric tons of Gasoil L-0.2-62 on a monthly basis for a period of twelve (12) months from according to Contract No. Such payment instrument will be issued upon receiving and confirming the Proof of Product and issuance of Performance Guarantee from Seller's bank in accordance with the terms and conditions of Contract No.
6. Seller sends Non Operative Performance Bond and POP, which consists of the following documents, according to standard Russian POP procedures:
Copy of license to export issued by the Russian Ministry of Energy;
Passport of Deal-Transfer of Contract Hard Copy;
Copy of approval to export issued by the Russian Ministry of Justice;
Copy of statement of availability of the product specifications,
Copy of the refinery commitment to produce the product, and
Copy of charter party Agreement to transport the product to discharge port.
7. Buyer opens L/C
8. Shipment commences within 45 days
