TRADING PARTNERS

Procedures - Trading Procedures - Unknown Oil Seller Procedure

Unknown Oil Seller Procedure:

PAYMENT METHOD:           
AFTER POSITIVE VERIFICATION OF THE PROOF OF PRODUCT AND RECEIPT OF PERFORMANCE BOND, BUYER WILL ISSUE THROUGH A FIRST CLASS WEST EUROPEAN BANK AN IRREVOCABLE AND DOCUMENTARY( NON – TRANSFERABLE,  NON DIVISIBLE – NON-REVOLVING) LETTER OF CREDIT,PAYABLE AT SIGHT AGAINST THE USUAL DOCUMENTATION, ON A CARGO BY CARGO BASIS TO COVER 100 % OF THE VALUE OF EACH CARGO.
 
BUYER'S BANK: BNP PARIBAS
 
PROCEDURE:     
* We need company profile of the seller and seller's bank references before we can sign the contract.
* We review our counterparty’s background.
* We review our counterparty’s bank letter of references.
* Contract will be signed by both parties.
* Proof of product to be supplied to us directly and must show contracts covering each step of the process from Production to FOB
* Once proof of Product is approved, counterparty opens performance bond, in such a form to be operative by counter of our LC and is acceptable to our bank.
* If Proof of product and performance bond are satisfactory, our LC is operative and workable.