SALES PROCEDURE

STANDARD BANKING PROCEDURE (CIF)

1. Buyer issue Irrevocable Corporate Purchase Order (ICPO) to Seller and include banking details.

2. Seller issue Draft Contract to Buyer, Buyer sign and return to Seller along with Letter of Acceptance and Guarantee to issue SBLC , MT760 within (15) bank working days or pay Cash Deposit of USD $320,000 (MT103) as Product Allocation

Guarantee.

3. Upon receipt of signed SPA and Letter of Acceptance, Seller issue PPOP consist of the following below:

a) Statement of Availability of Product

b) Irrevocable Commitment to Supply the Product

c) License to Export Approval

d) Pro-Forma Invoice ( with 15 working days validity )

4. Within Fifteen (15) bank working days after receipt of the PPOP documents, Buyer issues SBLC MT760 to Seller Fiduciary Company’s bank account or pay Cash Deposit of USD $320,000 via MT103 as Product Allocation Guarantee to assure the transaction and the payment will be deducted from the total cost of product at discharge port.

5. Upon Seller’s receipt and confirmation of SBLC, MT760 or Cash Deposit of USD $320,000, Seller issues a Confirmation of Product Allocation and obtains the Allocation Transaction Passport Code Certificate (ATPCC) from Ministry of Energy to the Buyer, and proceeds with the registration of the full set of POP with the Ministry of Energy and Justice, and with the loading Port Authorities, and charter of vessel for product shipment.

6. Seller sends to Buyer the full set of POP documents and 2% PB (Performance Bond) by Bank to Bank and by email to Buyer. Loading commence according to shipment schedule for shipment within the specified working days after Buyer verification and confirmation of POP and 2% PB. POP DOCUMENTS:

a) Certificate of Incorporation

b) Act of Transfer

c) Commercial Invoice

d) Company Tax Payer’s Certificate

e) Fresh SGS Report at Loading Port

f) Tank Receipt

g) Vessel Q&Q and Quality Specification

h) Bill of Lading

i) Certificate of Non-Wooden Package

j) Notice of Readiness (NOR)

k) Estimated Time of Arrival (ETA)

l) Authorization To Sale (ATS)

m) Cargo Declaration / Conforming Warrant

n) Charter Party Agreement (CPA) to transport the product to the Discharge Port

o) Ullage Report

p) Customs Declaration Certificate.

q) Product Allocation Certificate

r) Notarized NCNDA/IMFPA and Endorsed by Seller Bank.

7. Within three (3) banking days of the Vessel arrival at Buyer destination port, Buyer makes payment via TT/MT103 to Seller against Shipping documents and Title transfer.

8. Product discharged into Buyer’s storage facility/vessel, and Seller pays commission to all intermediaries within 24 hours after receiving payment from Buyer .                     

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FOB PROCEDURE – TANK TO TANK ( TTT )

1. The Buyer Issue an ICPO. Containing the seller’s work procedures and Banking Details along with TSA (TANK STORAGE AGREEMENT), Buyer Certificate of incorporation, Company Profile (CP) and International Passport Copy of the CEO.

2. Seller issues ICC Warning Letter and Commercial Invoice (CI) of products in tank at port, buyer signs and returns the documents with acceptance and commitment letter stating to adhere to seller procedure.

3. The seller issues a copy of the SGS Report strictly JUST to the buyer’s Tank farm Company only to verify the SGS Report.

4. after confirmation of successful verification of SGS Report only by Buyer’s Tank Farm Company. The Buyer pays his Tank Company for 5 Days TSR and send his TSR to the Seller. All Parties must sign NCNDA and IMFPA for endorsements.

5. The seller issues the following POP documents to the buyer;

(a) SGS report for quality and quantity not older than 48 hours

(b) Product Certificate of Origin

(c) Product injection report

(d) Tank storage receipt with full GPS coordinates

(e) Unconditional dip test authorization letter

(f) Authorization to sell and collect

(i)Q&A

6. After verification of the documents, the injection will be commenced and after injection the buyer makes payment for the total value of the product injected into the tank via MT103-TT.

7. After receiving confirmation of Buyer Payment, the seller immediately transfer the title ownership to the buyer.

8. Seller sends payment of all intermediaries involved in the transaction 24 hours after receiving confirmation of BuyerPayment as per signed & sealed NCNDA/IMFPA which is notarized by Public Notary in Kazakhstan and then monthly remittance is continued as per terms and terms of the contract of sale and purchase agreement t between the buyer and seller.

FOB PROCEDURE – TANK TO VESSEL (TTV)

The procedure will be announced after January