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SOFT CORPORATE OFFER - MAZUT 100-75
We the undersigned, XXXXXXXXXXX hereby issue the Soft Corporate Offer (SCO) with presented terms and conditions. The terms and procedures stipulated herein are in accordance with the term and procedures of processing Oil & Gas products.
- Product : Russian Origin Mazutst100-75
- Quantity : 12 months contract, 1 lift - Min 100,000 MT, Month 2nd-12 - Min 300,000 MT per monthx 5 years with R&E
- Quality : As per spec sheet attached
- Price : $540/MT (1st year & revised with R&E for next 4 years), Commissions of $20/MT. $10/MT Sell side (closed), $10/MT Buy side Group 1 (open)
- Delivery : CIF Rotterdam or ASWP
- Payment : See Terms Below, Payment shall be made at unloading port
- Inspection : SGS or Equivalent
PROCEDURES FOR PRODUCTION CONTRACT FOR THE PRODUCT BEING OFFERED BY XXXXXXXXXX :
1.1 The price shall be US $540/MT - CIF AWSP for year 1 for the duration of the 12-month contract (+1 Trial shipment first) with Seller is to pay commissions to all Intermediaries in accordance with the executed Irrevocable Master Fee Pay Agreement. The price shall be reviewed and revised at the end of every 11 months.
1.2 The price / payment referred to throughout this agreement shall be paid / made in US Dollars. The value of the Non transferrable Documentary Letter of Credit (DLC), which the Buyer provides to the seller as payment instrument for the first Monthly fees, will be counted on the basis of US $540/MT FOR YEAR 1 and shall thus be automatically revolving to the next Monthly Lot.
1.3 The Buyer may make the monthly payment by funds wired via MT103 to the Seller's designated account. The DLC then issued with a 12-month validity, to use as collateral to cover non-payment of any month.
SELLERS DEPOSITORY BANKING PROCEDURES:
2.1 Seller issues SCO. Buyer accepts & issue ICPO with full details like Company registration number and full banking information (prime bank)
2.2 Seller issue FCO, buyer accepts by signing the same.
2.3 Seller issues draft SPA, subject to minor Buyer amendments and revisions. Within Three (3) business days, Buyer signs, seals and returns The Agreement to Seller for counter-signing.
2.4 Seller confirms, approves and electronically signs and seals SPA along with NCNDA/IMFPA (as required) as the final contract.
2.5 Upon execution of the SPA by both parties, within 48 hours the Buyer shall provide Seller a draft of the verbiage of the financial instrument that the Buyer will be issuing to the Seller's Nominated Bank Account. This draft must be provided to Seller to inform his bank of this transaction and the potential forthcoming bank messages. A Letter of Authorization to Verify (ATV) will be sent to the Seller authorizing the Seller to verify and authenticate the Buyer's capacity and readiness to issue the agreed upon financial instrument. This communication will be via bank to bank. Buyer's Bank shall confirm to Seller's Bank, within seventy-two (72) hours, that the seller is ready, willing and able to proceed with this transaction in accordance with the SPA.
2.5 All payments shall be made by the Buyer to the Seller in the currency of US Dollars by way of MT103 to the Seller's designated account as stipulated in Clause 23, and as security, by way of a SWIFT MT700 of an irrevocable, divisible, confirmable, operative DLC issued by Buyer's Bank. The payments are 100% payable by MT-103 each month with in 24 hours of SGS confirmation at discharge port and also automatically revolving to the next monthly shipment until completion of the contracted quantity. Partial shipments and partial drawings/payments shall be allowed.
2.6 Format of the Buyer's DLC shall be in accordance with the latest UCP 500/600 (Uniform Customs and Practice for Documentary Credits, 1993 revision, ICC Publication No.500/600). Text of the DLC has to be acceptable by Seller's Depository and Depository Nominated Bank.
2.7 DLC shall cover the amount in US Dollars corresponding to the total monthlymentioned quantity Lot).
2.8. Payment for the cargo value to be made available 100% without discount, unless otherwise indicated on Seller's invoice, at the counters of the Seller's nominated bank within 24 hours against presentation of documentations.
2.9 Quantity and quality, as assessed at the loading port by the Surveyor Company, will be used to compute the Seller's invoice.
2.10 Buyer's Bank shall incorporate language into the DLC (MT700) that will prohibit the Seller from using the DLC as collateral or security for their transaction with the supplier. It shall be used ONLY as a security instrument for the contract between Buyer and Seller.
2.11 Buyer initiates communication with Seller's nominated Depository bank via SWIFT that buyer is ready to issue Operative, DLC via MT700. Seller shall present via their bank to the Buyer's Bank Partial Proof of Product (PPOP) sufficient to justify the issuance of the DLC. Upon acknowledgement from Seller's Depository bank that it is ready to receive, Buyer issues the operative DLC via MT700.
2.12 Within Five (5) business days, Seller or Seller's refinery issues partial refinery PPOP documents for verification and authentication as follows:
Copyof License to Export.
Copy of Approval to Export
Copy of Statement of Availability of the Product.
Copy of the Refinery Commitment to Produce the Product.
2.13 Within (11) eleven business days in receipt and acceptance of the operative bank instrument, the Seller shall issue an operative 2% performance bond, seller submits remainder of product soft POP to Buyer, and both parties lodge the contract with their respective banks:
Copy of Deeds/Title Ownership
Copy of Origin (Representing the Allocation and Resource Number, Reference Number of POP, Authority Number, and Name of Loading port with Contract Number)
Product Analytic report (Indigenous Survey Company)
Vessel Bill of Lading, Vessel Notice of Readiness, Authority to Board (ATB) and Estimate Time of Vessel Arrival (ETA)
Product Pro Forma Invoice, SGS and Tank Receipt
2.14 Product is loaded and ready for shipment delivery.
2.15 After successful Dip Test and Q&Q at Loading Port, by Buyer and full documents to Buyer, Buyer releases payment by wire transfer (MT103) to the Seller and out-turn shipment delivered per slot via SWIFT fund transfer after uploading.
2.16 In the event of any difference between the total amount drawn from the established DLC and the amount corresponding to the total value of the cargo effectively delivered, as assessed at the discharge port, then such difference shall be carried over to the next consecutive shipment.
2.17 On the last month and final delivery of the contract, the above-mentioned difference shall immediately settle at sight at the time of payment.
2.18 If payment due date falls on a banking holiday, then payment shall be made on or before the nearest preceding business day to the due date.
2.19 If the Buyer's financial capability is proved to have become impaired or unsatisfactory by the Seller, Buyer shall deliver a guarantee judged satisfactory, to the Seller. The DLC shall be valid for the term of the Contract from the date when the contract signed.
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