Standard Operating Procedure (SOP)
Gold Procurement and Vaulting Operations
Background
Buyer is a private fintech company specializing in the procurement of gold dore bars for
long-term vaulting and investment purposes. This SOP outlines the requirements,
specifications, and operational procedures for the consistent and compliant importation,
clearance, and settlement of gold dore bars.
Commodity Specifications and Pricing
1. Supply Requirements:
o Continuous and long-term supply arrangements.
o Note: One-off transactions are not of interest to buyer.
2. Origin of Gold:
o Must be non-conflict gold accompanied by Certificates of Origin to ensure ethical and legal
sourcing.
3. Quantity:
o Weekly supply capacity of 300–500 KGs.
4. Quality Standards:
o Gold dore bars with a purity range of 92% to 97%.
5. Pricing:
o Discount based on a percentage of the LBMA Spot Price for gold bullion.
6. Payment Method and Guarantee:
o Payment terms are outlined in the procedure below, ensuring security and compliance for
all parties.
Procedure
1. General Terms:
o No advance payments will be made under any circumstances.
o Both Buyer and Seller agree to appoint M/s. Habib Al Mulla & Partners, UAE ("The Law
Firm," Dubai) as the Escrow Agent to facilitate the contract execution.
2. Contract Execution and Guarantee:
o Upon signing the Sales and Purchase Agreement (SPA), the Buyer will deposit funds
equivalent to 10% of the Net Transaction Value into the escrow account. This amount serves
as a guarantee in case of Buyer default.
3. Shipment and Delivery:
o The Seller shall deliver each shipment on a CIF (Cost, Insurance, and Freight) basis to the
Buyer’s designated airport: Dubai International Airport (DXB).
4. Customs Clearance and Assay:
o The Buyer will arrange for customs clearance and transport of the shipment directly to the
Buyer’s specified refinery for inspection, weighing, and assay. (The Seller has the option to
use their own customs clearance agent).
5. Documentation Requirements (Pre-Shipment):
o The Seller shall provide the following hard copy documents to the Buyer prior to shipment
arrival:
§ Commercial Invoice
§ Full Set Airway Bill marked “Air Freight Paid – Value Cargo,” consigning to the Buyer’s
clearance company.
§ Certificate of Origin
§ Packing List
§ Initial Assay Report
§ Export Permit
§ Certificate of Non-Criminal Origin
§ Insurance Certificate (pre-paid)
§ Customs Clearance Documentation from the source country.
§ Note: Additional documents may be required as per government or regulatory compliance.
6. Final Assay and Settlement:
o Upon issuance of the final assay report by the Buyer’s Dubai accredited refinery, the Buyer
will process full settlement.
o Settlement terms: Within three (3) international banking days (local time at the
destination port), the Buyer will remit the net settlement amount to the Seller via SWIFT
wire transfer.
o The Buyer’s proof of payment will be verified through the SWIFT confirmation document
provided by the Buyer’s bank.
7. Acceptance of Assay Report:
o The Seller agrees to accept the final certified assay report issued by the Buyer’s licensed
Dubai refinery as binding and final.
8. Cost Responsibilities:
o Seller: Responsible for all documentation, insurance, and shipment costs under CIF terms
to DXB.
o Buyer: Responsible for customs clearance, security, logistics, transportation, and refinery
processing costs.
9. Timeframe for Processing:
o Gold will be assayed and settled within 3 business days of shipment arrival at refinery,
subject to compliance with the SPA.
Compliance and Final Notes
• Both parties must comply with all applicable local and international regulations regarding
gold sourcing, transport, and trade.
• All disputes arising under this procedure will be resolved under the jurisdiction of the
Dubai International Financial Centre (DIFC) courts or mutually agreed arbitration processes.
