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Cif Transaction Procedure

The CIF transaction procedure outlines the steps for buyers and sellers to complete a transaction involving cost, insurance, and freight. It includes the issuance of contracts, opening of bank guarantees, and the provision of necessary documentation by the seller. Upon confirmation of payment, shipment occurs, followed by the release of funds to the seller within 48 hours after inspection at the discharge port.

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251 views1 page

Cif Transaction Procedure

The CIF transaction procedure outlines the steps for buyers and sellers to complete a transaction involving cost, insurance, and freight. It includes the issuance of contracts, opening of bank guarantees, and the provision of necessary documentation by the seller. Upon confirmation of payment, shipment occurs, followed by the release of funds to the seller within 48 hours after inspection at the discharge port.

Uploaded by

sethu235
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CIF TRANSACTION PROCEDURE

[C.I.F. COST, INSURANCE, FREIGHT PROCEDURE]

1. Buyer issues ICPO must be with buyer company letterhead and buyer banking information
and buyer any form of IDENTIFICATION, (preferably international passport).
2. Seller issues Draft Contract (open for any amendments) to Buyer. Buyer signs, seals and
returns the Draft Contract to Seller for final endorsement with their confirmation letter to
confirm that they are willing and able to complete the transaction without changing sellers’
procedures.
3. Seller issues commercial invoice to Buyer, Buyer opens SBLC MT 760 within 7 working
days to enable the seller secure the product allocation under the buyer’s company name
and issue the following PPOP documents.
(A) Seller Irrevocable Commitment to Supply
(B) Statement of availability of product
(C) Certificate of origin
(D) Product Passport Analysis
(E) Authorised to Sell and Collect (ATSC)

4. Seller registers and legalizes the signed sales and purchase agreement contract. Seller
sends legalized contract and together with the partial POP documents to Buyer as listed
below : -
a) Copy of license to export, issued by the department of the Ministry of Energy.
b) Copy of Approval to Export, issued by the Ministry of Justice.
c) Copy of statement of availability of the product.
d) Copy of the refinery commitment to produce the product.
e) Copy of Transnet contract to transport the product to the loading port.
f) Copy of the port storage agreement.
g) Copy of the charter party agreement to transport the product to discharge port.
h) Copy of Vessel Questionnaire 88.
i) Copy of Bill of Lading.
j) Injection Agreement at Loading Port
k) SGS Report at loading port.
l) Unconditional Dip test Authorization (UDTA) & ATB
m) NOR /ETA
n) Certificate of Ownership Transfer
o) Allocation Transaction Passport Code Certificate (ATPCC) by Ministry of Energy
p) SGS Quality and Quantity Certificate taken at Loading Port
q) Vessel Manifesto /IMO Number

5. Upon Confirmation of the Buyer’s SBLC, Seller issues 2% Performance Bond via swift to
buyer’s bank alongside the full POP documents.
6. Shipment commences as scheduled in the contract and upon arrival of the cargo at the
discharge port and after SGS/Q&Q or Equivalent inspection immediately Buyer’s Bank
releases the Total value of the shipping to Seller’s Bank within 48hours (two banking days)
By MT103.
7. Seller pays all intermediaries involved in transaction as per IMFPA within 48 hours.

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