kaynixglobal

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CIF Procedure

    1. Buyer Company issues Irrevocable Corporate Purchase Order (ICPO) on its official company letterhead with letter of acknowledgement, scanned copies of the Buyer’s company registration and international passport number of Buyer to the Seller.

    2. Seller Company issues Draft Contract / Sales & Purchase Agreement (SPA Open for amendments if any) both parties sign and seal the present contract and exchange copies electronically.

    3. Seller Company registers and legalizes contracts with the appropriate authorities to facilitate booking of allocation and securing approval for the Transfer of Ownership Title/Allocation to Buyer’s Company name at Seller’s expense.

    4. Seller releases to the Buyer the Partial POP documents below.
      • ✓ Copy of Tax Registration Certificate (Certificate of Incorporation),
      • ✓ Certificate of origin
      • ✓ Product Passport,
      • ✓ Refinery commitment to supply
      • ✓ Statement of availability of product.
      Pro-forma Invoice.

    5. On confirmation of the receipt of the partial POP, Buyer shall within five (5) banking days issue a Bank Guarantee in the form of (SBLC/MT760). Failure to issue the said bank guarantee within the stipulated days, Buyer shall issue a Performance Security Financial deposit of $320,000.00 USD (Three Hundred and Twenty Thousand United State Dollars). This is to enable the Seller to secure the service of the Vessel for the transportation of product to Buyer’s destination port. Seller issues NCNDA/IMFPA for ratification by all parties. In the event the Buyer pays the Performance Security Financial Deposit, this amount will be deducted when making payment for the total cost of the product after a successful CIQ/SGS test at the discharge port.

    6. On confirmation of the above clause, Seller Company releases copies of POP and Shipping documents to Buyer Company.
      • ✓ Copy of export license, issued by the ministry of Petroleum and Energy.
      • ✓ Copy of approval to export, issued by the ministry of justice.
      • ✓ Copy of statement of availability of the product.
      • ✓ Copy of the refinery commitment.
      • ✓ Copy of Transnet contract to transport the Product to the Port.
      • ✓ Copy of the Port Storage agreement/ Insurance.
      • ✓ Copy of charter party agreement.
      • ✓ Copy of Customs clearance certificate.
      • ✓ Copy of the tank receipt issued by the storage facilitator.
      • ✓ Copy of SGS Report.


    7. Shipment commences as per contract and upon arrival of the vessel tanker at the discharge port, Buyer conducts SGS or CIQ Inspection.

    8. Buyer makes operative payment for the full shipment via T/T Wire or MT103.

    9. Seller will release payments to the intermediaries involved according to NCNDA/IMFPA within 48 hours of receiving the full payment for the product from the Buyer’s bank.

    10. After successful delivery of the first monthly shipment of the Product, Buyer transfers the full amount of the following month’s delivery to maintain the Standby Letter of Credit 100% SBLC MT760 and contract continues for subsequent eleven (11) months subject to the terms of this Contract.

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