Oil trade is the loved sector for trader and middleman. I remember myself when I started my first trade, I was driven in this sector accidentally .this happened by the meeting of my first partner in turkey airport.
Mr. Ivan was at that time exporting manger at a big Russia oil company. We flew together in the same airplane to Ukraine. After this meeting I become for him official representative of his company (regarding my good known of 5 languages, near this my trade experience in other sectors like urea and metals from Ukraine).
Working with him was very nice but hard as he is not the simple one in trade. Working really in oil trade is the dream of any trader (middleman) due to the money temptation. Today I decided to chair for beginner one of oil procedure. This cannot mean that this is the best one, but one of workable procedure that can be in the oil agreement.

CLAUSE 4.1. THE BANKING PROCEDURES
PARTIES HAVE AN OBLIGATION TO KEEP A FOLLOWING PROCEDURE:
4.1.1.
SELLER ISSUES DRAFT CONTRACT AND NCND/MFPA.
4.1.2.
BUYER REVIEWS DRAFT CONTRACT AND NCND/MFPA, SIGNS AND SEALS WITH CORRECTIONS, IF ANY, AND RETURNS TO SELLER SIGNED AND SEALED CONTRACT FOR EXECUTION.
4.1.3.
SELLER AND BUYER SIGN AND SEAL FINAL VARIANT OF CONTRACT AND EXCHANGE THE SIGNED COPIES BY BOTH PARTIES IS CONSIDERED LEGALLY BINDING AND ENFORCEABLE.

E-MAIL COPIES ARE ACCEPTABLE AS ORIGINALS TO THE BANKS OF THE PARTIES.
4.1.4.
BANK OFFICERS OF BOTH PARTIES CONSIDER AND ACCEPT A DRAFTS OF FINANACIAL INCTRUMENTS – OF THE SELER’S 2% PB AND BUYER’S RDLC, INCLUDING THE AGREED DATE OF ISSUANCE OF THE RDLC BY THE BUYER.
4.1.5.
WITHIN 5-7 (FIVE-SEVEN) INTERNATIONAL BANKING DAYS FROM THE DATE OF AGREED TEXTS AND TERMS (BANKING FORMAT) OF FINANACIAL INCTRUMENTS – 2% PB AND RDLC,
THE SELLER AND SELLER’S BANK ISSUES A NON-OPERABLE 2% PERFORMANCE BOND OF THE COST OF TANKER PARTY OF THE GOODS (50,000 MT), IN FAVOR OF THE BUYER.
4.1.7.
BUYER WITHIN 5-7 (FIVE-SEVEN) INTERNATIONAL BANKING DAYS AFTER RECEIPT OF PERFORMANCE BOND ISSUES AN OPERATIVE IRREVOCABLE, REVOLVING DOCUMENTARY LETTER OF CREDIT IN FAVOR OF THE SELLER FOR THE VALUE OF TANKER PARTY OF THE GOODS – 50,000 MT.
REVOLVING LETTER OF CREDIT TO BE REVOLVING FILLED TO THE COST ON EVERY NEXT (TANKER PARTY-50,000 МТ) THE SHIPPED CONSIGNMENT.
4.1.8.
2 % PERFOMANCE BOND BECAME OPERABLE.
4.1.9.
THE SELLER PRESENTS FULL SHIPPING DOCUMENTS TO BUYER VIA BUYER’S BANK TO EFFECT PAYMENT.
WITHIN 5 (FIVE) INTERNATIONAL BANKING DAYS BUYER’S BANK PAYS TO BANK OF SELLER FOR THE RECEIVED GOODS AND BUYER’S BANK PAYS TO BANK OF AGENTS ALL COMMISSION BY THE AGENTS AS CONTAINED IN THE IRREVOCABLE MASTER FEE PROTECTION AGREEMENT & WORKING AGREEMENT (IMFPA), BEING AN INTEGRAL PART OF THE CONTRACT

CLAUSE 4.2. TERMS OF PAYMENT

4.2.1. ALL PAYMENTS FOR THE GOODS DELIVERED UNDER THE PRESENT CONTRACT SHALL BE IRREVOCABLE, REVOLVING DOCUMENTARY LETTER OF CREDIT BANK – ________________________ AND COVERING VALUE OF OF TANKER PARTY DELIVERY – (50,000 MT).
4.2.2. THIS RDLC SHALL BE AUTOMATICALLY REVOLVING FOR THE NOMINAL VALUE TO THE NEXT LOT OF DELIVERY- 50,000 МТ.
4.2.3. DOCUMENTS REQUIRED FOR PAYMENT

THE PAYMENT FOR EACH CONCLUDED DELIVERY FOB BASIS HAS TO BE DONE BY THE BUYER’S TO THE INDICATED ACCOUNT OF THE SELLER, WITHIN 5 (FIVE) INTERNATIONAL BANKING DAYS FROM THE DATE PRESENTATION AT THE COUNTERS OF ___________________________ FOLLOWINGS SHIPPING DOCUMENTS OF B/L FOR 100% FOB PORT NOVOROSSIYSK BE ISSUED WITH CHARTER-PARTY:

-INVOICE, SIGNED BY THE SELLER, STATING DATE AND NUMBER OF THE B/L, QUANTITY OF THE GOODS IN METRIC TONS AND IN KILOGRAMS , WITHIN FULL CALCULATIONS OF THE PRICE – THREE ORIGINALS AND THREE COPIES;

-FULL SET 3/3 ORIGINALS OF BILL OF LADING “CLEAN ON BOARD”, ISSUED AND/OR INDORSED IN NAME OF THE BUYER, MARKED “FREIGHT PAYABLE AS PER CHARTER PARTY”.
EACH ORIGINAL TO BE SIGNED BY THE MASTER OF THE VESSEL AND STAMPED BY THE VESSEL’S OFFICIAL STAMP, STATING THE QUANTITY OF THE GOODS IN METRIC TONS. THE DELIVERY PORT – TO THE ORDER OF THE BUYER.

-CERTIFICATE OF THE QUALITY ISSUED AND SIGNED BY THE INDEPENDENT INSPECTOR, ONE ORIGINAL PLUS 3 COPIES.

-CERTIFICATE OF QUANTITY IN THE PORT OF LOADING, ISSUED BY THE INDEPENDENT INSPECTOR, ONE ORIGINAL PLUS 3 COPIES.
-CERTIFICATE OF THE ORIGIN, ISSUED AND SIGNED IN THE COUNTRY OF ORIGIN, ONE ORIGINAL PLUS 3 COPIES.

-TIMESHEET OF THE VESSEL AT THE LOADING PORT, SIGNED BY SELLERS/THEIR AGENTS, MASTER OF THE VESSEL AND THE PORT AUTHORITIES, ONE ORIGINAL PLUS 3 COPIES.

-MASTER’S RECEIPT FOR DOCUMENTS AND SAMPLES, ONE ORIGINAL, ONE COPY.
4.3.AND OTHER TERMS OF PAYMENT
4.3.1.ALL BANKING CHARGES RELATED TO ISSUANCE OF PAYMENT INSTRUMENTS SHALL BE FOR BUYER’S ACCOUNT.
4.3.2.ALL BANKING CHARGES RELATED TO THEIR NEGOTIATION SHALL BE FOR THE SELLER’S ACCOUNT.
4.3.3.CHARGES FOR LETTER OF CREDIT CORRECTIONS FOR ACCOUNT OF THE PARTY AT FAULT.
4.3.4.LETTER OF CREDIT MUST ALLOW FLACTUATIONS OF +/- 5 (FIVE) PCT IN WEIGHT AND AMOUNT.
4.3.5.SHIPPING DOCUMENTS TO BE PRESENTED FOR NEGOTIATION WITHIN 21 DAYS AFTER B/L DATE, BUT ACCEPTABLE WITHIN THE VALIDITY DATE OF THE LETTER OF CREDIT.
THE DOCUMENTS INCLUDE CHARTER PARTY BILLS OF LADING AND SUCH DOCUMENTS SHALL BE ACCEPTABLE.
4.3.6.THE DOCUMENTARY LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS&PRACTICE FOR DOCUMENTARY CREDITS USP 500 BY ICC PUBLICATION NO.500.
4.3.7.LETTER OF CREDIT OPENED BY THE BUYERS SHALL HAVE 45 DAYS VALIDITY.
4.3.8. THE DATE OF TRANSFER OF DOCUMENTS IS THE DATE MARKS THE NOTIFICATION BY COURIER SERVICE (DHL / FEDEX / UPS) FOR DELIVERY OF DOCUMENTS IN THE BUYER’S BANK.
4.3.9. AFTER DELIVERY OF THE LAST CONSIGNMENT LOT OF THE GOODS THE BUYER AND SELLER MAKE RECALCULATION OF THE PRICE OF ALL THE DELIVERED CONSIGNMENT LOTS OF THE GOODS, AND SIGN THE FINAL ACT OF COLLATING AND PRODUCING ALL OF THE REMAINING MUTUAL FOR 10 (TEN) BANKING DAYS AFTER SIGNING THE FINAL ACT OF RECONCILIATION OF ALL PARTIES TO THIS CONTRACT.
4.3.10. THE APPROXIMATE TOTAL CONTRACT PRICE – ABOUT $000.000,000 (__________________ MILLION) US DOLLARS PLUS/MINUS 5 PCT AT SELLER’S OPTION.

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