CIF BUYER / PURCHASE PROCEDURE LIGHT CRUDE OIL 1. Buyer provides ( Seller ) with an Irrevocable Purchase Order (IPO) to Seller and an Irrevocable Standby (ISLOC) and MT760 (or equivalent) from Buyers AA Bank to Sellers’ bank, and a signed copy XXX Form 100 ( this form ). XXX provides these documents to Buyer for completion. Both the IPO and ISLOC are subject to 1) Buyer receiving and signing a sealed contract (SPA) and 2) the acceptable Quality and Quality ( Q&Q) analysis of product at delivery. Both instruments are lodged in buyer and seller banks pending delivery and Q&Q Analysis at the POD. If Buyer intends to purchase oil from seller on a recurring basis, Irrevocable Revolving Purchase Order (IRPO) and Irrevocable Revolving redit (IRLOC) instruments shall be used. When Intermediaries are involved an IMFPA International Master Fee Protection Agreement shall be made. The initial IPO, ISLOC, and MT760 are legally binding and enforceable so long as XXX  performs as set forth herein and in SPA.2. Buyers’ AA Bank Swift Confirms to Seller’s bank Pre Advice ( MT760), this is actually a part of step one as well. In other words, Buyer’s bank confirms the money is available, and waiting for performance to be completed, at the buyers bank to purchase the oil and that the beneficiary is the Seller.3. Beyond Protect Ltd. then provides buyer the Sales Purchase Agreement (SPA) and Buyer and Seller signs and seals the SPA. This must be done within 48 hours of Irrevocable Purchase Order, ISLOC, and MT760. Buyer returns the SPA to Seller with ATB / NOR / ETA formats or any other acceptable format per financial institutions or Seller’s requirements to be clearly stated in or with the SPA. The electronic signed copy by all parties is considered legally binding and enforceable and must not be changed. Seller then provides buyer with a 2% Performance bond from an NNPC nominated Fiduciary! The executed Spa and bond are lodged in buyer and seller banks.4.Seller then issues a full set of Vessel and Cargo documents to the buyer in the Buyer’s name as the Consignee. Seller sends these documents DHL or a secure overnight delivery method to Buyer. Buyer verifies and confirms the shipping documents. To speed up the process, buyer may consent to electronic delivery of these documents.5. Test results of the oil being lifted from the "Basrah" Port onto the vessel will be sent to the Buyer before vessel departs for POD.6. Seller Authorizes vessel Captain to issue periodic NOR/ETA to the buyer and buyer’s discharge Harbor.7. Upon Vessel arrival at Buyer’s port of discharge, the Captain Issues Authority to Board (ATB) to enable buyer’s independent inspectors to board the vessel and perform Quality and Quantity (Q&Q) analysis at agreed designated location at expense of the Buyer.8. Upon successful conclusion of Q&Q analysis, Inspectors release report to both parties while Seller issues final commercial invoice to the Buyer with exact Q/Q report figures and final purchase costs. The final purchase costs are determined by the original agreed price per barrel which is calculated at the time of delivery and discharge to buyers’ discharge port.9. Buyer releases irrevocable full payment for cargo, pursuant to the final commercial invoice, to Sellers’ nominated bank within 48 hours after inspection against Q&Q Report, Commercial Invoice, Irrevocable Purchase Order, Irrevocable Standby , SPA, and IMFPA (if any), and Cargo Documents by (cash MT-103 or other pre determined bank instrument. THIS MUST BE AN IRREVOCABLE CONFIRMABLE BANK PAYMENT TO SELLER’S BANK ACCOUNT.10. Seller confirms payment and authorizes Captain to discharge cargo into Buyer’s tank storage facility.GOVERNED BY INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION 500/600 AS IT PERTAINS TO SUCH CREDIT. PUBLICATION, PARIS, FRANCE (LATEST REVISION)
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