Example sample design fco. Oil and oil products - on fob. Benefit: Unrefined sunflower oil "Prirodna" and "Spravzhnya"

Saudi Light Crude Oil (SLCO)

SLCO Sellers, ARAMCO, Facilitators, POP,
Saudi Light Crude Oil, US Traders

Dear Buyer!

- Do you often meet "air traders"?
- Do you spend too much time on them and as a result - several weeks of wasted time?
- Do you want to receive information and fuel directly from the seller, and not from a long chain of intermediaries?

Mandators of sellers constantly turn to us with a request to find a buyer for oil and oil products. Among our partners: company mandate holders OAO Gazprom, OAO Rosneft, OAO Surgutneftegaz and etc.

If you and your company are a serious and solvent buyer, we are ready to assist you in providing the necessary resource from a direct supplier.

We want to note right away that if you prepare documents according to our procedure for many weeks, then joint work we can't do it with you! We work quickly and smoothly, and we demand the same from you.

The entire procedure for the purchase of petroleum products is very clearly and understandably set out in this document. We don't lead further negotiations with the Buyer without providing them with a full ICPO + BCL as indicated in our documents (examples of these documents are given below).

No need to waste your time convincing us that your Bank cannot provide you with a document that the Buyer's company is solvent! That for this the Bank needs some documents or it costs some money to issue them! The bank does not need any special documents in order to issue a certificate of solvency to its client.

Please read everything in this document very carefully. And then you won't have any questions.

Working procedure:

1. The buyer sends the documents specified below in the rules for processing documents
2. After checking the Buyer's company, the Seller sends the address FCO or SCO and draft contract.
3. The Buyer and the Seller agree and sign the contract by e-mail.
4. The Buyer sends a copy of the Signatory's passport
5. The seller sends an invitation to sign in Moscow

Documentation rules:

The buyer draws up six documents for each volume:

1. ICPO on English language– (phone numbers of the bank officer and SWIFT must be indicated)
2. ICPO - translation into Russian, signed and stamped by the Buyer's company.
3. Bank reference in the form with a mandatory reference to ICPO in English
4. Bank reference - translation into Russian, certified by the seal of the Buyer's company.
5. Company summary in English
6. CV of the company - translation into Russian, certified by the seal of the Buyer's company.

All sample forms are attached below. Documents in any other form will not be accepted. The form of the Bank's Reference may differ from the proposed one. Each document must have an outgoing number and date. References of banks (each ICPO has its own) must contain a reference to the BPZ (ICPO). BPZ (ICPO), reference, company resume, power of attorney, passport details of the signatory must be in Russian and English or in Russian and German.

The phrase: "Dear Sirs" should be absent on all prepared documents. All deliveries of diesel fuel and oil, FOB only. All subsequent promotions, only after observing these rules, which are dictated by Rosneft.

RULES FOR REGISTRATION OF ICPO:

(On company letterhead)

OAO NK Rosneft
to CEO
mr. S.M. Bogdanchikov
 This document is an acceptable form for an irrevocable confirmed trade order, made in accordance with the rules international trade ICP 500 (ICPO)
Moscow city
ICPO "___" ___________ 200 __

IRREVOCABLE CONFIRMED ORDER No. ___

We, __________________________________ represented by __________________________________, acting on the basis of the charter with full corporate responsibility As a Buyer, we order the following product:

Name of product:
Russian Export Crude Oil (REBCO) 		Origin: Russia Specification: GOST 51858-2002 Quantity: XX.XXX.XXX (in words) tons during the year Delivery per month: X.XXX.XXX (in words) tons Price and Discount: by mutual agreement between the Buyer and the Seller Destination: FOB Baltic or Black Sea ports Delivery in batches: from 00.000 to 000.000 tons Conditions of payment: L/C (covering 3 months volume) or Irrevocable, Confirmed, One Time Transferable Revolving DL/C from a first-class world bank Payment procedure: Transaction procedure: In accordance with the terms of the contract, to be mutually agreed between the Seller and the Buyer Special terms of the deal: Inspection: SGS in Quantity and Quality Goods delivery guarantee: Performance Bond 2%
Buyer's banking information 		Name of the bank:
Address of the bank:
Name of the bank officer servicing the Buyer's account:
Account number:
SWIFT (code):

We also provide our permission to the Bank of the Supplier (Seller) to make a request for our solvency regarding this transaction (“Soft Probe”), thereby we give permission to our Bank in the period from “___” _________ 200__ to “___” _________________ 200__ to give necessary information ("Soft Probe"). This document is a legal basis for the preparation by the Seller of the draft contract and the contract itself and is valid for 20 days after its submission to the Seller. The document was issued in a single copy.

Sincerely

Correct translation:
Director

BCL RULES:

(on bank letterhead)

IN different countries trade is conducted in different ways (each nation has its own mentality, historical traditions, a special look at foreigners).

This served as a cause of disagreements, misunderstandings, litigation, in short, both a waste of money and golden time for merchants at the conclusion of transactions. To eliminate uncertainty about the interpretation of trade terms, in 1936 the International Chamber of Commerce published a set of rules for their precise definition. These rules are known as "Incoterms 1936"

Amendments to the supplements were later made in 1953, 1967, 1976, 1980, 1990 and in 2000 years to bring their rules in line with modern international trade practices.

The scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sale in relation to the supply of goods sold (the word "goods" here means "tangible goods", excluding "intangible goods" such as computer software).

In Incoterms, the terms of delivery are grouped into four categories for ease of understanding, which differ in essence:

  • "E" - the term EX WORKS, according to which the seller only provides the goods to the buyer in the seller's own territory;
  • "F" is the term FCA, FAS, and FOB, according to which the seller is obliged to deliver the goods to a carrier appointed by the buyer;
  • "C" - the term CFR, CTF, CPT and CIP, according to which the seller must enter into a contract for carriage, but not assume the risk of loss or damage to the goods or additional costs due to events occurring after shipment and dispatch;
  • "D" is a term in which the seller must bear all costs and risks necessary to deliver the goods to the country of destination (DAF, DEC, DEQ, DDU, and DDP). Now let's try to make it clearer. The following tables clearly explain the classification of trade terms.
Check out Business Training

Most often in practice there are two options for misunderstanding the terms of Incoterms. The first option is the misunderstanding that Incoterms has more to do with a contract of carriage than a contract of sale. The second is the sometimes misconception that the Incoterms clause should cover all obligations that the parties would like to include in the contract. As has always been emphasized by the International Chamber of Commerce, Incoterms deal only with the relationship between sellers and buyers under contracts of sale.

Quote:
"The man who knows the how will always find a job, and the man who knows the why will be his boss."
Diana Reivich, American educator

The following table shows the correspondence of Incoterms terms with the types of transportation of transported goods, by clicking on the links you can see the full scheme of this term.

Any type of transport

Group "E"

ex works

Group "F"

free carrier

Group "C"

Free/Carriage Paid Until

(Destination names)

free/carriage and insurance paid up to

(Destination names)

Group "D"

Delivery to the border

Delivery free of duty

(name of destination)

Delivery Duty Paid

(name of destination)

Only maritime and inland water transport

Group "F"

Free alongside ship (named port of shipment)

Free on board (named port of shipment)

Group "C"

Cost and freight (named port of destination)

Cost of insurance and freight
(name of destination port)

Group "D"

Delivery from ship(name of destination port)

Delivery from the pier(name of destination port)

We will also consider important terms, without which no transaction takes place. Even before the conclusion of the contract, these terms will hurt your ear if you do not know their meaning. The terms that we will consider in the table below work long before the conclusion of the main contract of sale.

What is FCO?

What is "LOI"?

What is ICPO?

What is "POP"?

What is BCL?

Well, now that you know enough to conduct oral negotiations, you can move on to documenting their results. But first, let's take a look at the titles of the documents.

What is a Draft Contract?

This is a ready-made form of a contract in draft execution in Russian-English. Draft (eng) plan, sketch, project, draft. This form of the contract is used for further discussion with the addition of conditions to it, such as shipment, delivery and payment for the goods. In fact, this contract is ready for work only after the addition of the above conditions.

What is NCND?

This is a ready-made form of an agreement on not bypassing the commission of an intermediary. Usually used to work as an intermediary with real suppliers and buyers, after signing this agreement, the supplier or buyer will be required to pay the specified commission to the intermediary for intermediary services.

Basically, this agreement does not work in Russia because our Banks do not even have a clue what kind of agreement it is and how it works, so we do not recommend using it in Russia, otherwise you will withdraw funds from your account for a long time. To receive a commission on the territory of Russia, we advise you to apply an agency agreement, which our banks skip to receive their commission. You can also download it from our website.

What is a Contract?

This is a ready-made form of a contract in draft execution in Russian. This form of the contract is used for further discussion with the addition of conditions to it, such as shipment, delivery and payment for the goods. In fact, this contract is ready for work only after the addition of the above conditions.

What is an agency agreement?

This is a ready-made form of an agreement on not bypassing the commission of an intermediary. Usually used to work as an intermediary with real suppliers and buyers, after signing this agreement, the supplier or buyer will be required to pay the specified commission to the intermediary for intermediary services between the buyer and the supplier.

Samples Contract draft, NCND, Contract, Agency agreement And additional documents to complete a purchase and sale transaction, you can download

Watch the development of our site, we will supplement it necessary documents and lessons for future business.

What is left? Choose the line of business and the product you want to trade. There can be no specific recommendations here, since the situation on the market is constantly changing and what is profitable today will bring losses tomorrow.

How to be? Create your own SYSTEM (several companies with accounts in foreign banks) and provide it for the use of others (with your direct participation as a documentary, able to "add schemes", the owner of auxiliary companies used to optimize taxes and the manager of their accounts).

The advantage of this approach is the possibility of simultaneous work by specialists from different industries (stagnation begins in some, but some are on the rise right now). That allows you to look closely and evaluate the profitability of certain operations, to focus on them in the future.

Bank Confirmation Letter (BCL)

Bank confirmation letterbank Confirmation letter /bank Capability letter) — BCL (MT-799) is a letter issued by a bank on behalf of its client (a buyer who has entered into a contract for the purchase of a large number of goods, which confirms financial opportunities fulfill their obligations under the terms of the contract. It also shows that the buyer has sufficient funds and financial capacity to complete the transaction. However, it should be clearly understood that a confirmation letter from the bank (BCL) does not mean any guarantee of payment.

If the buyer declares that he has the financial ability to purchase products through his bank, providing such notice through SWIFT message MT799, he indirectly confirms that he has enough money to get the loan needed to fund the transaction. The provider of the BCL letter, the buyer's bank, must send a confirmation notice to the supplier in connection with an irrevocable purchase order or signed contract.

Bank confirmation letter is the initial guarantee provided by the buyer to his supplier when entering into contracts for large amounts. This is one of the ways to determine the solvency of the buyer. That is, if the buyer's bank cannot issue a confirmation letter before the transaction begins, the supplier may decide that the buyer will also not be able to provide the financial instrument required to pay for the goods (letter of credit, standby letter of credit or bank guarantee).

BCL is a statement of fact, but not a promise issued by the bank to fulfill financial obligations. A confirmation letter from a bank (BCL) is in no way equivalent to a letter of readiness (RWA). Letter BCL is simply an authorized SWIFT message from the buyer's bank confirming his financial ability (we can talk about the funds in his accounts or a line of credit) to pay for the goods he wants to buy.

What is a "Letter of Intent - LOI"

In most large business transactions, a letter of intent (LOI) sets out the terms of the deal and acts as a “consent agreement” between the two parties. A LOI is similar to a term sheet in its content, but differs in structure (one is formatted as a letter and the other is formatted as a list of terms).

BREAKING DOWN "Letter of Intent - LOI"

The real utility of a letter of intent is that it formalizes a preliminary agreement on a topic before negotiations begin, it lays out what can and cannot be said on the outside of those negotiations, and it contains a roadmap outlining how things will proceed.

Letters of intent are negotiated, as are the contracts themselves. One party can submit an LOI, then the other party can fully respond to changes or another LOI. Ideally, the final product will protect both parties in the subsequent negotiations and execution of the contract that the LOI believes it will be trying to negotiate.

The letter of intent may include provisions that are mandatory and optional. There are different ways to link a letter of intent. Some of the least binding LOIs essentially contain a contractual agreement to treat the LOI as optional. Some more binding LOIs may include contract negotiation rules as a binding agreement. Or, the LOI may be specific about the elements of the agreement (eg, completion date, who will write the contract, financing details); they usually include a stipulation that the items must be approved by the council. One of the more mandatory types of letters of intent, also known as "failed letters of intent", betrays the entire concept of a letter of intent and serves as a contract as a whole. The letter of intent should bring the parties together and help formulate terms as a way to reduce the risk of litigation.

It is not uncommon for messages of intent to include non-disclosure agreements or include "no solicitation" clauses. A non-disclosure agreement (NDA) is where the parties agree what information remains confidential and what information may be shared. In the context of the LOI, the NDA will refer to specific components of the deal. In the absence of a petition, it is provided that one party may not employ any of the employees of the other party.

Other ways in which the LOI can protect both parties negotiating a deal include provisions that a deal can only go through if the financing has been acquired by one or both parties, or that the deal must be made by a certain date.

Examples of using

Common uses of LOI include:

  • as a way to clarify which key points transactions need to be negotiated
  • as a method of announcing that two parties are negotiating (say a joint venture between companies or a merger)
  • to protect all parties involved in the transaction

In the context of a business transaction, a letter of intent is created by the management and legal advisor of a corporation, among other things, and describes the details of the action. For example, letters of intent are used during the M&A process to set out a firm's plan to buy/transfer another company and usually disclose specific terms and conditions transactions (for example, it is a cash transaction or shares).

Letters of intent are not exclusive to the business world. LOI can be used to express the thoughts and hopes of parents for their children in the event of a parent's death. Courts use the information contained in a letter of intent to determine what happens to children. Unlike wills, letters of intent are often not legal documents. However, because the letter of intent represents the wishes and desires of the parents, it is still often used by courts as a benchmark in conjunction with other documents to determine what happens to children.

Letters of intent are also used by those seeking government grants. Letters of intent can help agency staff get an estimate of how much work a particular project or venture might require.

Letters of Intent are also widely used by colleges that recruit athletes. high school. When a university manages to get a student with aptitude for both a particular sport and academics to play division 1 sports at that school, the student is usually shown signing their letter of intent to participate in that college.

Contracts for the supply of all petroleum products in the specified quantities in all directions both in Russia and for Export (except: 1.CIF China and Korea - FOB ports of Russia are possible, 2. DAP Afghanistan).
Primary documents for those who need a resource:
BPZ (ICPO), Bank reference + statement (BCL), Storage agreement with a terminal at the resource reception point or Agreement with a processor (refinery).
1.Origin: Russia
2.Terms: FOB/CIF ASWP
3. Delivery: Starts In 15 Bank Days After Receipt And Verification
Of Payment Instrument By Seller Bank.
4. Payment: RDLC
5. Inspection: SGS (or) CIQ at Discharge Port by Buyer
6. PB: 2% (Only for Instruments placed for contract period of 12 months)
From you LOI / ICPO - specify the type and name, desired volumes of supply, monthly production quantities, financial instruments and quality requirements (GOST / TU, TYPE, VID).
LOI - (English: Letter Of Intent) translation: letter of intent. A free application form, issued as an intention to purchase a product, indicate the type, name of the state standard specification, volume, terms of delivery, intended place of shipment, etc. As a document, it has no legal force and does not obligate us to anything. It can be named or unnamed.

In response, we send the work procedures and the name of the seller through which the resource is displayed. The final price formula is a discount and the seller is given by the resource holder! FCO and draft contract after receiving all primary documents. On FOB - we work with the resources and procedures of the GP.

Both primary, secondary resources and failure resources. Please DO NOT send applications for "space volumes", namely within the limits indicated above. Also, please do not worry "inventors of bicycles."

Procedure and examples of filling out documents (ICPO and BCL)
Working procedure:
1. The buyer sends the documents specified below in the rules for processing documents
2. After checking the Buyer's company, the Seller sends the address FCO or SCO and draft contract.
3. The Buyer and the Seller agree and sign the contract by e-mail.
4. The Buyer sends a copy of the Signatory's passport
5. The seller sends an invitation to sign in Moscow
Documentation rules:
The buyer draws up six documents, for each volume:
1. ICPO in English - (phone numbers of the bank official and SWIFT must be indicated)
2. ICPO - translation into Russian, signed and stamped by the Buyer's company.
3. Bank reference in the form with a mandatory reference to ICPO in English
4. Bank reference - translation into Russian, certified by the seal of the Buyer's company.
5. Company summary in English
6. CV of the company - translation into Russian, certified by the seal of the Buyer's company.
All sample forms are attached below. Documents in any other form will not be accepted. The form of the Bank's Reference may differ from the proposed one. Each document must have an outgoing number and date, the seals must be blue. References of banks (each ICPO has its own) must contain a reference to the BPZ (ICPO). BPZ(ISPO), reference, company resume, power of attorney, passport data of the signatory must be in Russian and English or in Russian and German.

 

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