A model procedure of the Oil trade is given below

Please see the below Procedures and steps that need to be followed to execute transaction of oil diviartivies:

1. Seller issues SCO
2. Buyer issue the ICPO
3. Seller Sign and Seal the ICPO and return it with Draft of Sale and Purchase Agreement (SPA)
4. Both parties study the SPA and exchange their amendments until reach a mutual understanding of the SPA
5. Both Parties exchange SIGN & SEAL the SPA
6. Within 7 Banking days, Buyer issues Proof of Fund (DLC)
7. Seller sends the Commercial Invoice for shipment

After receiving the Proof of Fund (DLC), Seller sends the set of Proof of Product (POP) to Buyer’s Bank (including Bill of Lading & SGS Report and other related shipping documents)

The buyer received the shipment at Discharge Port

Within 48 Hours of receiving the shipment at Discharge Port, the Buyer conducts the SGS report and send the conformity of Quantity and Quality

Within 3 Banking days, the Buyer sends the amount of Commercial Invoice via TT/MT103 in the beneficiary of the Seller

Seller release the documents of shipment in the beneficiary of the Buyer.