Comprehensive Guide to Securing Gasoline Imports: Navigating the $320MT CIF Transaction Process

Securing gasoline imports can be a complex process involving multiple steps and strict compliance with contractual obligations. For buyers looking to purchase gasoline at $320 per metric ton (MT) CIF (Cost, Insurance, and Freight) with direct access and readiness at any port, understanding the transaction procedure is crucial. This guide breaks down the process for importing gasoline with octane ratings of 87, 89, 93, and 95, covering quantities from 50,000 to 100,000 MT or more, and explains how to navigate the transaction smoothly.

Gasoline storage tank ready for shipment

Understanding the Gasoline Offer and Pricing

The gasoline offered comes with the following key details:

• Commodity: Gasoline with octane ratings 87, 89, 93, 95

• Quantity: Minimum 50,000 MT, up to 100,000 MT or more as per Sales and Purchase Agreement (SPA)

• Price: $320 Gross / $310 Net per MT CIF ASWP (Any Safe World Port)

• Commission: $5 per MT for buyer side and $5 per MT for seller side

• Delivery Terms: FOB tank to tank, vessel to vessel (TTT/TTV/STS)

• Transaction Security: 5% mutual escrow deposit as performance bond

  
  

This pricing structure ensures transparency and security for both parties, with commissions clearly defined and a mutual escrow deposit to guarantee contract fulfillment.

Step 1: Buyer Issues Irrevocable Corporate Purchase Order (ICPO)

The process begins when the buyer issues an Irrevocable Corporate Purchase Order (ICPO) addressed to the seller. This document must include:

• Buyer’s company profile

• Buyer’s passport copy

  
  

The ICPO serves as a formal commitment from the buyer to proceed with the purchase and allows the seller to prepare the draft SPA.

Step 2: Seller Issues Draft SPA and Escrow Appointment

Once the ICPO is received, the seller drafts the Sales and Purchase Agreement (SPA) for the buyer’s review and signature. After signing the SPA:

• The seller appoints a third-party escrow service.

• Both buyer and seller deposit a refundable 5% escrow as a performance bond.

  
  

This escrow protects both parties by ensuring funds are held securely until contractual obligations are met.

Step 3: Seller Provides Proof of Product (PPOP) and Invitation for Inspection

After confirming the escrow deposit, the seller registers the commercial invoice with authorities and provides the buyer with essential documents to verify the product’s availability and quality. These include:

• Product Quality Passport and Quality Certificate

• Certificate of Product Origin

• Product Availability Statement

• Proforma Invoice for the liftable quantity

• Commitment Letter to supply the product

• Tank Storage Receipt (TSR)

• Statement of Product Availability in tank at port

• Authorization to Verify (ATV)

• Injection Report

• Unconditional Dip Test Authorization (UDTA)

  
  

The buyer is also invited to visit and inspect the product, ensuring transparency and confidence before proceeding.

Gasoline quality testing in laboratory

Step 4: Signing of NCNDA/IMFPA After Successful Dip Test

Within 24 hours after the buyer completes a successful dip test in the seller’s tank, both parties sign a Non-Circumvention, Non-Disclosure Agreement (NCNDA) and Irrevocable Master Fee Protection Agreement (IMFPA). These agreements:

• Protect the interests of intermediaries and agents involved

• Ensure commissions are paid as agreed

• Maintain confidentiality and prevent circumvention

  
  

This step formalizes the relationship and safeguards all parties.

Step 5: Buyer Makes Payment and Title Transfer

The buyer then makes payment for the total cost of the product injected into their tank via MT103 or Telegraphic Transfer (TT). Upon payment:

• The seller transfers ownership title to the buyer.

• All necessary exportation documents are provided.

• The escrow service releases the 5% deposit back to both parties.

  
  

This step completes the financial transaction and legal transfer of the gasoline.

Step 6: Commission Payment to Intermediaries

After the first lift transaction concludes, the seller pays commissions to all intermediaries as per the signed NCNDA. This ensures all parties involved in facilitating the deal receive their agreed fees promptly.

Tanker ship loading gasoline at port for export

Practical Tips for Buyers Navigating This Process

• Verify Seller Credentials: Always confirm the legitimacy of the seller and the authenticity of the product documents.

• Prepare Accurate ICPO: Include all required buyer information to avoid delays.

• Understand Escrow Terms: Clarify how the 5% escrow works and ensure it is handled by a reputable third party.

• Inspect Product Personally: Use the invitation to inspect and conduct dip tests to verify product quality.

• Use Secure Payment Methods: MT103 and TT payments provide traceability and security.

• Review Agreements Carefully: NCNDA and IMFPA protect your interests; seek legal advice if needed.

  
  

Summary

Importing gasoline at $320 per MT CIF involves a clear, step-by-step process designed to protect both buyer and seller. From issuing an ICPO to final payment and commission distribution, each phase requires attention to detail and adherence to agreed procedures. Buyers who understand this process can confidently secure gasoline imports with direct access and readiness at any port, minimizing risks and ensuring smooth transactions.