JET A-1,EN590 10PPM,D6 For Sale: Navigating the International Trading Procedure for Tank Takeovers and TTV

International trading in petroleum products involves complex steps that require precision, trust, and clear communication between buyers and sellers. One critical aspect of this process is the tank takeover and Tank to Tank Vessel (TTV) transfer procedure. Understanding each stage can help traders avoid costly mistakes and ensure smooth transactions. This post breaks down the key steps involved in international trading procedures for tank takeovers and TTV, using practical examples and clear explanations.

Industrial storage tanks at a fuel depot

Step 1: Buyer Acceptance and Issuance of ICPO

JET A-1,EN590 10PPM,D6 For Sale

The process begins when the buyer accepts the seller’s working procedure. This acceptance is formalized by the buyer issuing an Irrevocable Corporate Purchase Order (ICPO). The ICPO signals the buyer’s commitment to proceed under the terms set by the seller. This step is crucial because it sets the foundation for trust and formalizes the buyer’s intent to purchase.

Step 2: Commercial Invoice Exchange

Once the ICPO is received, the seller issues a Commercial Invoice (CI) to the buyer. The buyer reviews, signs, and returns the CI to the seller. This document outlines the product details, pricing, and terms of sale. It serves as a formal agreement and is essential for the next steps in the transaction.

Step 3: Issuance of Tank Storage Receipt and Supporting Documents

After the commercial invoice is confirmed, the seller provides the Tank Storage Receipt (TSR) for the tanks holding the product. Along with the TSR, the seller supplies important documents that verify the product’s quality and availability:

• Company registration certificate

• Product quality passport (including dip test results)

• Statement of product availability

• Certificate of origin for the product

  
  

These documents assure the buyer of the product’s legitimacy and quality before physical inspection.

Step 4: Product Verification and Tank Takeover

The buyer then contacts the seller’s tank facility where the product is stored. The buyer verifies the product physically in the tanks and takes over the tanks for the requested quantity. After taking control, the buyer schedules a dip test through the tank company to obtain a fresh analytical report, usually conducted by SGS or an equivalent inspection company.

The buyer gains approval to access the facility after taking over the tanks and scheduling the dip test. The buyer receives a Dip Test Authorization Letter (UDTA) and carries out the Quality and Quantity Inspection at the seller’s tank farm. This inspection provides a fresh analytical report confirming the product’s specifications.

Following the dip test, the seller provides the buyer with:

• Injection report

• Fresh SGS report or equivalent

• Authority to sell and collect

• Authority to verify the products in the seller’s tanks (ATV)

  
  

These documents finalize the buyer’s confidence in the product’s quality and quantity.

Step 5: Signing of NCNDA/IMFPA

After a successful dip test, all parties sign the Non-Circumvention, Non-Disclosure Agreement (NCNDA) and the Irrevocable Master Fee Protection Agreement (IMFPA). These agreements protect the interests of intermediaries and ensure confidentiality and fee protection throughout the transaction.

Step 6: Product Injection and Payment

The seller injects the product into the buyer’s vessel or storage tanks. The buyer takes over the storage tanks and completes payment within 48 hours via MT 103 or Telegraphic Transfer (TT) for the spot transaction. Upon payment, the seller issues all necessary export documents to the buyer, enabling legal transfer and shipment of the product.

Step 7: Payment to Intermediaries and Contract Signing

Once the first lift transaction concludes successfully, the seller pays all intermediaries involved. The seller then proceeds to sign a long-term contract with the buyer, often covering 12 months or more, depending on the agreed terms.

Product Pricing and Contract Terms : JET A-1,EN590 10PPM,D6 For Sale

Three common products traded under this procedure are JET A-1 and EN590 10PPM,

D6 Virgin Oil. Their pricing and contract terms typically look like this:

Origin: Kazakhstan

JET A-1

• Price: $120/$116 per barrel

• Commission: $2 Buy-Side

• Contract Term: 12 months

• Trial Lift: 100,000 barrels

• Minimum Monthly Lift: 450,000 barrels

• Maximum Monthly Lift: 5,000,000 barrels

  
  

EN590 10PPM

• Price: $720/$710 per metric ton

• Commission: $5 Buy-Side

• Contract Term: 12 months

• Trial Lift: 100,000 metric tons

• Min. Monthly: 200,000 MT

• Max. Monthly: 500,000 MT

D6

• Price: $1.20/$1.18 per gallon

• Commission: $0.01 Buy-Side

• Contract Term: 12 Month

• Trail Lift: 100,000,000 GAL

• Min. Monthly: 500,000,000 GAL

• Max. Monthly: 1,000,000,000 GAL

These terms provide a framework for buyers and sellers to negotiate volumes and pricing over a fixed period, ensuring stability and predictability in supply.

Practical Tips for Traders

• Verify all documents carefully. Authenticity of the TSR, dip test reports, and certificates is critical.

• Schedule dip tests promptly. Fresh analytical reports reduce risks of disputes.

• Understand payment terms. MT 103/TT payments must be timely to avoid delays.

• Use NCNDA/IMFPA agreements. Protect your interests and maintain confidentiality.

• Plan logistics ahead. Coordinate vessel arrival and tank availability to avoid demurrage costs.

  
  

Final Thoughts

Mastering the international trading procedure for tank takeovers and TTV transfers requires attention to detail and clear communication. Each step, from issuing the ICPO to final payment and contract signing, builds trust and ensures a successful transaction. Traders who follow these procedures carefully reduce risks and position themselves for long-term partnerships in the global fuel market.