Understanding Tank-to-Vessel Injection Agreements (TTVIA)

Frequently Asked Questions about TTVIA

A Tank-to-Vessel Injection Agreement (TTVIA) is a crucial procedure in bulk fuel transactions. It is an FOB transaction where petroleum products are transferred directly from the seller's storage tank into the buyer's nominated vessel through a pipeline. The buyer verifies the product before payment, ensuring a secure and transparent transaction.

How Does the FOB Tank-to-Vessel (TTVIA) Process Work?

The TTVIA process typically includes the following steps:

1. The buyer submits an Irrevocable Corporate Purchase Order (ICPO) along with supporting documents.

2. The seller issues a Commercial Invoice (CI).

3. Both parties execute the Tank-to-Vessel Injection Agreement (TTVIA).

4. The buyer conducts an independent SGS inspection and dip test.

5. The product is injected into the buyer's vessel.

6. The seller releases Proof of Product (POP) documents.

7. The buyer makes payment via MT103.

8. Product ownership transfers to the buyer.

   
   

This structured approach ensures clarity and accountability throughout the transaction.

What Does FOB Mean in Fuel Trading?

FOB, or Free on Board, signifies that the seller is responsible for delivering the product onto the buyer's nominated vessel at the agreed loading port. Once the product has been loaded, responsibility and risk transfer to the buyer. This term is essential for understanding the logistics and responsibilities involved in bulk fuel transactions.

Common Products Sold Under TTVIA Procedure

Several products are commonly sold under the TTVIA procedure, including:

• EN590 10ppm Diesel

• Jet A-1 Aviation Fuel

• D6 Virgin Fuel Oil

• LPG

• LNG

• Mazut M100

• Gasoline

• Low Carbon Oil (LCO)

  
  

These products represent a significant portion of the bulk fuel market and are critical for various industrial applications.

Is an SGS Inspection Required?

Yes, an independent SGS inspection, or one from a mutually agreed inspection company, is performed prior to the pipeline injection. This inspection verifies:

• Product quantity

• Product quality

• Tank measurements

• Product specifications

  
  

The inspection process is vital for ensuring that the product meets the necessary standards before it is transferred.

When Does the Buyer Make Payment?

Payment is made after the following conditions are met:

• The SGS inspection has been completed successfully.

• The product has been injected into the buyer's vessel.

• The required Proof of Product documents have been released.

  
  

This payment structure protects both parties and ensures that the buyer receives the product as promised.

What Payment Method is Normally Used?

Most transactions are settled through an MT103 international wire transfer after the successful product injection. This method is widely accepted and provides a secure means of transferring funds.

What Documents Does the Seller Provide?

The seller typically provides several Proof of Product (POP) documents, including:

• Commercial Invoice (CI)

• SGS Inspection Report

• Pipeline Injection Report

• Product Passport

• Certificate of Origin

• Authority to Sell and Collect (ATSC)

• Notice of Readiness (NOR)

• Other export documents where applicable

  
  

These documents are essential for verifying the legitimacy of the transaction and ensuring compliance with international trade regulations.

Why is the Tank-to-Vessel Procedure Considered Secure?

The Tank-to-Vessel procedure is regarded as secure for several reasons:

• The buyer inspects the product before payment.

• Independent inspectors verify quality and quantity.

• The seller maintains ownership until payment is received.

• The product is physically injected before final settlement.

  
  

These measures significantly reduce the risk associated with bulk fuel transactions.

Can the Buyer Appoint Their Own Inspection Company?

Yes, in most transactions, the buyer can appoint SGS or another internationally recognized independent inspection company, subject to seller approval. This flexibility allows buyers to ensure that their interests are adequately represented during the inspection process.

What is the Notice of Readiness (NOR)?

The Notice of Readiness (NOR) is issued by the storage terminal, confirming that the product is ready for pipeline injection into the buyer's nominated vessel. This document is a critical part of the logistics process, signaling that the transaction can proceed.

What is an ICPO?

An Irrevocable Corporate Purchase Order (ICPO) is the buyer's official purchase document. It confirms:

• The product required

• The quantity

• The destination

• Acceptance of the seller's procedures

• Commitment to complete the transaction

  
  

The ICPO serves as a binding agreement between the buyer and seller, establishing the terms of the transaction.

What is a Charter Party Agreement (CPA)?

A Charter Party Agreement (CPA) is a contract that confirms that the buyer has secured a vessel for loading and transportation of the petroleum products. This agreement is essential for coordinating the logistics of the transaction.

What is a Tank Storage Agreement (TSA)?

A Tank Storage Agreement (TSA) is documentation that shows the buyer has contracted storage capacity at the destination or nominated terminal when required by the transaction. This agreement is crucial for ensuring that the product can be stored safely until it is needed.

Who Pays the Intermediaries?

Upon successful receipt of the buyer's payment, the seller pays all authorized commissions according to the signed NCNDA/IMFPA agreement. This arrangement ensures that all parties involved in the transaction are compensated for their services.

How Long Does the TTVIA Process Take?

The duration of the TTVIA process can vary. Depending on documentation, vessel scheduling, and inspection availability, most FOB Tank-to-Vessel transactions can be completed within several business days after all required documents have been accepted. This efficiency is crucial for maintaining a steady supply chain.

Why Choose Nationwide Brokerage Group Inc.?

Nationwide Brokerage Group Inc. collaborates with verified fuel suppliers and refineries. This partnership provides buyers with access to secure FOB transactions for petroleum products at major international ports. Our team assists clients throughout the transaction process—from initial documentation to successful product loading—while maintaining transparency and professional communication.

In conclusion, understanding the intricacies of the Tank-to-Vessel Injection Agreement (TTVIA) process is essential for ensuring a smooth and secure transaction. By adhering to established protocols and utilizing reliable partners, buyers can navigate the complexities of bulk fuel procurement with confidence.