FAQ CIF AWSP & FOB BANKING PROCEDURES (ENGLISH VERSION)
This FAQ has been prepared to provide buyers with a clear, transparent, and accurate understanding of the CIF AWSP banking procedures applied in international petroleum transactions.
All processes outlined herein are based on established industry practices, international banking standards (SWIFT & ICC), and the operational requirements of legitimate refineries and storage terminals. The purpose of this FAQ is to protect the interests of all parties involved, including the Buyer, Seller, Fiduciary, and Receiving Bank, while preventing misunderstandings, fraudulent activity, and unnecessary financial risk.
By reviewing this FAQ, buyers will gain a structured overview of how SBLC, POP, PB, SGS inspection, shipment, and payment processes are properly executed within a compliant and secure oil & gas trading framework.
1. Is any upfront payment required from the Buyer?
No, the Buyer is not required to make any upfront payment, deposit, POF, or booking fee.
Note: The Buyer’s commitment is secured solely through a valid SWIFT MT760 SBLC.
2. Why can’t the Seller issue POP or Shipping Documents upfront?
In legitimate petroleum transactions:
POP is issued only after the SBLC is verified and activated
Issuing POP upfront exposes, the Seller to serious risks (fraud, fake SBLC, buyer disappearance)
Note: This is industry standard practice, not an arbitrary condition.
3. Isn’t a hard copy SBLC sufficient?
No, an SBLC is only considered valid when:
Verified by the Receiving Bank
Cleared under AML/KYC & Central Bank regulations
Activated in the SWIFT system
Note: A hard copy without SWIFT activation has no banking value.
4. When will the Performance Bond (PB) be issued?
PB is issued only after:
✔ Final MT760 is activated
✔ Receiving Bank confirmation is completed
✔ Seller’s risk is fully covered
Note: PB is a post-SBLC performance guarantee, not an upfront instrument.
5. How does the Buyer know the product truly exists?
The Buyer will receive:
✔Fresh Proof of Product (POP)
✔SGS inspection report
✔Dip Test authorization
✔Complete shipping & title documents
Note: Payment is made only after successful SGS inspection, not based on documents alone.
6. Is payment triggered by POP?
No, payment is triggered only after:
✔ Product is loaded
✔ SGS inspection is passed
✔ All shipping documents are compliant
Note: POP alone does not trigger payment.
7. Is this procedure suitable for long-term contracts?
Yes, For 12-month contracts:
Annual SBLC/BG is issued
PB is issued monthly
Shipments follow a fixed schedule
Note: This structure supports large-volume, long-term offtake agreements.
8. Why is an IMFPA required?
IMFPA protects:
Buyer-side and Seller-side commissions
Intermediaries’ rights
All parties from post-transaction disputes
9. Why does this procedure appear strict?
Because it is designed to:
✔ Prevent fraud
✔ Protect Buyer funds
✔ Protect Seller & Refinery costs
Note: Serious Buyers understand this structure.
10. Who is this procedure suitable for?
✔ Licensed corporate buyers
✔ Authorized traders
✔ Genuine end buyers
✔ Buyers with legitimate banking facilities
Not suitable for:
❌ Test buyers
❌ Brokers without mandate
❌ Buyers demanding POP first
❌ Buyers unwilling to issue SBLC
11. Why doesn’t the Seller provide past performance records at the initial stage?
Past performance documents (BL, old SGS, shipping history) are:
Confidential
Contract-protected
Not reusable or transferable
Note: Early requests for such documents are a known red flag in oil trading.
12. How is Seller credibility proven without past performance?
Through:
✔ Bank-to-bank SBLC verification
✔ Activated MT760
✔ Fresh POP issued for the Buyer
✔ SGS inspection on Buyer’s allocated cargo
Note: Current performance is the only valid proof.
13. When can references or confirmations be discussed?
Only after SPA signing and SBLC activation, and subject to approval.
FINAL SUMMARY:
No upfront payment.
No recycled documents.
Only bank-backed instruments, fresh SGS, and real delivery.
Feel free to contact us for any further clarifications and assistance, we look forward to receiving your LOI/ICPO to begin cooperation.
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‼️WhatsApp:
(Mr. Saif)
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(Ms. Nur)
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(Ms. Far)