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Petro Trade Canada Preferred Procedure for CIF Deliveries

Petro Trade Canada Inc. is a Canadian based private international oil and gas trading company. We are an international representative of major oil and gas producing companies and serve as a facilitator and broker of oil and gas buyers and sellers around the world. We work with buyers and sellers of oil and gas in Africa, Europe, South America, Middle East, and North America.


1.  Petro Trade sends LOI to Seller. Petro Trade receives and dispatches SCO to Buyer. Buyer signs SCO and reverts to Petro Trade.


  • Note: we will always verify each LOI or ICPO with the buyer himself. We will not send any SCO or FCO addressed to intermediaries, agents or mandates of buyer.


2.  Petro Trade transmits FCO to Buyer and Buyer reverts the following documents properly filled out to Seller:


  • Completed ICPO and FCO with Buyer’s bank data, signed and sealed.

  • Customer Information Sheet (CIS; template provided by Seller) on Buyer’s letterheads, containing also:

    • Copy of Company Registration Certificate

    • Passport copy of signatory.


  • RWA letter issued by Buyer’s bank (template provided by Seller).

  • Authorization to verify the RWA letter by seller’s bank.


  • Note: Seller can receive these documents in their protected company email. Intermediaries would not send or read them if not appropriate. Seller forward Buyer’s confidential papers to their bank only to get their ok to proceed with the Buyer. This protect seller from non-performing parties. In case seller’s bank declines this Buyer they must delete buyer’s documents on our servers and inform buyer accordingly.


3.  Seller drafts Sales & Purchase Agreement (SPA) and Commercial Invoice (CI) to be lodged in both banks. Seller and Buyer execute final contract. Seller sends final contract electronically in PDF format. An electronically executed final contract can stand as original.


  • Note: The following procedure step may be skipped once the banks have established satisfying communication between them. The RWA letter should make this step redundant. In case both banks agree on the pre-advice we will not argue here. We will never interfere in the bank-to-bank communication.


4.  Buyer’s bank sends MT799/Pre-Advice (verbiage provided by Seller’s Bank) to Seller’s bank and Buyer’s sends copy immediately to Seller’s company email address. After Seller has received the copy of the transferred SWIFT and forwarded to his bank, Seller’s bank opens communication with Buyer’s bank on basis of the lodged SPA to discuss all relevant items and documents for security on the deal for both banks (Buyer/Seller).


5.  After successful mutual confirmation of the MT799/Pre-Advice between both banks Seller’s Bank confirms by SWIFT MT799 and Buyer’s bank sends SWIFT MT760/BG/SBLC (verbiage provided by Seller’s Bank) about the amount for the first delivery to Seller’s bank within 3 banking days.


6.  Within XX days (depends on the product and other parameters) after confirmation of the instrument by Seller’s bank and depending on SGS inspection timeline, loading starts as per delivery schedule agreed in the contract.


7. Vessel sails to destination Port, Seller gives DTA at discharging port and Buyer makes Dip Test / SGS/ CIQ or similar organization.


8.  Buyer’s bank pays for each shipment 100% by TT or MT103, at sight in the discharging port against presentation of the shipping documents.


9.  Seller pays commission immediately to intermediaries according to NCNDA/IMFPA after receipt of payment of payments from buyer, and both parties execute signed contract shipment, buyer issue IRDLC/SBLC for contract shipment IRDLC/SBLC.


  • Note: We always use a merchant lawyer. Depending on the product, history with the Buyer, destination port and other parameters payment is required at loading or at discharging port. This will be agreed on each transaction between Buyer and Seller. SPOTs or first lifts are always payable at loading port.


10.   Seller provides 110% insurance in favor of the buyer.


11. Transaction closed.

Associated companies and agencies

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