Step 01 / 08
ICPO + BCL / RWA
Buyer issues an Irrevocable Corporate Purchase Order on letterhead (product, spec, quantity, Incoterm, destination, banking coordinates, validity) together with a Bank Comfort Letter or RWA from a top-50 bank.
Dokumente
- ▸ICPO
- ▸CIS / KYC pack
- ▸BCL or RWA
- ▸Passport of signatory
- ▸Company registration
Banknachrichten
- MT799 (optional pre-advice)
⚠ Warnsignale
- •Seller asks for "registration" or "processing" fees — no legitimate seller charges to read an ICPO.
- •ICPO template with no banking coordinates or vague quantities.
- •Request to send money to a "mandate" before any bank instrument.
Step 02 / 08
SCO / FCO
Seller replies with a Soft Corporate Offer (indicative) and, after KYC, a Full Corporate Offer (binding) with price basis (Platts / LME / ICE ± differential), quantity, delivery schedule, payment terms and validity.
Dokumente
- ▸SCO
- ▸FCO
- ▸Seller CIS
- ▸Refinery / mill allocation letter (if any)
⚠ Warnsignale
- •Discounts of 10 % or more below Platts / LME / ICE — real physical margins are 1–3 %.
- •FCO without price basis or without a validity date.
- •Seller claims exclusive "allocation" from a Tier-1 refinery but cannot name the term-contract holder.
Step 03 / 08
Draft SPA
Both parties negotiate the Sales & Purchase Agreement: product spec, quantity tolerance, inspection, Incoterms 2020, payment instrument, performance bond, laytime/demurrage, governing law and arbitration (ICC).
Dokumente
- ▸SPA draft
- ▸Spec annex
- ▸Delivery schedule
⚠ Warnsignale
- •SPA that requires payment before Proof of Product or before a bank instrument.
- •"Signed & sealed" pressure within hours.
- •Arbitration clause missing or set to an unrelated jurisdiction.
Step 04 / 08
POP via MT799
Seller's bank sends Proof of Product bank-to-bank (MT799): tank storage receipt, injection report, warehouse receipt, SGS/CIQ pre-inspection or bill of lading — never as e-mail PDFs.
Dokumente
- ▸Tank Storage Receipt (TSR)
- ▸Injection report / warehouse receipt
- ▸Pre-shipment inspection
- ▸Authorization to Verify (ATV)
⚠ Warnsignale
- •POP delivered as PDF by e-mail or WhatsApp — PDFs are not proof.
- •Request that the buyer rents a tank (TSA) or pays "tank extension" before POP — the classic Rotterdam / Houston scam.
- •Tank farm that cannot be verified by phone through its public switchboard.
Step 05 / 08
DLC MT700 / SBLC MT760
Buyer's bank issues the payment instrument: an irrevocable, confirmed Documentary Letter of Credit (MT700) payable at sight against documents, or a Standby LC (MT760) for revolving contracts.
Dokumente
- ▸Draft LC text (both parties review)
- ▸LC application
- ▸Confirmation by seller's bank
Banknachrichten
- MT700 (DLC)
- MT760 (SBLC)
- MT710 / MT720 (advice / transfer)
⚠ Warnsignale
- •Seller insists on "SWIFT MT103 cash upfront" or "crypto escrow".
- •LC payable against copies instead of originals.
- •Instrument requested to a non-bank or to an unrelated third party.
Step 06 / 08
Performance Bond 2 %
On CIF deals the seller's bank issues a 2 % Performance Bond in favour of the buyer, activated once the LC is operative. It is forfeited if the seller fails to deliver.
⚠ Warnsignale
- •Seller asks the buyer to pay for the PB.
- •PB issued by an unknown offshore "bank".
Step 07 / 08
Loading & SGS / CIQ inspection
Cargo is loaded under the supervision of an independent inspector (SGS, Saybolt, Intertek, CIQ, Bureau Veritas): quality & quantity report, sealed samples, draft survey, tank dips.
Dokumente
- ▸Q&Q report
- ▸Certificate of Origin
- ▸Packing list / ullage report
- ▸Insurance (CIF)
⚠ Warnsignale
- •Inspection report that cannot be verified with the inspector via the number on their official website.
- •Vessel name that does not match the IMO register or AIS position.
Step 08 / 08
MT103 against B/L · Title transfer
Against the clean-on-board Bill of Lading, commercial invoice, Q&Q certificate and certificate of origin, the issuing bank releases payment (MT103). Title passes to the buyer per Incoterm.
Dokumente
- ▸Bill of Lading (original, clean on board)
- ▸Commercial invoice
- ▸Certificate of origin
- ▸Q&Q certificate
- ▸Insurance certificate
Banknachrichten
- MT103 (payment)
- MT202 (bank-to-bank cover)
⚠ Warnsignale
- •Request to pay against copy B/L.
- •Change of beneficiary bank at the last minute.
