Trading Procedure
A published workflow, from enquiry to discharge.
Every transaction MIPEC structures follows a documented sequence. Publishing it removes ambiguity for buyers, sellers, terminals and financing banks.
0 Steps
From first contact to discharge
0 Days
Typical timeline to operative instrument
0 Inspections
Independent Q&Q at load and discharge
The sequence
Seven documented steps
Indicative timings assume a responsive counterparty and a standard ARA terminal. Complex structures or first-time buyers may require additional verification time.
- 01
Buyer submits CIS + TSA
Day 0 – 2Owner · BuyerThe buyer provides a Company Information Sheet and Tank Storage Agreement confirming readiness to receive the product at the nominated ARA terminal.
CISTSAPassport / registry extract - 02
Seller verifies terminal storage
Day 2 – 4Owner · Seller · TerminalStorage capacity, tank allocation and product availability are verified directly with the terminal operator before any offer is released.
Tank allocation confirmationATV / dip test readiness - 03
Seller issues FCO
Day 4 – 5Owner · SellerA Full Corporate Offer is released with quantity, price basis, delivery terms, laycan and the complete procedure attached.
FCOPrice basis & differential - 04
Buyer submits ICPO
Day 5 – 7Owner · BuyerThe buyer returns an Irrevocable Corporate Purchase Order accepting the offer terms, signed and sealed by an authorised signatory.
ICPOBanking coordinates - 05
SPA is signed
Day 7 – 12Owner · Both partiesThe Sales and Purchase Agreement is executed by both parties, legalised where required and lodged with the respective banks.
SPANotarisation / apostille - 06
Financial instrument issued
Day 12 – 20Owner · Buyer's bankThe buyer's bank issues an operative SBLC MT760 or DLC MT700 in favour of the seller, confirmed by the seller's bank.
SBLC MT760DLC MT700MT799 pre-advice - 07
Shipment executed
LaycanOwner · Seller · InspectorProduct is shipped under the agreed Incoterms 2020 basis, with independent inspection at loading and discharge and payment against documents.
Bill of LadingQ&Q reportCertificate of origin
Who does what
Responsibility split
Buyer
- Provides CIS, TSA and ICPO
- Arranges the bank instrument
- Nominates vessel on FOB basis
Seller
- Verifies terminal storage
- Issues FCO and SPA draft
- Delivers under agreed Incoterms
MIPEC
- Coordinates document flow
- Runs due diligence on both sides
- Liaises with terminal and inspector
Terminology
Document glossary
- CIS
- Company Information Sheet — corporate identity and signatory details of the counterparty.
- TSA
- Tank Storage Agreement — proof of contracted storage at the receiving terminal.
- FCO
- Full Corporate Offer — the seller's binding commercial offer with full procedure.
- ICPO
- Irrevocable Corporate Purchase Order — the buyer's formal acceptance of the offer.
- SPA
- Sales and Purchase Agreement — the executed contract governing the transaction.
- SBLC MT760
- Standby Letter of Credit issued by SWIFT MT760 as payment security.
- DLC MT700
- Documentary Letter of Credit issued by SWIFT MT700, payable against documents.
- Q&Q
- Quality and Quantity report issued by the appointed independent inspector.
Safeguards
How the procedure protects both sides
No upfront fees
MIPEC never requests advance payment from a buyer to receive an offer or a procedure.
Verified counterparties
Both sides are screened for sanctions, ownership and trading history before an FCO is released.
Bank-to-bank only
Payment security is arranged strictly through recognised SWIFT instruments between top-tier banks.
Documented at each step
Every stage leaves an auditable paper trail available to both counterparties and their banks.
Incoterms 2020
Deliveries are structured on CIF, FOB or TTV basis as agreed in the SPA.
Bank instruments
SBLC MT760 and DLC MT700 issued by acceptable top-tier banks.
Inspection
Quantity and quality determined by an independent inspector at both ends.
Ready to start the procedure?
Send your CIS and storage details and we will confirm the next step within two business days.