* TRANSACTION IN PROCEDURE *
FOB : Free on Board. This means that the supplier pays only to the point where the goods are loaded on board the carrying vessel. The seller must clear the goods for export. As soon as the goods are over the ship’s rail, they become the responsibility of the buyer.
TTT : Tanker to Tanker Transfer. (Relates to a method of consignment for Crude Oil)
TTV : Tanker to Vessel Transfer (relates to a method of consignment for Crude Oil)
BUSINESS TERMS IN THE OIL INDUSTRY.
LOI : Letter of Intent. A document by which the buyer states that he intends to enter into a transaction
ICPO : Irrevocable Corporate Purchase Order
FCO : Full Corporate Offer
CI : Commercial Invoice
CP : Charter Performance Agreement
TSA : Tank Storage Agreement/ Trans-Pacific Stabilization Agreement
TSR : Tank Storage Receipt
CFR : Cost and Freight. The price includes the cost of the goods, loading, and freight to the named Destination Port. This does not include unloading charges. e.g. CFR Rotterdam.
POF : Proof of Funds. A note from a buyer’s bank to the seller/seller’s bank that money is available to complete the proposed transaction
UDTA : Unconditional Dip Test AuthorizationTB : Authority To Board. Used for oil shipments – issued by the seller, it provides the authority to enable the buyer to board the vessel to confirm cargo availability, quantity and quality.
BG : Bank Guarantee (BCL Bank Confirm Letter )
SBLC : Stand-By Letter of Credit. s a financial guarantee or performance bond issued by a bank on behalf of a buyer. i.e. a written obligation of the issuing bank to pay a sum to a beneficiary on behalf of their customer in the event that the customer himself does not pay the beneficiary. The SL/C is regulated by the ICC-500 rules.
DLC : Documentary Letter of Credit
RWA : (Ready, Willing, and Able) A banking term meaning Readiness, Willingness and Availability of funds for a particular transaction.
MT103 : standardized SWIFT payment message used specifically for cross border/international wire transfers. We use SWIFT for all payments made via Money Mover. MT103s are globally accepted as proofs of payment and include all payment details such as date, amount, currency, sender and recipient.
MT199 : Interbank Message used between two banks to transmit a SKR or a free format message engaging two bank’s readiness to move forward with a transaction, usually a private one. A MT199 swift message is easily explained as a “chat” message.
PB : Performance Bond
ATB : Authority To Board. Used for oil shipments – issued by the seller, it provides the authority to enable the buyer to board the vessel to confirm cargo availability, quantity and quality.
ATL : Authority To Load: Authority to load buyer’s vessel
ATPCC : Allocation Transaction Passport – Code Certificate
ATSC : Sellers Authorization to Sell & Collect
ATV : Authorization to verify
DTA : Dip Test Authorization / Direct Transfer Agreement
POP : Proof of Product
INCOTERMS : “International Commercial Terms”. A set of import/export related shipping terms devised and published by the International Chamber of Commerce (ICC). These terms (Incoterms 2000) are internationally accepted and should always be used in order to avoid misunderstandings between trading partners. All terms in this glossary are Incoterms.
NOR : Notice of Readiness
SPA : Sale and Purchase Agreement
SGS : (formerly Société Générale de Surveillance). This is an international company (SGS Group) who are the definitive quality/specification testing agency for many commodities. Their certificates are internationally accepted.
Q & Q Report : quantitative and qualitative record