Transaction Procedure
The common CIF Transaction Procedure for Granular Sulfur, UREA and DAP. It sets out buyer documentation, contract execution, the operative LC, shipment and settlement.
Buyer documentation
Buyer signs the Commercial Term Sheet (CTS) and issues an Irrevocable Corporate Purchase Order (ICPO) as per the CTS, together with Company Information Sheet (CIS) documents including:
- Certificate of Incorporation / Trade License
- Buyer banking details
- Authorized signatory passport copy
- Latest Proof of Funds (POF), Bank Confirmation Letter (BCL), or RWA confirming financial capability.
Document review and draft contract
Seller reviews Buyer’s documents and issues a draft Sales and Purchase Agreement (SPA) / Contract for Buyer review and execution.
SPA execution
Buyer signs and returns the mutually accepted SPA / Contract within three (3) international working days.
Invoice and LC wording
Upon execution of the SPA, Seller issues the Invoice and LC Verbiage.
Operative Letter of Credit
Within seven (7) banking days from SPA execution, Buyer’s bank shall issue an irrevocable operative Letter of Credit (MT700), advised through and acceptable to Seller’s bank — Mashreq Bank, Dubai, U.A.E. — in accordance with ICC UCP 600 banking rules.
Loading and shipping documents
Upon receipt, verification, and acceptance of the operative LC by Seller’s bank, Seller shall commence loading. Seller’s bank shall thereafter present shipping and commercial documents to Buyer’s issuing bank through banking channels for payment at sight in accordance with ICC UCP 600.
- Commercial Invoice
- Certificate of Origin
- SGS Report not later than (48 hours)
- Bill of Lading
- Vessel Details / Container Details (as applicable)
- Packing List
- Cargo Manifest
- Notice of Readiness
- 110% Insurance Policy
Payment at sight
Buyer’s bank shall effect payment at sight strictly through banking channels upon presentation and acceptance of compliant shipping documents in accordance with the operative LC terms and ICC UCP 600 rules.
Shipment to destination
Shipment proceeds to destination as per agreed contract terms and Incoterms.
LC payment terms
- The LC shall be payable at sight against presentation of compliant shipping and commercial documents at the loading port. All banking charges outside Seller’s banking jurisdiction shall be borne by Buyer.
- All banking communications, document presentations, and payments shall be effected strictly bank-to-bank only.
- Partial shipment and transshipment shall be permitted, if applicable under the agreed contract terms.
- As payment is secured through an operative LC at Sight under ICC UCP 600 with strict bank-to-bank document presentation, no separate Performance Bond (PB) shall be applicable under this transaction structure.
- Failure by Buyer to issue the operative LC within the stipulated timeframe shall result in automatic lapse of allocation and transaction re-initiation subject to fresh allocation, revised pricing, and Seller approval.
This common procedure applies to the dry fertilizer products listed on this website. Product-specific technical values are set out on the relevant specification pages. The reference to the Seller’s bank is a transaction term, not a GulfFertilizer office location. The website form is for initial commercial enquiries. Supporting company, identity and banking documents should be exchanged separately through an agreed channel after the parties have verified each other’s details.