Mazut M100 (GOST 10585-75)

Mazut is a heavy, low quality fuel oil, used in generating power plants, industrial boilers and other direct source heating applications. Mazut is also used as a principal fuel in marine applications in large diesel engines. At Elite Global Trading LLC we are proud of our role in helping to meet the increasing demand for energy in the world. We are ready, willing and able to source contracts for Mazut M100 (Heating Oil) from Russian Federation/CIS states and other Mazut M100 producing countries.

We are Ready, Willing and Able to source the supplies for contract and spot deals for Mazut M100 from Russian Federation/CIS states and other producers of Mazut M100. We work directly and exclusively with the seller’s mandate agents and are engaged to source and certify prospective buyers. We look forward to establishing a long term business relationship with your company.

Please review the terms and procedures for importing Mazut M100

Commodity: Russian Mazut
Specs: RUSSIAN Heavy Fuel Oil / Mazut M100 (GOST 10585-75)
Origin: Russian Federation/CIS states
Minimum Order Quantity: 100,000 MT / month x 12 months
Price: TBD
Contract period: Twelve (12) months with possible subsequent extensions by agreement between Seller and Buyer.
Payment – One month’s supply value of Revolving, Irrevocable, Transferable, Divisible, Assignable Documentary Letter of Credit (RDLC). This RDLC shall be automatically  revolving to the next month on draw down of the previous month for the period of the contract plus any Rollovers or extensions. This RDLC shall be guaranteed by an IRREVOCABLE, CONFIRMED, ASSIGNABLE, TRANSFERABLE, DIVISIBLE, NEGOTIABLE, CALLABLE and UNCONDITIONAL BANK GUARANTEE (BG) Face value of the bank guarantee instrument (BG) shall be sufficient to cover the amount in USD for a period of ONE (1) calendar month’s supply.  This BG shall be from a Prime 25 World Rated Bank, and shall be posted on European Euroclear for verification.
Inspection: by "SGS" or "Saybolt" for Quantity and Quality at Port of Loading at Seller's expense
Performance Bond: 2% of value of a monthly delivery
Rules of Trade: UCP600, Incoterms, URC522 Rules of Collection - English law applies; English language applies-

Heavy Fuel Oil Importing Procedures: Our procedures are very clear and there is no place for negotiation.

(1) Buyer sends an official and detailed Letter of Intent (LOI) on company's letterhead with full contact details, signed and sealed by Principal Buyer. The LOI must include quantity, duration, destination port, price and banking details. The letter must state that the buyer is Ready, Willing and Able to purchase under penalty of perjury.  The LOI must be stamped and signed by the BUYER signatory. LOI should be addressed to: "Principal Seller via Elite Global Trading LLC" and sent to ceo@eliteglobaltrading.com

(2) Seller issues the Full Corporate Offer (FCO) to the Buyer and the Buyer signs and seals the acceptance of the FCO and returns the original to the Seller (FCO valid for 5 International Banking Days)

(3) Within five (5) International Banking Days the Buyer must issue an Irrevocable Confirmed Purchase Order (ICPO) and Bank Comfort Letter (BCL) signed by two (2) bank officers to the Seller’s Company. Soft Probe may be acceptable and the Buyer must include this statement in their LOI/ICPO either before or after their bank coordinates: “We hereby provide our authorization to the bank of the Seller (Global Phoenix Energy Ltd) to conduct and enquiry into our financial capacity in regards to this transaction (soft Probe).”

(4) The Seller will issue a softcopy of Contract Agreement to the Buyer and when both parties agree on the draft, then both parties sign the Contract in a way convenient to both. If by courier, then four originals will be sent to the Buyer for signing and return. Electronic signature is acceptable.

(5) The Buyer shall within fourteen (14) International Banking Days from receipt of executed contract, instruct their bank, which must be a “Prime 25 World Rated Bank” to block in their own account, sufficient funds to cover One (1) full calendar month’s value of the said commodity. When blocked, the Buyer’s bank, shall issue to the Seller’s bank a “Blocked Funds Letter” (either “Bank to Bank” or “Hard Copy” are acceptable).  Samples of the “Blocked Funds Letters” are in Annex D and Annex E.

(6) The Seller shall within five (5) International Banking Days from the receipt and positive verification of Buyer’s “Block Funds Letter”, shall issue to the Buyer’s bank a Non Operative Performance Bond in the amount of two (2) percent of the value of one (1) month’s supply of the said commodity.

(7) The Seller shall within twenty one (21) International Banking Days from receipt, and Positive Verification of the Buyer’s “Blocked Funds Letter”, shall SWIFT to the Buyer’s bank a Ready, Willing and Able (RWA) letter indicating that the Proof of Product (POP) with the exception of the Charter Party Agreement is in the Seller’s bank and ready to be sent.

(8)  Buyer’s bank within five (5) International Banking Days of receiving the RWA letter, shall issue to the Seller’s bank the Pre Advise via MT799 of an Unconditional, Callable, Transferable, Negotiable, Divisible and Assignable Bank Guarantee (BG), for the value of One (1) full calendar month’s supply as per contract in favor of the SELLER. The BG must be from a Prime 25 World Rated Bank, and must be posted on European Euroclear for verification.

(15) The Buyer’s bank, within five (5) International Banking Days of the PB becoming operative, will issue to Seller’s bank, an Operative, Revolving, Irrevocable, Transferable, Divisible and  Assignable Documentary Letter of Credit (RDLC), for the value of one month’s supply.

(16) Charter Party Agreement will be issued within fourteen (14) International Banking Days, after the POP reaches the Seller’s bank.

(17) After the Seller’s bank receives and confirms the RDLC (and other documents listed above), and within forty five (45) working days of verifying the Buyer’s “Blocked Funds Letter”, the Seller shall proceed to start loading the Commodity based on the received and confirmed RDLC, quantity, port of delivery, import license and other related documents from the buyer. The second and subsequent delivery will be within blocks of thirty working days as per loading schedule. (Please note, all above timings are worst case scenarios, with co-operation from both parties, and bearing in mind that time is of the essence, all the above should be done prior to the 45 days in this clause).

(18) Each Monthly Lot payment will be made against the Seller’s invoice (and other documents listed in the contract) on presentation of the listed documents to the Buyer’s bank, the RDLC shall then be automatically topped up for the next month’s shipment.

(19) The text format and wordings of the Bank Guarantee is as per Annex H and will be mutually agreed by both parties’ banks. The exact verbiage must be sent to the Seller in good time to allow the acceptance of said instruments. Failure to supply such Verbiage may extend the times stipulated in Procedures above.

We only deal with verified and screened genuine Buyers & Sellers, Authorized Mandates or professional brokers who are direct to Principals or Mandates.