EN590 Trading Procedures & Supplier Compliance Guidelines

Transaction integrity

Standardized Operating Protocols for Physical Fuel Transactions

Physical commodity trading requires zero ambiguity. To prevent deal failure, safeguard counterparty data, and eliminate fraudulent solicitations, EN590 10 PPM allocations managed through Chelet Ltd. follow defined compliance and due-diligence protocols.

Each transaction moves through sequential stages from verified buyer onboarding to final injection or discharge.

Mandatory onboarding

Buyer Onboarding: LOI & Client Information Sheet (CIS) Rules

To progress toward product allocation and a Draft SPA/Contract, buyers are expected to submit a complete onboarding package.

01 / LOI

Letter of Intent Requirements

Corporate Letterhead & Authorization: Official buyer letterhead, signature of an authorized officer and corporate seal/stamp.
Definitive Pricing Structure: Indicative target price or recognized benchmark formula such as Platts or Argus.
Exact Discharge Port: The destination port must be specified exactly.
Selected Payment Instrument: A workable instrument such as Irrevocable DLC MT700, SBLC MT760 or T/T Wire Transfer.

02 / CIS + POF

Client Information & Financial Capacity

Verified Domain Communications: Official correspondence should originate from an authenticated corporate domain.
Corporate History & Scope Alignment: Operational track record and trade capability should be verifiable.
Verifiable POF: POF or Bank Comfort Letter from a top-tier financial institution; identity documents alone are not proof of funds.
Banking Data Security: Prefer secure bank-to-bank verification such as SWIFT MT199/MT799 over circulating raw banking data by unencrypted email.

Execution workflows

FOB & CIF Operational Steps

A. FOB — Rotterdam / Houston / Fujairah / Jurong

Document Verification

Buyer submits compliant LOI, CIS, and BCL/POF package for compliance review.

Commercial Invoice

Seller issues CI; Buyer signs and returns it alongside tank or vessel details.

Dip Test Authorization

Terminal operator issues a fresh DTA without upfront fee demands.

Product Inspection

Independent SGS/Intertek inspection verifies fuel quality and quantity inside the shore tank.

Injection & Payment

TTT or TTV injection commences, followed by settlement via MT103/TT.

B. CIF — Cost, Insurance & Freight

ICPO & SPA Execution

Buyer issues verified ICPO + CIS package; SPA is executed.

Financial Instrument

Buyer’s bank issues operative DLC MT700 or SBLC MT760 to Seller’s bank.

Proof of Product

Seller issues Partial POP, including relevant shipping and refinery documentation, bank-to-bank.

Vessel Dispatch & Inspection

Vessel departs loading port; NOR/ETA is provided at destination port.

Discharge DIP Test & Clearance

Independent inspection is conducted at discharge port prior to final payment drawdown.

Official resource download

Supplier Compliance Guidelines & Mandatory CIS Requirements

Download the supplied Chelet Ltd. compliance document covering LOI requirements, CIS requirements, proof-of-funds expectations, banking-data security and next steps.

Download PDF ↓

PDF file: Chelet_Ltd_Compliance_Guidelines.pdf

Commercial execution

Ready to progress a qualified EN590 inquiry?

Chelet Commodity Trading & Marine Solutions Ltd. Şti. provides trade-desk facilitation and compliance onboarding for qualified commercial inquiries.

Submit LOI / Contact Chelet Trade Desk ↗info@chelet.com.tr