What the buyer specifies
- Crude or refined grade and intended use
- Quality limits for free fatty acids, moisture, peroxide value, colour and other agreed parameters
- Quantity, bulk or container format and packing
- Preferred origin and acceptable alternatives
- Destination port or delivery point and shipment window
- Inspection, food-safety, certification and payment requirements
Codex Alimentarius CXS 19 may be used as a reference where relevant. The seller's live offer and the final sale contract confirm the binding specification.
Origin and delivery planning
Suitable origins are assessed against the buyer’s specification, quantity, shipment window, destination and landed economics. The live offer identifies the proposed producer or seller, country of origin, load point, quantity and route.
Each proposed transaction is reviewed using the actual origin, counterparties, banks, vessel or carrier, route and destination.
The parties select the appropriate Incoterms® 2020 rule only after confirming the transport mode and exact named port or place. FOB, CFR or CIF may suit sea or inland-waterway movements; FCA, CPT or CIP may suit containerised or multimodal movements. Bulk tanker, flexitank and other formats depend on parcel size, product grade, terminal access and receiving capability.
Transaction review and documents
The proposed transaction requires current review of the product, counterparties, ownership and control, banks, payment route, vessel, port, carrier, insurer, licences and applicable jurisdictions. Product-level authorisations or exceptions do not make every transaction automatically lawful, bankable or insurable.
Documents may include a certificate of analysis, certificate of origin, weight evidence, independent inspection, food-safety records and transport documents.
Product, import, inspection, customs and documentation requirements are confirmed for the actual destination, importer and declared end use.