[abdlah]

I am trying to facilitate a crude oil sale, and have gotten to a point where I am confused. My buyer is asking my seller to provide an SGS report (usually a report commissioned by the buyer) as proof of performance.

Since the report is one relating to another customer, it is my thinking that this can have legal implications, but I have checked and it is true that the crude purchasing company for the government is required this report.

My confusion is that the crude purchasing company being experts in the crude industry should not ask for a document that they know could have legal implications, but they are.

Who is fooling around with me? The the crude purchasing company or my seller?
Should my seller not have a problem sharing an SGS report of another client with me? TIA

[Mr. Knowitall]

Laws in the U.S. vary by state; outside the U.S. (at a minimum) they vary by country.

[SChinFChin]

I am trying to facilitate a crude oil sale, and have gotten to a point where I am confused. My buyer is asking my seller to provide an SGS report (usually a report commissioned by the buyer) as proof of performance.

Since the report is one relating to another customer, it is my thinking that this can have legal implications, but I have checked and it is true that the crude purchasing company for the government is required this report.

My confusion is that the crude purchasing company being experts in the crude industry should not ask for a document that they know could have legal implications, but they are.

Who is fooling around with me? The the crude purchasing company or my seller?
Should my seller not have a problem sharing an SGS report of another client with me? TIA

I was in the "Import Export" field for a few years, and SGS report requirements had been pretty standard. My company deals in machinery sales to foreign buyers, with sales terms of payment usually via "letters of credit", or "sight drafts".

With documentary payment terms, buyers authorize banks to pay based only on shipping documents such as B/L's or airway bills, commercial invoices, certificates of origin etc., and there is no way a buyer would know what is really inside the boxes of goods to be shipped, whether it's really the machinery, or in some cases of out a out fraud, a box of rocks.

Since buyers in foreign lands paying for goods, sight unseen, what other way are they going to make sure goods they are to receive is what the seller claims it is?? Having a SGS report done is the equivalent of "show me the stuff that you're shipping and I'm getting", and particularly when certain goods has to meet some quality requirements.

Buyers of machinery the company I was with sells goods that can be in valued in the millions of dollars, and certainly, only an idiot buyer would let a bank pay for something without taking a look at it first.

I don't understand the confusion. Unless this seller is new to the business, SGS had been around forever, and unless they plan to sell subpar goods, or nonexistent goods that cannot withstand an inspection, what LEGAL ISSUE is there??

Usually, in transactions based on documentary collections, the seller is often called on to certify what he's selling, and the buyer will specify what documents he requires before paying, and these requirements are pretty much standard in the normal course of international trade. And what is NOT LEGAL with this??

[Bubba Jimmy]

With regard to crude oil, country of origin is critical. For example, it is illegal to export crude oil produced in the lower 48 U.S. states. It is also illegal to import crude from certain countries such as Iran. Therefore, without legal certification of where the crude is coming from it will be difficult to deal with any major oil or refining company.

[marinegold]

Dear,

A Buyer can request for an SGS report for so many reasons and i will make them known to you now.

1. A Buyer request for an SGS REPORT to ascertain the Availability of the Cargo/product as offered by you.

2. The Buyer also does this to ensure the QUALITY OF PRODUCT he is purchasing from you if it will meet the specifications for his REFINERY.

and more...

Now to answer your question your Buyer is doing this to ensure he wont be wasting his time and yours as every serious minded Business man knows that in th Oil industry, time is of essecnce.

But in Most cases some sellers will not give you an SGS REPORT/will not release there SGS report because there is no base yet for the transaction to commence, probably NO SIGNED SPA, so therefore he does not know whom he is releasing his documents to because this document can be used for fraudulent purposes.

You can do well to get connected with me and we can proceed transactions from there, Ok.

Isaac.