Difference Between ICPO, CI, SCO, SPA, POP and DTA | Buyer’s Full Guide 2025 (EN590, Jet A1, Rotterdam, Houston, SBLC, MT799, MT103)

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Introduction — Why Most Buyers Don’t Understand These Documents

The biggest problem in the global EN590 / Jet A1 petroleum trade today (Rotterdam, Houston, Fujairah, Jurong) is confusion around core transaction documents.

Every day:

  • Buyers send ICPOs without banking details

  • Sellers request POP before KYC

  • Mandates mix up SCO and CI

  • Intermediaries misuse SPA before verification

  • Buyers request DTA before contract

  • Brokers demand POP before identification

The result? 95% of transactions fail before execution.

This article solves that problem by explaining clearly, technically, and institutionally the role, purpose, and legal value of:

  • ICPO (Irrevocable Corporate Purchase Order)

  • CI (Commercial Invoice)

  • SCO (Soft Corporate Offer)

  • SPA (Sale & Purchase Agreement)

  • POP (Proof of Product)

  • DTA (Dip Test Authorization)

You will understand:

  • When each document is issued

  • Who issues it

  • What legal implications it has

  • What buyers get wrong

  • Why sellers often refuse deals

  • The official sequence recognized by terminal operators, refineries, and trading houses

  • How NNRV Trade Partners uses these documents in real institutional deals

This is the definitive guide for 2025.

SECTION 1 — Understanding the Context

1.1 Why Buyers and Sellers Misunderstand These Documents

The petroleum market is full of:

  • Recycled procedures

  • Fake POPs

  • Brokers with no mandate

  • Misleading “PDF offers”

  • Unrealistic prices

  • Illegal contract sequences

The root cause?

➡️ Lack of understanding of institutional documentation.
➡️ Lack of compliance alignment with refineries and terminals.
➡️ Lack of SWIFT and banking literacy.

Knowing the difference between ICPO, SCO, SPA, POP & DTA determines whether your deal succeeds or fails.

1.2 The Only Document Flow Accepted by Major Terminals (Rotterdam, Houston)

  1. ICPO

  2. SCO

  3. NCNDA + SCO signature

  4. SPA

  5. Partial POP

  6. DTA

  7. SGS Dip Test

  8. Q&Q

  9. CI (Commercial Invoice)

  10. MT103

  11. Title Transfer

  12. TTT/TTM execution

Any deviation → terminal rejection → deal collapse.

SECTION 2 — Detailed Explanation of Each Document

2.1 ICPO – Irrevocable Corporate Purchase Order

What It Is

A formal written purchase order issued by the buyer to the seller.

Purpose

To confirm serious buyer intention with full identification.

Must Include:

  • Buyer corporate details

  • Passport + UBO

  • Buyer’s bank coordinates

  • Product specifics

  • Target price

  • Procedure acceptance

  • Tank availability (for TTT)

  • Destination

When Issued:

Start of the deal.

Legal Value:

Not a contract, but a binding corporate commitment under ICC rules.

Why Buyers Fail at ICPO:

  • Fake ICPOs

  • Missing bank details

  • No tank

  • No procedure acceptance

  • Brokers submitting ICPOs without mandate

2.2 SCO – Soft Corporate Offer

What It Is

A commercial offer issued by the seller based on buyer’s ICPO.

Purpose

To present price, procedure, and conditions.

Contains:

  • Price (Platts related)

  • Procedure

  • Specifications

  • Contract conditions

  • Validity period

When Issued:

After ICPO validation.

Legal Value:

Non-binding — commercial only.

Common Buyer Mistakes:

  • Treating SCO as POP

  • Asking for full POP before signing SCO

  • Negotiating unrealistically low prices

2.3 CI – Commercial Invoice

What It Is

The official invoice requesting payment from buyer to seller.

Purpose

To initiate MT103 final payment.

Issued:

After successful SGS Dip Test + Q&Q.

Legal Value:

Fully binding; part of SPA execution.

Common Mistakes:

  • Asking for CI before SGS

  • Buyers thinking CI = SPA

  • Misunderstanding that CI comes after Q&Q

2.4 SPA – Sale & Purchase Agreement

What It Is

The legally binding contract between buyer and seller.

Purpose

Defines:

  • Price

  • Quantity

  • Delivery (TTT, TTM, FOB, CIF)

  • Inspection

  • Payment (MT103, SBLC, Escrow)

  • Timelines

  • Responsibilities

  • Penalties

  • Allocation terms

When Issued:

After SCO acceptance.

Legal Value:

Full contractual obligation.

Common Errors:

  • Buyers refusing to sign SPA

  • Sellers using outdated SPA templates

  • Brokers altering SPA illegally

  • Buyers requesting POP before SPA

2.5 POP – Proof of Product

What It Is

Documents confirming the product exists in seller’s tank.

Includes:

  • TSR (Tank Storage Receipt)

  • Q&Q report (recent)

  • Injection report

  • Product passport

  • Partial tank coordinates

  • Authorization letter to contact terminal (CPA/ATV)

When Issued:

After SPA and KYC verification.

Legal Value:

Verifies product existence.

Buyer Mistakes:

  • Demanding full POP before ICPO

  • Asking for POP before SPA

  • Falling for fake POPs (PDFs reused from other deals)

No refinery provides POP before buyer identification.
No terminal releases POP without DTA approval.

2.6 DTA – Dip Test Authorization

What It Is

An official authorization from the seller allowing SGS/Intertek/Saybolt to enter the tank and perform DIP TEST.

Essential For:

  • SGS access

  • Terminal access

  • Q&Q

  • Tank verification

When Issued:

After SPA + POP.

Legal Value:

Mandatory compliance document for inspection.

Common Buyer Mistakes:

  • Asking for DTA before SPA

  • Sending SGS without DTA

  • Arriving at terminal without gate pass

  • Failing DIP Test due to missing documents

SECTION 3 — NNRV Analysis: Common Industry Errors & Solutions

3.1 What Buyers Get Wrong

  • ICPO without banking details

  • POP before SPA

  • DIP Test before DTA

  • Misunderstanding Q&Q vs. POP

  • Using brokers with no mandate

  • Expecting unrealistic discounts

  • Sending SGS without terminal authorization

3.2 What Sellers Get Wrong

  • Outdated POP

  • Fake allocation documents

  • No CPA from terminal

  • Improvised procedures

  • Accepting unverified buyers

3.3 Institutional Risks (and NNRV Solutions)

Risk Impact NNRV Solution
Fake POPs Deal fraud Terminal verification
No tank DIP test failure Tank sourcing support
No financial capability Waste of time RWA/POF verification
Unrealistic procedures Contract invalid Institutional template SPA
Broker chain confusion Miscommunication Mandate restructuring

NNRV integrates FATF AML, Basel III, OFAC, EU Sanctions, and refinery-level compliance standards.

SECTION 4 — Official Step-by-Step Process (1–30 Days)

DAY 1–3: Buyer Submission

  1. ICPO

  2. KYC + CP

  3. Tank availability (for TTT)

DAY 4–7: Seller Validation

  1. SCO

  2. NCNDA

  3. Draft SPA

  4. SPA signed

DAY 8–12: POP + Preparation

  1. Seller issues partial POP

  2. Seller issues DTA

  3. Buyer contacts SGS

DAY 13–18: Inspection

  1. DIP test

  2. Q&Q issuance

  3. CI released

DAY 19–20: Payment

  1. Buyer issues MT103

  2. Seller receives funds

  3. Title transfer

DAY 21–30: Execution

  1. TTT/TTM transfer

  2. Final documents issued

SECTION 5 — 20 Buyer & Seller Questions

10 Buyer Questions

  1. Why do sellers hide full POP?

  2. When is DTA issued?

  3. Is ICPO mandatory?

  4. What if Q&Q fails?

  5. Can I do DIP without SPA?

  6. Why is tank required?

  7. Is MT103 the safest payment method?

  8. Can I use escrow?

  9. Can SGS go without DTA?

  10. How fast can the deal close?

10 Seller Questions

  1. How to verify buyer capability?

  2. When to issue POP?

  3. Should SPA include penalties?

  4. What if buyer tank is not valid?

  5. How many intermediaries allowed?

  6. What if buyer delays DIP test?

  7. Should CI be issued before or after SGS?

  8. What if buyer refuses SPA?

  9. How to handle fake ICPOs?

  10. Can seller request SBLC instead of MT103?

SECTION 6 — Proofs & Credibility

These definitions and sequences match:

  • SGS, Intertek, Saybolt

  • Rotterdam Terminals: Vopak, VTTI, Oiltanking, Koole

  • Houston: Enterprise, Magellan

  • Fujairah, Jurong Island

  • Major trading houses: Trafigura, Vitol, Gunvor, Mercuria

This is the institutionally recognized process.

SECTION 7 — Institutional CTA

📌 Request a Free Document Verification & Deal Structuring Audit

Send the 3 documents:

  1. ICPO

  2. Company KYC

  3. Tank info or contract requirement

➡️ Email: compliance@nnrvtradepartners.com
➡️ Website: www.nnrvtradepartners.com

NNRV will verify:

  • Document authenticity

  • POP validity

  • Seller/buyer legitimacy

  • Compliance risks

  • Required corrections

Mini FAQ (5 Questions)

  1. Can NNRV prepare all documents (SCO, SPA, POP)?
    Yes.

  2. Can NNRV verify tank ownership?
    Yes, directly with terminal.

  3. Do you help new buyers enter petroleum trade?
    Yes, through full compliance onboarding.

  4. What if my counterparty refuses SPA?
    Deal is invalid.

  5. Can this process be used for Jet A1?
    Yes. Identical structure.

Why Choose NNRV Trade Partners?

  • Institutional compliance

  • Real refinery/alocation access

  • Verified tanks & terminals

  • Professional documentation

  • Deal execution expertise

  • Zero tolerance for fraud

  • Global reach (EU, US, Asia, Africa)

  • 24/7 institutional support

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