Why 90% of Buyers Fail DIP Test: The Complete Guide to Passing SGS in Rotterdam & Houston (2025) | EN590, Jet A1, TTT, Q&Q, Tank-to-Tank, SPA, ICPO

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Introduction – The Harsh Reality Behind DIP Test Failures

Every week, thousands of “buyers” attempt to perform DIP test inspections in major petroleum hubs like Rotterdam, Houston, Fujairah, Jurong, and Antwerp.
Yet 90% fail before reaching SGS—long before the first sample is even taken.

Why?

Because most buyers:

  • do not understand terminal rules

  • do not prepare banking compliance

  • do not secure a tank in advance

  • do not follow the legitimate seller procedure

  • do not meet refinery or tank farm requirements

  • do not send a real ICPO

  • do not understand the difference between POP vs. DIP vs. Q&Q

For sellers, this results in wasted time.
For mandates, broken chains.
For buyers, a reputation of non-performance.

This article solves the root problem.

You are about to learn:

  • The exact institutional procedure for DIP test success

  • Why buyers fail

  • How real SGS inspectors operate

  • What Rotterdam & Houston terminals really check

  • The compliance requirements that 90% ignore

  • How NNRV Trade Partners prepares buyers to pass

By the end, you will know exactly how to structure your deal from ICPO → SPA → POP → DTA → SGS → MT103 without failure.

SECTION 1 — Understanding the Market Context (Macro + Industry)

1.1 The Real Problem Behind DIP Test Failures

The petroleum market is flooded with buyers who:

  • Want POP before ICPO

  • Refuse to show proof of funds

  • Arrive at terminals with no authorization

  • Expect SGS without DTA

  • Use intermediaries with no mandate

  • Negotiate unrealistic discounts

  • Have no tank or a tank “on standby” that doesn’t exist

Terminals automatically reject such cases.

Rotterdam Terminals (Vopak, Oiltanking, VTTI, Koole) expect:

  • Proper scheduling

  • Valid DTA

  • Buyer tank availability

  • Seller tank ownership proof

  • SPA executed

  • Compliance documents completed

Houston Terminals (Oiltanking, Magellan, Enterprise) expect:

  • Full corporate documentation

  • Inspector entry permits

  • Valid tank numbers

  • SOP alignment

  • Active insurance

  • Real SGS appointment

Most buyers simply do not meet these requirements.

1.2 Why SGS Dip Test Is a Compliance Event, Not a “Quick Inspection”

SGS does not arrive simply because someone asked them.

A Dip Test requires:

  • Verification of buyer identity

  • Verification of seller tank

  • Verification of terminal authority

  • Verification of product existence

  • Confirmation of tank lease

  • Confirmation of purchase intent

  • Agreement of SPA terms

SGS is an official laboratory, not an “on-demand service.”

If any of these steps are missing → SGS will not enter the terminal.

1.3 The 3 Types of DIP Tests

DIP Test Type Used For Notes
TTT Dip Test Tank-to-Tank EN590 Most common in Rotterdam
TTM Dip Test Tank-to-Ship Usually Houston & Fujairah
STS Dip Test Ship-to-Ship (open sea) Complex logistics

Buyers fail because they don’t know which DIP test matches their procedure.

SECTION 2 — Detailed Explanation of DIP Test Process (A–Z)

2.1 What a DIP Test Really Is

A Dip Test is the physical sampling of fuel inside a tank before purchase.
It includes:

  • Volume measurement

  • Density

  • Flashpoint

  • Sulfur level

  • Water content

  • Contamination

  • ASTM analysis

  • Visually confirming product is present

This is paired with Q&Q (Quantity & Quality) delivered by SGS/Intertek/Saybolt.

2.2 Required Documents Before SGS Can Enter the Terminal

Mandatory Documents for SGS Appointment:

  1. SPA (Sale & Purchase Agreement) – signed by both sides

  2. TSR (Tank Storage Receipt)

  3. CPA / ATV (Authorization to Verify with Terminal)

  4. Product Passport

  5. Injection report

  6. DTA (Dip Test Authorization)

  7. Buyer KYC + UBO

  8. Buyer Tank Number (for TTT)

  9. Terminal Gate Pass + Entry Schedule

  10. Inspector Insurance & Safety Clearance

No refinery in the world bypasses these steps.

2.3 POP vs. DTA vs. Q&Q (Confusion of 90% of buyers)

Term Meaning When Issued Notes
POP Proof of Product After ICPO + KYC Partial POP precedes DTA
DTA Dip Test Authorization After SPA Gives SGS legal entry
Q&Q Quantity & Quality After DIP Used for payment

90% of buyers confuse these steps → automatic failure.

2.4 Step-by-Step Dip Test Sequence

1. SPA Signed

Buyer agrees to procedure, price, volume.

2. Seller Issues Partial POP

TSR
Q&Q (72h maximum)
Tank coordinates (partial)
Product passport

3. DTA Issued

Seller authorizes buyer’s inspectors to enter terminal.

4. Buyer Appoints SGS

SGS must confirm terminal entry date.

5. Terminal Gate Pass

Terminal approves inspector access.

6. SGS Performs DIP Test

The real inspection.

7. SGS Releases Final Q&Q

Buyer receives the analysis.

8. Buyer Pays MT103

Upon successful Q&Q.

9. Seller Transfers Title

TSR updated
Commercial invoice issued
Tank-to-Tank transfer conducted

This is the only legitimate sequence recognized worldwide.

SECTION 3 — Professional Analysis: Why Buyers Fail (NNRV Insights)

3.1 Top 10 Reasons Buyers Fail Dip Test

  1. No tank available in Rotterdam

  2. Fake or incomplete ICPO

  3. No RWA or POF

  4. Wrong expectations (POP before compliance)

  5. Incorrect understanding of TTT procedure

  6. No relationship with SGS or no inspector appointment

  7. Failure to follow SPA terms

  8. Brokers blocking communication

  9. Unrealistic price negotiation

  10. Total ignorance of terminal protocols

3.2 Terminal Red Flags That Cause Automatic Rejection

  • Buyers arriving without valid gate pass

  • Inspectors with no insurance

  • Buyer tank not recognized by terminal operator

  • Incorrect tank numbers

  • DTA not filed 48 hours prior

  • Miscommunication between buyer and terminal operator

3.3 Seller-Side Mistakes

  • Fake tank farm documents

  • Old Q&Q reports

  • No terminal authorization

  • Too many brokers in chain

  • Unverifiable storage receipts

3.4 NNRV Institutional Solutions

NNRV ensures:

  • Verified seller tanks

  • Verified terminal documents

  • SGS appointment handled professionally

  • Q&Q compliance

  • Buyer tank verification

  • SPA alignment

  • No shortcuts, no improvised procedures

We operate exactly like institutional traders (Vitol, Trafigura, Mercuria).

SECTION 4 — Official Step-by-Step Process to Pass DIP Test (30-Day Timeline)

DAY 1–3: Buyer Pre-Approval

  1. Buyer submits ICPO + CP + KYC

  2. NNRV verifies buyer in AML database

  3. Seller releases SCO

DAY 4–7: Contract Phase

  1. NCNDA signed

  2. SPA executed

  3. Seller issues partial POP

DAY 8–12: DIP Test Preparation

  1. Seller issues DTA

  2. Buyer provides tank number

  3. Buyer appoints SGS

  4. Terminal schedules gate access

DAY 13–18: Dip Test Execution

  1. SGS enters terminal

  2. Performs DIP Test

  3. Provides on-site preliminary report

DAY 19–20: Final Q&Q

  1. SGS releases full Q&Q certificate

  2. Buyer accepts results

DAY 21–30: Payment + Title Transfer

  1. Buyer issues MT103

  2. Seller confirms receipt

  3. Title transfer

  4. Tank-to-tank transfer

  5. Buyer lifts product

SECTION 5 — Buyer & Seller Questions (20 TOTAL)

10 Buyer Questions

  1. Can I do DIP test without SPA?
    No. Impossible in all terminals.

  2. Can I get full POP before ICPO?
    No. Illegal under compliance.

  3. Why do sellers hide tank numbers?
    Security + anti-fraud.

  4. Do I need my own tank?
    Yes for TTT Rotterdam.

  5. Can SGS come without DTA?
    No. Terminal will reject them.

  6. Why must I show RWA or POF?
    Terminals require capability proof.

  7. Is DIP test risky?
    No. It protects the buyer.

  8. What if Q&Q fails?
    Buyer walks away without payment.

  9. How many intermediaries allowed?
    2–4 maximum, depending on SPA.

  10. Can I use escrow?
    Yes, with Lloyds/HSBC/UBS.

10 Seller Questions

  1. How do I verify buyer seriousness?
    Check RWA or soft POF.

  2. Should I accept beginning POP requests?
    No.

  3. Why must I give DTA?
    Because SGS can’t enter without it.

  4. Can I refuse middlemen?
    Yes. NNRV can structure mandates.

  5. What if buyer tank is invalid?
    Reject ICPO.

  6. Why must Q&Q be recent?
    To avoid contamination disputes.

  7. What if buyer delays payment after DIP test?
    SPA protects seller.

  8. Can I request SBLC instead of MT103?
    Yes, depending on the contract.

  9. Is SPA required before POP?
    SPA or LOI/contractual acceptance is mandatory.

  10. How do I avoid fake buyers?
    Use NNRV compliance filter.

SECTION 6 — Proof & Credibility

This procedure matches the operational rules of:

  • SGS, Saybolt, Intertek

  • Vopak, Oiltanking, VTTI, Koole

  • Houston Fuel Oil Terminal

  • Trafigura, Glencore, Gunvor, Vitol

It is the international standard for EN590 TTT FOB deals.

SECTION 7 — Institutional Call to Action (CTA)

📌 Free DIP Test Preparation Audit (Rotterdam & Houston)

NNRV Trade Partners will:

  • Verify your seller

  • Validate your tank

  • Check your SPA

  • Prepare your SGS access

  • Confirm terminal authorization

  • Guide you from ICPO → MT103 without failure

📩 Send your ICPO + KYC to:
compliance@nnrvtradepartners.com

🌐 Visit:
www.nnrvtradepartners.com

Mini FAQ (5 Questions)

  1. Can you help me find a tank in Rotterdam?
    Yes.

  2. Do you assist with SGS booking?
    Yes through official SGS channels.

  3. Can you verify a seller’s tank in 24 hours?
    Yes with proper CPA/TSR.

  4. Do you handle Jet A1 DIP tests?
    Yes, including ASTM D1655.

  5. Can you work with large buyers (50k–500k MT monthly)?
    Yes.

Why Choose NNRV Trade Partners?

  • Institutional compliance

  • Direct refinery/alocation access

  • Verified terminal partners

  • Zero tolerance for fake deals

  • High performance rate

  • Full confidentiality

  • Experienced in Rotterdam & Houston

  • Deal structuring from A to Z

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