Why 90% of Buyers Fail the DIP Test

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Why 90% of Buyers Fail the DIP Test

The complete 2025 guide to passing SGS, Intertek & Bureau Veritas inspections for EN590, Jet A-1, TTT, and Tank-to-Tank deliveries in Rotterdam & Houston.


Introduction — The DIP Test: Where Deals Die

Every day, millions of barrels of EN590 diesel, Jet A-1 aviation fuel, and refined petroleum products are traded globally. Yet despite signed contracts, issued MTAs, and confident intermediaries, up to 90% of fuel buyers fail at the DIP Test stage.

The DIP Test is not just a formality — it is the ultimate gatekeeper between a paper deal and real fuel delivery. Understanding why buyers fail, and how to pass consistently, is the difference between losing deposits and closing high-value transactions.


1. What Is the DIP Test?

DIP stands for “Dip and Sample”. It is the physical inspection process conducted by independent inspectors such as:

  • SGS
  • Intertek
  • Bureau Veritas

During a DIP Test, inspectors:

  • Physically verify fuel quantity in the storage tank
  • Confirm product presence (not paper allocation)
  • Take samples for laboratory analysis
  • Validate tank ownership and control

No DIP Test, no fuel. No pass, no transaction.


2. The Brutal Truth: Why 90% of Buyers Fail

2.1 No Physical Tank Access

Most failed buyers never had real tank access. They relied on:

  • Recycled storage receipts
  • Photos of tanks from past deals
  • Non-transferable tank confirmations

Inspectors require current, controlled, verifiable access. Anything less is an instant failure.

2.2 Wrong Delivery Structure (TTT Confusion)

Many buyers misunderstand Tank-to-Tank (TTT) delivery. TTT means:

  • Fuel is already in a terminal tank
  • Ownership transfers inside the terminal
  • Buyer must be able to nominate inspectors

Buyers expecting “TTT without inspection” fail immediately.

2.3 Fake or Invalid Product Allocation

A valid allocation must be:

  • Issued by the terminal operator
  • Current and exclusive
  • Inspector-verifiable

Most buyers present allocations issued by intermediaries — inspectors reject them instantly.

2.4 Misunderstanding SGS / Intertek Authority

Inspectors do not negotiate. They do not “accept explanations.” They follow strict protocols. Buyers who attempt shortcuts are marked as non-compliant.


3. Why Serious Sellers Let Buyers Fail

Professional sellers expect buyers to fail. Why?

  • To filter unserious buyers
  • To protect real inventory
  • To avoid terminal disruptions

Passing the DIP Test proves you are operational, funded, and compliant — not just interested.


4. The Only Way to Pass the DIP Test (2025 Reality)

4.1 Real Product, Real Tank, Real Control

You must ensure:

  • Fuel is physically present
  • Tank is under seller control
  • Terminal recognizes the seller

4.2 Correct Inspector Nomination

Inspectors must be:

  • Buyer-nominated
  • Terminal-approved
  • Given unrestricted access

4.3 Matching Documentation

All documents must align:

  • Product specs (EN590, Jet A-1, etc.)
  • Tank numbers
  • Volumes
  • Dates

One mismatch = failed inspection.


5. Product-Specific DIP Pitfalls

EN590 ULSD 10 ppm

  • Density inconsistencies
  • Sulfur ppm discrepancies
  • Incorrect additive disclosure

Jet A-1

  • Water contamination
  • Flash point deviation
  • Non-compliant freeze point

TTT Transactions

  • Non-transferable tank receipts
  • Seller without terminal authority
  • Buyer blocked from inspection access

6. Rotterdam vs Houston: What Buyers Get Wrong

Rotterdam

  • Highly regulated terminal access
  • Zero tolerance for document gaps
  • Fast rejection of intermediaries

Houston

  • Stricter safety protocols
  • Higher inspection scrutiny
  • Mandatory terminal pre-approvals

Assuming “same process everywhere” is a guaranteed failure.


7. The Psychology of Failed Buyers

Most failed buyers:

  • Overestimate their readiness
  • Underestimate inspection rigor
  • Trust unverifiable intermediaries

Passing the DIP Test is operational discipline — not optimism.


FAQ — DIP Test & Fuel Inspections

  1. Is the DIP Test mandatory?
    Yes. No reputable terminal releases fuel without it.
  2. Can DIP be skipped?
    No. Claims of “no DIP required” indicate fraud.
  3. Who pays for the inspection?
    Typically the buyer, as proof of seriousness.
  4. How long does a DIP Test take?
    Usually 24–72 hours including lab results.
  5. What is the main reason for failure?
    Lack of real tank control.

8. How Top 10% Buyers Always Pass

  • They work only with verified tank holders
  • They prepare inspection logistics in advance
  • They understand terminal rules by location
  • They never rely on “paper fuel”

Conclusion — The DIP Test Is Not the Problem

The DIP Test does not kill deals. Unprepared buyers do.

In 2025, passing SGS, Intertek, or Bureau Veritas inspections is not optional — it is the minimum requirement to play in the real fuel market. Buyers who understand this close deals. Those who don’t remain stuck chasing documents that never convert.

The market rewards preparation. The DIP Test simply reveals the truth.

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