Why SGS Rejects Your Cargo Even When the Fuel Is Good
DIP Test, Tank Access & Title Problems Explained
Hidden buyer question:
“Why does my inspection keep failing even though the fuel meets specs?”
Introduction — The Most Misunderstood Rejection in Fuel Trading
One of the most frustrating moments for buyers of EN590, Jet A1, or other refined fuels is this:
“SGS rejected the cargo — but the fuel is good.”
In reality, SGS rarely rejects fuel because of chemistry alone.
Most rejections happen because the transaction structure is broken.
SGS does not inspect deals.
SGS inspects authority, access, and legitimacy.
This article explains why inspections fail even when the product meets EN590 or Jet A1 specifications — and why buyers misunderstand the real problem.
1. The Biggest Myth: “Good Fuel = Passed Inspection”
Fuel quality is only one layer of inspection.
Before SGS tests sulfur, density, or flash point, it verifies:
- Who owns the product
- Who controls the tank
- Who authorized SGS
- Who has legal title at inspection time
If any of these fail, no test result matters.
SGS does not argue.
They simply stop.
2. DIP Test Rejections — What Buyers Get Wrong
A DIP test is not a courtesy.
It is a controlled industrial operation.
SGS requires:
- Written authorization from the tank owner
- Proof of product title
- Terminal access clearance
- Correct sequencing in the SPA
Most buyers assume:
- Seller permission is enough
- Broker instructions are valid
- DIP can be done “before payment”
All three assumptions are wrong.
SGS will not enter a tank unless the legal chain is clean.
3. Tank Access — The Silent Deal Killer
Fuel tanks are not public assets.
They belong to:
- Refineries
- Major oil companies
- Licensed storage operators
SGS answers to them — not to buyers or brokers.
Common rejection causes:
- Buyer has no direct relationship with tank owner
- Tank is leased, not owned by seller
- Inspection request conflicts with terminal rules
If the tank operator says “no”:
SGS does not negotiate.
4. Title Transfer Problems (The #1 Real Reason)
SGS inspects products with clear title.
If title has not transferred:
- The buyer has no inspection rights
- The seller may have limited authority
- The tank operator blocks access
This is why:
- “Inspection before payment” often fails
- POP documents are rejected
- SGS reports “unauthorized request”
Fuel quality is irrelevant without title clarity.
5. The DIP vs Q&Q Confusion
Many buyers confuse:
- DIP test (existence & volume check)
- Q&Q inspection (quality & quantity certification)
They are not interchangeable.
Key reality:
- DIP does NOT transfer title
- DIP does NOT confirm ownership
- DIP does NOT guarantee liftability
Using DIP as a substitute for proper SPA sequencing is a fatal error.
6. Unauthorized SGS Requests
SGS receives thousands of inspection requests.
They immediately verify:
- Who issued the request
- Under which contract
- With what authority
If the request comes from:
- A broker
- A buyer without title
- An unrecognized entity
It is rejected automatically.
No explanation is required.
7. Why SGS Rotterdam Is Especially Strict
Rotterdam terminals operate under:
- Extreme compliance pressure
- Sanctions monitoring
- Title chain verification
As a result:
- Incomplete SPAs are flagged
- Ambiguous ownership is blocked
- Non-standard inspection clauses are rejected
What might pass elsewhere often fails in Rotterdam.
8. What a “Clean” Inspection Setup Looks Like
SGS accepts inspection when:
- SPA clearly defines inspection timing
- Title transfer is unambiguous
- Tank owner authorization is documented
- Payment conditions are realistic
In these cases:
- DIP happens smoothly
- Q&Q proceeds without delay
- Cargo lifts on schedule
Same fuel.
Different structure.
FAQ — Inspection Failures Explained
- Does SGS reject good fuel?
No — SGS rejects bad authorization. - Can I inspect before payment?
Only if the SPA and title allow it. - Is DIP proof of product?
No — it proves access, not ownership. - Why no detailed rejection reason?
Because authority was missing. - Can brokers fix inspection issues?
No — only structure can.
Conclusion — The Hard Truth
When SGS rejects your cargo, the fuel is rarely the issue.
The real problems are:
- Broken title chain
- Unauthorized inspection requests
- Unrealistic SPA clauses
- Misunderstanding tank control
SGS does not fail deals.
Bad structure does.
Fix the structure — and inspections suddenly “work”.
In fuel trading, access beats chemistry every time.
