How to Avoid Fuel Procurement Fraud: POP, SGS, Dip Test & Payment Red Flags

The bulk fuel market (especially for EN590 diesel and Jet A1) attracts numerous intermediaries and, unfortunately, fraudulent actors. Industrial buyers must implement strict due diligence to avoid financial loss.

Critical Red Flags

• Advance Fees: Legitimate suppliers do not ask for upfront "registration fees," "export license fees," or "title transfer fees" before providing Proof of Product.
• Refusal of LC: If a supplier refuses to accept a standard Documentary Letter of Credit (MT700) from a top-tier bank, walk away.
• Fake Documents: Always independently verify SGS/Intertek reports and Tank Storage Receipts directly with the issuing company. Do not rely solely on PDFs sent via email.

The Safe Procurement Process

A legitimate transaction typically follows a sequence: NCNDA/IMFPA → ICPO → FCO → SPA → Proof of Product (POP) → Bank Guarantee (LC/SBLC) → Delivery → Dip Test → Payment.