Key takeaways
- Verify the company, the product and the transaction structure separately. A real company can still offer a badly structured deal.
- A Certificate of Analysis is useful, but independent inspection at the load port is what protects you.
- Be very careful with upfront fees, long broker chains and documents that cannot be verified with the issuer.
Buying bulk chemicals, fuels or fertilizers from a new supplier always involves risk. Cargoes are valuable, transactions cross borders and many intermediaries operate in the market. A structured verification process reduces that risk without slowing down good business.
Step 1: Verify the company
- Registration: confirm the company in the official business register of its country, including registration number, address and directors.
- Physical presence: check that the office address, phone numbers and corporate email domain are consistent and real.
- Trading history: ask for references from past buyers, shipping agents or inspection companies, and check them independently.
- Online footprint: a consistent website, professional profiles and a history of activity are good signs, though not proof on their own.
Step 2: Verify the product
Specification
Get a written specification with test methods for every parameter, for example the IMPCA specification for methanol or a detailed nitrogen, biuret and moisture specification for urea. Vague specifications lead to disputes.
Certificate of Analysis (COA)
A COA shows test results for a specific batch or tank. Check that it refers to the right product, date, batch or tank number and test methods. A COA from the producer's laboratory is helpful, but it describes the product at the plant, not necessarily the cargo you will receive.
Safety Data Sheet (SDS / MSDS)
The SDS should follow the GHS 16-section format, match the product and be recent. Your logistics partners and authorities will need it.
Regulatory status
Check whether your market requires registrations or permits, such as REACH for the European Union, import licences for fertilizers or controls on precursor chemicals.
Step 3: Insist on independent inspection
Independent inspection companies such as SGS, Intertek, Bureau Veritas and Cotecna sample and test cargo during loading and measure quantity by draft survey or tank gauging. Their certificates are the industry standard for confirming what was actually loaded.
- Agree who appoints and pays the inspector.
- Define whether load port or discharge port results are final and binding.
- Require sealed retained samples in case of dispute.
Step 4: Check the documents
| Document | What to check |
|---|---|
| Sales contract | Product, specification, quantity tolerance, Incoterm, laycan, payment, inspection, dispute resolution |
| Bill of Lading | Vessel name and IMO number, ports, quantity, "clean on board" notation |
| Certificates of quality and quantity | Issued by the agreed inspector; verify directly with the inspector's office |
| Certificate of Origin | Issuing chamber or authority; matches invoice and B/L |
| Commercial invoice and packing list | Consistent quantities, prices and descriptions |
You can check a vessel's identity and movements using its IMO number on public AIS tracking services, which helps confirm that a nominated vessel exists and is where the seller says it is.
Step 5: Use safe payment terms
- Letter of credit (L/C) payable against compliant documents, ideally confirmed by a bank you trust.
- Documentary collection for established relationships.
- Trial shipment: start with a smaller quantity before committing to a long-term contract.
Common red flags
- Requests for upfront "registration", "allocation" or "document" fees before any contract.
- Prices far below market benchmarks with no clear explanation.
- Long chains of intermediaries where nobody can show a direct link to the product.
- Pressure to sign quickly or to skip independent inspection.
- Documents that cannot be verified with the issuing bank, inspector or authority.
- Free email addresses and contact details that change during the negotiation.
How Aban Chemical works
At Aban Chemical, specification review, independent inspection and clear documentation are part of every transaction. We coordinate supply of methanol, urea, sulfur, ammonia, LPG and naphtha, with structured commercial terms. Learn more about us or request a quote.
