Proof of Product (POP) Documents in Petroleum Trading - Complete Checklist

Sellers talk about providing "full POP" or "Proof of Product documents." What exactly counts as POP, and what does each document prove?

What is Proof of Product (POP)?

POP = Documentation proving that petroleum product exists, meets specifications, and is available for sale.

Think of it as: Evidence that the fuel is real, not just promises.

Good sellers provide POP before asking for payment or banking instruments.

Standard POP Documents List

1. SGS Report (or Similar Inspection Report)

What it is: Independent laboratory analysis of product quality and quantity

What it proves:
✅ Product was physically present at time of inspection
✅ Quality specifications (sulfur content, density, etc.)
✅ Quantity measured
✅ Tank location

What to check:

• Report date (should be recent, <30 days ideally)
• Inspector company (SGS, Intertek, Bureau Veritas - recognized names)
• Report number (verify with inspection company)
• Specific details (not generic template)

Red flags:

• Very old report (6+ months)
• Unknown inspection company
• Can't verify report number
• Generic/template format

2. Tank Storage Receipt (TSR)

What it is: Receipt from storage terminal confirming product in their tanks

What it proves:
✅ Product stored at specific terminal
✅ Tank number and location
✅ Product type and quantity
✅ Storage date

What to check:

• Terminal name and contact info
• Tank number(s) with GPS coordinates
• Barcode or reference number
• Recent date
• Terminal letterhead/seal

Red flags:

• No terminal contact info
• Can't verify with terminal directly
• Vague location
• Very old date

3. Authorization to Verify (ATV)

What it is: Seller's permission for buyer to verify/inspect product

What it proves:
✅ Seller permits verification
✅ Access to tank/terminal for inspection
✅ Seller is confident product exists

What to check:

• Buyer name included
• Specific tank/location
• Valid dates for verification
• Seller signature

Red flags:

• Seller refuses to provide ATV
• Vague or limited access
• Very short verification window

4. Authorization to Sell (ATS) or Authorization to Sell and Collect (ATSC)

What it is: Document showing seller has authority to sell this product

What it proves:
✅ Seller controls the product
✅ Seller has legal right to sell
✅ Product isn't owned by someone else

What to check:

• Who issued it (terminal, refinery, or product owner)
• Seller name matches
• Specific to this product/tank
• Recent and valid

Red flags:

• Can't verify with issuer
• Generic authorization
• Seller evasive about ATS

5. Product Passport / Analytical Report

What it is: Detailed specification sheet for the product

What it proves:
✅ Product specifications
✅ Grade and type
✅ Technical parameters

What to check:

• Matches your requirements (EN590 10PPM, etc.)
• Specific values, not ranges
• Recent analysis date

Red flags:

• Vague specifications
• Doesn't match claimed product
• Very old analysis

6. Certificate of Origin

What it is: Official document stating where product was produced/refined

What it proves:
✅ Country/region of origin
✅ Refinery or source

What to check:

• Issued by chamber of commerce or government agency
• Matches claimed origin
• Recent issuance

Red flags:

• Can't verify issuing authority
• Doesn't match seller's claims
• Suspicious format

7. Commitment to Supply (CTS)

What it is: Letter stating seller commits to supply the product

What it proves:
✅ Seller's formal commitment
✅ Quantity and timeline

What to check:

• Specific quantities
• Timeline stated
• Seller signature
• Matches your agreement

8. Injection Report (for TTT transactions)

What it is: Report showing product injection/transfer capability

What it proves:
✅ Terminal can facilitate tank-to-tank transfer
✅ Injection logistics arranged

What to check:

• Terminal confirmation
• Injection rate and timeline
• Logistics details

Additional Documents (Depending on Transaction)

For vessel transactions:

• Bill of Lading (after loading)
• Vessel Q88 (vessel specifications)
• Charter Party Agreement

For international:

• Export license
• Customs documentation
• Insurance certificate

POP Verification Checklist

Before accepting POP as valid:

• All documents provided (not just 1-2)
• Documents are recent (within 30-60 days)
• SGS report verified with inspection company
• TSR verified with terminal directly
• All documents reference same product/tank
• Quantities match across documents
• No obvious fake or altered documents
• Seller permits independent verification
• You can contact terminals/inspectors directly

All boxes checked? Good POP package.

Missing items? Request them before proceeding.

What POP Proves vs Doesn't Prove

Understanding what POP actually tells you prevents false confidence.

POP proves the product physically exists (or existed at the document date), confirms product location and specifications, demonstrates the product was tested and verified by third parties, and shows the seller has some level of access to the product. That's valuable information.

But POP doesn't prove the seller is legitimate or trustworthy, doesn't confirm the price is fair, doesn't guarantee the transaction will succeed, doesn't mean you should pay without further verification, and definitely doesn't mean the seller won't scam you. Documents can be real while the seller is still problematic.

POP is necessary but not sufficient. It's one part of due diligence, not the whole thing. Good POP means you can proceed to the next verification step – not that you should send money.

When Seller Should Provide POP

Timing matters. The correct sequence protects you from scams and wasted resources.

Industry standard is that sellers provide POP after you've reached initial agreement on product type and basic terms, before you provide banking details or contact information, before any payment or SBLC/LC is discussed, and before you commit significant resources like lawyer fees or travel costs for inspection.

Red flag sequences that indicate scams: seller demands payment before showing any POP, seller asks for SBLC or LC before providing documentation, or seller refuses to provide POP until you "prove" you're serious with deposits or fees.

Legitimate sellers provide POP early in the process specifically to prove they have product. They want you to verify because verification builds your confidence and moves the deal forward. Resistance to providing POP early signals problems.

How to Request POP

Be direct and professional in your request. Don't apologize for asking – it's standard industry practice.

Use this template: "Thank you for the offer. Before we proceed, please provide complete Proof of Product documentation including: 1) Recent SGS or inspection report (less than 30 days), 2) Tank Storage Receipt with terminal contact info, 3) Authorization to Verify, 4) Authorization to Sell, 5) Product Passport, and 6) Certificate of Origin. We'll verify these documents directly with the terminal and inspection company before proceeding to contract stage."

Good sellers will comply willingly within 24-48 hours. They understand this is standard procedure and have documents ready.

Sellers who refuse, make excuses ("we'll provide after SBLC," "these are confidential until you commit"), or become defensive are the wrong suppliers. Move on immediately.

Red Flags in POP

Watch for these warning signs that indicate problematic documentation or sellers.

Partial POP with only 1-2 documents when you requested the full package suggests the seller doesn't have complete access or the documents don't exist. Old documents all dated 6+ months ago mean the product might be long gone even if documents were once legitimate. Unverifiable documents where you can't contact the terminal or can't verify the SGS report number with the inspection company are essentially worthless. Generic templates that look computer-generated with no specific details signal fabricated documents.

Seller defensiveness when you want to verify – anger, hostility, or pressure to accept documents without verification – reveals they know the documents won't hold up to scrutiny. Obviously fake or altered documents with wrong fonts, misaligned elements, or inconsistent formatting show amateur forgery. Inconsistencies where quantities or details don't match across documents (TSR says 10,000 MT but SGS report shows 8,500 MT) indicate either altered documents or sloppy fraud.

Bottom Line

Proof of Product is your first line of defense against petroleum scams – a package of documents that proves the product actually exists before you commit money or resources.

Standard complete POP includes seven core documents: SGS or inspection report, Tank Storage Receipt, Authorization to Verify, Authorization to Sell, Product Passport, Certificate of Origin, and Commitment to Supply. Anything less than this is incomplete POP.

Verify everything independently. Contact the SGS or inspection company to confirm the report number is genuine. Contact the storage terminal directly using their official website contact info to verify the TSR. Check that quantities, specifications, and details are consistent across all documents. Confirm the seller's name matches the product controller listed by the terminal.

Timing is critical – sellers should provide POP before you provide banking details or payment information, and definitely before any SBLC, LC, or wire transfers. If they're asking for money before showing POP, walk away.

Remember what POP proves and what it doesn't. POP proves product exists (or existed when documents were created). It doesn't prove the seller is trustworthy, the transaction will succeed, or that you should pay. Never pay based on POP alone. Use POP to proceed to the next verification stage – conducting dip tests, arranging independent inspections, and completing full due diligence before committing funds.

Take Action

Work with suppliers who provide complete, verifiable POP documents upfront. Submit an RFQ on CommoditiesHub to connect with professional sellers who welcome verification.