FAQs
BZ GROUP - KYC
What is BZ GROUP?
“BZ GROUP” or “BZ GROUP FZCO” is a limited liability company
The Company, where was it incorporated?
The Company is Incorporated in the International Free Zone Authority (IFZA), in Dubai Silicon Oasis, Emirates of Dubai, United Arab Emirates (UAE).
Under which jurisdiction and laws does BZ GROUP FZCO operate?
The Company operates under the Jurisdiction of International Free Zone Authority (IFZA); and the Company operates under Emirates of Dubai Laws and related rules and regulations.
What is the registered address & business mailing address of the Company?
BZ Group FZCO, IFZA Business Park, DDP, Premises No. 23694-001, Makani No. A2 3645879076, Dubai Silicon Oasis, Dubai, U.A.E..
What are the main business communication channels?
For our latest business communication channels double click here.
Is there a document which indicates the business the company can undertake?
In IFZA Dubai, UAE where the company is incorporated and registered the regulatory authority (IFZA) issues a Trade Licence which indicates the main activities of the company.
The main activities detailed in the trade licence are:
(1) General Trading
(2) Commercial Brokerage and
(3) Management Consultancies.
Can the Company share the documentation including trade licence copy?
Yes, we can share the information with our potential Corporate partners, suppliers and customers on a reciprocal basis. We normally do this after signing an NDA and before signing any General & Standard Terms & Conditions documentation for conducting business transactions.
Is the Company authorised to trade in petroleum products?
The Company’s Trade licence includes three main categories of activities one of which is “General Trading” which includes all trading activities including “Petroleum Products”.
Can you share a Corporate Profile for the Company?
Yes we do have for your review a corporate profile document for the company.
LPG - LIQUEFIED PETROLEUM GAS
What is LPG?
LPG stands for “Liquefied Petroleum Gas” and the term is used to describe two prominent members of a family of light hydrocarbons called “Natural Gas Liquids” (NGLs): propane (C3H8) and butane (C4H10), or a mix of the two. Propane and butane are chemically quite similar but the small differences in their properties mean that they are particularly suited to specific uses. Often, propane and butane will be mixed to get the best energy yields and properties. Liquefied Petroleum Gas (LPG) is a portable, clean and efficient energy source which is readily available to consumers around the world. LPG is primarily obtained from natural gas and oil production but is also produced increasingly from renewable sources; its unique properties make it a versatile energy source which can be used in more than 1,000 different applications.
In its liquid form, LPG looks like water. Yet, because of its unique properties, one litre of liquid LPG expands to 270 litres of gaseous energy allowing a lot of energy to be transported in a compact container.
LPG is colourless and odourless and a strong “stenching” agent is added so that even a very small leak can be easily detected. At a normal temperature, LPG is a gas. When subjected to modest pressure or cooling, it transforms into a liquid. As a liquid, it is easy to transport and store. Once it has been cooled or pressurised, LPG is usually stored in containers made of either steel or aluminium.
The term “liquefied gas” may seem a contradiction in terms since all things in nature are either a liquid or a solid or a gas. Yet, liquidity is the unique character of LPG that makes it such a popular and widely used fuel. At normal temperature and pressure, LPG is gaseous. It changes to a liquid when subjected to modest pressure or cooling. In liquid form, the tank pressure is about twice the pressure in a normal truck tyre, which means it is very safe when properly handled.
For the purpose of the trading transactions and contract documentation “LPG” shall mean Liquified Petroleum Gas, a composite mixture of mainly & substantially Propane liquified gases & Butane liquified gases along with some other gases & impurities within tolerance limits within the range specified with the Specifications.
For more answers to your questions on LPG ?
Visit the websites for:
World LPG Association WLPGA
Wikipedia on LPG Wikipedia
Wikipedia on LPG
Energypedia
Search www.google.com
What are the uses or applications for LPG?
Hundreds of millions of people currently use LPG and depend on it for thousands of applications, in commercial business, industry, transportation, farming, power generation, cooking, heating and for recreational purposes.
LPG commonly is used as fuel for gas barbecue grills and gas cooktops and ovens, for gas fireplaces, and in portable heaters. In Dubai for example LPG is the “Cooking gas” in the majority of Homes both i.e. in villas and High Rise apartment buildings.
In Europe, LPG water heaters are common. It is also used as an engine fuel and for backup generators. Unlike diesel, LPG can be stored nearly indefinitely without degradation.
In developing Countries, like Pakistan, where there is no piped natural gas, LPG is mainly “Poor man’s fuel” mainly used for heating and cooking for domestic and residential use.
Where there availability is piped natural gas, LPG is an “alternative fuel” where piped natural gas is not available in quantities to meet demand for residential, autogas, commercial & industrial applications.
What are the Industrial Uses of LPG ?
LPG has several industrial and commercial applications. Most industries use LPG gas because it is clean, safe, and efficient. It has a higher energy content than most of the other fuels. Here are the few industrial uses of LPG gas we’ll look at today. The four primary industrial uses of LPG.
1. Galvanising
2. Metal Melting
3. Heat Treatment
4. Steam Generation
5. Aerosol Propellent
6. Refrigeration
PRODUCT SPECIFICATION & COUNTRY OF ORIGIN
What is the Specification of the Product/ LPG that BZ GROUP Shall Export to Pakistan ?
LPG stands for “Liquefied Petroleum Gas” and the term is used to describe two prominent members of a family of light hydrocarbons called “Natural Gas Liquids” (NGLs): propane (C3H8) and butane (C4H10), or a mix of the two.
Propane and butane are chemically quite similar but the small differences in their properties mean that they are particularly suited to specific uses. Often, propane and butane will be mixed to get the best energy yields and properties.
Liquefied Petroleum Gas (LPG) is a portable, clean and effcient energy source which is readily available to consumers around the world. LPG is primarily obtained from natural gas and oil production but is also produced increasingly from renewable sources; its unique properties make it a versatile energy source which can be used in more than 1,000 different applications.
In its liquid form, LPG looks like water. Yet, because of its unique properties, one litre of liquid LPG expands to 270 litres of gaseous energy allowing a lot of energy to be transported in a compact container.
LPG is colourless and odourless and a strong “stenching” agent is added so that even a very small leak can be easily detected. At a normal temperature, LPG is a gas. When subjected to modest pressure or cooling, it transforms into a liquid. As a liquid, it is easy to transport and store.
Once it has been cooled or pressurised, LPG is usually stored in containers made of either steel or aluminium.
The term “liquefied gas” may seem a contradiction in terms since all things in nature are either a liquid or a solid or a gas. Yet, liquidity is the unique character of LPG that makes it such a popular and widely used fuel. At normal temperature and pressure, LPG is gaseous. It changes to a liquid when subjected to modest pressure or cooling. In liquid form, the tank pressure is about twice the pressure in a normal truck tyre, which means it is very safe when properly handled.
For the purpose of the trading transactions and contract documentation
“LPG” shall mean Liquified Petroleum Gas, a composite mixture of mainly & substantially Propane liquified gases & Butane liquified gases along with some other gases & impurities within tolerance limits within the range specified with the Specifications.
Can you over LPG with Other Specifications?
Yes if you provide us the Product/ LPG specifications we can source the Product Globally for you. The information that we shall require:
(1) Propane: Butane Ratio/Mix;
(2) Properties of Butane and Propane you require i.e.
(3) Unit,
(4) Value (Test Results) and
(5) Test Method.
What shall be the Country of Origin of the Product/ LPG?
The Country of Origin of the Product (LPG) shall most likely be SAUDI ARABIA, OMAN, UAE, QATAR, KUWAIT or IRAQ or TURKIYA i.e. any of the Arabian Persian Gulf Countries with loading Ports in the Persian Gulf and Arabian Sea.
What Evidence shall be provided for the Country of Origin?
The Exporter, BZ GROUP FZCO shall provide the Country of Origin Certificate issued by the relevant Chamber of Commerce for the City, Country of Origin.
LPG CONSIGNMENT
What shall be the size of the consignment , for Karachi , Pakistan , on a single Gas Carrier/ Gas Tanker Ship?
1. 10,000 MT is the mex. size of the LPG Cargo given the allowed mex. imumlimitations on draught for the ship to ten (10) metres.
2. Historically LPG cargos have ranged between around 2,000 MT to 9,500 MT.
What is the minimum quantity we can order under a single Bill of Loading?
The two discharge terminals at Port Qasim, Karachi normally based on past practice require a minimum size of consignments under single Bill of Lading of 1,000 MT.
Can orders for LPG below 1000 MT be accommodated?
Yes we try our best to facilitate, up to a maximum of around five (5), for a single bill of lading, totalling up to or above 1,000 MT of LPG. The multiple importers shall have to nominate one from among them as a “Authorised Representative” for the purpose of coordination and contracts via a JV/ consortium agreement among themselves or a Specific Purpose Power of Attorney allows one (1) from among the five (5) to the sign agreement with BZ Group for Import of LPG. More details available in the Template for “Agreement on General & Standard Terms & Conditions of Conduction Business”.
LPG TRANSPORTATIONS
What does the delivery / translation / Pricing term CFR or C&F Mean?
The Terms CFR or C&F is an abbreviation for “Cost & Freight”. This is a standardised shipping terminology, an INCOTERM that means:
Buyer’s Responsibilities Cost – Payments borne by the buyer include:
● Insurance charges, since the whole coverage factor rests with him, and the risk of goods will be carried by him’
● Import customs proceedings, including payment for all duties and taxes, discharge terminal jetty ship handling and LPG storage storage charges \ at the designated port,
● Inland transit charges, for transportation from the designated port to the ultimate destination.
Freight The buyer has few activities involved in this process. He has to unload the goods at the dock once delivered by the seller and load them for inland transit till the ultimate place of destination.
Risk Transfer
The risk of goods is moved to the buyer as soon as the goods are loaded onboard by the seller at the first port. Also, the insurance risk stays with the buyer since the initial stage of the trade process. If the buyer fails to guide the seller in reference to the delivery port, the loss will be the buyer’s responsibility.
Insurance
As discussed above, the buyer pays for insurance in CFR. He’ll be liable for the goods right from the place of origin. He could perhaps take the seller’s assistance in the analysis process, but if the trade doesn’t go as planned, the seller will not be held responsible for any damage coverage.
Duty and customs clearance CFR includes import customs duty, which is borne by the buyer. Once the goods are dropped by the seller at the designated port, the unloading of goods rests with the buyer. He’ll be accountable for all the import duties and taxes at the dock port.
Likewise, all the local charges and depot charges will be borne by him.
Which Incoterms are ideal for importers in Pakistan for Sea freight/ LPG gas tanker ships?
Out of the 11 Incoterms 5 are applicable for trade via sea routes i.e. EXW, FOB, CFR, CIF, & DDP. The EXW and FOB sales terms are not preferred by importers in Pakistan as they prefer the cargo is available in Pakistan at the discharge port at the time of payment for the Cargo.
The CIF and DDP sales terms are not allowed under Pakistan Law, as Pakistan requires mandatory Insurance for the cargo to be undertaken by a Pakistan based Insurance Company. Thus CFR “Cost and freight” is the only viable option.
What are Incoterms® rules?
The Incoterms® rules are the world’s essential terms of trade for the sale of goods. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms® rules are there to guide you. The Incoterms® rules provide specific guidance to individuals participating in the import and export of global trade on a daily basis. There are 11 INCOTERMS one of which is CFR. The Incoterms mainly clarify three main issues in an international trade transaction:
(1) Seller’s Obligations,
(2) Buyer’s Obligations, and
(3) The Point of “Transfer of Risk” in respect of the cargo.
At which “Port” & at Which “Terminal of the Port” , in Karachi Pakistan , the LPG shall be discharged by the LPG Tanker?
(1) Port: MUHAMMAD BIN QASIM; (2) Terminal at the Port: (EVTL) Engro Vopak Terminal Limited or/and SSGC LPG (Private) Limited LPG Terminal.
Can BZ Group facilitate the transportation of LPG?
We recommended prior and early arrangements for inland transportation of LPG be made. Any delay in taking delivery at the port is the Buyer’s responsibility. Yes, we can introduce the Buyer to LPG Transportation companies because of our prior relationships in the LPG sector in Pakistan; however, you as a Buyer are not obligated to use our transportation option.
Can BZ Group facilitate the inland transportation of LPG within Pakistan?
We recommended prior and early arrangements for inland transportation of LPG be made. Any delay in taking delivery at the port is the Buyer’s responsibility. Yes, we can introduce the Buyer to LPG Transportation companies because of our prior relationships in the LPG sector in Pakistan; however, you as a Buyer are not obligated to use our transportation option.
The maximum time extended for lifting of LPG from the Gas Terminal by the participant/Buyers?
Depending on the busy or slack season, the both Terminal(s) at Port Qasim, based on past practice, allow a maximum period of 7 to 14 days for lifting the Consignment. If the cargo is not lifted within the ”allowed free period” the additional charges may apply if required under the terminal services agreement between the Terminal & Buyer. The arrangement and contract for terminal services at the discharge port is the responsibility of the Buyer and not the Seller in a CFR Sale. However, we can fully assist in negotiating and finalising a Terminal Services Agreement.
PRODUCT SPECIFICATIONS & COUNTRY OF ORIGIN
What is the Specification of the Product/ LPG that BZ GROUP Shall Arrange Export?
LPG stands for “Liquefied Petroleum Gas” and the term is used to describe two prominent members of a family of light hydrocarbons called “Natural Gas Liquids” (NGLs): propane (C3H8) and butane (C4H10), or a mix of the two.
Propane and butane are chemically quite similar but the small differences in their properties mean that they are particularly suited to specific uses. Often, propane and butane will be mixed to get the best energy yields and properties.
Liquefied Petroleum Gas (LPG) is a portable, clean and efficient energy source which is readily available to consumers around the world. LPG is primarily obtained from natural gas and oil production but is also produced increasingly from renewable sources; its unique properties make it a versatile energy source which can be used in more than 1,000 different applications.
In its liquid form, LPG looks like water. Yet, because of its unique properties, one litre of urless and a strong “stenching” agent is added so that even a very small leak can be easily detected. At a normal temperature, LPG is a gas. When subjected to modest pressure or cooling, it transforms into a liquid. As a liquid, it is easy to transport and store.
Once it has been cooled or pressurised, LPG is usually stored in containers made of either steel or aluminium.
The term “liquefied gas” may seem a contradiction in terms since all things in nature are either a liquid or a solid or a gas. Yet, liquidity is the unique character of LPG that makes it such a popular and widely used fuel. At normal temperature and pressure, LPG is gaseous. It changes to a liquid when subjected to modest pressure or cooling. In liquid form, the tank pressure is about twice the pressure in a normal truck tyre, which means it is very safe when properly handled.
For the purpose of the trading transactions and contract documentation “LPG” shall mean Liquified Petroleum Gas, a composite mixture of mainly & substantially Propane liquified gases & Butane liquified gases along with some other gases & impurities within tolerance limits within the range specified with the Specifications.
Can you offer LPG with Other Specifications?
Yes if you provide us the Product/ LPG specifications we can source the Product Globally for you. The information that we shall require: (1) Propane: Butane Ratio/Mix; (2) Properties of Butane and Propane you require i.e. (3) Unit, (4) Value (Test Results) and (5) Test Method.
What shall be the Country of Origin of the Product/ LPG?
The Country of Origin of the Product (LPG) shall most likely be SAUDI ARABIA, OMAN, UAE, QATAR, KUWAIT or IRAQ or TURKIYA i.e. any of the Arabian Persian Gulf Countries with loading Ports in the Persian Gulf and the Arabian Sea.
What Evidence shall be provided for the Country of Origin?
The Exporter, (where applicable BZ GROUP FZCO) shall provide the Country of Origin Certificate issued by the relevant Chamber of Commerce for the City, Country of Origin.
ORDER QUANTITY
What shall be the size of the consignment on a single Gas Carrier/ Gas Tanker Ship?
At Karachi, Pakistan at SSGC terminal at Port Qasim – 15,000 DWT is the design limitation; partially around 10,000 MT is the maximum size of the LPG Cargo due to maximum limitations on vessel draft of ten (10) metres. Historically LPG cargos have ranged between around 2,000 MT to 9,500 MT.
Similarly, there are limitations on the vessels that can unload at a given terminal/ port. The Seller and Buyer should first check these limitations.
What is the minimum quantity we can order under a single Bill of Lading?
The two discharge terminals at Port Qasim normally based on past practice require a minimum size of consignments under a single Bill of Lading of 1,000 MT.
Can orders for LPG below 1000 MT be accommodated?
Yes, we try our best to facilitate, up to a maximum of around five (5), for a single bill of lading, totalling up to or above 1,000 MT of LPG. The multiple importers shall have to nominate one from among them as an “Authorised Representative” for the purpose of coordination and contracts via a JV/ consortium agreement among themselves or a Specific Purpose Power of Attorney allows one (1) from among the five (5) to the signed agreement with BZ Group for Import of LPG. More details are available in the Template for “Agreement on General & Standard Terms & Conditions of Conduction Business”.
INCOTERMS - SALE, PRICING, DELIVERY & TRANSPORTATION
What are Incoterms® rules?
INCOTERMS stands for International Commercial Terms for the use of Buyers and Sellers of goods. These terms are established by the International Chamber of Commerce (ICC). The value of the Incoterms is universally recognised.
The Incoterms® rules are the world’s essential terms of trade for the sale of goods. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms® rules are there to guide you. The Incoterms® rules provide specific guidance to individuals participating in the export and import of global trade on a daily basis.
Currently, there are 11 Incoterms®; FOB, CFR & CIF are three (3) of the oldest used Incoterms®. The Incoterms were first published in 1930, have recently been updated every five (5) years, the last update was in 2020 and is known as Incoterms® 2020.
The Incoterms® mainly clarify three main issues in an international trade transaction: (1) the Seller’s Obligations, (2) the Buyer’s Obligations, and (3) The Point of “Transfer of Risk” in respect of the cargo. For more details please double click here.
Which Incoterms are ideal for importers in Pakistan via Sea routes?
Out of the 11 Incoterms, 5 are applicable for trade via sea routes i.e. EXW, FOB, CFR, CIF, & DDP. The CIF and DDP sales terms are not allowed under Pakistan Law, as Pakistan requires mandatory Insurance for the cargo to be undertaken by a Pakistan-based Insurance Company.
The EXW & FOB sales terms are not preferred by importers as they prefer the cargo has reached in the Importer Country at the discharge port at the time of payment for the Cargo. The FOB “Freight on Board” can be considered if a vessel can be chartered by the importer. Practically CFR “Cost and freight” is the only viable option.
What does the INCOTERM CFR or C&F Mean?
The Term CFR or C&F is an abbreviation for “Cost & Freight”. This is a standardised shipping terminology, an INCOTERM that means:
Buyer’s Responsibilities
Obligations – Payments borne by the buyer include:
Insurance charges, since the whole coverage factor, rests with him, and the risk of goods will be carried by him’
Import customs proceedings, including payment for all duties and taxes, discharge terminal jetty ship handling and LPG storage charges \ at the designated port,
Inland transit charges, for transportation from the designated port to the ultimate destination.
Freight
The buyer has few activities involved in this process. He has to unload the goods at the dock once delivered by the seller and load them for inland transit till the ultimate place of destination.
Risk Transfer
The risk of goods is moved to the buyer as soon as the goods are loaded onboard by the seller at the first port. Also, the insurance risk stays with the buyer from the initial stage of the trade process. If the buyer fails to guide the seller in reference to the delivery port, the loss will be the buyer’s responsibility.
Insurance
As discussed above, the buyer pays for insurance in CFR. Buyer will be liable for the goods right from the place of origin. He could perhaps take the seller’s assistance in the analysis process, but if the trade doesn’t go as planned, the seller will not be held responsible for any damage coverage.
Duty and customs clearance
CFR includes import customs duty, which is borne by the buyer. Once the goods are dropped by the seller at the designated port, the unloading of goods rests with the buyer. He’ll be accountable for all the import duties and taxes at the dock port. Likewise, all the local charges and depot charges will be borne by him.
In Pakistan, at which “Port” & at Which “Terminal of the Port” the LPG shall be discharged by the LPG Tanker?
Port: MUHAMMAD BIN QASIM;
Terminal at the Port: (EVTL) Engro Vopak Terminal Limited or/and SSGC LPG (Private) Limited LPG Terminal.
Can BZ Group facilitate the transportation of LPG?
Yes, We can try and assist with chartering of vessels on voyage and time charter. For more details please double click here.
Yes, we can introduce the Buyer to LPG Transportation companies because of our prior relationships in the LPG sector in Pakistan; however, you as a Buyer are not obligated to use our transportation option.
We recommended making prior and early arrangements for inland transportation of LPG in Pakistan or any other country. Any delay in taking delivery at the port is the Buyer’s responsibility.
DISCHARGE PORT & TERMINAL
In Pakistan, at which “Port” & at Which “Terminal of the Port” the LPG shall be discharged by the LPG tanker?
Port: MUHAMMAD BIN QASIM;
Terminal at the Port: (EVTL) Engro Vopak Terminal Limited or/and SSGC LPG (Private) Limited LPG Terminal.
Can BZ Group facilitate the transportation of LPG via sea route?
Yes, we can try and assist with chartering of vessels on voyage and time charter. For more details please double click here.
INLAND TRANSPORTATION
Can BZ Group facilitate the inland transportation of LPG within Pakistan?
Yes, we can introduce the Buyer to LPG Transportation companies because of our prior relationships in the LPG sector in Pakistan; however, you as a Buyer are not obligated to use our transportation option.
We recommended prior and early arrangements for inland transportation of LPG be made. Any delay in taking delivery at the port is the Buyer’s responsibility. Yes, we can introduce the Buyer to LPG Transportation companies because of our prior relationships in the LPG sector in Pakistan; however, you as a Buyer are not obligated to use our transportation option.
The maximum time extended for the lifting of LPG from the unloading terminal by the Buyer(s)?
Depending on the busy or slack season, both Terminal(s) at Port Qasim, based on past practice, allow a maximum period of 7 to 14 days for lifting the Consignment. If the cargo is not lifted within the ”allowed free period” the additional charges may apply if required under the terminal services agreement between the Terminal & Buyer. The arrangement and contract for terminal services at the discharge port is the responsibility of the Buyer and not the Seller in a CFR Sale. However, we can fully assist in negotiating and finalising a Terminal Services Agreement.