Jan 27, 2020 - 09:28 PM
Proof of product (PoP) is an essential document set in petroleum trading which is documentary evidence that the product exists.
The PoP is crucial from the buyer’s perspective but the important thing about proof of product to the buyer is that it should be independently verifiable meaning that there should be a third party (person or organization other than the buyer or the Seller) who provide the documents that indicate or confirm that the product exists.
So, the real question to ask about any PoP document is can “is this an independently generated document coming from a third party that can be verified?".
There are many types of documents that a Seller will send to you as PoP which do not meet all of the criteria above but that does not mean that they are fake.
For example, you may receive a document from a seller advising allocation of petroleum volumes to the seller issued by a foreign ministry of petroleum, if there is no way of independently verifying this document such as by calling the particular ministry yourself (or your agent) or confirming from the public media or by logging into a government information database then you cannot consider the particular PoP document to be adequate.
Please note that we are not saying that the document is fake. However, because the information is not easily available to the public in all countries, the document may not be verifiable if it is issued by a particular ministry of petroleum.
Thanks and regards,