How an EN590 Diesel Purchase Works, Step by Step
A broker’s view of the process, with KYC and sanctions screening at every stage.
This article is for general information only. It is not an offer, financial or legal advice, and no outcome or return is guaranteed.
What EN 590 means
EN 590 is the European standard for automotive diesel fuel. It defines properties such as sulphur content, cetane number, density and flash point. Buyers usually specify the grade, the quantity, the delivery terms (Incoterms) and the destination port in their first enquiry.
Step 1: Enquiry and buyer intent
The buyer sends a written enquiry or letter of intent with product, specification, quantity, delivery terms, destination and timing. As a broker we check that the request is complete and realistic before anything else happens.
Step 2: KYC and KYB on both sides
Before any introduction, both buyer and seller provide corporate documents, beneficial ownership and authorised signatories. We verify that the companies exist and that the people we deal with are authorised to act for them.
Step 3: Sanctions screening and origin
Every party, and where relevant the vessel, is screened against the main sanctions lists (for example OFAC, EU, UK, UN and Panama). The product must have documented, lawful origin. We do not broker product of sanctioned origin, from sanctioned parties or through sanctioned jurisdictions, and we decline any deal where origin cannot be documented.
Step 4: Offer and verification
The seller issues an offer with specification, quantity, price basis, delivery terms and payment terms. Supporting documents are verified with the issuing party where possible, not accepted at face value.
Step 5: Contract
Buyer and seller negotiate and sign a sale and purchase agreement directly. It covers specification, quantity tolerance, inspection, delivery, title transfer and payment, often through a documentary letter of credit or another bank instrument agreed by both banks. The broker does not take title to the goods.
Step 6: Inspection and delivery
An independent inspection company checks quality and quantity at loading and, if agreed, at discharge. Delivery follows the agreed Incoterms, and documents such as the bill of lading and the certificates of quality, quantity and origin are presented under the contract.
Step 7: Closing and broker compensation
After performance, the broker is paid a commission under a signed fee agreement and non-circumvention, non-disclosure agreement. We never ask buyers or sellers for upfront fees.
Warning signs
- Requests for upfront fees before any contract
- Documents that cannot be verified with the issuer
- Pressure to skip KYC or inspection
- Unclear or undocumented product origin