Dip and pay procedure: what it is and how to check it
By the Vanguard Verify desk · Published 2026-11-01 · Updated 2026-11-01
Short answer: "dip and pay" is a fuel-sale procedure in which the buyer is told it can dip-test product sitting in a seller's tank, have it pumped into the buyer's own tank, and pay by MT103 only afterwards. It sounds buyer-safe, but it is only as real as the tank behind it: the seller must hold a genuine lease at a genuine terminal, and you must confirm that with the terminal yourself. Verify the terminal directly before you pay for anything — including "tank rental", "injection" or "dip test" fees.
How a dip-and-pay offer is usually written
Offers posted on trading boards for EN590 diesel, Jet A1 or D6 typically run like this:
- Buyer issues an ICPO and signs a tank storage agreement (TSA) with a terminal the seller names.
- Seller sends a commercial invoice, a "product availability statement", a "tank-to-tank injection approval" and an injection report.
- Seller issues a fresh SGS report and an "unconditional dip test authorization".
- Buyer's inspector dips the seller's tank; product is then "injected" into the buyer's tank.
- Buyer pays by MT103 for the injected volume and receives title and export documents.
On paper the buyer pays only after it has the product. The risk sits earlier — in tank rental, "injection fees", "TSR legalisation" or inspection costs paid to parties the seller introduced.
Why Rotterdam warns about this
In February 2026 the Port of Rotterdam Authority and VOTOB (the Dutch tank storage association) expanded a task force against storage spoofing: selling tank capacity and product that do not exist, often using fake websites that copy real terminal operators. The task force — which includes TCT The Commodity Traders and the Seaport Police — runs storagespoofing.nl, keeps a blacklist of more than 1,250 fraudulent domains and a whitelist of legitimate ones. It estimates traders lose at least €10 million a year, and says deals with an offered value of €2.5 billion were reported to it in 2025.
How to verify a dip-and-pay offer — step by step
- Check the terminal name and website on storagespoofing.nl. If the domain the seller sent is not on the whitelist, or is on the blacklist, stop.
- Find the terminal's contact details yourself. Use the operator's group website or the port authority's terminal list — never the phone number, email or "portal" in the seller's documents.
- Ask the terminal one question in writing: does the named company lease tank X, and does it hold the stated volume of product there? Terminals generally do not disclose a customer's stock to outsiders, but you can ask whether a document carrying their name is genuine.
- Check the seller company. Look it up in the official registry of its country and check its LEI on GLEIF. See how to check if a company is real.
- Check the inspection report with the inspector, not the seller. SGS has its own document verification form at sgs.com. A "24-hour fresh SGS" sent as a PDF proves nothing until SGS confirms it.
- Appoint your own inspector and contract with the terminal yourself. Your tank lease should be signed directly with the terminal operator, not through the seller.
- Pay nothing before title passes. No tank rental, injection, legalisation or "dip test authorization" fee to anyone the seller introduced.
Red flags
- The terminal's website was registered recently, or its domain differs slightly from the real operator's.
- You must sign a TSA with a "logistics company" the seller chose, and pay it first.
- A "pipeline access code" or "injection approval letter" — a terminal moves product on instructions from its own customer, not on a code handed to a stranger.
- The price is well below the current market for the product.
- NCNDA/IMFPA and broker commissions are pushed before any proof of product.
- Documents are "TSR", "ATSC", "DTA" acronyms with no terminal letterhead you can confirm.
- Pressure to act within 24 or 48 hours.
Real tank transfer vs. typical dip-and-pay offer
| Point | Real tank-to-tank transfer | Typical dip-and-pay offer |
|---|---|---|
| Who confirms stock | Terminal operator, to its own customer | Seller's own documents |
| Your tank contract | Signed directly with the terminal | Arranged by the seller |
| Inspector | Chosen and paid by you | Named by the seller |
| Up-front fees | Normal storage charges to the terminal | Rental/injection fees to a third party |
| Website check | On the storagespoofing.nl whitelist | Unknown or blacklisted domain |
For the paperwork itself, read how to verify a tank storage receipt and is an EN590 offer real.
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FAQ
What does dip and pay mean in oil trading?
The buyer dip-tests product in the seller's tank, has it transferred into the buyer's tank, and pays by MT103 after the transfer.
Is dip and pay safe for the buyer?
Only if the terminal itself confirms the tank lease and stock, you contract with the terminal directly, use your own inspector and pay no up-front fees to parties the seller introduced.
How do I check a Rotterdam tank terminal?
Check its website on storagespoofing.nl (run by the Port of Rotterdam Authority, VOTOB, TCT and the Seaport Police) and contact the terminal using details you find yourself.
Who should pay the dip test inspector?
The buyer should appoint and pay its own independent inspector, and confirm any report directly with the inspection company.
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This answer is general information, not legal or financial advice.