Proof of Product (POP) is the documentation package that proves a commodity cargo or bulk storage inventory physically exists and is legally available for sale. It is one of the most critical — and most frequently faked — elements of international commodity trade.

Standard POP Document Set

  • SGS or Bureau Veritas Q&Q Report — Quality and Quantity report from an independent inspector, confirming product specification meets the agreed grade and the stated quantity is present in the tank or vessel
  • Tank Storage Confirmation (TSC) — Letter from the terminal operator confirming the product is stored in a named tank at their facility
  • Certificate of Analysis (CofA) — Detailed product specification test results from a certified laboratory
  • ATSC (Authority to Sell and Collect) — Document from the product owner authorising a named party to sell and collect payment for the product
  • Refinery Allocation Letter — For refinery-direct deals: letter from the refinery confirming product has been allocated to a named buyer or trading entity

POP Verification Steps

To verify POP documents independently:

  1. Identify the named storage terminal from the TSC document
  2. Find the terminal's official contact details from their public website (Vopak, Koole, Oiltanking, Evos, Vela — all publish contact directories)
  3. Contact the terminal directly and verify the tank number, product description, and registered owner
  4. Verify the SGS report number at SGS.com → Product Conformity → Report Verification
  5. Cross-check the ATSC issuer against company registry records in the relevant jurisdiction

Common POP Fraud Patterns

Red Flags in POP Documents
The most common POP frauds: (1) Fake SGS reports with real-looking report numbers that return no match on SGS.com, (2) TSC letters on real terminal letterhead but with fabricated contact details that redirect to fraudsters, (3) ATSC documents citing non-existent or dissolved corporate entities, (4) "Soft probe" requests that are actually attempts to extract bank information before POP is verified.

Skyra CIP eliminates POP fraud risk by requiring all seller entities to pass full KYC verification — including company registration documents, beneficial ownership disclosure, and terminal storage evidence — before any deal is listed on the platform.

Frequently Asked Questions

What is proof of product in commodity trade?

Proof of Product (POP) is a package of documents — typically including a product specification analysis (Q&Q), tank storage confirmation, terminal storage agreement, and sometimes a refinery letter or allocation document — that collectively prove a specific quantity of product physically exists in a named location and is available for sale.

What documents are included in a proof of product package?

A standard POP package includes: (1) SGS or equivalent inspector's Q&Q report (quality and quantity), (2) Tank storage confirmation from the terminal operator, (3) ATSC (Authority to Sell and Collect) from the product owner, (4) Product specification analysis (CofA), and sometimes (5) Refinery allocation letter. The exact documents vary by product and jurisdiction.

When should a seller provide POP?

In a legitimate transaction, the seller provides POP only after receiving and verifying the buyer's ICPO and after an NDA/NCNDA has been signed. POP is typically exchanged at the same time as or immediately after the FCO (Full Corporate Offer). Sellers who demand payment before providing POP are not legitimate.

How do you verify proof of product documents?

Genuine POP documents can be verified by: (1) Contacting the terminal operator directly using publicly verified contact details (not those provided by the seller), (2) Verifying the SGS report number on the SGS Global website, (3) Checking tank numbers against the terminal's published tank farm, (4) Confirming the ATSC through the product owner's registered legal entity.