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ORDER
INTRODUCTION
Export order must confirm to the terms of
contract and then sent to the overseas
buyer.
But before its confirmation, it must be
scrutinized with regards to products and
their specifications, terms of payment, price,
delivery schedule etc.
The immediate task of exporter is to
acknowledge the export order which is
different from its acceptance .
Then he should proceed to examine the
export order with respect to following
parameters.
1. Nature :
Export order is a document, communicating
the decision of foreign buyer to purchase
items from exporter. It would clearly indicate
the exporter’s pro-forma invoice/quotation
number and its date, including item,
quantity, price, delivery date, shipping
marks, insurance, payment terms,
documents required etc.
Before acceptance, the export order should
be scrutinized in all aspects
2. Acknowledgement :
The exporter should write a simple letter to
overseas buyer thanking him for the
export order and stating that the
confirmation of the same would be sent
soon.
3. Scrutiny :
The export order should be carefully scrutinized in
terms of pro forma invoice/contract sent to the foreign
buyer, on the following aspects:
– The order has been received for same products for which quotation/offer
was sent.
– Size and specifications are also as per quotation/offer. Unit measurement
needs to be specified as well. It could be numbers, volume, or weight.
– Ordered quantity both in words and figures. This is essential to leave out
any room for confusion.
– Pre-shipment inspection is as per agreed in pro forma invoice. Pre-
shipment inspection can be done by-
Exporter
Inspection by exporter nominated agency
Inspection by importer nominated agency
Export Inspection Agency (EIA) GOI authorized agency
The inspection agency has to be agreed upon in pro forma invoice
– Payment conditions are same as stipulated.
– The order must provide all the details relating to kind
of packaging required including the labels and the
marks to be put up. The instructions have to be
explicit specifying requirements in full details as there
could be separate labels for the articles and for
packaging.
– Shipment and delivery date is in conformity with the
exporters production plan.
– Documents required are in conformity with those
mentioned in pro forma invoice. Generally following
documents are required:
– Bill of Exchange
– Bill of Lading
– Certificate of Origin
– Packing List
– Insurance Policy/Certificate
4. Confirmation :
If the exporter is satisfied on various
aspects mentioned in the export order he
should send a formal confirmation to the
overseas buyer.
5. Clarification :
If the exporter is not completely satisfied with the
terms of export order, clarification should be sought
from the buyer before its confirmation.
The clarification could be in terms of :
Quantity
Delivery schedule
Terms of payment
INCO terms etc.
8. Transfer of Risk
INCO terms define the point at which risk passes
on from exporter to importer.
12. Commission/Discounts
In case exporter is required to pay any kind of
commission or offer any discount to the buyer or
his agent, the export order must provide details
of the same.
13. Insurance
The contract must clearly provide insurance instructions
for the exporter, if he is to arrange insurance. In case the
buyer is responsible for insurance, the order must say so.