Following
last week's discussion on value of professional
communication in e-commerce, this week we examine
finer points in some everyday-use exim documents.
To stand up and be counted, you must
make sure your communication conveys right value
proposition with required information in precise
terms. Here's few points to remember while writing
an offer or request for quotation.
Name
Always define the product precisely.
A product may be known by various names in different
countries. However its scientific name remain
always same. This is specially true for herbals
and marine products. For industrial products give
all the precise characteristics. ”We seek trucks,
boats and helicopters" does not make any sense
and perhaps deserves no response.
Specifications
They are essential and imperative.
This is particularly so for drugs and pharmaceuticals,
chemicals, garments, textiles, food products and
perhaps just about everything. A statement on
end-use help in many cases.
Origin
Sometimes, origin distinguishes a
product in significant way. For example teak wood
from Myanmar, Africa or Latin America differ significantly
in specification and price. Rice from India or
Vietnam may vary significantly.
Test Result/Samples
etc.
Precise availability or not of analysis,
standard certifications and/or samples. Is the
sample free or priced ? Who pays for courier/shipping
charge ?
Quantity
/ Minimum Order
This is extremely important for the
seller as price depends on a great extent on order
quantity. Alternatively, one may quote price for
minimum order quantity - leaving elbow room for
future negotiation.
Packing
Clear statement on packing (e.g.
unit pack, bulk pack, quantity per 20 ft container
etc.)
Price
Unit price in preferred currency
of the customer (generally USD). With Euro emerging
as a strong contender of Dollar, sellers may explore
the relative cost advantage in quoting Euro vs
Dollar based on exchange rate.
INCOTERM
Please qualify price with FOB / C&F
/ CIF or any other relevant Incoterm based on
definition of each provided by ICC. Remember,
the responsibility of buyer and seller has been
clearly defined by ICC for each Incoterm. Please
use only the latest version of INCOTERMS as definition
changes with time.
For example - let us examine a common
INCOTERM FAS - Free Alongside Ship (named port
of shipment)
It means that the seller delivers
when the goods are placed alongside the vessel
at the named port of shipment. The buyer has to
bear all costs and risks of loss of or damage
to the goods from that moment.
Now - FAS term requires the seller
to clear the goods for export
IMPORTANT - This requirement is a
reversal from previous INCOTERM versions which
required the buyer to arrange for export clearance.
For more information, please visit
ICC website at http://www.iccwbo.org/
Payment
Terms
Type of L/C, conditions, currency
etc.
Delivery
Period
Precise statement on number of days
from receipt of L/C or PO. Is trans-shipment involved
? Information such as approx. days of voyage-time
helps the buyer greatly.
Next week - we shall discuss finer
points in import documents (e.g. requests for
quotation)
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