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)
