馃攳
Negotiate Sales Agreement with Pro Forma Invoices - YouTube
Channel: unknown
[8]
A sale to a new foreign
buyer often begins
[11]
with an inquiry followed by
a request for a price quote.
[17]
Once you have established that
there is genuine interest,
[19]
the next step is to
create a pro forma invoice
[22]
for the potential buyer.
[24]
It's the preferred method for
doing international business.
[30]
A pro forma invoice
provides more information
[32]
than a domestic quote in order
[34]
to address the unique
aspects of foreign sales.
[39]
Created in the style of a
typical commercial invoice,
[43]
the pro forma invoice
allows you and the buyer
[45]
to understand each other clearly
and negotiate the terms of sale.
[50]
As you create the
pro forma invoice,
[53]
carefully consider your
pricing strategy and level
[56]
of risk for the shipment.
[58]
Additionally, the buyer may
also require a pro forma invoice
[62]
to apply for an import license,
open a letter of credit,
[67]
or purchase another currency.
[70]
Once finalized, the pro forma
invoice will be the basis
[73]
for the commercial invoice,
which is the final bill of sale.
[77]
In this video, you'll
learn how to negotiate
[82]
and fulfill a successful
export transaction
[85]
with these key international
sales documents.
[87]
The first and most
important step
[92]
when crafting your document,
is to mark it clearly
[95]
as "Pro Forma Invoice."
[98]
This will clarify that the
terms of sale are not final.
[103]
A pro forma invoice typically
contains the following elements:
[108]
Contact details for you and the
buyer The specific time period
[113]
for which the quote
is valid (such
[115]
as 30 days).
[116]
The price and currency
of the quote.
[119]
The method of payment (such
as Cash on Delivery or Letter
[123]
of Credit).
[125]
A detailed description of the
product including dimensions
[128]
and weight of the
items when packed
[129]
for shipment.
[131]
The shipping date
and delivery point.
[134]
And
[134]
the terms of sale, either with
a generic term or an Incoterm.
[139]
A term of sale specifies who
is responsible for paying for
[144]
and managing the shipment,
insurance, documentation,
[148]
customs clearance, and
other logistical activities.
[151]
You can use Incoterms,
which are internationally
[155]
recognized terms.
[156]
You can learn more
about them on trade.gov.
[161]
Other items that should appear
[163]
on a pro forma invoice include
other additional charges,
[167]
such as: special documents,
legalization required
[171]
for documents, inspection
and/or certification fees,
[176]
pre-shipment inspections, and
special packaging and labeling.
[181]
It's also good practice to
include the following statements
[185]
where applicable: Please
advise of any special documents
[189]
or standards required to
clear customs in your country,
[192]
as this might affect
our shipping date.
[196]
The country of origin for the
goods is the United States (or
[199]
another country if applicable).
[202]
The pro forma invoice
is true and correct.
[207]
Finally, have a responsible
person
[209]
in your company sign
the document.
[214]
The pro forma invoice can be
a useful tool in the process
[217]
of negotiating a sale.
[220]
It's a good idea to communicate
often with the foreign buyer
[223]
in the earliest stages
of a transaction.
[227]
Find out if there
are special documents
[229]
or regulatory compliance
requirements
[231]
of the foreign country.
[232]
There could be costly
problems and delays
[235]
if you don't know up front.
[238]
Ask if a shipping
date is required.
[241]
If so, check if your
company can meet it.
[245]
Finally, understand the scope
of your insurance coverage
[248]
in case something happens
before the buyer has received
[251]
the goods.
[252]
As you prepare to export your
product, the next step is
[257]
to prepare the commercial
invoice for the shipment.
[261]
The commercial invoice is a
legal document between a seller
[264]
and buyer describing
the goods and price.
[268]
It's a key document
for customs clearance
[270]
and determining customs duties.
[273]
When preparing the
commercial invoice,
[275]
include the same details
from your pro forma invoice.
[279]
You can find samples
and more information
[282]
about these documents
on trade.gov.
[286]
Beginning with a carefully
crafted pro forma invoice
[290]
and finalized with a
commercial invoice,
[293]
you and a foreign buyer can
agree on a price and terms
[296]
that will help to ensure full
satisfaction to both parties.
Most Recent Videos:
You can go back to the homepage right here: Homepage