| 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)
Related Links:
Source: FAIDA
- Newsletter on Business Opportunties from India and Abroad
Vol: 2, Issue 42
March 28' 2002
Author :
Dr. Amit K. Chatterjee
(Amit worked in blue-chip Indian and MNCs for 15 years in various
capacities like Research and Information Analysis, Market Development,
MIS, R&D Information Systems etc. before starting his e-commerce
venture in 1997. The views expressed in this columns are of
his own. He may be reached at amit@infobanc.com
) |
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