Page 21 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes price, delivery date and schedule, product specifications, pre-shipment inspection, special
packaging, labeling and marking, quality issues, number of items, quantity, shipping marks,
marine insurance, trade documents required, etc. If the exporter has any doubts or confusion, he
can seek clarification from the importer in this regard. Once the scrutiny of export order is over
and the exporter is satisfied; he can fulfill all terms and condition as mentioned in the export
order. He must spontaneously confirm the same to the importer with his acknowledgement of
thanks.
Having sent the confirmation of the export order, the exporter shall take necessary steps to enter
into a formal international sales contract with the buyers. Internationally, there are no standard
rules and regulations with regard to international sales contracts. It has been seen that, in certain
cases, it is just a one-page document and in some other cases, it may be a very complex 15-page
booklet including many appendices, additional conditions, etc. Sometimes, mere verbal
commitments become an international sales contract, but this varies from exporter to importer
and vice versa. But it is advisable that exporters must enter into an international sales contract
with the importer as international trade is full of risks and a sales contract ensures legal protection
through accepted documents during arbitration, in case of disputes. The International Chamber
of Commerce also advises exporters and importers to pen down the sales contract in order to
avoid disputes and even if disputes occur; the ICC helps the arbitration process to be progressed
easily with strong evidences. In some countries; it is mandatory to enter into an international
sales contract. All these issues need the attention of the exporter in advance, to avoid any
unforeseen situation in the future.

1.5 Nature of Export Order

An export order is a document sent by the importer on the basis of pro forma invoice of
exporter, whereby the importer communicates his willingness to purchase items/commodities/
services etc. from the exporter. It shall clearly indicate the exporter’s pro forma invoice/quotation
number and its date including the essential aspects like terms of payments, price, delivery date
and schedule, product specifications, pre-shipment inspection, special packaging, labeling and
marking, quality issues, items, quantity, shipping marks, marine insurance and trade documents
required for the trade deal. The exporter himself, or his trusted manager shall properly and
thoroughly scrutinize the export order before confirming it to the importer about his willingness
to fulfill the order.

1.6 Acknowledgement of Export Order

Customer is a king whether consumer himself or a foreign buyer and he must be thanked for
giving the business or an opportunity to serve. Hence the exporter shall write a simple letter to
the importer thanking him for the export order. The exporter should also acknowledge his
pleasure and gratitude thank the importer. He should also mention that he would get in touch
with the importer shortly after scrutinizing the export order. A letter of thanks shall be formal
in language and shall not be long.
Scrutiny of Export Order

“Prevention is better than cure”. The same is applicable to an export order. The exporter has to
carefully examine the contents of the export order otherwise he may have to face problems
while receiving payments in ways such as quality disputes, specifications disputes, discrepancy
in documents while negotiating letter of credit, or other situations beyond his and the importer’s

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