In part 1, fourteen steps were described for exporters to follow that will help them maximize the likelihood of a prosperous export deal.
In this post, two more of those steps are discussed in more depth.
The Value of a Termination Date
You need to ensure that your sales quotation or proforma invoice comprises of a statement that explicitly declares that both the cost and conditions of your offer are true for a given time-period, such as 30 days. Also, make sure to declare when that period starts. We advise using the date of the quotation as the start of the legality period.
Here’s an example statement to use: “The cost and conditions of this offer are true for 30 days from the date of this quotation.” (To cite an example, we have arbitrarily used the number “30.” You should use the number that is suitable to your situation.)
Thoughtfully Use Words
Be cautious with this one, particularly if you trade a tailor-made or congregated product that depends on binding specified parts or ingredients from outside your business.
Here’s an example statement to use: “The good(s) described in this quotation are available for shipping 30 days from reception and acknowledgment of your signed order and confirmation of satisfactory financing.”
Using the expression “available” indicates that you will do just that; you will make your goods available as declared to be ready for shipping. If you declare that it will be exported rather than made accessible to be exported by a specific date, then you will not present yourself any security if something goes wrong outside of your control.
For instance, if you make your goods available for export and make you export business successfully, then you still have performed and followed your word. You made it accessible even though it cannot be exported due to causes past your control.
Be careful while using the expression “delivery;” rather use the word “cargo” or “shipment.” If your merchant states the goods are ready for delivery in 30 days; then you should assume your goods to arrive within 30 days of arranging your order.
Many exporters utilize reception of the order to start the composition process; nonetheless, it is better to add the word “acknowledgment.” This enables you to edit an order that doesn’t precisely indicate the exact wording of your original quotation.
For instance, if you offer 160 volts and the order requests for 320 volts, you can go to the customer to fix this and start the declared “availability” date from the acknowledgment date. Moreover, if 320 volts obligates your business more than 160 volts, then you have a basis to assign a greater selling price to meet your computed expenses.
In some situations where the order price is great, a foreign exchange license is required, government funding is needed, or if you are trading a tailor-made product such as uniquely composed factory automation appliances, you may want to include the expression “verification” of satisfactory financing.
You cannot assume nor include all possibilities in the sales quotation or proforma invoice, but the better you are at presenting clear and concise statements, the more apparent your export sale will go easily.