1. Responding to Inquiries from Potential Customers

2. Provide Pro forma Invoice
Inquiries from abroad usually accompanied by request for “pro forma” invoice – A quotation in an invoice format which Includes:
Product description and specifications
Material costs
Price
Quantity
Shipping costs
Delivery terms
Procedures

3. Proforma Invoice A-Plus Avocado
411 South Street, Modesto, CA USA Phone: fax
Date:
15-Apr-06
Proforma No.:
01FPJ0406
Sold To:
Ship To:
Fresh Produce of Japan,
Fresh Produce of Japan
Rydo-cho, Tokyo , Japan
Rydo-cho, Tokyo ,
Japan
Ship Date
25-Apr-06
Ship Terms:
CIP Tokyo, Japan
Order No.: AA
Currency:
USDollars
Ship Via:
Ocean Freight
Payment Terms:
50% Prepay+50% Net 90 days invoice
Item
Weight kg/case
Unit
Qty
No.
Description
Net
Gross
Price
Units
Total
AA-10
Haas Avocados - Size 10
20.0
22.0
$0.25
100,000
25,000.00
AA-15
Haas Avocados - Size 15
23.0
25.0
$0.30
150,000
45,000.00
Freight
4,250.00
Insurance
700.00
Harmonized (Schedule B)
 No.: 0804. A
 vocado
All Products are of USA
  Origin
Totals
Net wt
Gross wt
Dollars
54,500
59,500
250,000
$ ,950.00
I certify that the above is true and correct
Please sign your authorization & fax back:
A+A -Export Manager
Sign Here:

4. Sample Pro Forma Invoice http://www. tradeport
PRO FORMA INVOICE FROM: Innovation Technologies 983 Stanley Ave. San Diego, CA (619)
DATE:May 8, 1995Reference No.:3245Payment Terms:Letter of CreditCountry of Origin:USAEstimated Date Of Shipment:45 daysQuoteValid Through:October 8, 1995SOLD TO: Grupo Estevez, S.A. de C.V. Tamales No. 1 Piso Cd. Polanco Mexico
SHIP TO: Juarez Industriale 454 Blvd. Cortez 1114 Mexico D.F. Mexico
Quantity Description Unit Price Total Price 100 each Computer Motherboards Five (5) sealed cartons Gross Weight: 10 lbs. US $ US $ 5, EX Factory Freight Forwarder Fees Air Freight Insurance CIF Mexico 5, , US $ 6, Price, availability and delivery subject to confirmation at time of order.
Authorized Signature _____________________________ Date______________________

5. Sample Pro Forma Invoice
See Center for International Trade Development Website

6. To Complete Pro Forma Invoice
Exporters must set a price for their product
Determine the terms of sale

7. 2. Determine (Incoterms) Terms of Sale
Exporter must know the terms before preparing a quotation or a pro forma invoice.
Incoterms are standardized names created by the International Chamber of Commerce (ICC) for describing terms of sale.

8. Diagram of INCO terms

10. Most Common Incoterms Term Definition Risk Cost Include on Quotation
EXW Ex Works
Buyer arranges for pick up of goods at the seller’s location. Seller is responsible for packing, labeling, and preparing the goods for shipment on a specified date or time
Buyer assumes all risk
Buyer pays all transportation costs
N/A
FCA Free Carrier
Seller is responsible for costs until the buyer’s named freight carrier takes charge
Seller and Buyer
Split
FAS Free Alongside Ship (over water only)
Buyer arranges for the ocean transport. Seller is responsible for packing labeling, preparing the goods for shipment, and delivering the goods to the dock.
Seller: until the goods reach the dock. Buyer: from dock to destination
Buyer: all ocean transport costs. Seller is responsible for costs associated with transporting the goods to the dock.
Costs of transporting goods to the dock.

11. Most Common Incoterms Term Definition Risk Cost Include on Quotation
FOB* Free On Board FOB should also never be used unless you specify what and where such as "FOB ocean vessel at New York City
Seller arranges for ocean transport of the goods, preparing the goods for shipment, and loading the goods onto the vessel. The goods ship ocean freight collect.
Buyer: Once the items are on board
Seller: Wharfage (charges to load the goods onto the ship) and freight forwarder fees.
Costs, until on board
CFR Cost and Freight
Seller has the same responsibilities as when shipping FOB, but shipping costs are prepaid by the seller, instead of shipping collect.
Seller: assumes the risk until the shipment reaches the overseas dock.
Seller: costs of freight fees up to destination.
Add Freight to cost of product.
CIF Cost, Insurance, and Freight
Seller has the same responsibilities as when shipping CFR with addition of including a marine insurance policy
Seller:; until the shipment reaches the overseas dock.
Seller insurance and freight forwarder fees.
Insurance, freight and cost of goods

12. FOB Example
FOB, New Orleans for 3 ice makers. You as the exporter are responsible for all costs in delivering the goods to New Orleans and loading the icemakers on board a vessel named by the German firm. You are responsible for arranging any export clearances (licenses, taxed, fees). The German firm is responsible for booking space for cargo and pays for the ocean freight.

13. CIF Example
CIF (Named foreign port of destination) YCI quotes its German customer CIF Bremerhaven for 3 ice makers. YCI arranges for and pays all transportation costs to the Port of Bremerhaven. YCI arranges and pays for the marine insurance policy. YCI, however, is only responsible for risk of loss until loading of the icemakers on board the vessel in New Orleans.

14. FAS Example
YCI, the U.S. exporter, quotes the German firm FAS, New Orleans for 3 ice makers. YCI is responsible for all costs in getting the goods to the Port of New Orleans alongside the nominated vessel prior to sailing time. The German buyer is responsible for booking space, paying ocean freight and arranging for all export clearances.

15. Source for INCOTERMS
For a complete list of INCOTERMS, including responsibilities of the parties, see Incoterms 2000.

16. Pro forma invoices should include two statements.
One that certifies the pro forma invoice is true and correct and
another that gives the country of origin of the goods.
The invoice should also be clearly marked "pro forma invoice."
When final commercial invoices are being prepared prior to shipment, it is advisable to check with the U.S. Department of Commerce or another reliable source for any special invoicing requirements that may be required by the importing country.

17. If assistance is needed in figuring CIF or CIP prices, an international freight forwarder can help. The exporter should furnish the freight forwarder with
a description of the product to be exported and its weight and
cubic measurement when packed.
The freight forwarder can compute the CIF price usually at no charge.

18. Document WHAT EXPORT SHIPPING DOCUMENTS DO I NEED?
vary widely according to the country of destination and the type of product being shipped.
Failure to comply can delayed or end payment; goods could be seized or you could be fined, denied further export privileges, or jailed.

19. International Documentation
90% of all documents are created by the Exporter
10% of documents required by exporting country
90% of documents required by importing country
All documents used by the Importer/customs broker to clear customs
Shipping documents are created by the transportation company

20. International Documentation
Purchase Order
Proforma Invoice
Commercial Invoice
Consular Invoice
Packing List/Slip
Weight List
Certificate of Origin
NAFTA Certificate of Origin

21. International Documentation
Shipper’s Export Declaration
Inspection Certificate
Clean Report of Finding
Bovine Free Certificate
Beneficiary Certificate
U.S. Government Agency Certifications
Export License
Import License

22. International Documentation
Date:
15-Apr-06
Customer:
Fresh Produce of Japan
Country of Destination:
Japan
Payment Terms :
50% Prepay/50% Net 90 Days Invoice
Incoterms:
CIP Tokyo, Japan
Required Documents:
Yes No
Exporter
Importer
Purchase Order X
Proforma Invoice
Consular Invoice
Commercial Invoice
Packing List
Certificate of Origin
NAFTA Certificate of Origin
Validated Export License
Import License
Shipper's Export Declaration (SED)
Shipper's Letter of Instruction (SLI)
Inspection Certificate
Weight List
Bovine Free Certificate
Beneficiary Certificate
U.S. Government Agency Certifications
FDA
Certificate of Conformity
Certificate of Free Sale
Other Documents:
Fumigation Certificate

23. Most Commonly Required Documents
U.S. Shipper's Export Declaration
Used by the U.S. Census Bureau to compile trade statistics and to help prevent illegal exports.
The SED and instructions on how to fill it out are available from a variety of sources including the U.S. Government Printing Office ( ) and the U.S. Census Bureau's home page.
Do I Need to Submit an SED for My Shipment?
Required for any shipment valued at $2,500 or above (If the shipment is valued at over $2,500 but is made up of various commodities falling under several Schedule B numbers none of which is valued at $2,500 or higher, no SED is required.)
Required for any shipment to particular countries, such as Cuba, Libya, and North Korea, and for any shipment requiring a validated export license.
Required for shipments to Puerto Rico, the U.S. Virgin Islands and the former Pacific Trust Territories even though they are not considered exports (unless each Schedule B item is under $2,500).
Shipments to Canada do not require an SED. (Shipments to third countries passing through Canada do need an SED.)
Sample

25. Bill of Lading
Purpose
Contract among three parties to provide transportation of cargo
Consignor -party delivering goods to the carrier; usually the seller
Carrier - party accepting legal responsibility to provide transportation; often the transportation company
Consignee - party entitle to receive the cargo; buyer, bank, an agent
Once the carrier or freight forwarder completes the bill of lading, he becomes bound to forward the goods to the agreed destination in the same condition as they were received.

26. Types of Bill of Lading Straight bill of lading: non-negotiable.
allows only the appropriate person specified in the bill of lading to pick up the goods. This is usually the preferred type of bill of lading for beginning importers as it offers the buyer the most protection by prohibiting the release of the goods to anyone but the party specified in the documentation.
Sample

27. Shipper's order bill of lading:
negotiable bill of lading. can be bought, sold, or traded while the goods are in transit and is used for letter of credit transactions. The customer usually needs the original or a copy as proof of ownership to take possession of the goods.
serves as a certificate of ownership or title to the goods. When written to order, it serves as a negotiable instrument through which title is transferred from the exporter to the importer.

28. Air waybill - carrying agreement between the shipper and the air carrier.
In contrast to the ocean bill of lading it is a non-negotiable instrument and serves as a shipping contract and receipt to the shipper.
certifies that the airline has accepted the goods as listed on the air waybill and agreed to carry the goods to the airport of destination in accordance with the conditions of the contract.
Sample

29. Export Packing List
itemizes the material in each individual package and indicates the type of package: box, crate, drum, carton, and so on.
shows individual net, legal, tare, and gross weights and measurements for each package (in both U.S. and metric systems).
The list is used by the shipper or forwarding agent to determine the total shipment weight and volume and whether the correct cargo is being shipped.
Sample

30. Export Manager - A Plus Avocado
A+A
A-Plus Avocado 411 South Street Modesto, CA USA Phone: fax
Invoice No.:
112345
Date:
25-Apr-2006
COMMERCIAL INVOICE
Name
Fresh Produce of Japan
Order No.
56789
Address
Rydo-cho
Payment Terms
50% Prepay & 50% Net 90 invoice
Sold To:
City
Tokyo
State
ZIP
Ship Via
Ocean Freight
Country
Japan
Ship Terms
CIP Tokyo, Japan
Item No.
Description
Qty
Unit Price
TOTAL
AA-10
Haas Avocados - Size 10
100,000 ea
$0.25
$25,000.00
AA-15
Haas Avocados - Size 15
150,000 ea
$0.30
$45,000.00
FOB Value
$70,000.00
Freight
$4,250.00
Ship To:
Fresh Produce
Insurance
$700.00
Rydo-cho
Total  
Tokyo
USDollars
$74,950.00
Japan
These commodities, technology or software were exported from the United States of America in accordance with the Export Administration Regulations. Diversion contrary to U.S. law prohibited.
Export Manager - A Plus Avocado

31. Certificate of Origin
Some nations require a signed statement as to the origin of the export item.
Available through chamber of commerce.
May be required even though the commercial invoice contains the information
Sample