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Transcript of 1 Dimitris Kloussiadis & Bob Erwin University of Georgia, SBDC International Trade Center Session...
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Dimitris Kloussiadis & Bob ErwinUniversity of Georgia, SBDC International Trade Center
Session 12: Pro-Forma InvoicesSession 5:
Approaching the Market
Session 12
Pro-Forma InvoicesHow to quote on export sales?
Export-U.com is operated by the US Export Assistance Center, in Atlanta, a collaborative partnership including the SBDC International Trade Center of the University of Georgia, and the US Commercial Service. The SBDC program is funded by the University of Georgia and the U.S. Small Business Administration. SBA's funding is not an endorsement of any products, opinions, or services. All SBA funded programs are extended to the public on a nondiscriminatory basis. Image above all over web.
Session 12:Pro-Forma Invoices
What is a Pro-Forma Invoice?
• Price of goods• Logistics cost• Terms of sale
Photo: Sunset over Western South America, http://earthobservatory.nasa.gov/IOTD/view.php?id=50205
Session 12:Pro-Forma Invoices
When to Use a Pro-Forma?
Wheneverquoting on an
international sale
Photo: Flickr.com
Session 12:Pro-Forma Invoices
How Customers Use Pro-Formas
1. To get a realistic picture of transaction
2. To draft a Letter-of-Credit
3. To secure an import license
4. To obtain an allocation of U.S. dollars
Photo: Martin Cerny, Some rights reserved, http://www.fotopedia.com/wiki/Sunset
Session 12:Pro-Forma Invoices
Accuracy is Critical
Pro-formas must be correct to avoid added
costs and delays.
Image: All over web.
Session 12:Pro-Forma Invoices
Pro-Forma Affects on Letters of Credit
Pro-forma information used to specify L/C terms.
Pay close attention to the details, or you may loose control of the transaction.
Photo: Flickr.com, by Carl242
Session 12:Pro-Forma Invoices
Format?No particular format required.
Can use a regular invoice form with the heading:
“Pro-Forma Invoice"
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Session 12:Pro-Forma Invoices
Freight Forwarder’s Input?Costs of transportation, documentation, and insurance.
Can proofread your first few Pro-Formas.
Photo by John Beales on Flickr
Session 12:Pro-Forma Invoices
What You Need to Tell Your Forwarder
What to Tell Your
Forwarder
Product description, weight, dimensions, value
Payment terms - If paid by L/C, provide a copy
Signed P.O.
Harmonized code(s)
Special instructions or unique product info (E.g., is it affected by heat or humidity?)
Hazardous materials?
Photo: http://www.flickr.com
Session 12:Pro-Forma Invoices
Bank FeesContact your bank’s international department
for their service fees and finance charges.
Ask for a written fee schedule.
Photo: http://www.abcbullion.com.au/news/Bring-back-the-gold-standard-says-World-Bank-chief
Session 12:Pro-Forma Invoices
Reference number
Description of the goods
Weight, volume, boxes (U.S. and metric)
Shipping method (Incoterms) & transit time
Sales & payment terms
Itemized price
Currency
Ports of exit and entry
Country of origin
Special routing instructions
Fabrication time and date of shipment
Time limit on quotation
Required Content
Photo: The 'Tenacious' in Bangor Bay, by Ross, http://creativecommons.org/licenses/by-sa/2.0/
Session 12:Pro-Forma Invoices
AdditionalShippingDetails A. Transit time
B. Ports of export and import
C. Origin of goods
D. Any special routing instructions/ flag restrictions imposed by buyer or US government.
E. Estimated fabrication time or date goods will be available for export
Photo: Dusk on Chang Jiang (Yangtze), by Andrew Hitchcock, at.
(If payment is by L/C, insert the phrase: “from date of receipt of the letter of credit deemed acceptable by us in form and content in our sole judgment”)
Session 12:Pro-Forma Invoices
Sample Pro-Forma
Photo: Hartfried Schmid on Flickr, http://www.fotopedia.com/wiki/Sunset#!/items/flickr-734805739
Session 12:Pro-Forma Invoices
For assistance call:
1-800-USA TRADEor consult your nearest
US Export Assistance CenterIn Georgia you can also call the SBDC International Trade Center at 678-985-6820
Photo: NASA Goddard Photo and Video on Flickr
The End
Dimitris Kloussiadis & Bob ErwinUniversity of Georgia, SBDC International Trade Center
Session 4: Costing & PricingSession 5:
Approaching the Market
Session 12:
The EndPro-Forma Invoices