Chapter 4

Sending Proforma Invoice

Words Revision

Fill in the blanks with new words

1. 2. Aproforma invoice is an invoice sent for forms sake. It is out of question that we can get the necessary import licence from our authorities . 3. In order to enable the buyer to make the necessary preliminary arrangements, the seller may open a proforma invoice. 4. Proforma invoice does not bind either the buyer or the seller. 5. We sailed from Ningbo with a cargo of cotton.

Exercise

Fill in the blanks with new words

6. A shipper is a person who consigns or receives goods for transportation. 7. Proforma invoice is also called pre-opened invoice . 8. A proforma invoice may contain shipper, cargo insurance and transport charges . 9. After the said licence is approved , we shall establish an L/C in your favor. 10. A proforma invoice is often established by exporter.

Exercise

Fill in the blanks with new words

11. Proforma invoice can be used for a formal quotation or a price reference. 12. Our clients find your price too high. 13. A proforma invoice is usually established by exporter in response to importers request prior to concluding a transaction .

Exercise

Business knowledge The Study of Letters Case 1 Case 2 Case 3 Case 4 Letter Writing Guide Homework

What Is A Proforma Invoice

Pro: for Forma: form In business, a proforma invoice is an invoice sent for forms sake(

Functions of Proforma Invoice

1to serve as a formal quotation or as a price reference; 2to enable the buyer to make necessary preliminary arrangements, such as obtaining an import license for the goods he would like to order; 3to inform the buyer of the amount payable for goods to be shipped.

Samples of proforma invoice

Details of Proforma Invoice

1descriptions of the goodstype, specification 2unit price 3quantity (4) terms of payment

Details of Proforma Invoice

(5) time of shipment (6) total amount (7) shipper, cargo insurance and tran sport charges (8) name of buyer and address

Case 1
250021 CIF

Key Points

1. 2. 3.

An Importers Enquires for Sending Proforma Invoice

Letter 1

Iran Haruji Import & Export Co,. Ltd. PO Box 14155-1663, Tehran, Iran February 28, 2009 China Yiwu Boya Import & Export Co,. Itd. No.8, Building 25 4th Area of Jiangdong Yiwu, Zhejiang, China Dear Sirs, One of our clients in Tehran, Iran, has asked us to obtain a proforma invoice for the following product: Lion Brand Nail Clippers Model 21 chrome plated.

An Importers Enquires for Sending Proforma Invoice

Letter 1

Please send us your proforma invoice in triplicate for 2500 dozens of the above product with prices CIF Tehran as soon as possible, so that we can get our clients confirmation. We will have no problem in obtaining the import licence from our authorities. As soon as this is approved, a letter of credit will be opened in your favour.

An Importers Enquires for Sending Proforma Invoice

Letter 1

Your prompt attention to this matter will be appreciated. Yours faithfully, T S Khayam Import Manager

Notes to Letter 1 1.obtain [b'tein] vt. , eg: One of our clients has asked us to obtain

Notes to Letter 1 2. in triplicate in duplicate in quadruplicate , in four copiesin quintuplicate in sextuplicate in septuplicatein octuplicatein nonuplicate in decuplicate.

Notes to Letter 1
3. as soon as possible 4. confirmation

5. have (no) problem in doing sth. eg: We will have no problem in obtaining the import licence from our authorities.

Notes to Letter 1
6. in ones favor eg: As soon as this is approved, a letter of credit (an L/C) will be opened in your favour. ,

Case 2

1. 2. 3. Key Points

A Reply from an Exporter to Sending Proforma Invoice

Letter 2

China Yiwu Boya Import & Export Co, Ltd. No.8, Building 25, 4th Area of Jiangdong, Yiwu, Zhejiang, China March 2, 2009 Iran Haruji Import & Export Co,. Ltd. PO Box 14155-1663 Tehran, Iran Dear Mr. Khayam, In reply to your request, dated February 28, we have much pleasure in sending you herewith our proforma invoice in triplicate.

Please let us know by fax for your acceptance and the approved import licence.

A Reply from an Exporter to Sending Proforma Invoice

Letter 2

For your information, our offers usually remain open for about a week. As we received large number of orders from our clients, it is quite probable that our present stock may soon run out. We would suggest that you place your order with us at an early date.

A Reply from an Exporter to Sending Proforma Invoice

Letter 2

We look forward to hearing from you. Yours sincerely, MT Lu Export Manager

Notes to Letter 2
1.in reply to 2.herewith, ()

Notes to Letter 2
3. for your information (FYI) 4. run out

5. at an early date

Case 3
CIFFOB Key Points

1. 2. 3. 4.

An Importers Requests to Sending Proforma Invoice

Letter 3

China Yiwu Boya Import & Export Co,. Itd. No.8, Building 25 4th Area of Jiangdong Yiwu, Zhejiang, China

Iran Haruji Import & Export Co,. Ltd. PO Box 14155-1663, Tehran, Iran March 9, 2009

Dear Mr. MT Lu, We have received your sample with thanks.

An Importers Requests to Sending Proforma Invoice

Letter 3

If you can accept US$15/dozen FOB Ningbo and send us a proforma invoice, we shall be ready to book a trial order for 2500 dozens of Lion Brand Nail Clippers Model 21 chrome plated. An L/C will be established immediately. When shipping the merchandise, we need your assurance that the quality will be as high as that of the sample. Yours sincerely, T S Khayam Import Manager

Notes to Letter 3
1. sample [smpl] n. , 2.trial order

: firm order : initial order/first order : formal order : limited order : market order : original order

Notes to Letter 3
3. assurance ['rns; 'rns] n.1); e.g. He gave me a definite assurance that the goods would be delivered in two days. , 2) life assurance

Notes to Letter 3 give sb. an assurance that ... have full assurance of shake sb. 's assurance with assurance ,

Case 4
C IFFOB

1. 2. 3.

Key Points

An Importers Requests to Sending Proforma Invoice

Letter 4

China Yiwu Boya Import & Export Co,. Itd. No.8, Building 25, 4th Area of Jiangdong, Yiwu, Zhejiang, China March 15, 2009 Iran Haruji Import & Export Co,. Ltd. PO Box 14155-1663 Tehran, Iran
Dear Mr. Khayam, Thank you for your letter of March 9, 2009. Changing port of shipment will be no problem to us.

An Importers Requests to Sending Proforma Invoice

Letter 4

But the counter-offer you gave would leave us little profits. However, as you are our first customer in Iran, we would like to accept your counter-offer for a trial order, and we will send our proforma invoice to you soon. Please note we have made out our proforma invoice to be expired by the end of April, as we know that you need some time to apply for import license for this order.
We look forward to your trial order.

Faithfully yours David Chen

Notes to Letter 4 1.port of shipment ;

port of dispatch port of departure port of delivery port of destination port of discharge port of entry port of transshipment

Notes to Letter 4

2. leave us little profits

sell at a profit operate at a profit The company has declared an increase in profits.

Notes to Letter 4 3.make sth out

e.g. make out a cheque for 10 dollars. 10 Applications must be made out in triplicate.

Notes to Letter 4 4.expire

eg. Our current contract is about to expire, and we'll need to discuss a new one. When will the import license expire?

Letter-writing Guide
1. Use short sentence. Finish one point before going on to another. Avoid long, involved paragraphs. Say what you have to say and say it clearly and completely.

Letter-writing Guide
2. As a proforma invoice has contained relative

details of the goods, it is not necessary to state too much about the contents of the invoice in your letter. The crucial point is to clearly state the aim of your letter so that the reader will have no doubt about your intention. 3. Business letters must be helpful.


ABC EXPORT AND IMPORT TRADING COMPANY NO.666 FAZHANG ROAD BEIJING CHINA PROFORMA INVOICE Date: MARCH. 4, 2002 Ref. No.: 02E1-569A YOUR PURCHASE ORDER:06990 SELLER: ABC EXPORT AND IMPORT TRADING COMPANY ADDRESS: NO.666 FAZHANG ROAD BEIJING CHINA BUYER: GENERAL EX IMPORT COMPANY ADDRESS: NO.2 ZXW ROAD,DUBAI 1. DESCRIPTION OF GOODS, QUANTITY, UNIT PRICE, AMOUNT

DESCRIPTION OF GOOD S ALUMINIUM FOIL JUM BO ROLLS 26 MIRCON

QUANTITY 30 ROLLS

UNIT PRICE CFR DUBAI USD687.00/ROLL

AMOUNT CFR DUBAI USD20,610.00

2.SHIPPING MARK: 3.PORT OF DESTINATION: DUBAI,UAE 4.PORT OF DELIVERY: SHANGHAI, CHINA 5.TIME OF SHIPMENT: MARCH 20

PROFORMA INVOICE International Airway Bill No. 1. Shipper: . 2. Sender: . 3. Recipient:

[Ship to address] tel: 36-1-327-3000 4. Description: . 5. Reason: For Educational purposes 6. Country of Origin: 7. Unit value: . (for custom purposes only) 8. Delivery costs: 9. Total value: $ . (for customs purposes only) 10. Terms of delivery: CIF Budapest To be custom-cleared with the Lake Success agreement 11. Terms of Payment: Free of charge 12. Net and Gross weight: . 13. Marking of boxes: 14. Dimensions of boxes: . 15. Number of packages shipped: . I certify that this information is correct. BY: ________________________ (name, title) DATE: ___________________

PROFORMA INVOICE INVOICE NO.: DATE : BUYERS ORDER NO. : DATE : OTHER REFERENCES : BUYER IF OTHER THAN CONSIGNEE: COUNTRY OF ORIGIN: COUNTRY OF FINAL DESTINATION: EXPORTERS REF:

TERMS OF DELIVERY AND PAYMENT: IRREVOCABLE, TRANSFERABLE, DIVISIBLE, ASSIGNABLE, CONFIRMED 100% LETTER OF CREDIT THROUGH WORLD PRIME BANK IN OUR FAVOUR AT SIGHT FROM THE DATE OF BILL OF LADING. TT REIMBURSEMENT ALLOWED.

QUANTITY IN MTS.

RATE USD / MT CIF TOTAL

DESCRIPTION OF GOODS TOTAL (IN WORDS) : This invoice is for export/import purposes only and not intended for payment purpose

 NO: PRO-01-22 TO LEBRUN FRANCE. DATE November 16, 1999 NOTE THIS PROFORMA INVOICE IS VALID UP TO SEP.20,2000
Marks Commo dities & Specifications S/S COOKWARE ( WITH BLUE RING BAKELITE HANDLES) Quantity Unit Price Amount

LEBRUN

1800 SETS / 300CT NS

CNF USD9.75

ANTWERP USD17,550.00

1. PAYMENT: L/C AT SIGHT 2. PACKING: EACH PACKED IN COLOR BOX, THEN IN CARTONS. 3. PORT OF LOADING : GUANGZHOU, CHINA 4. PORT OF DISPATCHING/DESTINATION: ANTWERP 5. DELIVERY: ON/BEFORE DECEMBER 15, 1999 6OTHERS