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A list of things to consider when determining the
best price for your product overseas.
While a sales contract that spells out the details
of a transaction is warranted for larger, more complex
deals, a quotation in the form of a Pro
Forma Invoice may be sufficient for smaller transactions.
Learn how to prepare Pro forma invoices and the information
they should contain.
It is very important to consider the effects of tariffs,
port handling fees, and taxes when determining your
product's final cost as they can be high. Typically,
the importer pays tariff and tax charges. However,
these costs will influence how much the buyer is willing
to pay for your product.
This four step guide will help you determine tariffs
and taxes levied on U.S. products and services exported
to other countries.
Terms of Sale
Terms in international business transactions often
sound similar to those used in domestic business,
but they frequently have very different meanings.
For this reason, the 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. Incoterms allow for easier international
trade by helping companies in different countries
understand one another. These standard definitions,
commonly used in international contracts, are protected
by ICC copyright. Examples of Incoterms include "ex
works"; "free on board"; and "cost,
insurance and freight".
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