V. Delivery Execution of Orders

The seller executes buyer's order by delivering the goods according to the terms of the contract.

Before delivery can be made, the goods have to be carefully packed to ensure safe arrival. Adequate packing is of particular importance in the case of overseas shipments. The packing containers must be strong enough to withstand rough handling and the stresses of transport, but, on the other hand, they should be as light and compact as possible.

Export packages have to be provided with distinctive marks, which make it possible to identify the individual shipments. Caution marks (words or symbols) are usually added. The marks should be shown on at least two sides of each package. Buyer’s instructions with regard to packing and marking, as well as the regulation of the importing country, must, of course, be strictly complied with.

Unless it has been agreed that the buyer is to collect the goods, the seller has to make arrangements for transport. For this purpose he enlists the services of forwarding agents and carriers. Small packages may be sent by parcel post.

To protect the goods from the risks of loss or damage in transit, insurance is taken out by the seller or the buyer. In the case of overseas shipments, marine insurance is necessary. Ordinarily, marine insurance covers the goods only as long as they are on board the carrying vessel, but it can also be affected on a warehouse-to-warehouse basis (warehouse-to-warehouse insurance).

After execution of the order, the seller sends the buyer his invoice. He may also send the buyer a dispatch or shipping advice and a packing list showing the contents of the individual packages.

Sometimes the supplier has to advise the customer when the goods are ready for dispatch, or send him progress reports from time to time, informing him how his order is getting along and when he may expect delivery.

Invoices

Invoices or bills are usually rendered when the goods are delivered, but they may also be made out before or after delivery. Most invoices are prepared on printed forms with the firm's letterhead (invoice forms, US: billheads). A complete invoice contains the following details:

1. Name and address of buyer.

2. Date and number of invoice.

3. Date and number of order.

4. Quantity and description of the goods; marks, numbers, etc., of packages.

5. Unit price and extension; deductions, additional charges, etc.; total invoice amount.

6. Miscellaneous details, such as method of transport, terms of payment, etc.

In foreign trade the regular invoice is known as a commercial invoice to distinguish it from a customs invoice and a consular invoice. It has to be made out with great care, as it forms the basis on which the other export documents are prepared. Commercial invoices are often required for customs and other official purposes and must therefore conform to the regulations of the importing country. These regulations may require that the commercial invoice be signed by the exporter, be made out in a certain number of copies, bear a special declaration by the exporter, be certified by a chamber of commerce, etc.

A special kind of invoice is the pro-forma invoice. It is used when the buyer is required to pay in advance, when goods are sent on approval, or consigned to an agent for sale. A foreign buyer may need a pro-forma invoice in order to be able to apply for an import license, or to instruct his banker to open a documentary credit. A pro-forma invoice is often sent to a customer to show him what the cost of the goods would be if he decided to buy them. In this case the pro-forma invoice is merely a special form of quotation.