EXPORTING Departments & Agencies       Merchandise       Administrative Procedures       Courts       Other Agency Rules       Trade Actions       Goods Requiring Special Care       Transactional

TRANSACTIONAL

Supply Contracts

A supply contract is an agreement entered into between a U.S. exporter and a foreign purchaser in which the foreign purchaser agrees to buy a portion of its needs from the U.S. exporter and the U.S. exporter agrees to sell certain minimum quantities to the foreign purchaser.  While many U.S. exporters and foreign purchasers operate without benefit of a contract, a prudent U.S. exporter/foreign purchaser may wish to enter into these contracts to guarantee the price, quality and availability of needed products.

Invoices

An invoice is the document reflecting the sale of goods or services between two parties.  It is a necessary part of any import transaction.  If an actual invoice does not exist, a pro forma invoice must be crafted.

Letters of Credit

A letter of credit is a device by which a payment can be made by the buyer after the seller has performed its obligations.  It is a conditional agreement to pay where the instrument of payment is triggered by some external act.

In export transactions, the negotiation of the Letter of Credit often requires the presentation of a bill of lading proving that the goods were placed on a vessel.