What is a Quotation?
An export transaction usually begins by they buyer initiating the request for quote process. As a part of this process, the seller either completes a buyer quote form or sends an export quote. The quotation document acts as a response to buyer’s quote request and contains information such as quantities, prices, shipping and payment terms.
When to create Quotation?
A quotation is created upon buyer’s quote request at the very initial stages of the shipment. It is a response to buyer requesting for a quote but usually contains more information than just price. A quotation document is similar to proforma and commercial invoice regarding the information it carries but serves a different purpose. The buyer can use the quotation to then renegotiate with the seller. The renegotiation can be on a combination of price, payment and shipping terms. Once the quotation is accepted the buyer, the seller creates a proforma invoice as a first step in formalizing the agreement.
What’s included on a Quotation document?
Shipper: Name and address of the shipper
Consignee: Name and address of the consignee (receiving party)
Invoice Date: Date invoice was issued
Method of Shipping: This could be SEA, AIR, TRUCK or RAIL
Type of Shipment: FCL (Full Container Load), LCL (Less Than a Container Load), FTL (Full Truck Load), LTL (Less than a truck load), Air, Break Bulk
Country of Origin: Country where the goods were manufactured
Country of Destination: Country where goods will be finally delivered (Usually the country where the buyer resides)
Port of Loading and Port of Discharge: Seaport or airport in respective loading and discharge locations
Departure Date: Date of Delivery or handover. This depends on the inco-terms
Incoterms: Could vary from EXW, FOB, CFR, DDP, DAP. Checkout our detailed guide on incoterms.
Product details: Product descriptions, SKU numbers, quantity, price
Bank Details: Account information including account number and sort codes to the account you would like the buyer to pay to
Additional charges and discounts: Charges could include value added services, freight or discounts your sellers are offering
Name and signature of authorized signatories