Importer prepares and sends the purchase order to the exporter, who is expected to check the details.
If exporter confirms the purchase order by sending back a signed copy to the importer, then the purchase order becomes a binding legal document for both parties.
By preparing a purchase order; importer mainly defines and conveys following information to the exporter:
- the price of the goods
- description of goods
- quantity and quality of the goods
- packaging
- delivery terms
- delivery period
- modes of transport
- payment method
- transport company details, that will pick up the goods from the exporter, in case freight will be arrange by the importer.