What this template includes
- Buyer
- Your company name, address, IEC, GSTIN and logo.
- Supplier
- Supplier name, full address and country, contact and email.
- PO details
- PO number, date, supplier’s offer reference and currency.
- Items
- Description, HS code, quantity, unit, unit price and amount in the order currency.
- Shipping terms
- Incoterm with named place, port of loading, port of discharge, mode of shipment and latest shipment date.
- Payment terms
- Advance, letter of credit, documentary collection or open account, with timing.
- Documents required
- Commercial invoice, packing list, bill of lading or airway bill, certificate of origin and any test or inspection certificates.
Example use case (illustrative)
A Chennai electronics assembler orders 20,000 connectors from a supplier in Shenzhen. The PO is in US dollars, uses FOB Shenzhen, names Chennai port as the port of discharge, sets the latest shipment date, and asks for 30% advance with the balance against a copy of the bill of lading.
It lists the documents the supplier must send: commercial invoice, packing list, bill of lading and a certificate of origin, so the importer’s customs broker can file the bill of entry without chasing paperwork.
How to fill in the International purchase order
- Set the currency and references. Choose the order currency and quote the supplier’s offer or quotation reference.
- Describe goods with HS codes. Give clear descriptions and HS codes so classification is agreed upfront.
- Choose the Incoterm. Enter the Incoterm with its named place and edition, for example “FOB Shenzhen, Incoterms 2020”.
- Add shipment and payment terms. Name the ports, mode, latest shipment date and how and when you will pay.
- List required documents. Tell the supplier exactly which documents must accompany or follow the shipment, then send the PDF.
Incoterms in brief
Incoterms are standard trade terms published by the International Chamber of Commerce. They set out who arranges and pays for each leg of transport and insurance, and at what point risk passes from seller to buyer. They do not deal with when ownership passes or when payment is due. Always write the term with a named place and the edition, as the current edition is Incoterms 2020.
- EXW (Ex Works): you collect from the supplier’s premises and handle almost everything.
- FOB (Free On Board): the supplier delivers onto the vessel at the named port of loading; sea freight only.
- CFR / CIF: the supplier pays sea freight to the named destination port; CIF also includes insurance. Risk still passes at loading.
- DAP (Delivered At Place): the supplier delivers to a named place, ready for unloading; you handle import clearance and duties.
- DDP (Delivered Duty Paid): the supplier also clears import and pays duties, which is uncommon for imports into India.
Import formalities to plan for
Importers in India generally need an Importer-Exporter Code (IEC). Customs duty and IGST on imports are assessed when the bill of entry is filed, using the invoice value, classification and origin. Some goods need licences, certificates or standards approvals before they can be cleared. Check the current requirements for your product with your customs broker before you place the order, not after the goods land.