UNIT 5: ORDERS
Foreign Trade University
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OBJECTIVES
• Understand legal position of the buyer and seller
when placing an order
• Write order letter, cover letter of order,
acknowledging an order and advice dispatch
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5.2. ORDER LETTER
An order letter is the one that is written by a company or the person
concerned who are supposed to place the request of purchase from
another company. The letter is written after doing careful research
about the desired product or service.
• When order by letter:
• Include full details of description, quantities and price and quote catalogue
number, if any.
• State your requirements as to delivery place, date, mode of transport.
• Confirm the terms of payment agreed.
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5.2.1. LEGAL POSITION OF THE PARTIES
A seller who has quoted is not legally bound to accept the buyer’s order ,
unless the quotation was made as a firm offer. The buyer’s order is an offer
to buy and the seller or offerer is not legally bound to hornour their
agreement.
• The buyer’s obligations
• To accept the goods supplied, provided the comply with the terms of order.
• To pay for the goods at the time of delivery, unless there is an agreement to the
contrary.
• To check the goods.
• The seller’s obligations
• To deliver the goods ordered at the agreed time.
• To guarantee the goods to be free from faults.
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5.2.2. PARTS OF AN ORDER
Opening
Express thanks for an offer
and/or pleasure in placing
an order.
Main message
Mention at least 7 terms and
conditions.
Closing
Express hope for
acknowledgment or sale
confirmation.
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5.2.2. PARTS OF AN ORDER (CONT.)
• Opening: Express thanks for an offer and/or pleasure in placing an
order.
• We thank you for your offer No. 204/PP of (dated) 15 September 20__ and
are pleased (glad) to place an order on the following terms and conditions:
• … and have pleasure in placing an order.
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5.2.2. PARTS OF AN ORDER (CONT.)
Main Message: Mention at least 7 terms and conditions:
1.
2.
3.
4.
5.
6.
7.
Name of the goods
Quality and specification
Quantity
Details of prices
Packing and marking
Delivery
Terms of payment
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5.2.2. PARTS OF AN ORDER (CONT.)
Method of payment
• Payment: (to be made/effected) in US dollars (pounds sterling) by an
irrevocable letter of credit (at sight/at 60 days’ sight) to be opened with
(via/through/at) Lloyd’s Bank, London, 15 days before (prior to) the
shipment, valid for 45 days, to the account of Vietcombank, in your favour
(in favour of the seller) for the total value of the goods to be shipped.
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5.2.2. PARTS OF AN ORDER (CONT.)
• Documents required:
• Commercial invoice
• Full set Bill of lading
• Packing list
• Weight list
• Inspection certificate
• Certificate of origin
• Insurance Policy/ Certificate
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5.2.2. PARTS OF AN ORDER (CONT.)
• Bill of exchange
• Sight draft: a bill of exchange payable immediately upon acceptance (accept to pay)
• Draft at 60 days (after) sight: payable within 60 days of acceptance (60 D/A)
• For example:
We should be glad if you would agree to draw on us at 30 D/A (at 30 days)
for the amount of
• Documentary collection
• Documents against payment (D/P)
• Documents against acceptance (D/A)
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5.2.2. PARTS OF AN ORDER (CONT.)
• Closing: Expressing hope for future business
• We look forward to your early confirmation of our order (confirmation of
sales).
• We look forward to having your confirmation/ acknowledgement soon.
• Please confirm your acceptance of this order.
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5.3. COVER LETTER OF ORDER
Opening
Refer to the previous
correspondence and
enclose order form
Main message
Confirm some terms and
conditions: Payment,
discount, delivery, method
of delivery, packing etc.
Closing
Hope for acknowledgement
of sales
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5.3. COVER LETTER OF ORDER
Opening:
• Acknowledge receipt of the offer
• Express pleasure in enclosing an order form
• We thank you for your letter/offer of … for … and are pleased to enclose an
order on the following terms and conditions.
• … and take pleasure in enclosing our order No…
• Please find enclosed our order No. DR435 for (diesel engines).
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5.3. COVER LETTER OF ORDER (CONT.)
Main Message:
• Repeat important terms:
• We would like to make clear the following points.
• We would like to emphasize (draw your attention to) the following points.
• In addition, we would like to draw your attention to the following points
• Give explanation, comments or more information: prices, delivery,
samples, discounts, other goods…:
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5.3. COVER LETTER OF ORDER (CONT.)
• Delivery time:
• It is essential that (We suggest that) the above items be delivered in midFebruary at the latest, in time for distribution to our agents across
(throughout) the country for sale in early summer.
• We would appreciate your special attention to the delivery date as we
urgently need the goods for our traditional New Year sales period. We reserve
the right to refuse taking delivery of the goods if they arrive at Haiphong Port
after 10 January 20__.
• It is essential that the goods are delivered before the beginning of November,
in time for the Christmas sales period.
• Delivery before 1st May is a firm condition of this order, and we reserve the
right to refuse goods delivered after that time.
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5.3. COVER LETTER OF ORDER (CONT.)
• Discounts:
• We have decided to accept the 15% discount you offered …
• We would like to thank you for your trade discount of 15%
• We would like to thank you for the 30% trade discount and 10% quantity
discount you allowed us.
• We would like to say that the 25% trade discount is quite satisfactory.
• Although we anticipated a higher trade discount than15%, we will place an
initial order and hope that the discount can be reviewed in the near future.
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5.3. COVER LETTER OF ORDER (CONT.)
• Packing and marking:
• Each piece (item) is to be individually wrapped in thick paper, carefully packed
in straw, and shipped in 10 wooden crates.
• The goods are to be (should be) wrapped in water-proof paper and packed in
cartons.
• Marked with the buyer’s address, order number, crate dimensions and the
words: “CERAMICS”, “FRAGILE”, “HANDLE WITH CARE”, and numbered from 1
to 10.
• Marked with the buyer’s address, order number, carton dimensions
(measurements), and the words: “KEEP DRY” and “HANDLE WITH CARE”.
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5.3. COVER LETTER OF ORDER (CONT.)
• Terms of payment
• We would like to confirm that having shipped the goods you will draw on us at 30
D/S and send the draft together with a full set of shipping documents to our
correspondent bank, Northminster Bank (City Branch), Deal Street, Birmingham B3
ISQ, UK, which will transfer them to Vietcombank. Payment is on D/A basis as we
agreed on (over) the telephone yesterday.
• As we agreed on (over) the telephone yesterday, we would like to confirm that
payment is on a D/A basis, and that after shipping the goods you will draw on us a
60-day draft and send it together with a full set of shipping documents to our
correspondent bank, Singapore Commercial Bank, which will transfer them to
Vietcombank.
• As agreed you will draw on us at 30 days, D/A, with the documents being sent to our
bank, the bank for foreign trade of Vietnam, Vietcombank.
• We would like to confirm that payment is to be made by irrevocable L/C for 90 days.
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5.3. COVER LETTER OF ORDER (CONT.)
Closing
• We will place further orders if this one is complete to our satisfaction.
• If this trial order is met satisfactorily, it is likely to lead to further
business in the near future.
• Remember to mention the order and other documents you want to
enclose in the Enclosure section.
• For example:
Enc. 1. Order No. BN07
2. List of the goods
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5.4. ACKNOWLEDGING THE ORDER
An acknowledgment can be divided into three parts:
• Opening: Thank the customer for the order
• Body:
•
•
•
•
Review the contents.
Give delivery details.
Recap the cost.
Ask for additional information if anything is not clear, such as:
• a shipping address if, for example, a post office box was used on a form.
• an alternate form of payment, if a credit card was denied.
• more details for the order to be filled (such as a color or size)…
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5.4. ACKNOWLEDGING THE ORDER (CONT.)
• Closing:
• Appreciation to their orders and the opportunity to build goodwill.
• A brief paragraph about your company, your service, or your reputation.
• Offer your customers a discount on future purchases as a way of thanking
them for their business.
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5.4. ACKNOWLEDGING THE ORDER (CONT.)
Examples:
• We thank your order of ….(date) and will dispatch the goods by …. (transportation)
• We are pleased to acknowledge your order of ….(date) and will dispatch the goods by ….
• We acknowledge with thank your order No…of ….(date) and enclose our pro-forma
invoice no....
• We are pleased to let you know that the good included in your order no ….of ….(date)
will be dispatched today by…
• Thank you for your order. We appreciate your business and look forward to providing you
with… (product). Unfortunately, your order is on hold, because there is a problem with
your… In order to fill your order, we do need the…. Would you please contact… and then
let us know how to proceed?
• We feel sure that you will find these goods satisfactory and perfectly suited to your
needs.
• We look forward to receiving further orders from you in future.
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5.5. ADVISING DISPATCH
• When the goods are dispatched, the buyer should be notified, either by
advice note or by letter stating what has been sent, when the goods were
sent and reached the destination, the means of transport used, so that he
can make the necessary arrangements to get the goods.
• Examples:
• Your order No. … is already on board the SS Mitsu Maru, sailing from Kobe on 16 May
and arriving Haiphong, Vietnam on 28 May. The shipping documents have been
forwarded to your bank for collection.
• We are pleased to advise you that the watches you ordered – No. 33589/w- will be
on flight BA165 leaving Zurich at 11.00, 9 August, arriving Manchester 13.00. Pleased
find enclosed air waybill Dc 13445/9 and copies of invoice A223/6, which you will
need for collection.
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5.6. DECLINING THE ORDER
• Reasons for declining an order
• The seller is not satisfied with the buyer's terms and conditions.
• The goods are not available.
• The buyer's credit is suspected.
• How to write letters rejecting orders?
• Regret your inability to meet the buyer's needs.
• Propose an alternative product, if one is available.
• When the seller receives an order he cannot meet for some reasons, he
mays:
• Send a substitute.
• Made a counter offer.
• Regretfully decline the order.
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5.7. PRACTICE AND HOMEWORK
PRACTICE 1: Công ty anh/chị, công ty TNHH Công Nghệ Cao (High Technology Co. Ltd) ở
địa chỉ số 26 phố Bà Triệu, quận Hai Bà Trưng, Hà Nội, điện thoại và fax 0432-8269743,
có số tham chiếu Hl/th có nhận được chào hàng số FO/203 của công ty TNHH British
Exporter (Brexport), địa chỉ West House, 12 Green Lane, Luân Đôn JC 29, Vương Quốc
Anh, có số tham chiếu JS/ml, chào bán mặt hàng máy giặt tự động.
Anh/chị thay mặt công ty viết một bức thư gửi kèm với đơn hàng số PO/35 đặt mua 100
chiếc máy giặt tự động với những nội dung chính sau:
• Cảm ơn thư chào hàng của họ và xin gửi kèm thư này là đơn hàng số PO/35 đặt mua
100 chiếc máy giặt tự động theo mã số AWM/075 ghi trong catalogue và bảng giá mà họ
gửi kèm với chào hàng.
• Lưu ý họ rằng nếu máy giặt theo mã số trên mà không có sẵn để giao ngay thì họ có thể
giao hàng thay thế theo mã số AWM/356 có cùng tính năng.
• Thể hiện rằng bên công ty anh/chị tạm thời hài lòng với chiết khấu thương mại 15% và
chiết khấu số lượng 10% mà họ đưa ra trong đơn hàng này và hi vọng sẽ được chiết
khấu thương mại 20% trong những đơn hàng sau.
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5.7. PRACTICE AND HOMEWORK (CONT.)
• Thanh toán bằng đồng đô la Mỹ, bằng tín dụng thư không hủy ngang, trả tiền
ngay, được mở qua ngân hàng Ngoại Thương Việt Nam 15 ngày trước ngày giao
hàng, có giá trị 45 ngày vào tài khoản của ngân hàng Natwest, Luân Đôn cho
người bán được hưởng toàn bộ giá trị hàng hóa được giao.
• Giao hàng trước ngày 22 tháng 12 là điều kiện cố định của đơn đặt hàng này
nên công ty anh/chị có quyền từ chối nhận hàng nếu giao chậm hơn.
• Ngay sau khi nhận được phiếu báo gửi hàng, bên anh/chị sẽ gửi một hối phiếu
ngân hàng cho ngân hàng bên họ.
• Đề nghị hộ cung cấp cho mỗi máy giặt 2 bản hướng dẫn bằng Tiếng Anh cho
người sử dụng theo như 2 bên đã thỏa thuận.
• Tỏ ý mong muốn họ đặc biệt chú ý đến việc thực hiện đơn hàng đầu tiên này để
quan hệ buôn bán giữa hai bên sẽ phát triển hơn trong tương lai.
• Người ký thư là ông Nguyễn Minh, Tổng giám đốc công ty TNHH Công Nghệ Cao
• Ngoài những nội dung trên, anh/chị có thể thêm một số chi tiết khác để đảm bảo hình
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thức, văn phong của một bức thư giao dịch quốc tế.
5.7. PRACTICE AND HOMEWORK (CONT.)
PRACTICE 2: Ngày 14/9/20-- bà Lê Thu Hiền giám đốc công ty XNK Gốm Thái
Dương (Thái Dương Pottery Import and Export Company) địa chỉ K1/10/3
Hòa An, Biên Hòa, Đồng Nai, điện thoại và fax: 84-51-84435 nhận được thư
chào hàng đề ngày 12/9/20-- của công ty TNHH Grace Bros, 175 Broadway,
Chippendale, Sydney, Australia chào bán các mặt hàng gốm cao cấp. Sau khi
nghiên cứu chào hàng, bà Thu Hiền quyết định gửi một đơn hàng đặt mua
một số mặt hàng chọn lọc trong catalog mà họ gửi cùng thư chào hàng.
Bà Thu Hiền yêu cầu anh/chị viết một bức thư gửi kèm với đơn hàng số
PO/024 để bà ký với những nội
dung sau:
• Về đóng gói yêu cầu người bán dùng giấy mềm bọc riêng từng thứ, đóng
gói trong 15 thùng gỗ được lót cẩn thận, Ngoài thùng ghi rõ địa chỉ người
mua, số đơn hàng và các dòng chữ: “Đồ dễ vỡ”, “Yêu cầu nhẹ tay” và đánh
số thùng từ 1 đến 15.
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5.7. PRACTICE AND HOMEWORK (CONT.)
• Xác nhận lại điều khoản thanh toán: bằng tín dụng thư không thể hủy
ngang tính bằng đôla Úc mở qua ngân hàng Ngoại thương Việt Nam 30
ngày trước khi giao hàng qua tài khoản ngân hàng thương mại Australia
vào tài khoản cho người bán được hưởng 100% giá trị chuyến hàng được
giao.
• Đề nghị người bán quan tâm đặc biệt đến thời hạn. Nếu sau thời hạn
10/1/2016 mà hàng chưa về đến cảng Hải Phòng thì người mua có quyền
từ chối nhận hàng.
• Lưu ý người bán đây chỉ là đơn hàng đặt mua thử, nếu việc thực hiện đơn
hàng này tốt đẹp thì người mua chắc chắn sẽ đặt mua tiếp với số lượng lớn
hơn.
• Đề nghị người bán gửi xác nhận bán sớm.
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