Definition: A Purchase Order (PO) is a legally binding commercial document issued by the buyer to the seller, used to specify the core transaction terms of ordered goods, including name, specifications, quantity, unit price, total price, delivery date, payment method, trade terms, etc. Its core role is: as a simplified form of the sales contract between buyer and seller or a written evidence of offer/acceptance, it is the basis for subsequent production arrangements, vessel chartering and booking, customs declaration and inspection, letter of credit opening, foreign exchange settlement, and dispute resolution. In international trade, the PO is a key link connecting inquiry, offer, counter-offer, and formal contract, and is also the starting point for the review of document consistency and goods-document consistency.
Definition: A Purchase Order (PO) is a legally binding commercial document issued by the buyer to the seller, used to specify the core transaction terms of ordered goods, including name, specifications, quantity, unit price, total price, delivery date, payment method, trade terms, etc. Its core role is: as a simplified form of the sales contract between buyer and seller or a written evidence of offer/acceptance, it is the basis for subsequent production arrangements, vessel chartering and booking, customs declaration and inspection, letter of credit opening, foreign exchange settlement, and dispute resolution. In international trade, the PO is a key link connecting inquiry, offer, counter-offer, and formal contract, and is also the starting point for the review of document consistency and goods-document consistency.
🎯 Purpose
Purpose: The purchase order is an indispensable initial document in international trade. For the buyer, it is used for internal approval, budget control, tracking order execution, and goods acceptance; for the seller, it is the basis for arranging production, purchasing raw materials, applying for export licenses, and booking shipping space; for the bank, it is one of the reference documents for reviewing whether the letter of credit is compliant; for customs and freight forwarders, it is an important reference for confirming the genuine transaction background of goods, declaration elements, and calculating taxes and fees. In export declaration, import customs clearance, foreign exchange verification, export tax rebate, and other stages, the purchase order is often used together with commercial invoice, packing list, contract, etc., to ensure transaction authenticity and compliance.
Purpose: The purchase order is an indispensable initial document in international trade. For the buyer, it is used for internal approval, budget control, tracking order execution, and goods acceptance; for the seller, it is the basis for arranging production, purchasing raw materials, applying for export licenses, and booking shipping space; for the bank, it is one of the reference documents for reviewing whether the letter of credit is compliant; for customs and freight forwarders, it is an important reference for confirming the genuine transaction background of goods, declaration elements, and calculating taxes and fees. In export declaration, import customs clearance, foreign exchange verification, export tax rebate, and other stages, the purchase order is often used together with commercial invoice, packing list, contract, etc., to ensure transaction authenticity and compliance.
📋 Key Fields
Purchase Order Number (PO No.): The buyer's internal unique identifier, usually composed of letters and numbers, used to track the order throughout the process. It should be ensured to be consistent with references in subsequent invoices, packing lists, letters of credit, and other documents.. 常见错误: Duplicate or missing numbers; inconsistent references with subsequent documents; handwritten alterations making it unrecognizable. Order Date (Date): The date the buyer issues the order, which is an important benchmark for determining the delivery date, letter of credit validity period, and contract formation time. The format is recommended to use the international standard format (e.g., YYYY-MM-DD).. 常见错误: Confusing date formats (e.g., DD/MM/YYYY confused with MM/DD/YYYY); date later than the letter of credit issuance date. Buyer/Seller Name and Address (Buyer/Seller): Must fill in the complete legal name, detailed address, and contact information. The buyer is usually the importer, and the seller is the exporter. The address should be precise to the street number to facilitate logistics and customs clearance.. 常见错误: Use of abbreviations or incorrect spelling; incomplete address causing customs clearance delays; failure to indicate the country. Description of Goods: Detailed listing of the goods name, specifications, model, material, composition, use, etc. It should be consistent with HS code classification and import country access requirements, avoiding vague descriptions.. 常见错误: Description too simple (e.g., "machine"); specifications and model inconsistent with the actual goods; failure to indicate brand or origin. Quantity: Clearly specify the unit of measurement (e.g., PCS, SETS, KGS, CBM) and the specific quantity. Note whether the more or less clause is allowed and whether it is consistent with the letter of credit provisions.. 常见错误: Unclear unit (e.g., "box" without specifying quantity per box); quantity inconsistent with the packing list; ignoring more or less limits. Unit Price & Total Amount: Indicate the currency, unit price, trade terms (e.g., FOB, CIF), and total amount. The price should include or clearly exclude commission, discount, packaging fees, etc.. 常见错误: Currency not indicated or confused; missing trade terms; incorrect total price calculation; failure to indicate price validity period. Trade Terms: Adopt internationally accepted rules such as INCOTERMS 2020 to clarify the point of risk and cost division. For example, FOB Shanghai, CIF New York, etc., and the version must be indicated.. 常见错误: Terms inconsistent with the contract; version not indicated; place after the term not specific. Delivery Date & Place: Specify the latest shipment date, delivery place, or port of destination. It should be coordinated with the letter of credit shipment date and shipping schedule to avoid delays.. 常见错误: Vague delivery date (e.g., "as soon as possible"); contradiction with the letter of credit shipment date; unclear place. Payment Terms: Clearly specify telegraphic transfer (T/T), letter of credit (L/C), documentary collection (D/P, D/A), etc., and indicate the deposit ratio, payment period, letter of credit type, and issuing bank.. 常见错误: Payment method inconsistent with the contract; letter of credit terms not listed; deposit ratio not written. Packing Requirements: Specify packaging materials, methods, shipping marks, environmental requirements, etc. It must comply with the import country's wood packaging quarantine and environmental regulations.. 常见错误: Failure to indicate that wood packaging requires IPPC marking; shipping marks inconsistent with the packing list; ignoring environmental restrictions. Mode of Transport: Indicate sea, air, land, express, etc., and whether partial shipment and transshipment are allowed. It should match the trade terms and delivery date.. 常见错误: Transport mode conflicts with trade terms; failure to indicate whether partial shipment/transshipment is allowed. Insurance: Under terms such as CIF and CIP, the insured, type of insurance, insured amount, and insurance company must be clearly specified. Usually the insured amount is 110% of the invoice value.. 常见错误: Type of insurance not clear (e.g., "all risks" without specifying clauses); insufficient insured amount; insurance company qualifications not compliant. Documents Required: List the documents the seller must provide, such as commercial invoice, packing list, bill of lading, certificate of origin, quality inspection certificate, etc., and indicate the number of copies and language.. 常见错误: Missing document types; insufficient copies; failure to require a specific certificate of origin format. Inspection & Claims: Specify quality inspection standards, inspection agency, claim period, and method. Common ones include SGS, CIQ inspection, and the claim period is usually 30-60 days after arrival of goods.. 常见错误: Vague inspection standards; too short claim period; failure to designate an inspection agency. Signature & Seal: The buyer's authorized representative signs and affixes the company seal to ensure the legal effect of the order. Electronic orders require a reliable electronic signature.. 常见错误: No signature or seal; signatory not authorized; electronic signature not compliant with local law.
Purchase Order Number (PO No.)
The buyer's internal unique identifier, usually composed of letters and numbers, used to track the order throughout the process. It should be ensured to be consistent with references in subsequent invoices, packing lists, letters of credit, and other documents.
⚠️ Duplicate or missing numbers; inconsistent references with subsequent documents; handwritten alterations making it unrecognizable.
Order Date (Date)
The date the buyer issues the order, which is an important benchmark for determining the delivery date, letter of credit validity period, and contract formation time. The format is recommended to use the international standard format (e.g., YYYY-MM-DD).
⚠️ Confusing date formats (e.g., DD/MM/YYYY confused with MM/DD/YYYY); date later than the letter of credit issuance date.
Buyer/Seller Name and Address (Buyer/Seller)
Must fill in the complete legal name, detailed address, and contact information. The buyer is usually the importer, and the seller is the exporter. The address should be precise to the street number to facilitate logistics and customs clearance.
⚠️ Use of abbreviations or incorrect spelling; incomplete address causing customs clearance delays; failure to indicate the country.
Description of Goods
Detailed listing of the goods name, specifications, model, material, composition, use, etc. It should be consistent with HS code classification and import country access requirements, avoiding vague descriptions.
⚠️ Description too simple (e.g., "machine"); specifications and model inconsistent with the actual goods; failure to indicate brand or origin.
Quantity
Clearly specify the unit of measurement (e.g., PCS, SETS, KGS, CBM) and the specific quantity. Note whether the more or less clause is allowed and whether it is consistent with the letter of credit provisions.
⚠️ Unclear unit (e.g., "box" without specifying quantity per box); quantity inconsistent with the packing list; ignoring more or less limits.
Unit Price & Total Amount
Indicate the currency, unit price, trade terms (e.g., FOB, CIF), and total amount. The price should include or clearly exclude commission, discount, packaging fees, etc.
⚠️ Currency not indicated or confused; missing trade terms; incorrect total price calculation; failure to indicate price validity period.
Trade Terms
Adopt internationally accepted rules such as INCOTERMS 2020 to clarify the point of risk and cost division. For example, FOB Shanghai, CIF New York, etc., and the version must be indicated.
⚠️ Terms inconsistent with the contract; version not indicated; place after the term not specific.
Delivery Date & Place
Specify the latest shipment date, delivery place, or port of destination. It should be coordinated with the letter of credit shipment date and shipping schedule to avoid delays.
⚠️ Vague delivery date (e.g., "as soon as possible"); contradiction with the letter of credit shipment date; unclear place.
Payment Terms
Clearly specify telegraphic transfer (T/T), letter of credit (L/C), documentary collection (D/P, D/A), etc., and indicate the deposit ratio, payment period, letter of credit type, and issuing bank.
⚠️ Payment method inconsistent with the contract; letter of credit terms not listed; deposit ratio not written.
Packing Requirements
Specify packaging materials, methods, shipping marks, environmental requirements, etc. It must comply with the import country's wood packaging quarantine and environmental regulations.
⚠️ Failure to indicate that wood packaging requires IPPC marking; shipping marks inconsistent with the packing list; ignoring environmental restrictions.
Mode of Transport
Indicate sea, air, land, express, etc., and whether partial shipment and transshipment are allowed. It should match the trade terms and delivery date.
⚠️ Transport mode conflicts with trade terms; failure to indicate whether partial shipment/transshipment is allowed.
Insurance
Under terms such as CIF and CIP, the insured, type of insurance, insured amount, and insurance company must be clearly specified. Usually the insured amount is 110% of the invoice value.
⚠️ Type of insurance not clear (e.g., "all risks" without specifying clauses); insufficient insured amount; insurance company qualifications not compliant.
Documents Required
List the documents the seller must provide, such as commercial invoice, packing list, bill of lading, certificate of origin, quality inspection certificate, etc., and indicate the number of copies and language.
⚠️ Missing document types; insufficient copies; failure to require a specific certificate of origin format.
Inspection & Claims
Specify quality inspection standards, inspection agency, claim period, and method. Common ones include SGS, CIQ inspection, and the claim period is usually 30-60 days after arrival of goods.
⚠️ Vague inspection standards; too short claim period; failure to designate an inspection agency.
Signature & Seal
The buyer's authorized representative signs and affixes the company seal to ensure the legal effect of the order. Electronic orders require a reliable electronic signature.
⚠️ No signature or seal; signatory not authorized; electronic signature not compliant with local law.
⚠️ Common Mistakes
The order number is inconsistent with references in subsequent commercial invoices, packing lists, bills of lading, and other documents, causing bank document examination discrepancies or customs doubts about transaction authenticity. The goods description is too vague, without specifying specifications, models, materials, and uses, leading to incorrect HS code classification, affecting tariffs and regulatory conditions. Trade terms conflict with the contract or letter of credit provisions, or the INCOTERMS version is not indicated, causing disputes over risk and cost division. Payment terms are vaguely expressed, such as "T/T after shipment" without specifying the exact number of days, or the letter of credit terms are inconsistent with the order, causing foreign exchange collection risks. The delivery date does not align with the letter of credit shipment date and shipping schedule, or it does not indicate whether partial shipment and transshipment are allowed, causing overdue default. Packaging requirements do not consider the import country's wood packaging quarantine and environmental regulations, causing goods to be returned or destroyed. Document requirements omit key certificates (such as certificate of origin, quality inspection certificate), or do not indicate the number of copies and language, affecting customs clearance and settlement. The buyer's and seller's names and addresses are incomplete or misspelled, causing errors in the preparation of bills of lading, insurance policies, and other documents, resulting in amendment fees and delays.
⚠️ The order number is inconsistent with references in subsequent commercial invoices, packing lists, bills of lading, and other documents, causing bank document examination discrepancies or customs doubts about transaction authenticity.
⚠️ The goods description is too vague, without specifying specifications, models, materials, and uses, leading to incorrect HS code classification, affecting tariffs and regulatory conditions.
⚠️ Trade terms conflict with the contract or letter of credit provisions, or the INCOTERMS version is not indicated, causing disputes over risk and cost division.
⚠️ Payment terms are vaguely expressed, such as "T/T after shipment" without specifying the exact number of days, or the letter of credit terms are inconsistent with the order, causing foreign exchange collection risks.
⚠️ The delivery date does not align with the letter of credit shipment date and shipping schedule, or it does not indicate whether partial shipment and transshipment are allowed, causing overdue default.
⚠️ Packaging requirements do not consider the import country's wood packaging quarantine and environmental regulations, causing goods to be returned or destroyed.
⚠️ Document requirements omit key certificates (such as certificate of origin, quality inspection certificate), or do not indicate the number of copies and language, affecting customs clearance and settlement.
⚠️ The buyer's and seller's names and addresses are incomplete or misspelled, causing errors in the preparation of bills of lading, insurance policies, and other documents, resulting in amendment fees and delays.
🌍 Country Requirements
United States: U.S. Customs requires the purchase order as auxiliary proof of transaction authenticity, and it is recommended to list the buyer's and seller's EIN or tax number. If regulated products involving FDA, FCC, CPSC, etc. are involved, the order should indicate the relevant certification requirements. Wood packaging must comply with ISPM 15 standards. The United States has strict requirements for origin marking, and the order should clearly state the origin. Specific regulations are subject to the latest announcements of U.S. Customs and Border Protection (CBP). European Union: The European Union requires that purchase order information be consistent with the commercial invoice and customs declaration. The order should indicate the goods' HS code and origin to apply tariffs and trade remedy measures. For products involving CE certification, the order should require a declaration of conformity. Wood packaging must comply with ISPM 15. EU anti-dumping and countervailing duty orders may affect the order's price terms. Specific requirements are subject to the latest announcements of the EU Customs Code and member state customs. Japan: Japanese customs requires the purchase order or contract to be provided at the time of import declaration to confirm the transaction price. The order should detail the goods specifications, quantity, unit price, and trade terms. Japan has strict access requirements for food, agricultural products, cosmetics, etc., and the order should indicate compliance with Japan's positive list system, etc. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of Japanese customs. South Korea: Korean customs requires the purchase order as a reference document for import declaration, and the order information must be consistent with the invoice and packing list. South Korea has specific requirements for certificates of origin, such as the China-Korea FTA certificate of origin for preferential tariff rates. The order should indicate whether an FTA certificate of origin is required. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of the Korea Customs Service. Middle East (Saudi Arabia/UAE): Saudi Arabia requires that imported goods must be accompanied by a commercial invoice and certificate of origin certified by the Saudi embassy in the exporting country, and the purchase order information must be consistent with these documents. Saudi SASO certification, UAE ECAS certification, etc. are mandatory requirements and should be indicated in the order. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of Saudi customs and the UAE Federal Customs Authority. Brazil: Brazilian import customs clearance requires the purchase order or contract, and the information must be consistent with the commercial invoice and bill of lading. Brazil has special requirements for import licenses, ANVISA (Health Surveillance Agency), etc., and the order should indicate the relevant licenses. Brazilian customs strictly investigates under-invoicing, and the order price should be genuine. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of the Brazilian Federal Revenue Service. India: Indian customs requires the purchase order to be provided at the time of import declaration, and the order should list the goods description, quantity, unit price, and trade terms. India has mandatory requirements for BIS certification, food safety, etc., which should be indicated in the order. India has specific format requirements for certificates of origin, such as providing the corresponding certificate of origin to enjoy preferential tariff rates. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of the Central Board of Indirect Taxes and Customs of India. Russia: Russian customs requires the purchase order or contract to be provided at the time of import, and it must be translated into Russian or accompanied by a Russian translation. The order information must be consistent with the invoice and packing list. Russia has mandatory requirements for EAC certification, GOST-R, etc., which should be indicated in the order. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of the Federal Customs Service of Russia.
United States
U.S. Customs requires the purchase order as auxiliary proof of transaction authenticity, and it is recommended to list the buyer's and seller's EIN or tax number. If regulated products involving FDA, FCC, CPSC, etc. are involved, the order should indicate the relevant certification requirements. Wood packaging must comply with ISPM 15 standards. The United States has strict requirements for origin marking, and the order should clearly state the origin. Specific regulations are subject to the latest announcements of U.S. Customs and Border Protection (CBP).
European Union
The European Union requires that purchase order information be consistent with the commercial invoice and customs declaration. The order should indicate the goods' HS code and origin to apply tariffs and trade remedy measures. For products involving CE certification, the order should require a declaration of conformity. Wood packaging must comply with ISPM 15. EU anti-dumping and countervailing duty orders may affect the order's price terms. Specific requirements are subject to the latest announcements of the EU Customs Code and member state customs.
Japan
Japanese customs requires the purchase order or contract to be provided at the time of import declaration to confirm the transaction price. The order should detail the goods specifications, quantity, unit price, and trade terms. Japan has strict access requirements for food, agricultural products, cosmetics, etc., and the order should indicate compliance with Japan's positive list system, etc. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of Japanese customs.
South Korea
Korean customs requires the purchase order as a reference document for import declaration, and the order information must be consistent with the invoice and packing list. South Korea has specific requirements for certificates of origin, such as the China-Korea FTA certificate of origin for preferential tariff rates. The order should indicate whether an FTA certificate of origin is required. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of the Korea Customs Service.
Middle East (Saudi Arabia/UAE)
Saudi Arabia requires that imported goods must be accompanied by a commercial invoice and certificate of origin certified by the Saudi embassy in the exporting country, and the purchase order information must be consistent with these documents. Saudi SASO certification, UAE ECAS certification, etc. are mandatory requirements and should be indicated in the order. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of Saudi customs and the UAE Federal Customs Authority.
Brazil
Brazilian import customs clearance requires the purchase order or contract, and the information must be consistent with the commercial invoice and bill of lading. Brazil has special requirements for import licenses, ANVISA (Health Surveillance Agency), etc., and the order should indicate the relevant licenses. Brazilian customs strictly investigates under-invoicing, and the order price should be genuine. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of the Brazilian Federal Revenue Service.
India
Indian customs requires the purchase order to be provided at the time of import declaration, and the order should list the goods description, quantity, unit price, and trade terms. India has mandatory requirements for BIS certification, food safety, etc., which should be indicated in the order. India has specific format requirements for certificates of origin, such as providing the corresponding certificate of origin to enjoy preferential tariff rates. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of the Central Board of Indirect Taxes and Customs of India.
Russia
Russian customs requires the purchase order or contract to be provided at the time of import, and it must be translated into Russian or accompanied by a Russian translation. The order information must be consistent with the invoice and packing list. Russia has mandatory requirements for EAC certification, GOST-R, etc., which should be indicated in the order. Wood packaging must comply with ISPM 15. Specific requirements are subject to the latest announcements of the Federal Customs Service of Russia.
❓ FAQ
What is the difference between a purchase order and a sales contract?: A purchase order is an offer or order confirmation issued by the buyer, usually with concise terms; a sales contract is a formal legal document signed after mutual agreement, with more detailed terms. In international trade, if the parties have not signed a formal contract, the purchase order confirmed by the seller constitutes a valid contract. However, for complex transactions, it is recommended to use a formal contract as the basis, with the purchase order as an attachment or reference. Does a purchase order need to be signed and sealed by both parties?: To ensure legal effect, the purchase order usually needs to be signed and sealed by the buyer's authorized representative. The seller should also sign, seal, and return it when confirming the order. If an electronic order is used, it must comply with local electronic signature laws. Some countries' customs require the order to have both parties' signatures and seals to prove transaction authenticity. It is recommended to retain a signed and sealed version by both parties regardless of whether there is a formal contract. How to choose trade terms in a purchase order?: The choice of trade terms depends on the mode of transport, risk control, cost accounting, and the negotiating position of both parties. For sea freight, FOB, CIF, and CFR are commonly used; for air freight, FCA, CPT, and CIP are commonly used; for multimodal transport, DAP, DPU, and DDP are commonly used. It is recommended to use INCOTERMS 2020 and indicate the version. When choosing, consider insurance, customs clearance responsibilities, and cost division to avoid conflicts between the terms and other contract clauses. What should be done if the purchase order information is inconsistent with the letter of credit?: If the purchase order information is inconsistent with the letter of credit terms, the seller should immediately notify the buyer to amend the letter of credit, or request the buyer to issue a written confirmation accepting the discrepancy. Banks strictly examine documents based on the letter of credit, and the order is for reference only. If the letter of credit cannot be amended, the seller should assess the risk of discrepancies and, if necessary, require the buyer to provide a payment guarantee. Do not ship without authorization, as this may cause foreign exchange collection risks. Does a purchase order need to list the HS code?: It is recommended to list the HS code so that both buyer and seller can confirm tariffs, regulatory conditions, and trade control requirements. The HS code is classified by the seller based on the goods description and reviewed by the buyer. If the order does not list it, customs declaration may be delayed due to classification disputes. Note that the first 6 digits of the HS code are the same across countries, but the latter digits may differ, and the import country's customs classification shall prevail. How to specify the more or less clause for quantity in a purchase order?: If more or less is allowed, the order should specify the more or less ratio (e.g., ±5%) and the party with the option (buyer or seller). If the letter of credit has a more or less clause, the order should be consistent with it. If not specified, more or less is not allowed by default. The price for the more or less portion is usually calculated at the contract unit price unless otherwise agreed. What should be done if the purchase order is lost or needs to be modified?: If the purchase order is lost, you can apply to the buyer for a reissue and mark it as "reissued." Modifying the order requires mutual agreement and written confirmation, such as signing an order amendment or reissuing the order. When the modification involves key terms such as price, quantity, and delivery date, ensure consistency with the letter of credit and contract. All modification records should be retained for reference. What is the role of a purchase order in export tax rebate?: The purchase order is one of the documents for export tax rebate filing, used to prove transaction authenticity. Tax authorities may require the purchase order, contract, invoice, packing list, bill of lading, etc. The order information should be consistent with the export invoice and customs declaration. If the order is missing or the information is inconsistent, it may affect the tax rebate progress. It is recommended that enterprises properly keep the original or electronic version of the order for at least 5 years.
Q: What is the difference between a purchase order and a sales contract?
A: A purchase order is an offer or order confirmation issued by the buyer, usually with concise terms; a sales contract is a formal legal document signed after mutual agreement, with more detailed terms. In international trade, if the parties have not signed a formal contract, the purchase order confirmed by the seller constitutes a valid contract. However, for complex transactions, it is recommended to use a formal contract as the basis, with the purchase order as an attachment or reference.
Q: Does a purchase order need to be signed and sealed by both parties?
A: To ensure legal effect, the purchase order usually needs to be signed and sealed by the buyer's authorized representative. The seller should also sign, seal, and return it when confirming the order. If an electronic order is used, it must comply with local electronic signature laws. Some countries' customs require the order to have both parties' signatures and seals to prove transaction authenticity. It is recommended to retain a signed and sealed version by both parties regardless of whether there is a formal contract.
Q: How to choose trade terms in a purchase order?
A: The choice of trade terms depends on the mode of transport, risk control, cost accounting, and the negotiating position of both parties. For sea freight, FOB, CIF, and CFR are commonly used; for air freight, FCA, CPT, and CIP are commonly used; for multimodal transport, DAP, DPU, and DDP are commonly used. It is recommended to use INCOTERMS 2020 and indicate the version. When choosing, consider insurance, customs clearance responsibilities, and cost division to avoid conflicts between the terms and other contract clauses.
Q: What should be done if the purchase order information is inconsistent with the letter of credit?
A: If the purchase order information is inconsistent with the letter of credit terms, the seller should immediately notify the buyer to amend the letter of credit, or request the buyer to issue a written confirmation accepting the discrepancy. Banks strictly examine documents based on the letter of credit, and the order is for reference only. If the letter of credit cannot be amended, the seller should assess the risk of discrepancies and, if necessary, require the buyer to provide a payment guarantee. Do not ship without authorization, as this may cause foreign exchange collection risks.
Q: Does a purchase order need to list the HS code?
A: It is recommended to list the HS code so that both buyer and seller can confirm tariffs, regulatory conditions, and trade control requirements. The HS code is classified by the seller based on the goods description and reviewed by the buyer. If the order does not list it, customs declaration may be delayed due to classification disputes. Note that the first 6 digits of the HS code are the same across countries, but the latter digits may differ, and the import country's customs classification shall prevail.
Q: How to specify the more or less clause for quantity in a purchase order?
A: If more or less is allowed, the order should specify the more or less ratio (e.g., ±5%) and the party with the option (buyer or seller). If the letter of credit has a more or less clause, the order should be consistent with it. If not specified, more or less is not allowed by default. The price for the more or less portion is usually calculated at the contract unit price unless otherwise agreed.
Q: What should be done if the purchase order is lost or needs to be modified?
A: If the purchase order is lost, you can apply to the buyer for a reissue and mark it as "reissued." Modifying the order requires mutual agreement and written confirmation, such as signing an order amendment or reissuing the order. When the modification involves key terms such as price, quantity, and delivery date, ensure consistency with the letter of credit and contract. All modification records should be retained for reference.
Q: What is the role of a purchase order in export tax rebate?
A: The purchase order is one of the documents for export tax rebate filing, used to prove transaction authenticity. Tax authorities may require the purchase order, contract, invoice, packing list, bill of lading, etc. The order information should be consistent with the export invoice and customs declaration. If the order is missing or the information is inconsistent, it may affect the tax rebate progress. It is recommended that enterprises properly keep the original or electronic version of the order for at least 5 years.
📝 Sample
[Purchase Order - Complete Filling Sample]
Purchase Order No. (PO No.): PO-2026-0915-HK008
Order Date (Date): 2026-09-15
Buyer: Sino Pacific Import & Export Co., Ltd.
Address: Room 1801, 18/F, Tower A, Global Trade Center, 88 Jianguo Road, Chaoyang District, Beijing 100022, China
Contact Person: Ms. Linda Chen
Tel: +86-10-6588-2211
Email: linda.chen@sinopacific-trade.com
Seller: Sunrise Electronics Manufacturing Ltd.
Address: Unit 5-7, 12/F, Kwai Chung Industrial Building, 66 Container Port Road, Kwai Chung, New Territories, Hong Kong
Contact Person: Mr. David Wong
Tel: +852-2408-6677
Email: david.wong@sunrise-elec.com
Description of Goods:
1. Wireless Bluetooth Earphones, Model SP-BT500, Bluetooth 5.3, Active Noise Cancellation, 30-hour battery life, Black, ABS+PC housing, with USB-C charging cable
2. Portable Power Bank, Model SP-PB20000, Capacity 20000mAh, PD 22.5W fast charging, Dual USB output, White, with LED battery level display
Quantity:
1. Wireless Bluetooth Earphones: 5,000 PCS
2. Portable Power Bank: 3,000 PCS
Total: 8,000 PCS
Unit Price & Total Amount:
1. Wireless Bluetooth Earphones: USD 18.50 / PCS, Amount USD 92,500.00
2. Portable Power Bank: USD 12.80 / PCS, Amount USD 38,400.00
Total Amount: USD 130,900.00
Currency: USD
Trade Terms: FOB Shenzhen, Incoterms 2020
Trade Terms: FOB Shenzhen, Incoterms 2020
Delivery Date & Place:
Latest Shipment Date: 2026-11-15
Place of Delivery: Shenzhen Yantian Port, China
Port of Destination: Los Angeles Port, USA
Payment Terms:
30% T/T deposit payable within 5 working days after order confirmation, 70% balance payable by T/T against copy of B/L, payment due within 15 days after shipment.
Packing Requirements:
Each set of product packed in a color box, outer carton is five-layer corrugated cardboard box, 20 PCS per carton. Outer carton shipping mark: SINO PACIFIC / PO-2026-0915-HK008 / LOS ANGELES / C/NO.1-400. Wooden packaging must be fumigated with IPPC treatment and marked accordingly.
Mode of Transport:
Sea freight, Full Container Load (FCL). Partial shipment not allowed, transshipment allowed.
Insurance:
To be covered by the Buyer. The Seller shall notify the Buyer of the vessel name, voyage number, and shipment date 3 days before shipment.
Documents Required:
1. Commercial Invoice, 3 copies, in English
2. Packing List, 3 copies, in English
3. Full set of Clean On Board Ocean Bill of Lading, 3 originals and 3 copies, blank endorsed
4. Certificate of Origin, 1 copy
5. Quality Inspection Certificate, 1 copy
6. Certificate of Product Conformity, 1 copy
Inspection & Claims:
Quality shall conform to the samples and technical specifications confirmed by the Buyer. Inspection agency is SGS. Claims shall be filed within 45 days after arrival of goods at the port of destination; overdue claims will not be accepted.
Signature & Seal:
Buyer's Authorized Representative: ____________________
Company Seal: ____________________
Date: 2026-09-15
The above is a sample. Actual completion shall be subject to the L/C / contract / importing country requirements.
[Purchase Order - Complete Filling Sample]
Purchase Order No. (PO No.): PO-2026-0915-HK008
Order Date (Date): 2026-09-15
Buyer: Sino Pacific Import & Export Co., Ltd.
Address: Room 1801, 18/F, Tower A, Global Trade Center, 88 Jianguo Road, Chaoyang District, Beijing 100022, China
Contact Person: Ms. Linda Chen
Tel: +86-10-6588-2211
Email: linda.chen@sinopacific-trade.com
Seller: Sunrise Electronics Manufacturing Ltd.
Address: Unit 5-7, 12/F, Kwai Chung Industrial Building, 66 Container Port Road, Kwai Chung, New Territories, Hong Kong
Contact Person: Mr. David Wong
Tel: +852-2408-6677
Email: david.wong@sunrise-elec.com
Description of Goods:
1. Wireless Bluetooth Earphones, Model SP-BT500, Bluetooth 5.3, Active Noise Cancellation, 30-hour battery life, Black, ABS+PC housing, with USB-C charging cable
2. Portable Power Bank, Model SP-PB20000, Capacity 20000mAh, PD 22.5W fast charging, Dual USB output, White, with LED battery level display
Quantity:
1. Wireless Bluetooth Earphones: 5,000 PCS
2. Portable Power Bank: 3,000 PCS
Total: 8,000 PCS
Unit Price & Total Amount:
1. Wireless Bluetooth Earphones: USD 18.50 / PCS, Amount USD 92,500.00
2. Portable Power Bank: USD 12.80 / PCS, Amount USD 38,400.00
Total Amount: USD 130,900.00
Currency: USD
Trade Terms: FOB Shenzhen, Incoterms 2020
Trade Terms: FOB Shenzhen, Incoterms 2020
Delivery Date & Place:
Latest Shipment Date: 2026-11-15
Place of Delivery: Shenzhen Yantian Port, China
Port of Destination: Los Angeles Port, USA
Payment Terms:
30% T/T deposit payable within 5 working days after order confirmation, 70% balance payable by T/T against copy of B/L, payment due within 15 days after shipment.
Packing Requirements:
Each set of product packed in a color box, outer carton is five-layer corrugated cardboard box, 20 PCS per carton. Outer carton shipping mark: SINO PACIFIC / PO-2026-0915-HK008 / LOS ANGELES / C/NO.1-400. Wooden packaging must be fumigated with IPPC treatment and marked accordingly.
Mode of Transport:
Sea freight, Full Container Load (FCL). Partial shipment not allowed, transshipment allowed.
Insurance:
To be covered by the Buyer. The Seller shall notify the Buyer of the vessel name, voyage number, and shipment date 3 days before shipment.
Documents Required:
1. Commercial Invoice, 3 copies, in English
2. Packing List, 3 copies, in English
3. Full set of Clean On Board Ocean Bill of Lading, 3 originals and 3 copies, blank endorsed
4. Certificate of Origin, 1 copy
5. Quality Inspection Certificate, 1 copy
6. Certificate of Product Conformity, 1 copy
Inspection & Claims:
Quality shall conform to the samples and technical specifications confirmed by the Buyer. Inspection agency is SGS. Claims shall be filed within 45 days after arrival of goods at the port of destination; overdue claims will not be accepted.
Signature & Seal:
Buyer's Authorized Representative: ____________________
Company Seal: ____________________
Date: 2026-09-15
The above is a sample. Actual completion shall be subject to the L/C / contract / importing country requirements.
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