Some buyers import from China without a Purchase Order in place; they simply use the commercial or pro-forma invoice from the supplier. This lack of safeguard mechanism can lead to ambiguity and major supplier issues.
Some other buyers from big companies, however, send PO that has pages over pages of provisions. I doubt how many salespeople in the factory will bother to read it through.
How to write a PO properly to your Chinese supplier? What are those key points that can’t be missed? In general your PO should include:
- PO number, PO date
- Buyer and seller’s company name
- Both parties’ company details
- Both parties’ contact details
- List of product descriptions, quantities, unit prices and total prices.
- Price terms
- Payment terms
- Delivery date
- Description of major quality defects that can’t be accepted, better with picture illustrations
- Quality control & inspection procedure
- Additional requirements such as non-disclosure or OEM agreement, custom labeling, packaging, packing etc.
- Penalties for infraction of provisions
Lastly but most importantly, ask your supplier to sign back your PO with a company seal. If you want your PO legally bound in China, write it in both English and Chinese, since the Chinese language version will control in China.
Feel free to download our Purchase Order Template and adapt it to your needs.
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