Formal Quote

A quotation is normally the first step in the export transaction. It is a response to an inquiry received from a potential buyer (or a U.S. representative of the foreign entity) or a proactive marketing step of a U.S. based company. If a quotation is sent to a foreign company that is not familiar ith the company or products! the description should be very specific and detailed! more so than if the buyer ere domestic. Along ith the description! there are other items that should be included! such as" #. Seller$s name and address %. &otential buyer$s name and address '. (uyer$s reference ) inquiry number if noted *. &rices of items" per unit and extended +. ,eights and dimensions of quoted products -. .iscounts! if applicable /. 0erms of sale or Incoterms used (include geographical delivery point) 1. 0erms of payment 2. 3alidity of quotation #4. 5stimated shipping date ##. 5stimated date of arrival ,hen quoting a price! it is beneficial to give a potential buyer some options of trade terms selection. Incoterms are very effective hen presenting pricing options to the potential buyer. 6or some very large foreign companies! it is more convenient and cost7effective to negotiate their o n freight rates and organi8e their o n shipments! so they may prefer 59, or 67terms. :n the other hand! there may be other buyers that ould prefer the seller to organi8e the movement! thereby preferring the ;7terms or even the .7terms.

EXAMPLE: Formal Quote

MEDICAL IMAGING MINNESOTA, INC

Medical Imaging Minnesota, Inc. 100 North Sixth Street Minneapolis, MN 55403 USA

Quotation number: BT10102 Dated: December 21, 2007 Page 1 of 6

FORMAL QUOTATION
Mendez Equi o M!dico "#$# %o&# 'oma Me(ico D#)#, %#P# 06760 $ttn: %ar&o* Mendez "ub+ect: Model No. BT002034 ,our reque*t for quote for medica&&- u*ed .&tra*ound /maging Mac0ine*# 1ur 'eference 2o#: BT10102 Description Quantity Unit Price .&tra*ound /maging Mac0ine 3 unit* 50,000#00 Tariff %&a**ification 6015#12 E( ort Pac7ing8%rating /n&and )reig0t: Minnea o&i* to 9ou*ton Total F A !ello" Frei#$t% &ouston' Texas 1cean )reig0t c0arge* : ot0er fee* to ;eracruz, Me(ico Total PT -eracru.' Mexico /n*urance to ;eracruz, Me(ico Total IP -eracru.' Mexico Extended Price ."D 420,000#00 500#00 400#00 U(D )*+'+,,.,, 6,400#00 U(D )*/'0,,.,, 4,320#32 U(D )),'1*,.0*

Ter2s and

onditions o3 (ale% Pa-ab&e in .#"# Do&&ar* b- <ire tran*fer of fund* rior to *0i ment of order or b- an acceptable &etter of credit# /n*truction* are attac0ed for o ening a &etter of credit# Bu-er* ma- c0oo*e an- of t0e abo=e *a&e* term* >incoterm*? t0at are in bo&d rint and *ubmit urc0a*e order <it0 -our *e&ection# @0en *ubmitting a urc0a*e order, &ea*e *tate t0e a ro riate incoterm indicating t0e Anamed &aceB and fo&&o<ed bt0e <ord*: A### per Incoterms 2000. 1ccur* at Medica& /maging Minne*ota, /nc# Minnea o&i*, Minne*ota CC304 ."$# 60 ca&endar da-* from date of quote# 4D3 <ee7* after recei t of order#

Pa-ment Term*: Term* of "a&e:

Tran*fer of Tit&e: ;a&idit- of offer: "0i ment Date:

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Dated: December 21, 2007 Page 2 of 6

($ippin# In3or2ation% (Estimate only; may vary at time of shipment) ITEM PART NUM4ER BT002034 QUANTIT! 5PIE E(6 3 IN-ENTOR! A-AILA4ILIT! ,E" 7RO(( 8EI7&T 5L4(6 EA & C00 TOTAL 7RO(( 8EI7&T 5L4(6 2000 U4I FEET 5PER PIE E6 3C TOTAL U4I FEET 150

TOTAL(

9,,

*,,,

09

+1,

Total c$ar#ea:le "ei#$t 3or ocean s$ippin# C cubic meter* ( E120 @8M F E600

Reco22ended 2ode o3 s$ip2ent% )or t0i* quote, ,e&&o< )reig0t rate* <ere u*ed for Door to Port ocean tran* ortation# T0e ocean tran*it time i* 4 da-* &u* 2 da-* for onDcarriage to Me(ico %it-, D#)# ;e**e&* are *c0edu&ed on a <ee7&ba*i*# $n- ot0er freig0t for<arder ma- be *e&ected among Medica& /maging Minne*ota, /nc# referred &i*t for /ncoterm* %PT and %/P# )or )%$ term*, an- for<arder of -our reference ma- be *e&ected# Export In3or2ation% 1rigin of Good*: ."$ "c0edu&e B 2o#: 6015#12

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Dated: December 21, 2007 Page 4 of 6

T0e recei t of -our urc0a*e order <i&& *ignif- acce tance <it0 t0e term* and condition* of t0i* quotation# P&ea*e u*e Medica& /maging Minne*ota, /nc# quotation number <0en &acing -our order# /f c0ange* to t0i* offer are needed, &ea*e reque*t a re=i*ed quote#

)or Medica& /maging Minne*ota, /nc#:

$me&ia Goe inger, E( ort Manager

De*tination %ontro& "tatement: T0e*e commoditie*, tec0no&og- or *oft<are <ere e( orted from t0e .nited "tate* in accordance <it0 t0e E( ort $dmini*tration 'egu&ation*# Di=er*ion contrar- to .#"# &a< ro0ibited# IMPORTANT;
/n com &iance <it0 .nited "tate* federa& &a<, t0e De*tination %ontro& "tatement must be entered on t0e in=oice, t0e bi&& of &ading, air <a-bi&&, or ot0er e( ort contro& document t0at accom anie* t0e *0i ment from it* oint of origin in t0e .nited "tate* to t0e u&timate con*ignee or endDu*er abroad# T0e er*on re* on*ib&e for re aration of t0o*e document* i* re* on*ib&e for entr- of t0e D%"#

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Date: December 21, 2007 Page 3 of 6

LETTER OF
Mendez Equi o M!dico "#$# %o&# 'oma Me(ico D#)#, %#P# 06760 $ttn: %ar&o* Mendez "ub+ect:

REDIT REQUIREMENT(

,our reque*t for quote u&tra*ound mac0ine 1ur 'eference number: BT10102

/f a &etter of credit i* i**ued, be&o< are t0e term* and condition* acce tab&e to Medica& /maging Minne*ota, /nc# /f an- of t0e*e requirement* are unacce tab&e, &ea*e contact M*# Goe inger <it0 a&teration* *o an agreement can be reac0ed# T0i* <i&& e&iminate unnece**ar- co*t* and de&a-* &ater due to amendment* on t0e &etter of credit# 1# P&ea*e o en t0e &etter of credit b- "@/)TH o ening &etter* of credit b- mai& ma- de&a- t0e order roce** b- 2D3 <ee7*# T0e credit *0a&& be dra<n in irre=ocab&e form and *ub+ect to A.niform %u*tom* and Practice for Documentar- %redit*B /nternationa& %0amber of %ommerce Pub&ication 2umber C00# T0e &etter of credit i* to be ad=i*ed and confirmed b- an- .#"# o<ned ban7, referab&- in Minnea o&i*, Minne*ota# Medica& /maging Minne*ota, /nc#I* ban7 ma- be t0e ad=i*ing8confirming if t0e cu*tomer doe* not a&read- 0a=e a ban7 for t0i* ur o*e# Ban7ing information for &etter* of credit are a* fo&&o<*: Minne*ota Generic Ban7, /nc# 124 Generic Ban7 P&aza Minnea o&i*, M2 CC350 ."$ $cct# J 57CD0243CD645 ."B$ J 736476 $ttn: /nternationa& De artment

2#

4#

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Date: December 21, 2007 Page C of 6

3# C#

T0e credit *0a&& be a-ab&e at t0e counter* of an- .#"# Ban7# T0e &etter of credit *0a&& *0o< a* T0e Beneficiar-: Medical I2a#in# Minnesota' Inc. +,, Nort$ (ixt$ (treet Minneapolis' MN 990,) U(A

6#

T0e &etter of credit *0a&& be a-ab&e in .#"# Do&&ar* at *ig0t of draft and document* and in t0e amount * ecified in t0e order# T0e fo&&o<ing document* <i&& be ro=ided for t0i* tran*action# P&ea*e a=oid t0e requirement for an- ot0er document* <it0out rior agreement b- u*# a? b? c? %ommercia& /n=oice tota&ed to )%$, %PT, or %/P de*ignated &ocation a* er t0e agreed order > er /ncoterm* 2000?: 3 origina&*# Pac7ing Ki*t in quadru &icate# T0e tran* ort document a* fo&&o<*: For Air Frei#$t% %&ean $ir @a-bi&& con*igned to t0e i**uing ban7 de*ignating Lnotif- a D $ir con*o&idator* air <a-bi&&* *0a&& be a&&o<ed# D Mar7ed freig0t co&&ect or re aid, a* agreed in t0e order# For Ocean Frei#$t% %&ean on Board 1cean Bi&& of Kading con*igned Ato orderB of *0i D 2;1%% bi&&* of &ading *0a&& be a&&o<ed# D Mar7ed freig0t co&&ect or re aid, a* agreed in t0e order# er# &icantL#

7#

5#

T0e ort of e( ort >for air or for ocean? *0a&& be * ecified a* Aan- ."$ ort8air ortB and de*ignate t0e arri=a& ort at de*tination# Tran**0i ment *0a&& not be a&&o<ed# Partia& *0i ment* *0a&& be a&&o<ed, if agreed u on in t0e order#

6# 10#

Medical Imaging Minnesota, Inc.

Quotation number: BT10102 Dated: December 21, 2007 Page 6 of 6

11#

T0e e( iration date on t0e &etter of credit *0a&& not be &e** t0an 40 da-* after t0e i**uance of t0e tran* ort document >air or ocean bi&& of &ading?# T0e &etter of credit *0a&& not be tran*ferab&e# All ban7ing c0arge* incurred in*ide and out*ide t0e beneficiar-M* countr- are for t0e account of t0e a &icant >cu*tomer?# Note: t0i* inc&ude* a&& c0arge* re&ated to amending t0e &etter of credit a* <e&& a* confirmation fee* >mu*t be * ecified in <riting <it0in t0e credit?# De*cri tion of t0e good* on t0e &etter of credit *0a&& be a* *im &e a* o**ib&e# P&ea*e identif- roduct a* fo&&o<*: Ultrasound I2a#in# Mac$ine. Ketter of credit mu*t be in Eng&i*0# 2o bo-cott, re*tricti=e trade ractice*, or di*criminator- ro=i*ion* <i&& be a&&o<ed in t0e &etter of credit#

12# 14#

13#

1C# 16#

TIPS: If possible, always use multi-modal Incoterms F!A, !P", !IP# in case t$e met$od of transportation c$an%es& 'pecify (transport document) rat$er t$an ocean bill of ladin% or air waybill, in case t$e met$od of transportation c$an%es #