A purchase order is simply that, your order to purchase goods or services. A purchase order is a binding contract. It contains the name and/or description of the goods you are buying, as well as the quantity, price, payment, and delivery terms. Many wholesale distributors and vendors will insist on a purchase order before they sell to you.

A commercial invoice is a bill for goods delivered or about to be delivered. It should specify exactly the product, quantity, value, and a list of any special charges such as handling, packing, one-time set-up fees, etc. If you are importing products, the invoice must also provide the eight-digit sub-heading code from the Harmonized Tariff Schedule of the United States. (This is usually provided by the exporter, or your customs broker can determine this for you).

A pro-forma invoice is essentially a quote from a seller to a buyer. It shows you what the invoice will look like and sets out the seller's terms. If you are buying a large quantity of products, or products you want financing for, you should request a pro-forma invoice. This will allow you to see the seller's terms, as well as the pricing and delivery data.

LOC and L/C stand for letter of credit. A letter of credit is a form of escrow that ensures goods are delivered. If you are importing products from a supplier in another country you have never met, you can request to pay by letter of credit.

A French term literally translated as "greater force". This is a clause included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations.

This term is also often referred to as an "act of God". A force majeure clause in a purchase order or contract is designed to protect both parties. Some examples of force majeure are ship that sinks, plane crash, earthquake, hurricane, union strike and other unforeseen events that are beyond the control of either the buyer or the seller.

Tare refers to the weight of an empty shipping container. The tare weight is subtracted when a filled container is weighed to calculate the weight of the shipping contents alone.

Most countries use the metric system for weights and measures. Suppliers will often describe their products and state shipping size and weights in metric terms. Here is a link to a handy online converter that will convert metric to US measurements and weights.

A customs broker is a company that clears imported goods through customs services. This involves the preparation of documents or electronic submissions, the calculation and payment (on behalf of the client) of taxes, duties and tariffs, and facilitating communication between the importer/exporter and governmental authorities. Customs brokers in the United States will often prepare and submit documentation to notify or obtain the clearance from other government agencies.

Think of a freight forwarder as a travel agent for freight. A freight forwarder dispatches shipments via air and sea carriers and books or arranges space for those shipments. International Freight forwarders typically arrange cargo movement to an international destination. They prepare and process documentation and perform related activities pertaining to international shipments. Some of the typical information reviewed by a freight forwarder is the commercial invoice, shipper's export declaration, and other documents required by the carrier or country exported from or imported to. In the past few years a lot of this information has gone from paper to electronic forms. Some freight forwarders are also customs brokers.