The Logistics Pro Forma Invoice TM (LPFI) Explained
The US exporter wants to sell on FCA seller's warehouse terms
The foreign buyer wants CIF delivery terms
Learn how the LPFI bridges the gap

The FPA - Foreign Principal Agent issues the LPFI for the services
the seller would have been responsible from EXW to CIF.  All
services are quoted by and handled by the logistics professional.
No need for the seller to be responsible for these services.
The FPA invoices the buyer and works at the buyer's direction.
Risk of ownership transfers from the seller to the buyer when cargo is
loaded at the seller's warehouse. 
Under FCA seller's warehouse terms, the seller retains control of export compliance declaration, but doesn't move the cargo to a consolidation warehouse.  The seller is responsible for loading on the collection conveyance.
Two Pro Forma Invoices are issued to the buyer --
#1 - From the Seller for all charges up to FCA seller's warehouse
#2 - From the FPA for all charges from loaded on the seller's warehouse to the buyer's port of unlading
Under CIF port of unlading terms, the buyer still retains responsibility from that point to the ultimate destination.  The buyer appoints the service providers for that leg of the move and pays those providers directly.
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  • How the Forwarder's Certification of Receipt is the operative document for Letters of Credit sales
  • Can other sales terms be used by the seller, such as EXW, or requested by the buyer, such as DPU (delivered at place, unloaded)?
  • How does the buyer pay the FPA? 
  • Clauses that can be added to INCOTERMS to protect the seller and buyer's interests, such as EXW clarification modifiers
  • Addressing issues of seller's compliance with export regulations under a "routed transaction"
  • What benefits accrue to the buyer by working with an FPA regarding inspection, documentation, shipping costs, and shipment mode changes?
Training ...Individualized for International Trade Ops

Operation Tools  ... for Import/Export Ops

Trade Manager... IOR/ Export Management

Copyright 2000 [H.C. Bennett Company]. All rights reserved.
Revised: December 23, 2022