Author: Saman Memarpour

Lesson 4: ICPO (Irrevocable Corporate Purchase Order)

1. What Is an ICPO?

ICPO stands for:

Irrevocable Corporate Purchase Order

It is a formal offer issued by the buyer that expresses a clear, committed intention to purchase goods under defined terms.

Why “Irrevocable”?

Because once issued, the buyer is declaring that:

• They are ready
• They are willing
• They are able
• They agree to the stated terms.
• They authorize negotiation toward a contract.t
  
  

The ICPO is not a legally binding contract, but it carries more weight than an LOI.

3. When Should an ICPO Be Issued?



Correct timing:

An ICPO should be issued after:

• The initial price has been discussed
• The buyer has seen the SCO or the price indication.
• The buyer has the authority to commit.
• The buyer is ready to proceed with the contract.
  
  

Not before the buyer is ready.

Incorrect timing:

Do NOT issue an ICPO when:

• You are only checking the price
• You are still comparing sellers.
• You are a broker without authorization.
• You do not have the buyer’s approval.
• You do not understand the payment method.
  
  

Issuing an ICPO too early → you lose credibility.

4. Who Can Issue an ICPO?



Only the following can issue an ICPO:

• Buyer company
• Authorized mandate of the buyer (with proof)
• Buyer’s legal representative
  
  

Brokers must NEVER issue an ICPO unless they have written authorization.

5. What Must Be Included in an ICPO?

A professional ICPO must include:

B) Product Information

• Product name & grade
• Specifications
• Quantity (spot or long-term contract)
• Packaging requirements



E) Banking Details

At the ICPO stage, most serious sellers expect the buyer to include:

• Bank name
• Bank address
• Account name
• SWIFT code
  
  

The seller may later request:

• BCL
• RWA
• Bank KYC

C) Delivery Terms (Incoterms 2020)

• Incoterm (FOB, CFR, CIF, DAP, etc.)
• Destination port
• Loading port (optional)
• Delivery schedule
  

6. Why Sellers Take ICPO Seriously

Because ICPO moves the negotiation into a professional stage where the buyer is accountable.

With ICPO, the seller can safely:



• Issue FCO
• Issue draft contract
• Prepare export allocation
• Hold product for buyer.
• Request inspection arrangements

7. Common Mistakes Made by Beginners

❌ Mistake 1: Issuing ICPO without buyer authorization

This often leads to blocklisting.

→ Only authorized parties may issue an ICPO.

❌ Mistake 2: ICPO that is a copy-paste or has missing details

Sellers ignore incomplete documents.

→ Use a structured template (below).

❌ Mistake 3: Asking for POP before issuing ICPO

POP is NEVER given this early.

→ POP comes after a contract or payment instrument.

❌ Mistake 4: Wrong Incoterm

Many beginners do not understand logistics and use the wrong terms.

→ The following modules will explain all Incoterms clearly.

❌ Mistake 5: No financial capability

Sellers check the banking information and payment method.

→ ICPO must be issued only when the buyer is financially prepared.

8. Professional ICPO Template

Below is a clean, internationally accepted ICPO format.

ICPO TEMPLATE (Irrevocable Corporate Purchase Order)

Use on Buyer’s Official Letterhead

Date:

To: [Seller Company Name]

Subject: Irrevocable Corporate Purchase Order (ICPO)

We, [Buyer Company Name], hereby submit this Irrevocable Corporate Purchase Order for the purchase of the following goods under the terms specified below.

Buyer Information

Company Name:

Company Registration Number:

Registered Address:

Website:

Authorized Signatory:

Position:

Email / Phone:

Product Details

Product:

Specification:

Quantity:

Packaging:

Delivery Terms (Incoterms, 2020)

Incoterm: [FOB / CFR / CIF / DAP / etc.]

Destination Port:

Preferred Loading Port (optional):

Delivery Schedule:

Payment Terms

Preferred Payment Method: [TT / ILC / SBLC / DLC / CAD]

Banking Details

Bank Name:

Bank Address:

Account Name:

SWIFT Code:

IBAN/Account Number:

Declaration

We hereby confirm that our company is ready, willing, and able to enter into a legally binding contract and provide acceptable financial instruments as required by the seller.

This ICPO is valid for 10 banking days from the date of issue.

Sincerely,

[Name of Authorized Signatory]

[Position]

Signature & Company Stamp

9. ICPO vs LOI vs SCO vs FCO (Quick Comparison Table)

This comparison helps new traders understand the correct sequence.

10. Practical Tips for Using ICPO Correctly



• Only issue ICPO when the buyer is 100% committed
• Do not request POP before the contract/payment.
• Keep ICPO simple, clean, factual.
• Do not include information that you cannot support financially.
• Make sure contact details are correct.t
• Always include validity

Conclusion

The ICPO is a crucial step in establishing buyer credibility and moving negotiations toward a binding contract.

Mastering this document strengthens your professionalism and ensures efficient communication with global sellers.

References & Resources



• ICC Guidelines – Trade Documentation Principles
• UNCTAD – Trade Facilitation Tools
• WTO – Import/Export Documentation
• OECD – International Trade Glossary
• World Bank – Trade & Supply Chain Basics

Continue to the Next Lesson

Once you complete this lesson, you are ready to move to:What Comes Next?

Lesson 5 – CIS (Company Information Sheet)

Purpose, Structure, Verification, and Template