ICPO in trade stands for Irrevocable Corporate Purchase Order.
It’s a formal document issued by a buyer to a seller—commonly used in international trade, especially for commodities (oil, metals, sugar, grains, etc.).
What an ICPO does
Shows the buyer’s serious and legally binding intent to purchase.
Confirms the buyer is ready, willing, and able (RWA) to close the deal.
Usually comes after the seller issues a Soft Offer (SCO) or Full Corporate Offer (FCO).
Typical information included
Buyer’s full corporate details
Product specifications
Quantity & contract duration
Target price or price acceptance
Delivery terms (Incoterms)
Payment method (often SBLC, DLC, MT103, etc.)
Banking details
Buyer’s official signature & company stamp
Important
An ICPO is considered legally binding, so it should only be issued when the buyer truly intends to proceed.
Sample ICPO template
1. ICPO (Irrevocable Corporate Purchase Order) — Full Template
You can copy/paste and replace the placeholders.
IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO)
Date: [DD/MM/YYYY]
1. Buyer Information
Company Name:
Address:
Registration Number:
Phone / Email:
Authorized Signatory:
Position:
2. Product Specifications
Commodity:
Quality/Grade:
Quantity:
Packaging:
Inspection: (e.g., SGS at seller’s cost)
3. Contract Terms
Contract Length: (e.g., 12 months)
Trial shipment (if any):
Delivery Terms: (e.g., CIF / FOB / FOBT — Incoterms 2020)
Delivery Port:
Origin:
4. Price & Payment
Price: (e.g., USD _ / MT)
Currency:
Payment Method: (e.g., SBLC MT760, DLC MT700, MT103/TT)
Banking Details: (optional—can be “to be provided upon SPA”)
5. Buyer Financial Capability
We hereby confirm that we are ready, willing, and able (RWA) to proceed with the purchase under the terms stated and that we have the financial capability to issue the required banking instrument(s).
6. Documents Attached
(Choose any that apply)
Company Registration
Passport of signatory
Buyer’s CP (company profile)
Bank comfort letter (if required)
7. Declaration
We, the undersigned, confirm this ICPO is issued with full corporate authority and responsibility. It is irrevocable, and any alteration requires mutual agreement.
Authorized Signatory:
Name:
Position:
Signature:
Company Seal:
2. How an ICPO Fits Into the Commodity Trade Process
Below is the standard flow (realistic procedure used in commodity trading):
Step-by-step
Buyer receives product details
Usually via SCO (Soft Corporate Offer) or FCO (Full Corporate Offer) from the seller.
Buyer issues ICPO
→ Confirms intent and capacity
→ Provides purchase conditions
Seller issues SPA (Sales & Purchase Agreement)
→ Draft contract sent to buyer for review.
Buyer signs SPA
→ Returns to seller.
Seller countersigns SPA
→ Becomes legally binding.
Buyer provides POF (Proof of Funds)
Typically:
SBLC MT760
DLC MT700
MT199/MT799
Bank comfort letter
Or MT103 for spot deals
Seller issues PB (Performance Bond)
Usually 2%–5% depending on commodity.
Shipment begins
Seller loads cargo and provides shipping documents.