An ICPO, or Irrevocable Corporate Purchase Order, is a formal commercial document issued by a buyer to express a serious intention to purchase a specified product or commodity under stated terms. In petroleum and commodity trading, the ICPO is commonly used after preliminary discussion, after the buyer has reviewed the seller’s offer, procedure and basic transaction conditions.
The ICPO is not the same as a casual enquiry. It should be issued by a genuine buyer or authorised representative and should contain enough information for the seller to assess whether the buyer is credible, capable and aligned with the proposed transaction procedure.
Purpose of an ICPO
The main purpose is to confirm the buyer’s purchasing interest in a structured and professional manner. It usually states the product required, quantity, destination, preferred delivery terms, payment instrument, buyer company details and authorised signatory.
Common Contents
- Buyer company name and registration details
- Product name and specification
- Quantity required
- Destination port or delivery location
- Preferred Incoterms such as FOB or CIF
- Payment method or financial instrument
- Transaction procedure accepted by the buyer
- Authorised signature and company stamp
ICPO vs LOI
An LOI is usually a softer expression of interest. An ICPO is more formal and transaction-specific. A seller may treat an ICPO as a stronger indication that the buyer is ready to proceed, although it still does not replace a final Sales and Purchase Agreement.
Common Mistakes
Common mistakes include issuing an ICPO without proper authority, using unrealistic pricing, copying old templates without checking transaction details, or submitting incomplete buyer information.
Related: What Is an SCO? · Common Commodity Trading Documents · Understanding EN590 Transactions