Proforma Invoice for Trade

A proforma invoice is a preliminary quote. It tells the buyer what you intend to sell, at what price, under which terms. It is not a demand for payment.

Buyers use it to apply for import licences, arrange letters of credit, or get internal purchase approval. Once the deal is firm, you issue a commercial invoice for the actual shipment.

Clearly label it as a proforma. Include seller and buyer details, description of goods, quantities, unit prices, currency, proposed Incoterms, payment terms, and validity or quote expiry if you use one.

Optional but useful: estimated ship window, packaging notes, and bank details for LC drafting. Mark that values are indicative until the commercial invoice is issued.

Calling a commercial invoice a proforma (or the reverse) so the buyer or bank misreads the document’s role. Letting the commercial invoice diverge from the proforma without a documented change — quantity, price, or Incoterms shifts that surprise the LC.

Omitting Incoterms on the proforma, so the LC is opened on terms you did not intend.

The commercial invoice should follow the proforma unless both parties agree to a change. Under an LC opened on the basis of the proforma, goods description, amounts, and terms on later documents must fit what the credit allows.

Packing lists and transport documents then follow the commercial invoice — the chain starts with a clear, consistent proforma.

Store the deal once and convert a proforma into a commercial invoice without retyping. When details change, update the shipment record so downstream documents stay aligned.

Informational only — not legal, banking, or customs advice. Confirm the final set with your bank or broker before presentation.