Proforma invoice for export: format and checklist
A good proforma invoice gets you paid faster: it is what your buyer's bank uses to send an advance or open a letter of credit. Here is every field to include.
Proforma vs commercial invoice
| Proforma invoice | Commercial invoice | |
|---|---|---|
| When | Before the order or shipment | At shipment |
| Purpose | Confirm terms, get an advance, open an LC, apply for licences | Customs clearance, payment, duty assessment |
| Legally a demand for payment? | No | Yes |
| Can it change? | Yes, until the buyer accepts it | Must match the goods shipped |
The checklist: what to include
Parties
- Your company name, address, IEC (Importer Exporter Code), GSTIN and contact details
- Buyer's name, address and contact; consignee, if different
Reference and dates
- Proforma number and date
- Validity date, usually 15 to 30 days
- Buyer's enquiry or purchase order reference
Goods
- Clear description, the same wording you will use on the commercial invoice and any LC
- HS code
- Quantity and unit, unit price, total value and currency
- Country of origin
- Net and gross weight, number of packages and packing type
Shipping terms
- Incoterm with a named place and version, for example "FOB Nhava Sheva, Incoterms 2020" (see which Incoterm to use)
- Port of loading and port of discharge, and mode of transport
- Estimated shipment date or lead time
- Whether partial shipments or transhipment are allowed
Payment
- Payment terms, for example "30% advance, 70% against copy of bill of lading" or "Letter of credit at sight"
- Your bank name, account number, SWIFT code and bank address
- Who pays bank charges
Sign-off
- Authorised signature and company stamp
- Any special terms: inspection, certificates the buyer needs (origin, test reports), warranty
Tips that prevent problems later
- Write the description you can deliver exactly. If the buyer opens an LC from your proforma, every word becomes a condition. See LC discrepancies.
- Price from a real landed cost. Freight and destination charges can be half the cost of a small shipment. Use the landed cost calculator before you fix the price.
- Show trade deal savings. If your buyer saves duty under an agreement, mention the proof of origin you will provide.
Common questions
Is a proforma invoice a tax invoice?
No. A proforma invoice is a quotation in invoice form. It confirms the terms before shipment, so the buyer can pay an advance, open a letter of credit or apply for an import licence. The commercial invoice is issued at shipment.
Does a proforma invoice need an HS code?
It is strongly recommended. Banks, importers and customs brokers use the HS code to check duty and licences, and it should match the code on your shipping documents.
How long should a proforma invoice be valid?
Usually 15 to 30 days, because freight rates, exchange rates and raw material prices move. State the validity date clearly.
Can a letter of credit be opened against a proforma invoice?
Yes. Buyers commonly open an LC based on the proforma, so every detail on it, such as the description, Incoterm, quantity and shipment date, should be something you can match exactly at shipment.
Make a proforma invoice in two minutes
Corridor Terminal builds the price, then creates the quote and proforma invoice as PDF or Excel with every field above.
Create a proformaFirst shipment guide