Definition: A Proforma Invoice (PI) is an informal reference invoice issued by the exporter to the importer before a formal deal is concluded, used for quotation, confirming transaction terms, applying for import licenses, or opening letters of credit. Its core functions include: serving as a quotation to specify transaction conditions such as goods, price, and payment methods; assisting the importer in handling import approval and foreign exchange quota applications; serving as the basis for opening a letter of credit; and facilitating the exporter's advance production scheduling and booking. A PI is not legally binding, but once confirmed by both parties, it becomes an attachment to the contract and has guiding significance for the subsequent preparation of formal commercial invoices and documents.
Definition: A Proforma Invoice (PI) is an informal reference invoice issued by the exporter to the importer before a formal deal is concluded, used for quotation, confirming transaction terms, applying for import licenses, or opening letters of credit. Its core functions include: serving as a quotation to specify transaction conditions such as goods, price, and payment methods; assisting the importer in handling import approval and foreign exchange quota applications; serving as the basis for opening a letter of credit; and facilitating the exporter's advance production scheduling and booking. A PI is not legally binding, but once confirmed by both parties, it becomes an attachment to the contract and has guiding significance for the subsequent preparation of formal commercial invoices and documents.
🎯 Purpose
Purpose: A Proforma Invoice is an indispensable early-stage document in international trade. Importers need it to apply to their local banks for opening letters of credit, and to customs or trade control authorities for import licenses and foreign exchange quotas; exporters need it to confirm order details and arrange production and transportation. In letter of credit settlement, the PI is an important attachment to the application for opening a letter of credit; in open account or telegraphic transfer transactions, the PI often serves as a payment notice. In addition, the PI is also used for pre-declaration during customs clearance, application for certificates of origin, and embassy certification, among other stages. It connects inquiries, offers, counter-offers, and formal contracts, and is a key tool for transaction negotiation and performance preparation.
Purpose: A Proforma Invoice is an indispensable early-stage document in international trade. Importers need it to apply to their local banks for opening letters of credit, and to customs or trade control authorities for import licenses and foreign exchange quotas; exporters need it to confirm order details and arrange production and transportation. In letter of credit settlement, the PI is an important attachment to the application for opening a letter of credit; in open account or telegraphic transfer transactions, the PI often serves as a payment notice. In addition, the PI is also used for pre-declaration during customs clearance, application for certificates of origin, and embassy certification, among other stages. It connects inquiries, offers, counter-offers, and formal contracts, and is a key tool for transaction negotiation and performance preparation.
📋 Key Fields
Proforma Invoice No.: Proforma invoice number, compiled by the exporter, must be unique and consecutive for easy retrieval and reconciliation by both parties. It is usually associated with the subsequent commercial invoice number, but the two must not be confused.. 常见错误: Duplicate or arbitrarily fabricated numbers, resulting in inability to correspond with subsequent documents; omission or arbitrary alteration after filling in. Date of Issue: Date of issue, should be later than the inquiry date and earlier than the contract or letter of credit date. It must be logically consistent with the letter of credit opening date and shipment date.. 常见错误: Date earlier than the inquiry or later than the letter of credit validity; use of vague dates such as "recent". Seller / Exporter: Exporter's full name, detailed address, telephone, fax, email, and tax number. Must be consistent with the business license, customs registration, and letter of credit beneficiary.. 常见错误: Use of abbreviations or incorrect address; tax number inconsistent with customs registration; omission of contact information. Buyer / Importer: Importer's full name, detailed address, telephone, fax, email, and tax number. Must be consistent with the letter of credit applicant and the consignee on the import customs declaration.. 常见错误: Spelling errors or use of unofficial names; incomplete address causing customs clearance delays. Terms of Payment: Payment methods, such as T/T, L/C, D/P, O/A, etc., must specify proportions and time nodes. Under a letter of credit, the type of letter of credit and the issuing bank should be indicated.. 常见错误: Vague writing of "T/T" without specifying the advance payment ratio; letter of credit terms inconsistent with the contract. Terms of Delivery: Trade terms, such as FOB, CIF, EXW, etc., must indicate the Incoterms® version and the designated port or place.. 常见错误: Omission of the version year; port name not specific or contradictory to the letter of credit. Description of Goods: Description of goods, including product name, specifications, model, material, use, etc., should be consistent with HS code classification and avoid vague expressions.. 常见错误: Product name too general such as "machine parts"; specifications inconsistent with subsequent documents. Quantity: Quantity, must indicate the unit of measurement (such as PCS, SETS, KGS) and the more or less clause. Should be consistent with the packing list and bill of lading.. 常见错误: Unit not clear; quantity conflicts with the allowable tolerance under the letter of credit. Unit Price: Unit price, including currency, unit, and price composition under the trade term. Must strictly correspond to the total price and letter of credit amount.. 常见错误: Confusion of currency symbols; calculation errors between unit price and total price; omission of commission or discount explanation. Total Amount: Total amount, consistent in figures and words, with clear currency. Must maintain a logical relationship with the letter of credit amount and insurance amount (if CIF).. 常见错误: Inconsistency between figures and words; total price not equal to unit price × quantity; omission of currency. Port of Loading / Discharge: Port of loading and port of discharge, must be specific and clear, avoid vague expressions such as "Any Chinese Port". Should match the trade term.. 常见错误: Spelling errors in port names; port of discharge inconsistent with the letter of credit; inland points not indicated. Country of Origin: Country of origin, must be accurately filled in, affecting tariff preferences and certificate of origin processing. Should be consistent with the actual place of production.. 常见错误: Mistakenly filled as the exporting country; unclear origin criteria leading to certificate rejection. Validity: Quotation validity period, usually 30-60 days, must specify start and end dates. After expiration, the PI needs to be reconfirmed or updated.. 常见错误: Validity period not indicated; validity period too short causing the customer to be unable to open a letter of credit in time. Bank Information: Receiving bank name, address, SWIFT code, account number, beneficiary. Must be consistent with the letter of credit presenting bank or contract agreement.. 常见错误: Incorrect SWIFT code; account number not matching beneficiary name; omission of intermediary bank information. Signature / Stamp: Exporter's signature or seal, usually handwritten signature plus company seal. Must be consistent with subsequent document signatures and seals to ensure legal effect.. 常见错误: Missing signature or blurred seal; use of electronic signature not accepted by the other party.
Proforma Invoice No.
Proforma invoice number, compiled by the exporter, must be unique and consecutive for easy retrieval and reconciliation by both parties. It is usually associated with the subsequent commercial invoice number, but the two must not be confused.
⚠️ Duplicate or arbitrarily fabricated numbers, resulting in inability to correspond with subsequent documents; omission or arbitrary alteration after filling in.
Date of Issue
Date of issue, should be later than the inquiry date and earlier than the contract or letter of credit date. It must be logically consistent with the letter of credit opening date and shipment date.
⚠️ Date earlier than the inquiry or later than the letter of credit validity; use of vague dates such as "recent".
Seller / Exporter
Exporter's full name, detailed address, telephone, fax, email, and tax number. Must be consistent with the business license, customs registration, and letter of credit beneficiary.
⚠️ Use of abbreviations or incorrect address; tax number inconsistent with customs registration; omission of contact information.
Buyer / Importer
Importer's full name, detailed address, telephone, fax, email, and tax number. Must be consistent with the letter of credit applicant and the consignee on the import customs declaration.
⚠️ Spelling errors or use of unofficial names; incomplete address causing customs clearance delays.
Terms of Payment
Payment methods, such as T/T, L/C, D/P, O/A, etc., must specify proportions and time nodes. Under a letter of credit, the type of letter of credit and the issuing bank should be indicated.
⚠️ Vague writing of "T/T" without specifying the advance payment ratio; letter of credit terms inconsistent with the contract.
Terms of Delivery
Trade terms, such as FOB, CIF, EXW, etc., must indicate the Incoterms® version and the designated port or place.
⚠️ Omission of the version year; port name not specific or contradictory to the letter of credit.
Description of Goods
Description of goods, including product name, specifications, model, material, use, etc., should be consistent with HS code classification and avoid vague expressions.
⚠️ Product name too general such as "machine parts"; specifications inconsistent with subsequent documents.
Quantity
Quantity, must indicate the unit of measurement (such as PCS, SETS, KGS) and the more or less clause. Should be consistent with the packing list and bill of lading.
⚠️ Unit not clear; quantity conflicts with the allowable tolerance under the letter of credit.
Unit Price
Unit price, including currency, unit, and price composition under the trade term. Must strictly correspond to the total price and letter of credit amount.
⚠️ Confusion of currency symbols; calculation errors between unit price and total price; omission of commission or discount explanation.
Total Amount
Total amount, consistent in figures and words, with clear currency. Must maintain a logical relationship with the letter of credit amount and insurance amount (if CIF).
⚠️ Inconsistency between figures and words; total price not equal to unit price × quantity; omission of currency.
Port of Loading / Discharge
Port of loading and port of discharge, must be specific and clear, avoid vague expressions such as "Any Chinese Port". Should match the trade term.
⚠️ Spelling errors in port names; port of discharge inconsistent with the letter of credit; inland points not indicated.
Country of Origin
Country of origin, must be accurately filled in, affecting tariff preferences and certificate of origin processing. Should be consistent with the actual place of production.
⚠️ Mistakenly filled as the exporting country; unclear origin criteria leading to certificate rejection.
Validity
Quotation validity period, usually 30-60 days, must specify start and end dates. After expiration, the PI needs to be reconfirmed or updated.
⚠️ Validity period not indicated; validity period too short causing the customer to be unable to open a letter of credit in time.
Bank Information
Receiving bank name, address, SWIFT code, account number, beneficiary. Must be consistent with the letter of credit presenting bank or contract agreement.
⚠️ Incorrect SWIFT code; account number not matching beneficiary name; omission of intermediary bank information.
Signature / Stamp
Exporter's signature or seal, usually handwritten signature plus company seal. Must be consistent with subsequent document signatures and seals to ensure legal effect.
⚠️ Missing signature or blurred seal; use of electronic signature not accepted by the other party.
⚠️ Common Mistakes
Inconsistency between the proforma invoice and subsequent commercial invoice, such as differences in product name, quantity, amount, trade terms, etc., leading to letter of credit discrepancies or customs clearance obstruction. Omission of key terms such as payment method, trade terms, validity period, country of origin, etc., making the PI inoperable and preventing the customer from opening a letter of credit or applying for an import license based on it. Incorrect or incomplete consignee information, such as misspelled company name, missing address, omitted tax number, leading to import customs declaration failure or bank refusal to pay. Inconsistency between figures and words in amount or confusion of currency, such as mixed use of USD and CNY, calculation errors in total price, causing letter of credit amount disputes or foreign exchange control issues. Failure to indicate the Incoterms® version and designated place of the trade term, resulting in unclear risk division and disputes over transportation and insurance responsibilities. Incorrect or outdated bank information, such as wrong SWIFT code, account number, beneficiary name, causing remittance failure or delay and affecting transaction progress. Goods description too general or inconsistent with HS code, causing the importing country's customs to question the classification, affecting tariff collection and customs clearance efficiency. Chaotic management of PI numbers and dates, unable to establish correspondence with contracts, letters of credit, commercial invoices, and other documents, increasing the difficulty of document review.
⚠️ Inconsistency between the proforma invoice and subsequent commercial invoice, such as differences in product name, quantity, amount, trade terms, etc., leading to letter of credit discrepancies or customs clearance obstruction.
⚠️ Omission of key terms such as payment method, trade terms, validity period, country of origin, etc., making the PI inoperable and preventing the customer from opening a letter of credit or applying for an import license based on it.
⚠️ Incorrect or incomplete consignee information, such as misspelled company name, missing address, omitted tax number, leading to import customs declaration failure or bank refusal to pay.
⚠️ Inconsistency between figures and words in amount or confusion of currency, such as mixed use of USD and CNY, calculation errors in total price, causing letter of credit amount disputes or foreign exchange control issues.
⚠️ Failure to indicate the Incoterms® version and designated place of the trade term, resulting in unclear risk division and disputes over transportation and insurance responsibilities.
⚠️ Incorrect or outdated bank information, such as wrong SWIFT code, account number, beneficiary name, causing remittance failure or delay and affecting transaction progress.
⚠️ Goods description too general or inconsistent with HS code, causing the importing country's customs to question the classification, affecting tariff collection and customs clearance efficiency.
⚠️ Chaotic management of PI numbers and dates, unable to establish correspondence with contracts, letters of credit, commercial invoices, and other documents, increasing the difficulty of document review.
🌍 Country Requirements
United States: U.S. Customs requires a proforma invoice as a supporting document for import declaration, which must include detailed goods description, HS code, country of origin, value, and trade terms. If used to apply for FDA, EPA, and other permits, relevant registration numbers must be additionally indicated. The United States has special declaration requirements for products subject to anti-dumping and countervailing duty orders, and the PI should truthfully reflect the transaction price to avoid underreporting. Specific regulations are subject to the latest announcements of U.S. Customs and Border Protection (CBP). European Union: Customs of EU member states require a proforma invoice for import declaration and value-added tax (VAT) calculation. The PI must indicate the EORI number, VAT number, country of origin, and preferential origin declaration (if applicable). For CE-certified products, the declaration of conformity must be reflected in the PI. Products involved in EU anti-dumping measures require complete supply chain information. Specific regulations are subject to the EU Customs Code and the latest announcements of each country's customs. Japan: Japan Customs requires a proforma invoice for import declaration and tariff assessment. The PI must indicate HS code, country of origin, trade terms, and payment method. If applying for preferential tariff rates under the Generalized System of Preferences (GSP) or Economic Partnership Agreement (EPA), a certificate of origin must be provided. Japan has special labeling and licensing requirements for food, drugs, cosmetics, etc., and the PI should indicate the relevant approval numbers. Specific regulations are subject to the latest announcements of Japan Customs. South Korea: Korea Customs requires a proforma invoice for import declaration and foreign exchange management. The PI must include detailed goods description, HS code, country of origin, value, and trade terms. If applying for FTA preferential tariffs, a certificate of origin must be provided. South Korea implements an import licensing system for certain commodities, and the PI must indicate the license number. Specific regulations are subject to the latest announcements of the Korea Customs Service. Middle East (Saudi Arabia/UAE): Customs of Saudi Arabia and the UAE require a proforma invoice for import declaration and consular legalization. The PI must indicate country of origin, trade terms, and payment method, and usually needs to be legalized by the local embassy or chamber of commerce. Saudi Arabia requires SABER certification, and the UAE requires ECAS certification, and the relevant certificate numbers should be reflected in the PI. For trade related to Israel, attention should be paid to the Arab boycott clauses. Specific regulations are subject to the latest announcements of local customs. Brazil: Brazil Customs requires a proforma invoice for import licensing and customs declaration. The PI must include detailed goods description, HS code (NCM), country of origin, value, and trade terms. Brazil implements an import licensing system, and the PI must be consistent with the license information. In addition, Brazil requires the PI to indicate cost components such as freight and insurance for tariff calculation. Specific regulations are subject to the latest announcements of the Brazilian Federal Revenue Service. India: India Customs requires a proforma invoice for import declaration and foreign exchange management. The PI must indicate HS code, country of origin, value, and trade terms. India implements import licensing and Bureau of Indian Standards (BIS) requirements for certain commodities, and the relevant certifications should be reflected in the PI. If applying for preferential tariffs, a certificate of origin must be provided. Specific regulations are subject to the latest announcements of the Central Board of Indirect Taxes and Customs of India. Russia: Russia Customs requires a proforma invoice for import declaration and foreign exchange control. The PI must indicate HS code (TN VED), country of origin, value, and trade terms. Russia implements import licensing and mandatory certification (GOST-R) for certain commodities, and the certificate numbers should be reflected in the PI. In addition, Russia requires the PI to be accompanied by a Russian translation. Specific regulations are subject to the latest announcements of the Federal Customs Service of Russia.
United States
U.S. Customs requires a proforma invoice as a supporting document for import declaration, which must include detailed goods description, HS code, country of origin, value, and trade terms. If used to apply for FDA, EPA, and other permits, relevant registration numbers must be additionally indicated. The United States has special declaration requirements for products subject to anti-dumping and countervailing duty orders, and the PI should truthfully reflect the transaction price to avoid underreporting. Specific regulations are subject to the latest announcements of U.S. Customs and Border Protection (CBP).
European Union
Customs of EU member states require a proforma invoice for import declaration and value-added tax (VAT) calculation. The PI must indicate the EORI number, VAT number, country of origin, and preferential origin declaration (if applicable). For CE-certified products, the declaration of conformity must be reflected in the PI. Products involved in EU anti-dumping measures require complete supply chain information. Specific regulations are subject to the EU Customs Code and the latest announcements of each country's customs.
Japan
Japan Customs requires a proforma invoice for import declaration and tariff assessment. The PI must indicate HS code, country of origin, trade terms, and payment method. If applying for preferential tariff rates under the Generalized System of Preferences (GSP) or Economic Partnership Agreement (EPA), a certificate of origin must be provided. Japan has special labeling and licensing requirements for food, drugs, cosmetics, etc., and the PI should indicate the relevant approval numbers. Specific regulations are subject to the latest announcements of Japan Customs.
South Korea
Korea Customs requires a proforma invoice for import declaration and foreign exchange management. The PI must include detailed goods description, HS code, country of origin, value, and trade terms. If applying for FTA preferential tariffs, a certificate of origin must be provided. South Korea implements an import licensing system for certain commodities, and the PI must indicate the license number. Specific regulations are subject to the latest announcements of the Korea Customs Service.
Middle East (Saudi Arabia/UAE)
Customs of Saudi Arabia and the UAE require a proforma invoice for import declaration and consular legalization. The PI must indicate country of origin, trade terms, and payment method, and usually needs to be legalized by the local embassy or chamber of commerce. Saudi Arabia requires SABER certification, and the UAE requires ECAS certification, and the relevant certificate numbers should be reflected in the PI. For trade related to Israel, attention should be paid to the Arab boycott clauses. Specific regulations are subject to the latest announcements of local customs.
Brazil
Brazil Customs requires a proforma invoice for import licensing and customs declaration. The PI must include detailed goods description, HS code (NCM), country of origin, value, and trade terms. Brazil implements an import licensing system, and the PI must be consistent with the license information. In addition, Brazil requires the PI to indicate cost components such as freight and insurance for tariff calculation. Specific regulations are subject to the latest announcements of the Brazilian Federal Revenue Service.
India
India Customs requires a proforma invoice for import declaration and foreign exchange management. The PI must indicate HS code, country of origin, value, and trade terms. India implements import licensing and Bureau of Indian Standards (BIS) requirements for certain commodities, and the relevant certifications should be reflected in the PI. If applying for preferential tariffs, a certificate of origin must be provided. Specific regulations are subject to the latest announcements of the Central Board of Indirect Taxes and Customs of India.
Russia
Russia Customs requires a proforma invoice for import declaration and foreign exchange control. The PI must indicate HS code (TN VED), country of origin, value, and trade terms. Russia implements import licensing and mandatory certification (GOST-R) for certain commodities, and the certificate numbers should be reflected in the PI. In addition, Russia requires the PI to be accompanied by a Russian translation. Specific regulations are subject to the latest announcements of the Federal Customs Service of Russia.
❓ FAQ
What is the difference between a proforma invoice and a commercial invoice?: A proforma invoice is an informal quotation document before a transaction, used to confirm terms, apply for a letter of credit or import license, and is not legally binding; a commercial invoice is a formal settlement document after the transaction, used for customs declaration, payment, and accounting, and has legal effect. The two are similar in format, but differ in purpose, legal effect, and time of issuance. A commercial invoice usually must strictly comply with letter of credit requirements, while a proforma invoice is relatively flexible. Does a proforma invoice need to be stamped?: Usually, the exporter's signature or seal is required to indicate the intention to make a formal offer. If used for opening a letter of credit or applying for an import license, the bank or the importing country's customs may require a company seal or handwritten signature. Electronic proforma invoices may also use electronic signatures if accepted by both parties. It is recommended to clearly mark "Proforma Invoice" on the PI and affix the company seal to enhance credibility. How should the validity period of a proforma invoice be set?: The validity period is usually 30-60 days, depending on commodity price fluctuations, exchange rate changes, and market conditions. For raw materials or commodities with large exchange rate fluctuations, the validity period should be short; for customized products, it can be appropriately extended. The validity period should specify start and end dates and note that "reconfirmation is required after expiration." If the customer does not open a letter of credit within the validity period, the exporter has the right to adjust prices or terms. What should be done if the amount on the proforma invoice is inconsistent with the letter of credit amount?: If the letter of credit amount is inconsistent with the PI amount, the letter of credit shall prevail, but the customer must be immediately contacted to amend the letter of credit or adjust the PI. Banks review documents based on the letter of credit terms, and inconsistency may lead to discrepancies. It is recommended to carefully check the PI and the draft letter of credit before opening the letter of credit to ensure that the amount, currency, trade terms, etc. are completely consistent. If the letter of credit has already been opened, an amendment or a new PI may be applied for. Does a proforma invoice need to indicate the HS code?: It is recommended to indicate the HS code, especially when used for import licensing or customs declaration. The HS code helps the importer confirm tariffs, regulatory conditions, and whether special licenses are required. The first 6 digits of the HS code are internationally unified, and the remaining digits are determined by each country. When filling in, ensure consistency with the actual goods to avoid customs clearance delays or fines due to classification errors. If uncertain, consult a customs broker or customs. Can a proforma invoice serve as a basis for payment?: A proforma invoice itself is not a basis for payment, but it can serve as a payment notice. In T/T or advance payment transactions, importers often arrange remittance based on the PI. In this case, the PI should include complete bank information, payment ratio, and time nodes. If used for a letter of credit, the PI is an attachment to the application for opening the letter of credit, but the basis for payment is the letter of credit and subsequent commercial invoice. It is recommended to clearly state the payment terms in the PI to avoid disputes. Does a proforma invoice need consular legalization?: Some countries (such as Saudi Arabia, the UAE, Egypt, etc.) require proforma invoices to be legalized by the local embassy or chamber of commerce for import customs clearance or license application. The legalization process usually includes notarization, Ministry of Foreign Affairs, and embassy legalization. A legalized PI has higher legal effect. Whether legalization is required depends on the importing country's requirements. It is recommended to confirm with the customer in advance and allow sufficient time for processing. How should the trade term on a proforma invoice be chosen?: Trade terms should be chosen based on transportation mode, risk division, and cost control. Commonly used terms include FOB, CIF, EXW, etc., and the Incoterms® version and designated port must be indicated. FOB is suitable for sea freight, CIF means the seller is responsible for freight and insurance, and EXW means the buyer bears all costs. When choosing, consider customer requirements, letter of credit terms, and your own capabilities. Once the term is determined, it should be consistent with subsequent documents.
Q: What is the difference between a proforma invoice and a commercial invoice?
A: A proforma invoice is an informal quotation document before a transaction, used to confirm terms, apply for a letter of credit or import license, and is not legally binding; a commercial invoice is a formal settlement document after the transaction, used for customs declaration, payment, and accounting, and has legal effect. The two are similar in format, but differ in purpose, legal effect, and time of issuance. A commercial invoice usually must strictly comply with letter of credit requirements, while a proforma invoice is relatively flexible.
Q: Does a proforma invoice need to be stamped?
A: Usually, the exporter's signature or seal is required to indicate the intention to make a formal offer. If used for opening a letter of credit or applying for an import license, the bank or the importing country's customs may require a company seal or handwritten signature. Electronic proforma invoices may also use electronic signatures if accepted by both parties. It is recommended to clearly mark "Proforma Invoice" on the PI and affix the company seal to enhance credibility.
Q: How should the validity period of a proforma invoice be set?
A: The validity period is usually 30-60 days, depending on commodity price fluctuations, exchange rate changes, and market conditions. For raw materials or commodities with large exchange rate fluctuations, the validity period should be short; for customized products, it can be appropriately extended. The validity period should specify start and end dates and note that "reconfirmation is required after expiration." If the customer does not open a letter of credit within the validity period, the exporter has the right to adjust prices or terms.
Q: What should be done if the amount on the proforma invoice is inconsistent with the letter of credit amount?
A: If the letter of credit amount is inconsistent with the PI amount, the letter of credit shall prevail, but the customer must be immediately contacted to amend the letter of credit or adjust the PI. Banks review documents based on the letter of credit terms, and inconsistency may lead to discrepancies. It is recommended to carefully check the PI and the draft letter of credit before opening the letter of credit to ensure that the amount, currency, trade terms, etc. are completely consistent. If the letter of credit has already been opened, an amendment or a new PI may be applied for.
Q: Does a proforma invoice need to indicate the HS code?
A: It is recommended to indicate the HS code, especially when used for import licensing or customs declaration. The HS code helps the importer confirm tariffs, regulatory conditions, and whether special licenses are required. The first 6 digits of the HS code are internationally unified, and the remaining digits are determined by each country. When filling in, ensure consistency with the actual goods to avoid customs clearance delays or fines due to classification errors. If uncertain, consult a customs broker or customs.
Q: Can a proforma invoice serve as a basis for payment?
A: A proforma invoice itself is not a basis for payment, but it can serve as a payment notice. In T/T or advance payment transactions, importers often arrange remittance based on the PI. In this case, the PI should include complete bank information, payment ratio, and time nodes. If used for a letter of credit, the PI is an attachment to the application for opening the letter of credit, but the basis for payment is the letter of credit and subsequent commercial invoice. It is recommended to clearly state the payment terms in the PI to avoid disputes.
Q: Does a proforma invoice need consular legalization?
A: Some countries (such as Saudi Arabia, the UAE, Egypt, etc.) require proforma invoices to be legalized by the local embassy or chamber of commerce for import customs clearance or license application. The legalization process usually includes notarization, Ministry of Foreign Affairs, and embassy legalization. A legalized PI has higher legal effect. Whether legalization is required depends on the importing country's requirements. It is recommended to confirm with the customer in advance and allow sufficient time for processing.
Q: How should the trade term on a proforma invoice be chosen?
A: Trade terms should be chosen based on transportation mode, risk division, and cost control. Commonly used terms include FOB, CIF, EXW, etc., and the Incoterms® version and designated port must be indicated. FOB is suitable for sea freight, CIF means the seller is responsible for freight and insurance, and EXW means the buyer bears all costs. When choosing, consider customer requirements, letter of credit terms, and your own capabilities. Once the term is determined, it should be consistent with subsequent documents.
📝 Sample
[Proforma Invoice - Complete Filling Sample]
Proforma Invoice No.: PI-2026-0915-A
Date of Issue: 2026-09-15
Seller / Exporter: Ningbo Sunrise Industrial Co., Ltd., No. 88 Haiguan Road, Beilun District, Ningbo, Zhejiang, China 315800; Tel: +86-574-8765-4321; Fax: +86-574-8765-4320; Email: sales@sunrise-industrial.cn; Tax ID: 91330206MA2AB3C4D5
Buyer / Importer: EuroTech Trading GmbH, Industriestrasse 45, 60313 Frankfurt am Main, Germany; Tel: +49-69-1234-5678; Fax: +49-69-1234-5679; Email: purchase@eurotech-trading.de; Tax ID: DE123456789
Terms of Payment: 30% T/T deposit within 7 days after PI confirmation; 70% balance by irrevocable L/C at sight issued by Commerzbank AG, Frankfurt, in favor of seller before shipment.
Terms of Delivery: CIF Hamburg, Incoterms® 2020
Description of Goods: Stainless Steel Vacuum Flask, Model SF-750, double-wall 304 stainless steel, 750ml capacity, leak-proof lid, brushed finish, packed in color box, 24 pcs per export carton.
Quantity: 5,000 PCS
Unit Price: USD 8.50 per PCS CIF Hamburg
Total Amount: USD 42,500.00 (SAY US DOLLARS FORTY-TWO THOUSAND FIVE HUNDRED ONLY)
Port of Loading: Ningbo Port, China
Port of Discharge: Hamburg Port, Germany
Country of Origin: China
Validity: This offer is valid until 2026-10-15.
Bank Information: Beneficiary: Ningbo Sunrise Industrial Co., Ltd.; Bank: Bank of China, Ningbo Beilun Branch, No. 12 Zhonghe Road, Beilun District, Ningbo, China; SWIFT: BKCHCNBJ950; Account No.: 3901 5688 2210 901; Tel: +86-574-8688-0000
Signature / Stamp: For and on behalf of Ningbo Sunrise Industrial Co., Ltd. Authorized Signature: _Chen Wei_ Chen Wei, Export Manager Company Stamp: [Ningbo Sunrise Industrial Co., Ltd. Round Stamp]
The above is a sample. For actual completion, please refer to the L/C / contract / requirements of the importing country.
[Proforma Invoice - Complete Filling Sample]
Proforma Invoice No.: PI-2026-0915-A
Date of Issue: 2026-09-15
Seller / Exporter: Ningbo Sunrise Industrial Co., Ltd., No. 88 Haiguan Road, Beilun District, Ningbo, Zhejiang, China 315800; Tel: +86-574-8765-4321; Fax: +86-574-8765-4320; Email: sales@sunrise-industrial.cn; Tax ID: 91330206MA2AB3C4D5
Buyer / Importer: EuroTech Trading GmbH, Industriestrasse 45, 60313 Frankfurt am Main, Germany; Tel: +49-69-1234-5678; Fax: +49-69-1234-5679; Email: purchase@eurotech-trading.de; Tax ID: DE123456789
Terms of Payment: 30% T/T deposit within 7 days after PI confirmation; 70% balance by irrevocable L/C at sight issued by Commerzbank AG, Frankfurt, in favor of seller before shipment.
Terms of Delivery: CIF Hamburg, Incoterms® 2020
Description of Goods: Stainless Steel Vacuum Flask, Model SF-750, double-wall 304 stainless steel, 750ml capacity, leak-proof lid, brushed finish, packed in color box, 24 pcs per export carton.
Quantity: 5,000 PCS
Unit Price: USD 8.50 per PCS CIF Hamburg
Total Amount: USD 42,500.00 (SAY US DOLLARS FORTY-TWO THOUSAND FIVE HUNDRED ONLY)
Port of Loading: Ningbo Port, China
Port of Discharge: Hamburg Port, Germany
Country of Origin: China
Validity: This offer is valid until 2026-10-15.
Bank Information: Beneficiary: Ningbo Sunrise Industrial Co., Ltd.; Bank: Bank of China, Ningbo Beilun Branch, No. 12 Zhonghe Road, Beilun District, Ningbo, China; SWIFT: BKCHCNBJ950; Account No.: 3901 5688 2210 901; Tel: +86-574-8688-0000
Signature / Stamp: For and on behalf of Ningbo Sunrise Industrial Co., Ltd. Authorized Signature: _Chen Wei_ Chen Wei, Export Manager Company Stamp: [Ningbo Sunrise Industrial Co., Ltd. Round Stamp]
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