Proforma Invoice

Proforma Invoice is an informal reference invoice provided by the seller to the buyer before a formal transaction in foreign trade, mainly used for quotation, applying for import licenses, opening letters of credit, or advance payment. It is not a formal settlement document and has no legal binding force, but its content usually includes goods description, quantity, unit price, total price, trade terms, payment method, delivery time, etc. Usage scenarios: The buyer needs it to apply for foreign exchange or import approval; the seller uses it to confirm transaction details. Precautions: The Proforma Invoice should be marked with the words "Proforma Invoice" to avoid confusion with a commercial invoice; once the buyer accepts it and pays the advance payment, it may become the basis for a formal contract. Difference from a commercial invoice: A commercial invoice is a formal settlement document issued after delivery, used for customs declaration and payment; a proforma invoice is only for preliminary reference. Difference from a quotation: A quotation is more flexible, while a proforma invoice is more formal and is often accepted by banks.