Shipping Documents
Proforma Invoice – Purpose & Key Fields
A preliminary invoice sent before shipment to confirm terms and enable import licenses.
- Document
- Proforma Invoice
- Transport modes
- Sea, Air, Road, Rail, Multimodal
- Issued by
- Exporter, Seller, Supplier
A Proforma Invoice is a preliminary or quote invoice sent by the seller to the buyer before the shipment is made. It details the goods, prices, and terms of a potential sale. While not a demand for payment, it is used by buyers to arrange import licenses, foreign exchange, or Letter of Credit. It becomes binding once accepted by the buyer.
Purpose of the Proforma Invoice
- Quote or price confirmation for buyer
- Required for import license applications
- Basis for Letter of Credit opening
- Helps buyer arrange foreign exchange
- Precedes the commercial invoice
Who issues the Proforma Invoice
- Exporter
- Seller
- Supplier
When the Proforma Invoice is required
- Import license applications
- LC opening
- Price quotations
- Foreign exchange arrangements
Key fields on the Proforma Invoice
- Seller/Buyer Details (required): Parties to the transaction
- Product Description (required): Detailed goods description
- Prices and Terms (required): Pricing and payment terms
- Validity Period (required): How long the quote is valid
- Estimated Shipping Date: Expected shipment date
Tips for the Proforma Invoice
- Clearly state that it is a "Proforma Invoice"
- Include validity period for pricing
- Ensure details match future commercial invoice
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Frequently asked questions
What is a Proforma Invoice?
A preliminary invoice sent before shipment to confirm terms and enable import licenses.
What is the purpose of the Proforma Invoice?
Quote or price confirmation for buyer. Required for import license applications. Basis for Letter of Credit opening. Helps buyer arrange foreign exchange. Precedes the commercial invoice
Who issues the Proforma Invoice?
The Proforma Invoice is issued by: Exporter, Seller, Supplier.