Pro Forma Invoice
Get tips on how a pro forma invoice can help you negotiate an export sales agreement with a foreign buyer in this video:
A pro forma invoice is a quote in an invoice format that may be required by the buyer to apply for an import license, contract for pre-shipment inspection, open a letter of credit or arrange for transfer of hard currency.
A pro forma may not be a required shipping document, but it can provide detailed information that buyers need in order to legally import the product.
Pro forma invoices basically contain much of the same information as the formal quotation, and in many cases can be used in place of one. It should give the buyer as much information about the order as possible so arrangements can be made efficiently.
The invoices inform the buyer and the appropriate import government authorities details of the future shipment; changes should not be made without the buyer’s consent.
As mentioned for the quotation, the points to be included in the pro forma are:
1. Seller’s name and address
2. Buyer’s name and address
3. Buyer’s reference
4. Items quoted
5. Prices of items: per unit and extended totals
6. Weights and dimensions of quoted products
7. Discounts, if applicable
8. Terms of sale or Incoterm used (include delivery point)
9. Terms of payment
10. Estimated shipping date
11. Validity date
For more information, visit the export documentation webpage.