Pro Forma Invoice

Pro Forma Invoice

 

This type of invoice is a provisional, temporary invoice, the purpose of which is to acquaint the importer and sometimes the appropriate government authorities of the importing country, with the main details of a future shipment.  In addition, foreign exchange regulations may require the importer to present a pro forma invoice in order to obtain the necessary foreign exchange and/or import license/permit.  It is also used for obtaining and opening letters of credit. 

The pro forma invoice usually contains the same information as a commercial invoice.  However, due to the fact that pro forma invoices are generally prepared a considerable time before shipment, they may not be strictly accurate with regards to weights, quantities, values, shipping expenses, etc.  It is advisable to include a validity period for any prices offered on such an invoice.

Among the data which may have to be included in a specific pro forma invoice are:-

  1. Date
  2. Name and address of exporter
  3. Name and address of importer

  4. Type of transportation

  5. Payment terms

  6. Insurance information

  7. Complete description of merchandise

  8. Quantities
  9. Unit and total prices

  10. Any customs/consular declaration required by importing country.

  11. Statement indicating purpose of invoice (to be signed by exporter).