Proforma Invoice Template: Complete Guide to International Trade Documentation
Shipping internationally without a proforma invoice creates customs nightmares. Buyers can't arrange letters of credit. Customs can't calculate duties. Payments get delayed for documentation gaps. Proforma invoices solve all of this—providing the preliminary documentation that makes international trade possible.
International shipments worth over $2,500 typically require proforma invoices for customs clearance. Over 60% of international shipment delays are caused by incomplete or incorrect documentation—delays that cost exporters time, money, and customer satisfaction.
This comprehensive guide covers everything you need to know about proforma invoices: when they're required, what information must be included, how they differ from commercial invoices, and compliance best practices.
What is a Proforma Invoice?
A proforma invoice is a preliminary bill of sale issued before goods are shipped or services are delivered. It provides buyers with detailed transaction information—product descriptions, quantities, prices, shipping terms—allowing them to:
- Arrange payment: Apply for letters of credit or secure financing
- Clear customs: Provide documentation for import clearance and duty calculation
- Budget accurately: Understand total landed costs before committing to purchase
- Obtain permits: Apply for import licenses or regulatory approvals
Customs Duty Calculator
Estimate Total Import Costs
Dutyable Value
$5500
Product + shipping
Customs Duty
$550
Import tax
Total Landed Cost
$6050
All-in cost
Proforma Invoice vs Commercial Invoice
| Aspect | Proforma Invoice | Commercial Invoice |
|---|---|---|
| Purpose | Quote/estimate before shipment | Payment demand after shipment |
| Timing | Sent before goods ship | Sent with/after goods ship |
| Legal Status | Not legally binding for payment | Legally binding payment request |
| Customs | Used for preliminary clearance | Required for final clearance |
| Editable | Yes, can be revised | No, requires credit note to change |
| Accounting | Not recorded as revenue | Recorded as revenue/accounts receivable |
Required Fields on Proforma Invoices
Mandatory Information
- "Proforma Invoice" label prominently displayed
- Unique invoice number and date issued
- Exporter details: company name, address, contact, tax ID
- Importer details: company name, address, contact, tax ID
- Detailed product descriptions (not just "goods")
- HS codes (Harmonized System) for each item
- Quantities and unit prices in buyer's currency
- Total value with currency specified
- Incoterms (FOB, CIF, DDP, etc.)
- Country of origin for each item
- Estimated shipping date or delivery timeline
- Payment terms (advance, L/C, wire transfer, etc.)
- Weight and dimensions for shipping
Common Mistakes to Avoid
- Using vague product descriptions ("electronics" instead of "laptop computers")
- Missing or incorrect HS codes causing customs delays
- Omitting country of origin for manufactured goods
- Not specifying Incoterms (who pays shipping/insurance)
- Forgetting to label document as "Proforma Invoice"
- Mixing currencies without clear conversion rates
- Incomplete buyer information (address, tax ID)
- Not updating proforma after price/quantity changes
- Sending proforma without commercial invoice follow-up
When to Use Proforma Invoices
International Shipments
Required for customs clearance and duty calculation on cross-border shipments over $2,500.
Customs agents use proforma invoices to determine duties, verify product descriptions match HS codes, and ensure compliance with import regulations before goods arrive.
Advance Payment & Letters of Credit
Banks require proforma invoices to issue letters of credit or approve advance payments.
Financial institutions need detailed transaction documentation before releasing funds. Proforma invoices provide the necessary detail for credit approval and fund release.
Sample Shipments & No Commercial Value
Samples, prototypes, and temporary exports need proforma invoices even with no payment.
Mark "No Commercial Value" or "Sample - Not for Resale" on proforma invoices for non-sale shipments. Customs still needs documentation for tracking and potential return.
Import Permits & Regulatory Approval
Government agencies require proforma invoices for import licenses on regulated goods.
Pharmaceuticals, chemicals, electronics, and food products often need pre-approval. Proforma invoices provide the detail regulators need to issue permits before shipment.
Key Takeaways
Proforma invoices are preliminary quotes, not payment demands—they enable customs clearance and buyer planning before goods ship.
International shipments over $2,500 typically require proforma invoices for customs duty calculation and import clearance.
Always include HS codes, country of origin, and Incoterms—these are critical for customs compliance and duty calculation.
Follow every proforma invoice with a commercial invoice when goods ship—the commercial invoice is the legal payment request.
Proforma invoices can be revised before shipment, but commercial invoices require credit notes to change after issuance.
Create Professional Proforma Invoices
QuickBillMaker includes customizable proforma invoice templates with all required international trade fields for compliance.
Create Proforma InvoiceFrequently Asked Questions
What is a proforma invoice?
A proforma invoice is a preliminary bill of sale sent before shipment or delivery, particularly for international transactions. It details the products, prices, and terms to help buyers arrange payment and customs clearance. Unlike commercial invoices, proforma invoices are NOT demands for payment—they are quotes or estimates that become binding only after buyer acceptance.
When do I need a proforma invoice?
Use proforma invoices for: international shipments requiring customs documentation, advance payments or letters of credit, buyers needing cost estimates for budgeting or import permits, trade compliance when actual pricing is not yet finalized, sample shipments with no commercial value, and temporary exports that will be returned. Domestic transactions rarely require proforma invoices.
What is the difference between proforma and commercial invoice?
Proforma invoices are preliminary quotes sent before shipment for customs clearance and buyer planning—they are not payment requests. Commercial invoices are final bills sent with or after shipment, demanding payment and serving as legal records of the transaction. Customs accepts both for duty calculation, but commercial invoices carry legal weight for payment disputes. Always follow a proforma with a commercial invoice upon shipment.
Do I need to pay tax on a proforma invoice?
No, proforma invoices do not create tax obligations because they are not actual sales—they are estimates. Tax applies when the commercial invoice is issued and payment is received. However, customs duties may be calculated based on proforma invoice values for import clearance. VAT/GST applies based on commercial invoices, not proforma invoices.
What information must be on a proforma invoice?
Required fields: exporter and importer contact details, proforma invoice number and date, detailed product descriptions, HS codes for customs classification, quantities and unit prices, total value in buyer currency, shipping terms (Incoterms like FOB, CIF), estimated shipping date, payment terms and method, country of origin for each item, and weight/dimensions for shipping. Always include "Proforma Invoice" prominently to distinguish from commercial invoices.
Can I edit a proforma invoice after sending it?
Yes, proforma invoices can be revised because they are estimates, not final invoices. If costs change, issue a revised proforma invoice with a new version number or date. Notify the buyer immediately of any changes that affect pricing, quantities, or terms. Once the buyer accepts and you ship, issue a commercial invoice reflecting the actual transaction—this cannot be changed without issuing a credit note.