Documents
Proforma invoice (PI)
A preliminary invoice or quotation issued by the seller before shipment, stating goods, price, Incoterm and payment terms.
In four languages
A proforma invoice is the supplier's offer in invoice form. It lists the products, quantities, unit prices, Incoterm, payment terms and validity, and it is what buyers use to pay a deposit, open a letter of credit, apply for import permits, or check HS codes and duty in advance. It is not a clearance document: customs needs the final commercial invoice. Check that the PI already names the Incoterm with a place and edition, for example FOB Ningbo, Incoterms 2020, and the payment split. Example: a Riyadh buyer receives a PI from a Ningbo supplier for 500 solar street lights, with 30% deposit by T/T and 70% against a copy of the bill of lading. The buyer uses the PI to pay the deposit and to ask the forwarder for a freight and duty estimate.
Questions
Can I clear customs with a proforma invoice?
No. Customs requires the final commercial invoice that matches the goods actually shipped.
Is a proforma invoice a binding contract?
Once accepted and paid it often works as the agreement, but it is safer to have a sales contract that covers quality, inspection, documents and disputes.