Trade and customs
Proforma invoice
Definition
A preliminary invoice that sets out the offer before shipment, used to confirm the order, open an LC or make an advance payment.
A proforma invoice lists the product, grade, quantity, packing, unit price, Incoterm and named place, payment terms, validity, bank details and expected shipment date. It is not a tax invoice.
Check that the proforma matches the agreed quote line by line, including the specification and the documents to be supplied with the shipment, before you pay or ask your bank to open a letter of credit.
Related terms
- Commercial invoiceThe seller's final invoice for a shipment, used by customs to assess duty and by banks for payment.
- Letter of credit (LC)A bank's undertaking to pay the seller when the seller presents documents that comply with the credit's terms.
- Incoterms 2020The ICC's eleven standard trade terms that set who pays for and bears the risk of each step of delivery.