Pro Forma Invoice
What is a pro forma invoice?
A pro forma invoice is essentially an estimate or quote. A seller sends this preliminary invoice to a buyer before the production or delivery of goods to indicate how much the order will cost and the supplier’s intent to produce the proposed amount of goods for a specific price. However, a Pro Forma is not considered an official invoice, as it has not been agreed upon yet.
How is a pro forma invoice different from a Commercial Invoice?
A pro forma invoice is often almost identical to Commercial Invoice, however, it contains price estimates, instead of final prices. It is a more generalized invoice and is used to streamline the sales process. After the buyer agrees to their terms on a pro forma invoice, the rate is set and negotiations are over.
Note: While pro forma invoices can look the exact same as commercial invoices, Customs will not accept a pro forma invoice as only a commercial invoice is seen as a legal document.
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