Difference between Pro forma Invoice and Commercial Invoice in Export

Difference between ‘Pro forma Invoice’ and ‘Commercial Invoice’ in Export Import Trade

One of the common questions arises in a business terms is the ‘difference between pro forma invoice and invoice’. ‘What is pro forma invoice’, ‘What is commercial invoice’ and ‘what is the difference between commercial invoice and pro forma invoice’.

Let us discuss – ‘when the pro-forma invoice is issued’ and ‘when invoice is issued’.

So, we can treat pro-forma invoice as a document of commitment to sell the goods to the buyer as per the terms and conditions agreed between both in person, over telephone, by fax, email or any other mode of communication. In other words, we can treat the pro-forma invoice as a ‘confirmed purchase order’ from the seller, although the official purchase order has to be issued by the buyer. The pro-forma invoice is issued before sales takes place.

However, in some countries, pro-forma invoice is accepted in lieu of commercial invoice. to process import customs procedures to release cargo out of country.

Do pro-forma invoice accepts in your country for import customs clearance? Write to me.