Proforma invoice and commercial invoice are necessary documents in shipping and international trading. when we look at them both look the same. But their purpose and legal validity are different. Here going to explain the similarities and differences between the proforma invoice and commercial invoice.
What is a proforma invoice?
meaning a proforma invoice is the document provided by the exporter before the goods and services are provided which is mentioning the estimated cost of products or services.
When issues proforma invoices?
Proforma invoice issues before the transaction are done as well as before providing products or services to buyers or customers by exporter or manufacturing company.
To whom issues the proforma invoice?
proforma invoice is issued to the buyer or importer.
what is the purpose of issuing a proforma invoice?
proforma invoice is providing information on the estimated cost. So it can use for forecasted costing for importers. Importers can arrange payment with banks. And also another benefit of the proforma invoice is importer can arrange import licenses and permits before the shipment arrival.
What are the details including proforma invoices?
- company logo of the seller/shipper/exporter
- Seller/shipper/exporter company details: name, address, contact number, country, tax registration number
- Buyer’s /receiver’s/importer’s/client’s information: name, address, contact details, country
- Tax details if applicable
- Hs code of the goods
- Unit price and Total price
- Proforma invoice number and date
- the validity time period of the proforma invoice or due date
- purchase order or contract sales number
- goods available or loading period
- details of the goods or merchandise
- Terms and conditions(VAT,GST)
- Signature of the seller or exporter
Proforma invoice Is it a legal document of international trading?
No, a proforma invoice is not a legal document regarding sales or transactions.
Is it essential to send a proforma invoice?
No, a proforma invoice is always not necessary. But it is good to offer proforma invoices to your buyers. And also it is a part of the sales operation process.
Can be changed proforma invoice?
In case you need to revise terms and conditions or shipment sales terms or product quality and quantity as a buyer you can request to change the proforma invoice. As a seller, you change the proforma invoice and then need to inform the seller.
Free Proforma invoice template providing websites
What is a commercial invoice?
The commercial invoice is a mandatory document in international trading. after the buyer confirmed to order with the agreed terms of sale issuing a commercial invoice for confirming transaction values and terms of the agreement.
When issuing commercial invoices?
after the agreed sales terms and goods are ready to ship.
Who is responsible to issues commercial invoices?
Normally exporters/sellers issue a commercial invoice
What is the purpose of issuing a commercial invoice
It is a proof document of sale as well as it is mention all the charges and final price of the product or services.it is a necessary document of shipping, customs commercial invoice for calculating duty, and other tariffs relevant shipments. And also it provides instructions to freight forwarders, custom house agents, marine insurance companies, banks for their tasks.
What are the details including
- company logo of the seller/shipper/exporter
- Seller/shipper/exporter company details: name, address, contact number, country, tax registration number
- Buyer’s /receiver’s/importer’s/client’s information: name, address, contact details, country
- Net weight of the goods(without packaging)
- The gross weight of the goods(with packaging)
- Tax details if applicable
- Hs code of the goods
- commercial invoice number and date
- purchase order or contract sales number
- Goods transit date
- details of the goods or merchandise
- Country of origin: sales products
- Unit price and Total price
- Delivery terms (inco terms) and payment terms
- Signature of the seller or exporter
commercial invoice Is it a legal document of international trading?
yes of course. a commercial invoice is a legal document of proof of transaction values.
is it essential to send a commercial invoice?
Yes. It is mandatory to document proof of sales values of the transaction and customs duty calculation process.
Available templates
Commercial invoice can be changed?
No, do not change the commercial invoice. Because it is the finalized invoice for that transaction. And also it’s issued after the service or product offering.
Similarities between the proforma invoice and commercial invoice
When considering one shipment, the seller’s and buyer’s information are the same. And also commercial goods or products details are same.
Difference between proforma invoice and commercial invoice
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