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Short answer: a proforma invoice is a seller's written offer, laid out like an invoice. When you pay the advance against it, its terms become the deal. Read every line before you pay, because anything missing from it is hard to claim later.
Fourteen lines to check
| Line | What it should say | Why it matters |
|---|---|---|
| 1. Seller | Full legal name, address, registration numbers | Must match the bank account name |
| 2. Buyer and consignee | Your legal name and address, and who receives the goods | Customs uses these exactly |
| 3. Number and date | A unique reference | Quote it on your payment |
| 4. Description | Product, size, weight or thread count, fibre, colour | The spec in short. Refer to the full spec sheet |
| 5. HS code | The tariff code for the goods | Your duty depends on it |
| 6. Quantity and unit | Pieces, sets or kg, per line | A "set" must be defined |
| 7. Unit price and currency | Per piece or per set, in a named currency | No ambiguity |
| 8. Incoterm and place | FOB Cochin, CIF your port, and so on | Says where the seller's price and risk end |
| 9. Total | Sum of the lines, plus any charges listed | Check the arithmetic |
| 10. Payment terms | Advance, balance and when each is due | Ours: 50 percent advance, 50 percent on completion before dispatch |
| 11. Delivery or ship date | Days from advance, or a date | Not "as soon as possible" |
| 12. Packing | Pieces per carton, bale or carton, marks | Affects freight and receiving |
| 13. Validity | The date the offer expires | Prices are not open-ended |
| 14. Bank details | Account name, number, bank, branch, SWIFT code | Verify before paying |
Lines worth asking to be added
- Reference to the spec sheet and approved sample: "As per specification version 2 and approved sample dated [date]."
- Tolerances: on size, weight and quantity. A quantity tolerance of plus or minus a few percent is normal, because fabric does not cut to an exact count. Agree whether you pay for what is shipped.
- Inspection: "Subject to AQL 2.5 final inspection, report provided before balance."
- Documents: the list you will receive, including the certificate of origin under the agreement you plan to use.
- Country of origin: India.
- Partial shipment: allowed or not.
Where disputes usually start
| Vague line | Later argument |
|---|---|
| "Bath towel 600 GSM" with no size or piece weight | Towels arrive smaller or lighter than expected |
| "Sheet set" with no contents | Is it one pillowcase or two |
| "FOB" with no port | Which port, and who pays inland transport |
| "Delivery 45 days" | From which date: order, advance or sample approval |
| No tolerance | 1,940 pieces arrive against 2,000 ordered |
Proforma, commercial invoice, purchase order
| Document | Who issues it | When |
|---|---|---|
| Purchase order | Buyer | To place the order |
| Proforma invoice | Seller | Before production, to state terms and request the advance |
| Commercial invoice | Seller | At shipment, for the goods actually shipped. Used for customs |
The commercial invoice should agree with the proforma apart from the final quantities.
Before you pay against it
- Check the seller's registrations. Ours are on the verification page.
- Verify the bank details by phone. See five checks before you wire.
- Make sure the Incoterm suits you. See FOB, CIF and DDP.
- Send the HS code to your customs broker.
What ours looks like
Our proforma states the spec for each line, FOB Cochin unless you asked for CIF or DDP, 50 percent advance and 50 percent on completion before dispatch, a production time of 30 to 45 days from the advance, a validity date and our bank details in the name of Anabyn Global Ventures LLP.
For the bigger picture of a first order, see the first-order checklist. To receive a proforma for your requirement, ask us for a quote.
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Written by
Dr Abin Babu
Founder & Chairman, Anabyn Global Ventures
Anabyn exports hotel and home linen from Kerala, India. These guides come from the questions buyers ask our desk. About the team
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