Commercial Invoice vs Proforma Invoice: The Practical Difference
Commercial invoice vs proforma invoice: when to use each, what customs expects, and how to avoid shipment delays. Complete guide for exporters and importers.
What a proforma invoice is
A proforma invoice is a preliminary quote formatted like an invoice, sent before goods ship or services are delivered. It tells the buyer what to expect: description, quantities, prices, incoterms, and estimated totals. It is not a demand for payment and it is not evidence of a completed sale — customs authorities usually will not clear goods on a proforma alone.
What a commercial invoice is
A commercial invoice is the official transactional document issued when goods actually ship or services are delivered. It is what customs authorities use to assess duties and taxes, what banks use to release payment under letters of credit, and what your books record as revenue. It is legally binding in a way the proforma is not.
Fields customs will look for on your commercial invoice
Full seller and buyer legal names and addresses; complete goods description with HS (harmonized system) codes; country of origin; incoterms (EXW, FOB, CIF, DAP, DDP); currency and total value; shipping details including port of loading and discharge; and a signed declaration. Missing any of these is the most common cause of customs delays.
When to send each
Send a proforma when the buyer needs to open a letter of credit, arrange import permits, or get internal budget approval before you produce the goods. Send the commercial invoice at shipment, matching the proforma line-for-line whenever possible so customs can reconcile the two documents.
Common mistakes with proforma invoices
Treating a proforma as a real invoice for accounting (it is not revenue until you issue the commercial invoice). Sending a proforma without a validity date (buyers assume the price is locked forever). Forgetting to convert to a commercial invoice at shipment, which stalls customs clearance.
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