Proforma invoice vs commercial invoice: what is the difference?
Updated
A proforma invoice is a preliminary invoice a supplier sends before the goods ship. It states what they intend to sell and at what price, so you can approve the order and arrange payment. A commercial invoice is the final invoice for the shipment. It goes with the goods, and customs uses it to assess duties. Pay against the proforma only after you've checked it, and make sure the commercial invoice later matches it.
What a proforma invoice does
Think of it as a written quote that looks like an invoice. It usually lists the buyer and seller, the products, quantities, unit prices, payment terms, delivery terms and the supplier's bank details. It is not a request for payment of a delivered order, and it usually isn't what you give customs.
Importers use it to:
- Confirm price and terms in writing before paying a deposit.
- Give their bank or payment provider a document to support the payment.
- Apply for financing, a letter of credit or a permit that needs an order document.
What a commercial invoice does
The commercial invoice is the main customs document for an imported shipment. US rules (19 CFR 141.86) list what it must state, including the port of entry, the country of origin, the buyer and seller, a description of the goods, quantities, and the price or value with the currency. Some product types need extra information. Your customs broker or forwarder will tell you what yours needs.
Side-by-side
| Proforma invoice | Commercial invoice | |
|---|---|---|
| When | Before shipping | When goods ship |
| Purpose | Quote and order confirmation | Customs and final billing |
| Goes to customs? | Generally no | Yes |
| Can change? | Yes, if both sides agree | Should match what was agreed and shipped |
What to check on a proforma before you pay
- Company name and address. They should match the supplier you vetted.
- Products and quantities. Model numbers, grades, sizes, condition. For used or refurbished goods, say so in writing.
- Unit price and total. Check the math and the currency.
- Delivery terms. Who pays freight, insurance and duties (see Incoterms).
- Payment terms. Deposit, balance, due dates.
- Bank details. The account holder should match the company on the invoice.
- Country of origin and HS codes. Your customs entry will need them.
Keep the documents consistent
The proforma, the commercial invoice, the packing list and the payment record should agree on names, quantities and values. Differences can slow clearance, and they make questions from a bank or an accountant harder to answer. Save the whole set for each order in one folder.
Where Shield fits
Shield doesn't issue or check invoices. It handles the payment side for importers, exporters and wholesalers: a US business account, a business credit card and supplier payments by wire from your Shield balance. A clean invoice and a clear payment record go together, and either helps if you ever have to explain a purchase.
FAQ
Is a proforma invoice legally binding? It depends on what both sides agree and on the contract terms. Treat it as a written offer and get terms confirmed, and ask a lawyer if the order is large.
Can I pay a deposit against a proforma invoice? Many suppliers ask for one. Check the supplier first and pay only to the account in the verified invoice.
Does customs need the proforma? Customs generally needs the commercial invoice. Ask your broker if they want other documents.
Next step
To see how Shield supports trade businesses with accounts, cards and supplier payments, visit Shield bank accounts.