A proforma invoice is used when exporting goods. It is not an invoice that should be payed, but the purpose is to show the value of the goods in the shipment.
Proforma invoices are primarily used in customs context for customs clearance.
When and why to use a proforma invoice
When you export goods internationally you must add an proforma invoice. The invoice does not require immediate payment from the recipient. The purpose is to list the value of the goods, providing customs authorities with essential information in case the shipment is subject to inspection. Examples of proforma invoice usage include sending gifts, returns, samples, and promotional materials across boarders.
For instance, if you operate a clothing brand in India and wish to send samples to a store in France, a proforma invoice must accompany the shipment.
Key elements of a proforma invoice
To facilitate a smooth customs process, a proforma invoice should contain detailed information about the shipment.
While specific requirements may vary by country, common elements include the title “Pro Forma Invoice,” date of issue, sender and recipient’s names and addresses, package item count, gross and net weights, a detailed description of the package contents, and a personal signature.
Importantly, the phrase “No charge. Value for customs purposes only” must also be prominently displayed on the proforma invoice.
How to create a proforma invoice?
Crafting a proforma invoice can be done with out a special system or template, but attention to detail is crucial. Failure to include necessary specifications and documentation may lead to customs delays and potential delivery complications.
What is the difference between a packing slip and a proforma invoice?
It’s essential to recognise the distinction between a packing slip and a proforma invoice. Unlike a packing slip, a proforma invoice provides comprehensive information about the item’s price or value. While a packing slip focuses on the logistics of the shipment, a proforma invoice serves as a crucial document for customs clearance.