Trade Documents
Commercial Invoice vs Proforma Invoice
Commercial invoice is for customs and final payment; proforma is pre-shipment quote — key differences.
Proforma = offer/PI for payment trigger; Commercial = declared value for clearance.
Key Differences at a Glance
Proforma invoice (PI) is a preliminary quotation — not usually a customs declaration. Commercial invoice is the legal invoice for shipment, duty assessment, and L/C presentation.
Seller vs Buyer Obligations
Seller issues PI to confirm price/MOQ for deposit; issues commercial invoice when goods ship with final quantities.
Buyer pays deposit against PI; pays balance and clears customs against commercial invoice.
Risk Transfer and Cost Structure
If commercial invoice value differs from PI without amendment, LC or tax audit flags arise.
Duty calculated on commercial invoice (CIF adjusted) — PI has no duty effect.
Which Term to Choose
Examples
Flow
PI USD 100k → 30% deposit → ship → commercial invoice USD 98.5k actual qty → customs duty on 98.5k.
LC
LC amount must cover commercial invoice — PI alone insufficient for bank.
FAQ
- Can PI title say invoice?
- Label clearly "Proforma" to avoid customs confusion.
- Same number series?
- Many use separate PI and CI numbering sequences.
- PI in L/C?
- Some L/Cs reference PI for description — still need commercial invoice at shipment.
- Proforma for samples?
- Common — low value before commercial repeat orders.
- Replace PI with contract?
- Contract + commercial invoice can skip PI for mature B2B.
Conclusion
See Day 1 guides for each type. Ensure Invoice and Packing List Consistency.