Glossary—pro-forma invoice

GISTnet Glossary—pro-forma invoice

"Pro forma" is a Latin phrase meaning "in the form of." A pro-forma invoice is a document created in the format of an invoice, but not actually constituting an invoice (i.e., not a demand for the payment of money). Pro-forma invoices are commonly used as a format for rendering a quotation for the sale of goods, particularly an export sale where the trade terms and/or shipping and other incremental cost must be specifically accounted for if they are included within the total transaction price. Some countries specifically require the seller's pro-forma invoice as a supporting document to an importer's application for an import license or import permit. Customs authorities will also accept or even require a pro-forma invoice, issued by the shipper, in support of a customs declaration for goods which were not purchased. A pro-forma invoice should contain all or most of the information which will or should appear on a prospective commercial invoice should the described transaction materialize, or in the event the goods had been shipped as an arms length purchase. See also customs invoice.
Note: Shippers and/or freight forwarders preparing shipping documents for a non-sale transaction, or for a shipment which includes a portion of goods, such as personal effects, unrelated to the primary commercial transaction, should prepare a pro-forma invoice identifying all such goods, and stating a value for customs purposes.