Why Proforma Invoices Matter
A proforma invoice sets expectations for price, quantity, packaging, and payment terms. For Indian food exports, it also forms the basis for customs clearance, bank approvals, and logistics planning.
Key Sections to Review
Focus on the product description, HS codes, unit price, total amount, packaging details, shipment terms, and delivery port. Ensure the weight, grade, and quality definitions match your purchase order.
Must-check invoice items
- Seller and buyer contact details
- Product name, grade, and specification
- Qty in MT or bags, and unit conversion details
- FOB/CIF term, loading and discharge ports
- Payment method and validity period
Common Proforma Invoice Mistakes
Watch for unclear product descriptions, missing HS codes, absent packing details, or open-ended payment instructions. These can cause delays in LC issuance, customs, and cargo release.
What Comes After the Proforma Invoice
After approving the proforma invoice, importers usually open an LC or make an advance payment. The proforma also guides the commercial invoice and export documents prepared at the time of shipment.
