Get $50,000 in potential benefits Register nowGet $50,000 in potential benefits Register nowGLOBAL SELLING BLOG
Proforma invoice for export:
How to create, uses & examples
A proforma invoice is a document used in international trade as a comprehensive price quotation to sell goods. Learn its features, how to create one, and format in this blog.
July 31, 2026 | 20 min read
Ready to start exporting from India?
Every export deal starts with a negotiation over price, delivery dates, and payment terms. Once you and your buyer agree, a proforma invoice puts that agreement on paper before any shipment leaves India. Think of it as a detailed price quote in invoice form. It lists costs, product details, and terms your buyer can review before confirming the order.
This document is important for Indian exporters entering international trade. Understanding the right proforma invoice format is often one of the early steps toward a confirmed export deal. In this article, you will learn its elements, usage, and steps to set it up correctly.
This document is important for Indian exporters entering international trade. Understanding the right proforma invoice format is often one of the early steps toward a confirmed export deal. In this article, you will learn its elements, usage, and steps to set it up correctly.
Key takeaways:
● A proforma invoice is a preliminary invoice exporters send before a sale is confirmed. It outlines seller and buyer details, estimated costs, products, and terms in advance.
● Exporters send it before confirming an order, applying for financing, or securing internal approval.
● Unlike a commercial invoice, it is not legally binding and doesn’t demand any payment. It is different from a quotation too, which is less formal and detailed.
● The key benefits include reducing miscommunication, supporting financial planning, and easing customs paperwork abroad.
What is a proforma invoice?
A proforma invoice is a preliminary invoice exporters use in international trade. It works like a detailed price quote in invoice format, sent once a buyer shows interest in an order.
A commercial invoice looks similar, but applies only once the sale is confirmed. Unlike a tax invoice, proforma invoice is not legally binding and does not demand payment from the buyer.
A commercial invoice looks similar, but applies only once the sale is confirmed. Unlike a tax invoice, proforma invoice is not legally binding and does not demand payment from the buyer.
When to use a proforma invoice?
Using a proforma invoice for export orders helps you and your buyer align before any shipment leaves the warehouse. The points below help you understand when to use it during a typical export deal:
● Before confirming an export order, send a proforma invoice so the buyer can review the costs and terms first.
● When a buyer needs to apply for an import license or open a letter of credit, it can serve as supporting proof.1
● During internal procurement approval, the buyer's team often uses it to secure budget sign-off.
● To confirm applicable Incoterms, delivery timelines, freight, insurance, and currency. Both parties refer to it before finalizing the agreement.2
● For import clearance or permits abroad, the proforma invoice can support early discussions, though the commercial invoice remains primary for customs.
These moments often overlap within a single deal, so it helps to have a proforma invoice in international trade prepared early on. Knowing which scenario applies also tells you how much detail to include before you send it to the buyer.
What to include in a proforma invoice format?
A clear proforma invoice format covers a consistent set of elements, summarized in the table below. Once you understand these fields, you can adapt them into your own template for future export deals.
Field
Description
Required for export?
Seller and buyer details
Name and address of both the exporter and the buyer.
Yes
Buyer's reference and inquiry date
The buyer's purchase order (PO) reference number and the date they first inquired, if available.
Recommended
Description of goods
Product details, including the HS code in 8-digit ITC-HS format for Indian exports.3
Yes
Quantity and unit price
Number of units, price per unit, and the line total.
Yes
Currency
The currency used for pricing, commonly USD for export deals, though terms vary by agreement.
Yes
Delivery terms
The chosen incoterm under Incoterms 2020, naming the delivery point.
Yes
Payment terms
How and when the buyer will pay, such as by letter of credit, advance payment, or wire transfer.
Yes
Insurance and shipping costs
Freight, insurance, and packing charges, if not already covered by the chosen Incoterm.
Conditional
Estimated shipping date
The expected date of dispatch from the port or airport of origin.
Recommended
Validity period
The date until which the quoted price and terms stay valid.
Recommended
Total charges
The grand total payable by the buyer, including any additional costs.
Yes
Seller and buyer GST/tax details
Exporter's GSTIN (for reference) and the buyer's tax ID i.e., PAN, if applicable. A proforma invoice is not a tax invoice under GST, so this field is for identification only.
Recommended
Bank details
Beneficiary bank name, account number, and SWIFT or IFSC code, needed only if payment is by wire transfer or letter of credit.
Conditional
Note: India has no single legally mandated format for a proforma invoice.4 Label the document "Proforma Invoice" clearly to avoid confusion with a tax or commercial invoice.
How to create a proforma invoice: Step-by-step
Creating a proforma invoice takes 5 simple. Following the steps accurately will help you avoid missing details a buyer's bank or customs broker might request at a later stage. Here's an overview of the process:
1. Add seller and buyer details
List your business name, address, and contact details, along with the buyer's name, address, and contact information, including their GSTIN or tax ID i.e. Permanent Account Number (PAN), where relevant.
2. Assign an invoice number and date
Give the proforma invoice a unique number and date of issue, so both parties can track it easily. The numbering series should be different from the actual tax invoice number series.
3. List the goods or services
Describe each item clearly, including quantity, unit price, and the HS code, which is essential for customs classification on export shipments.
4. Calculate the total
For each item, multiply the quantity by the unit price, then add these item totals together. Include freight, insurance, and packing charges not already covered under your chosen Incoterm. Show the grand total in the agreed currency. These amounts are estimates only, updated later in the final commercial invoice once the order is confirmed.
5. Add payment and delivery terms
Note how and when the buyer will pay, the agreed Incoterms and delivery timeline, and a validity period during which the quoted price and terms stay fixed.
Benefits of using a proforma invoice
A proforma invoice benefits both buyers and sellers in the following ways:.
● Detailed pricing: A proforma invoice breaks down product costs, taxes, fees, and shipping charges, so the buyer sees the full estimate upfront.
● Flexibility: Unlike a commercial invoice, a proforma invoice has no fixed format, so you can adapt it to fit each transaction.
● Formal quote: It works as a formal quote, giving the buyer the details they need to make a purchase decision.
● Reduces risk: Clear pricing and terms lower the risk of miscommunication between the seller and the buyer.
● Enables financial planning: Detailed cost information supports financial planning for both sides, including financing or a letter of credit.
● Supports customs clearance: Helps in buyer's own customs clearance abroad, alongside their commercial invoice and other required paperwork.
Proforma invoice vs commercial invoice
The proforma invoice vs. commercial invoice comparison helps clarify where each document belongs in your export deal. Both look similar on paper, but they serve very different purposes.
Feature
Proforma Invoice
Commercial Invoice
Purpose
Gives the buyer a price estimate and terms before the sale is confirmed.
Records the completed sale and formally requests payment for goods already shipped.
Legal status
Generally not legally binding and creates no payment obligation.
A binding payment request that finalizes the sale.
Payment obligation
Does not demand payment and carries no due date.
Requires payment from the buyer directly, usually by a set due date.
Timing
Issued before the order is confirmed or the letter of credit opens.
Issued after the order is confirmed, usually with or after shipment.
Knowing whether a document is legally binding helps you understand what each one means for your export deal.
Proforma invoice vs quotation
The comparison of proforma invoice vs. quotation comes down to timing, formality, and the role each plays in a deal as captured in table below:
Feature
Quotation
Proforma invoice
Timing
Issued first, before the buyer has committed to anything
Issued once the buyer signals clear intent to proceed
Formality
Often informal, with ballpark pricing
More formal, presented in invoice format
Level of detail
Works as an early estimate for comparing offers
Includes specific details like pricing, Incoterms, payment terms, and validity
Role in the deal
Rarely carries weight beyond the initial comparison
Often used as the basis for a purchase order or letter of credit
A quote works well early on before the buyer signals real intent. While a preliminary invoice or the proforma invoice takes over as the more formal document after the quote has been approved.
Proforma invoice template
A proforma invoice template gives you an immediate starting point, so you are not building the document from scratch for every new inquiry. Below are some samples you can reference while creating your own template.
Template 1:
Template 2:
Conclusion
A proforma invoice sets the terms for your export deal. Once your buyer confirms the order, it gives way to a commercial invoice that finalizes the sale and triggers payment. Getting both documents right is the foundation of a smooth, professional export process.
Amazon Global Selling is an ecommerce export program that helps Indian exporters export from India and reach buyers in markets across the world. Amazon Global Selling supports sellers at every step of the process, from export documentation to hassle-free logistics, giving you the tools and support to take your business global.
Amazon Global Selling is an ecommerce export program that helps Indian exporters export from India and reach buyers in markets across the world. Amazon Global Selling supports sellers at every step of the process, from export documentation to hassle-free logistics, giving you the tools and support to take your business global.
Start exporting today
Frequently Asked Questions
Is a proforma invoice legally binding?
No, a proforma invoice in export is not legally binding. It is a document outlining the terms and costs of a potential export transaction.
When should you send a proforma invoice?
Send a proforma invoice once a buyer shows real interest, before the order is confirmed. It helps when the buyer needs a letter of credit, budget approval, or a clear look at costs before placing a purchase order.
What is the purpose of a proforma invoice?
A proforma invoice helps you and your buyer agree on costs and terms early, reducing confusion once the deal moves forward. It also gives the buyer a formal document (prior to a tax invoice) to show their bank or finance team before the shipment goes out.
Can a proforma invoice be cancelled?
Yes, a proforma invoice can be cancelled if the importer and exporter agree to do so.
What is the difference between a proforma invoice and a purchase order?
A proforma invoice is a quote you, the seller, send to outline costs and terms. A purchase order is the buyer's formal confirmation to proceed, often based on that same proforma invoice, and can carry more legal weight once accepted.
What currency should a proforma invoice be issued in for exports?
Most Indian exporters issue proforma invoices in USD or another major currency the buyer agrees to, though INR works for deals settled in rupees. Keep the same currency across the proforma invoice, commercial invoice, and payment terms.
How do I convert a proforma invoice into a final commercial invoice?
Once the buyer confirms the order and goods ship, update the proforma invoice with final quantities, prices, and any changes to terms. Add an invoice number specific to the sale, then label the document "commercial invoice" instead of "proforma invoice.”
Published on April 28, 2023.
Last updated on July 31, 2026.
Sources:
1. https://www.skydo.com/blog/proforma-invoice-meaning
2. https://www.skydo.com/blog/proforma-invoice-meaning
3. https://www.dgft.gov.in/CP/?opt=itchs-import-export
4. https://busy.in/gst/proforma-invoice-under-gst-what-it-is-and-how-it-works/
Last updated on July 31, 2026.
Sources:
1. https://www.skydo.com/blog/proforma-invoice-meaning
2. https://www.skydo.com/blog/proforma-invoice-meaning
3. https://www.dgft.gov.in/CP/?opt=itchs-import-export
4. https://busy.in/gst/proforma-invoice-under-gst-what-it-is-and-how-it-works/
Sell across the world through Amazon Global Selling
Ready to start exporting from India?
Want to learn about Amazon Global Selling?
Disclaimer: Whilst Amazon Seller Services Private Limited ("Amazon") has used reasonable endeavours in compiling the information provided, Amazon provides no assurance as to its accuracy, completeness or usefulness or that such information is error-free. In certain cases, the blog is provided by a third-party seller and is made available on an "as-is" basis. Amazon hereby disclaims any and all liability and assumes no responsibility whatsoever for consequences resulting from use of such information. Information provided may be changed or updated at any time, without any prior notice. You agree to use the information, at your own risk and expressly waive any and all claims, rights of action and/or remedies (under law or otherwise) that you may have against Amazon arising out of or in connection with the use of such information. Any copying, redistribution or republication of the information, or any portion thereof, without prior written consent of Amazon is strictly prohibited.
© 2024 Amazon.com, Inc. or its affiliates. All rights reserved
