Community > Forums > Payment & Finance > Proforma Invoice vs Commercial Invoice
Post a topic Post a survey Forum Guidelines

Proforma Invoice vs Commercial Invoice 9 replies,29927 views

#1

Hi all! Which of these two is more relevant and/reliable to use in export or transhipment of goods before my client issues an L/C.

Thanks

Moderator -- I moved this question here for more professional answers maybe.

Share to:



#2
Re: Proforma Invoice vs Commercial Invoice
Replying to [sabre]:
As I kown, Proforma Invoice is usually requested before opening L/C by the buyer.
#3
Re: Re: Proforma Invoice vs Commercial Invoice
Quoting from [Tony Han]:


Replying to [sabre]:

As I kown, Proforma Invoice is usually requested before opening L/C by the buyer.



Tony, as a supplier do you also forward to the buyer a pro-forma L/C?  By this I mean, "pro forma" L/C which clearly states terms and documentation requirements desired and fulfillable by you. Thus, when the original L/C document is issued, it doesn't contain any surprises.

Best regards,

Ranger

SIGNATURE:
About Our Company

Me Tech Supply
ME Tech Supply a D. B. A provides sourcing solutions for both small and medium sized businesses. We are members of the GSAA whose Agents have verified more than 2. 5 million companies World WideWe offer low cos... More

#4
Re: Proforma Invoice vs Commercial Invoice
Replying to [sabre]:

PROFORMA INVOICE:
A Proforma Invoice (Proforma) is an official price quote, a step up from a published price list that allows the customer to present the Proforma Invoice to their Accounting Department and to arrange a prepayment procedure. It is most commonly requested by customers pre-paying orders via bank money transfer before shipping an order. It is used by customers to formalize the terms of sale (price, shipping, F.O.B. location, shipping date, etc.) and properly allocate and/or transfer the funds needed for the purchase.

COMMERCIAL INVOICE:

The customs officials of the country to which you're exporting may require a commercial invoice for dutiable shipments. The invoice must be prepared on your company letterhead, which must contain your complete address and other contact informations. When completed, attach the original and four copies (all signed separately) to your DHL waybill. A commercial invoice without letterhead is not acceptable. Customers without letterhead should approximate one by typing their company name and address information at the top of the form. Commercial invoice should have exporter's original signature on original invoice and each of the four copies along with the DHL waybill. It is advisable that you type all commercial invoices.
#5
Re: Re: Re: Proforma Invoice vs Commercial Invoice
Replying to [Ranger]:
Dear Ranger,
As a buyer, when we will open an L/C to our supplier, we will give a copy of "pro forma" L/C to them to verify if there is any problem for terms and documents desired. If there is no problem, then we ask our bank to SWIFT it to our supplier's bank.
However, as a supplier, sometimes, when we get "pro forma" L/C from our buyer, and we verify it with no problem, but when we get the formal L/C from our bank, there is some differences as "pro forma" L/C so that we have to ask our buyer to amend the L/C accordingly.
I don't know why they change it when issueed. [em4][em4]
#6
Re: Proforma Invoice vs Commercial Invoice
http://www.besttradesolution.com/lc/method.php#Letters%20of%20credit


chk here


Quoting from [sabre]:

Hi all! Which of these two is more relevant and/reliable to use in export or transhipment of goods before my client issues an L/C.


Thanks

Moderator -- I moved this question here for more professional answers maybe.


#7
Proforma Invoice vs Commercial Invoice
Quoting from [Tony Han]:


Replying to [Ranger]:

Dear Ranger,

As a buyer, when we will open an L/C to our supplier, we will give a copy of "pro forma" L/C to them to verify if there is any problem for terms and documents desired. If there is no problem, then we ask our bank to SWIFT it to our supplier's bank.

However, as a supplier, sometimes, when we get "pro forma" L/C from our buyer, and we verify it with no problem, but when we get the formal L/C from our bank, there is some differences as "pro forma" L/C so that we have to ask our buyer to amend the L/C accordingly.

I don't know why they change it when issueed. [em4][em4]



Pro forma invoice and Pro forma LC are two different things entirely, but generally issued with the intention to serve the same purpose.

If the terms in the pro forma invoice are accepted by the buyer, the proforma invoice forms the basis for the final invoice, and is later converted to a commercial invoice - the major terms in the two remain the same.

Same with the pro forma LC. A pro forma LC is a draft, the terms of which should be examined and agreed to by you before the actual LC is issued. This process helps to avoid later amendments, costs, delays and bank charges.

#8
Re: Re: Re: Re: Proforma Invoice vs Commercial Invoice
Quoting from [Tony Han]:


Replying to [Ranger]:

Dear Ranger,

As a buyer, when we will open an L/C to our supplier, we will give a copy of "pro forma" L/C to them to verify if there is any problem for terms and documents desired. If there is no problem, then we ask our bank to SWIFT it to our supplier's bank.

However, as a supplier, sometimes, when we get "pro forma" L/C from our buyer, and we verify it with no problem, but when we get the formal L/C from our bank, there is some differences as "pro forma" L/C so that we have to ask our buyer to amend the L/C accordingly.

I don't know why they change it when issueed. [em4][em4]



Tony, thats a good question.  We both know it will only cost them more money via the ammendment to change the master document especially since you had already ratified the Pro Forma LC.  Thats why UCP 600 is good in addressing the numerous issues caused by issuing banks that decide to get whimsical and over creative in their wording.

best regards,

Ranger

SIGNATURE:
About Our Company

Me Tech Supply
ME Tech Supply a D. B. A provides sourcing solutions for both small and medium sized businesses. We are members of the GSAA whose Agents have verified more than 2. 5 million companies World WideWe offer low cos... More

#9
Re: Proforma Invoice vs Commercial Invoice
Quoting from [sabre]:

Hi all! Which of these two is more relevant and/reliable to use in export or transhipment of goods before my client issues an L/C.


Thanks

Moderator -- I moved this question here for more professional answers maybe.



[em3]
#10
Re: Proforma Invoice vs Commercial Invoice
Quoting from [sabre]:

Hi all! Which of these two is more relevant and/reliable to use in export or transhipment of goods before my client issues an L/C.


Thanks

Moderator -- I moved this question here for more professional answers maybe.


Forum Guidelines

For general Alibaba.com customer inquires, please contact Alibaba Service Center.
To lodge a dispute/complaint, please visit our Complaints Center.
For general AliExpress customer inquiries, please contact AliExpress Customer Support.
If any posts corresponding to the categories above are located in the Forums, they will be deleted without prior notice.
Subject:
Message: