Proforma Invoice for Customs: When It Is Accepted and What to Do
Can you ship on a proforma invoice? When customs accepts one, the US missing-invoice rule, bank and permit uses, and how to convert it to a commercial invoice.
Quick answer: A proforma invoice for customs is usually only accepted in limited cases: shipments with no sale (samples, repairs, gifts, temporary imports) or as a temporary substitute when the commercial invoice is not yet available. For a normal sale, customs values and clears goods on the final commercial invoice, so treat the proforma as a pre-shipment quote and convert it before the goods ship.
Exporters often send both documents for the same order, which is why the question of using a proforma invoice for customs comes up so often at the shipping stage. If you want the general definitions first, read our proforma invoice guide. This guide focuses on the customs and shipping side: which document customs accepts, when a proforma is allowed at the border, how to convert one into the other, and a worked example where quantities change between quote and shipment. You can create either document with our free invoice generator.
If you want the basics of what a proforma is and how it differs from a quote, start with our proforma invoice guide. For a full export field checklist, see our commercial invoice template.
Proforma Invoice vs Commercial Invoice at the Border
| Feature | Proforma invoice | Commercial invoice |
|---|---|---|
| When issued | Before shipment, often before production | At shipment, when final details are known |
| Purpose | Confirm terms, request deposit, support bank or permit applications | Customs declaration, final bill, proof of the sale |
| Binding? | An offer until accepted | Records a completed sale |
| Accounting record? | No | Yes, recorded as a sale |
| Customs clearance | Limited: no-sale shipments or temporary substitute | Standard document for commercial shipments |
| Values | Estimated freight, insurance and quantities | Actual quantities and charges |
| Tax reclaim | Cannot support a VAT or GST claim | Supports tax records; may double as a tax invoice if compliant |
| Marking | Clearly labelled "Proforma" | Labelled "Commercial Invoice" |
What Each Document Should Show
Many fields overlap, which is why a proforma is often used as the draft for the commercial invoice. The differences are in what is estimated and what is final.
| Field | Proforma invoice | Commercial invoice |
|---|---|---|
| Title | "Proforma Invoice" | "Commercial Invoice" |
| Number | Separate proforma series | Main invoice sequence, quoting the proforma number |
| Seller and buyer details | Yes | Yes, plus consignee if different |
| Goods description | Yes | Yes, detailed enough for customs classification |
| Quantity | Ordered quantity | Quantity actually shipped |
| Unit price and currency | Agreed price | Final price |
| Freight and insurance | Estimates | Actual amounts, itemised |
| Incoterms | Proposed | Agreed |
| HS code and origin | Often included | Required |
| Weights, packages, marks | Estimated or omitted | Required |
| Validity date | Yes, for example 30 days | Not applicable |
| Payment details | Deposit or advance requested | Balance due after deposits |
A clean layout helps both documents get processed quickly by banks, brokers and customs officers. Structured designs such as the corporate invoice template keep shipping and payment details easy to find.
Which Document Does Customs Accept?
For a normal commercial sale, customs authorities expect a commercial invoice. It shows the actual transaction price, which is the starting point for customs valuation, along with the description, HS code and origin needed to calculate duty. UK export guidance and US import regulations both list fields such as quantities, unit prices, itemised freight and insurance, and country of origin as standard commercial invoice content.
When a proforma is accepted at the border
- No sale has taken place. Free samples, warranty replacements, goods returned for repair, exhibition stock and gifts have no transaction price. A proforma states a fair value for customs purposes, often marked "no commercial value".
- Temporary exports. Tools, equipment or display goods that will come back may travel on a proforma alongside the relevant temporary admission paperwork.
- The commercial invoice is not yet available. Some customs systems let an importer clear goods on a substitute invoice and supply the real one later, under strict conditions.
The US rule for a missing commercial invoice
The US gives a clear example of how a proforma works as a stopgap. Under 19 CFR 141.91, if the required invoice is not available at entry, the importer files a declaration and a pro forma invoice under section 141.85, posts a bond equal to one and one-half times the invoice value, and must produce the real invoice within 120 days of filing the entry summary (50 days if it is needed for statistical purposes). In other words, the proforma buys time; it does not replace the commercial invoice.
Rules differ by country and change over time, so confirm with the carrier or customs broker before shipping on a proforma alone.
Why a Proforma Is Not an Accounting or Tax Document
A proforma does not record a sale, so it should not go into your sales ledger or your customer's purchase ledger. HMRC's VAT manual page VATREC9010 on pro-forma invoices says a pro-forma should be clearly described as such, preferably endorsed "This is not a VAT invoice", and has no place in the books of account of the trader issuing or receiving it.
Practically, that means:
- Do not give a proforma a number from your main invoice sequence. Use a separate series such as PF-2026-001 so your invoice numbering system has no gaps.
- A deposit received against a proforma is recorded as a customer deposit or advance, not revenue, until the goods ship and the commercial invoice is issued.
- If you are VAT or GST registered, issue a proper tax invoice when the tax point is triggered. See how tax and commercial documents fit together in our guide to the tax invoice vs commercial invoice.
Proformas, Banks and Import Permits
Outside customs clearance, the proforma does its most important work with banks and licensing authorities before anything ships.
- Advance payments. Many buyers, especially first-time customers, pay part or all of the order before production. Their bank may ask for a proforma to justify an international transfer.
- Letters of credit. A buyer's bank uses the proforma to draft the credit terms: goods description, amount, Incoterm, shipping deadline and required documents. The commercial invoice you present later must then match those terms exactly.
- Import licences and foreign exchange. In some countries, importers need a proforma to apply for an import licence or for permission to buy foreign currency. Delays at this stage are common, so state a realistic validity period on the proforma.
Because the proforma may become the basis for a letter of credit, accuracy matters more than many sellers realise. A typo in the description or a wrong Incoterm can be copied into the credit and then cause a discrepancy when you present your commercial invoice for payment.
How the Two Documents Fit Into an Export Order
- Buyer enquiry and quote. The buyer asks for prices. You may send an informal quote; our comparison of invoice vs quotation explains the difference.
- Proforma invoice. You issue a proforma with prices, quantities, Incoterms, estimated freight and insurance, payment terms and validity date.
- Buyer acceptance and payment. The buyer signs, pays a deposit, or uses the proforma to open a letter of credit or get an import permit.
- Production and packing. Final quantities, weights and package counts become known. A packing list is prepared.
- Commercial invoice. You issue the commercial invoice with actual figures and a new number, referencing the proforma and PO.
- Shipping and customs. The commercial invoice travels with the bill of lading or air waybill and is used for export and import declarations. See bill of lading vs commercial invoice.
- Balance payment. The buyer pays the balance shown on the commercial invoice, after the deposit.
Worked Example: Converting a Proforma When the Order Changes
A furniture hardware exporter agrees to sell 500 brass door handles to a buyer abroad at $12.00 each, CIF destination port, with a 30% deposit before production.
The proforma invoice (PF-2026-014)
| Line | Amount |
|---|---|
| 500 door handles x $12.00 | $6,000.00 |
| Estimated freight | $400.00 |
| Estimated insurance | $60.00 |
| Proforma total | $6,460.00 |
| Deposit requested (30%) | $1,938.00 |
Check: 30% of $6,460 is $1,938. The buyer pays the deposit, which the exporter records as a customer deposit, not as revenue.
What changed before shipment
A plating defect means only 480 handles pass inspection, and the buyer agrees in writing to accept 480. The actual freight quote comes in at $385.00 and insurance at $58.00.
The commercial invoice (INV-2026-0213)
| Line | Amount |
|---|---|
| 480 door handles x $12.00 | $5,760.00 |
| Freight (actual) | $385.00 |
| Insurance (actual) | $58.00 |
| Invoice total | $6,203.00 |
| Less deposit received against PF-2026-014 | ($1,938.00) |
| Balance due | $4,265.00 |
The commercial invoice also carries the HS code, country of origin, net and gross weights, number of cartons and the Incoterm, plus the references PF-2026-014 and the buyer's PO number. Customs values the shipment on the actual $5,760 of goods and the itemised charges, not on the original $6,000 proforma. The exporter records revenue of $6,203 and clears the $1,938 deposit against it, leaving $4,265 in accounts receivable.
What if the order had been cancelled?
Suppose the buyer had cancelled before production instead. Because the proforma was never a sale, there is no invoice to credit and no revenue to reverse. The exporter simply refunds the $1,938 deposit, or keeps an agreed cancellation fee if the proforma terms allowed one, and issues a normal invoice only for that fee. This is one of the main advantages of using a proforma for first orders: it commits both sides to terms without creating an accounting entry until goods actually move.
Shipping a free sample instead
If the exporter had sent ten sample handles free of charge, there would be no sale and no commercial invoice in the usual sense. A proforma showing 10 x $12.00 = $120.00, marked "free sample, no commercial value, value for customs purposes only", would let customs assess any duty on a realistic value.
Converting a Proforma: Checklist
- New title and number: change "Proforma Invoice" to "Commercial Invoice" and use your main invoice sequence.
- Actual quantities: update to what was packed and shipped.
- Actual charges: replace estimated freight and insurance with real amounts, itemised.
- Shipping data: add weights, package count and marks, transport details and shipping date.
- Customs data: confirm the HS code, country of origin and Incoterms.
- References: quote the proforma number, PO number and any letter of credit number.
- Payments: deduct deposits received so the balance due is correct.
- Declaration and signature: add any declaration the destination country requires.
Common Proforma and Commercial Invoice Mistakes
- Shipping on the proforma. Sending goods with only a proforma for a normal sale often leads to customs holds while the broker requests the real invoice.
- Forgetting to update quantities. Declaring 500 units when 480 were shipped creates a mismatch with the packing list and can trigger an inspection.
- Booking the proforma as a sale. This overstates revenue and accounts receivable, and if the order is cancelled you have a phantom debt to reverse.
- Undervaluing samples. "No commercial value" does not mean zero; customs still expects a realistic value for duty purposes.
- Inconsistent documents under a letter of credit. Banks check documents strictly. Descriptions and amounts on the commercial invoice must match the credit terms.
- Missing currency. Always state the currency on both documents. Our guide to the foreign currency invoice explains how to show exchange rates.
Create Your Proforma or Commercial Invoice
The proforma invoice vs commercial invoice choice is really about timing: the proforma sets expectations before shipment, and the commercial invoice records what actually crossed the border. Keep both consistent, label them clearly and let the commercial invoice reflect the final facts. Build either one in minutes with our invoice generator. This guide is general information, not customs or legal advice; check the destination country's requirements with your carrier or customs broker before shipping. Every invoice exports as a PDF, so it looks the same on your client's phone, laptop or printer.
Frequently asked questions
Can I use a proforma invoice for customs clearance?
Only in limited cases. Customs authorities normally expect a commercial invoice showing the final transaction. A proforma is commonly accepted for shipments with no sale, such as free samples, repairs, returns or goods sent for exhibition, where it states a value for customs purposes. In the US, an importer who lacks the commercial invoice can file a pro forma under 19 CFR 141.85, but must post a bond and produce the real invoice later.
Is a proforma invoice legally binding?
A proforma invoice is generally treated as a quotation or offer in invoice format, not a demand for payment. It becomes part of a binding agreement only if the buyer accepts it, for example by signing it or paying the deposit it requests. Even then, it is not a tax invoice or accounting document. HMRC's VAT manual says a pro-forma has no place in the books of the trader issuing or receiving it.
When should a proforma invoice be converted to a commercial invoice?
Convert it when the goods are ready to ship and the final details are known: actual quantities packed, final prices, freight and insurance charges, weights, package count and shipping date. Issue the commercial invoice with its own number, reference the proforma number on it, and deduct any deposit already paid against the proforma so the balance due is correct.
Can a buyer reclaim VAT on a proforma invoice?
No. In the UK, HMRC guidance says a pro-forma invoice is not acceptable evidence for reclaiming input tax, because a claim must be supported by a valid VAT invoice. The seller should issue a proper VAT invoice once payment is received or the supply is made. Similar rules apply in most VAT and GST systems, so buyers should wait for the final tax invoice before claiming.
Why do banks ask for a proforma invoice?
Buyers often need a proforma to arrange payment before goods ship. Banks use it to open a letter of credit, process an advance payment or approve a foreign currency transfer, and in some countries importers need it to apply for an import licence or foreign exchange allocation. The proforma shows the bank exactly what the buyer intends to pay for, at what price and on what terms.
Do the proforma and commercial invoice need to match?
They should be consistent, but they do not have to be identical. The commercial invoice must reflect what was actually shipped and sold, so quantities, freight or prices can change if both parties agree. Large unexplained differences can cause problems, especially under a letter of credit, where the bank checks documents strictly against the credit terms. Note any agreed changes and keep the correspondence that approves them.
What does 'pro forma' mean on a customs document?
Pro forma means 'as a matter of form'. On a customs document it signals that the invoice is provisional or that no sale has taken place, so the values shown are for customs purposes only. Many shippers add wording such as 'No commercial value, value for customs purposes only' for samples, and HMRC suggests a pro-forma be clearly marked, preferably with the words 'This is not a VAT invoice'.
Do I need both a proforma and a commercial invoice for every export?
No. A proforma is optional and mainly useful when the buyer pays in advance, needs a bank document, or must obtain an import permit before shipping. A commercial invoice is the document customs normally requires for every commercial export and import of goods. Repeat customers on open credit terms often skip the proforma and go straight from purchase order to commercial invoice.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
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