Commercial Invoice vs Proforma Invoice: What's the Difference?
New exporters often ask whether a proforma invoice and a commercial invoice are the same document with a different name — they're not, and using the wrong one at the wrong stage causes real problems.
Proforma invoice: before the sale
A proforma invoice is a preliminary, non-binding quote sent before a sale is finalized. It shows the same information a final invoice would (price, quantity, terms) but is used for the buyer to confirm the order, apply for an import license, or open a letter of credit — it doesn't create a payment obligation.
Commercial invoice: after the sale is confirmed
A commercial invoice is the final, legally binding document issued once the deal is confirmed and goods are ready to ship. Customs authorities use it to assess duty and VAT, and it must match the packing list and bill of lading exactly.
Why both matter
Banks typically require a proforma invoice before releasing funds for a letter of credit, but require the commercial invoice at the point of shipment to release payment against the LC terms. Skipping the proforma stage often causes confusion when the buyer's bank or import authority needs upfront documentation.
Frequently asked questions
Can I use a proforma invoice for customs clearance?
No — customs requires the final commercial invoice; a proforma invoice's non-binding nature means it typically won't be accepted for clearance.
Does the price on a proforma invoice have to match the commercial invoice exactly?
It should, aside from minor adjustments (e.g., a small quantity change). Large discrepancies raise red flags with the buyer's bank and with customs.
Related tools and reading
Conclusion
Think of the proforma invoice as the quote and the commercial invoice as the receipt — both matter, but at different stages of the same deal, and confusing one for the other is a common early-career export mistake.
Send your buyer a formal quote: Create a proforma invoice →
Last updated: July 25, 2026