Export Documents - Pro Forma Invoice (Proforma Invoice, Pro-forma Invoice), Sales Confirmation

EXPORT DEPARTMENT Pro forma invoice, proforma invoice, pro-forma invoices, sales confirmation, sales forms, quotation, purchase order, PO. P.O., P/O, shipping marks, CBM, L/C advising banks, LC negotiation, letter of credit, credit negotiation, cartons, master export cartons. Letters of credit, credit, LC, L/C, commercial letter of credit, irrevocable letter of credit, confirmed letters of credit, revocable letters of credit, restricted negotiable letter of credit. freely negotiable letter of credit, confirmed irrevocable letter of credit, unconfirmed irrevocable letter of credit, revolving letter of credit, SWIFT, drafts, banks, nominated banks, bill of exchange. exporters, importers, exporting, importing, exportation, importation, export, import, service exporter. export trader, export trade portal, export trading, exporter association, export manufacturer, export marketing, exporter guides. export directory, manufacturing exporter, Taiwan exporters, Taiwan importers, Hong Kong exporter, Hong Kong importer, trade shows, trade fairs. China exporter, China importer, export manufacturing, export consulting, export trade leads, import trade leads, international business, trade exhibitions. letter of credit, insurance, trader, trading, exportacion, importacion, internet advertising, online advertisement, e-commerce, electronic commerce. logistics, transportation, transports, cargo insurance, ocean shipping company, courier, airlines, customs broker.

Pro Forma Invoice or Sales Confirmation

A pro forma invoice is basically an advance copy of the final invoice. It is different from a quotation. The pro forma invoice is often used by the importer to apply for a letter of credit (L/C) and foreign exchange (import) allocation.

The term sales confirmation is used in lieu of the term pro forma invoice in some exporting countries. For purposes of explanation, the term sales confirmation is used here to refer to the pro forma invoice. Please see the sample Sales Confirmation below.

Some buyers, particularly from less developed countries, may not issue a formal purchase order (P.O.). They may simply give the item number, quantity and delivery time required in the order, without giving the order number and price. The exporter should prepare a sales confirmation complete with the price, based on the earlier negotiated or purchased price.

Following situations may occur in relation to the issuance of a sales confirmation:

Buyers may change the order more than once within a few days or weeks.
The delivery time required by some buyers can be relatively short---within one month.
The amount of export orders can be large or small.

" L/C Advising Bank preferred ": If a letter of credit (L/C) is advised through the exporter's bank, the exporter may avail a lower bank fee, plus the convenience that comes with it, over a bank that the exporter never dealt with.
The issuing bank normally uses its own correspondent bank as the advising bank, which may not be the bank preferred by the exporter.
" L/C negotiable in (name of exporter's city and/or country) ": This requirement on the sales confirmation insures that the exporter will have the convenience of presenting the documents for negotiation in the exporter's own city and country, instead of in another city and worse in another country. There were such cases where documents were sent by courier to a third country to meet the L/C negotiation.
" Confirmed by Buyer ": The purpose of letting the buyer confirm the sales confirmation (S/C) so issued is to ensure that the buyer's P.O. is correct and that the details of the order are what the buyer wants in the case of no formal P.O.. The buyer will sign and return the S/C sent to show acceptance.

Sample Form:
Pro Forma Invoice or Sales Confirmation

Remarks: Fields or items in blue color contain links to the explanation.

E.&O.E.

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