The proforma invoice is the supplier’s formal offer before the sale: it describes the goods, price, quantity, incoterm, payment terms and lead times. It is not a tax document and it does not work for customs clearance, but it is where the deal is actually closed.
What it is used for
It is the basis for accepting the order, arranging financing or a letter of credit, and calculating landed cost before committing money. When production finishes, the supplier issues the final commercial invoice, which is the one that travels with the goods and feeds the customs entry and the customs value.
Why it matters when sourcing from China
It is your best negotiating tool, because anything not written there gets argued later from a weaker position: the MOQ, the incoterm, who pays what, the production deadline, the quality criteria and what happens if the lot misses them. A complete proforma prevents half the disputes with new suppliers.
The common mistake
Accepting a three-line proforma and paying the deposit. Without technical specifications, acceptance criteria and an explicit incoterm, you have nothing to claim against when something different arrives. And the proforma data must match the final commercial invoice: discrepancies between the two complicate clearance.
We review and negotiate supplier proformas as part of our purchasing consultancy in Asia. Write to us before paying the deposit.
