📋 Key Takeaways
- A proforma invoice is a preliminary price quote — not a payment demand — that tells buyers exactly what they will receive and at what cost.
- Every export proforma invoice must include seller and buyer details, item descriptions, quantities, unit prices, total value, currency, Incoterms, payment terms, and validity period.
- Buyers use your proforma to apply for import permits, open a Letter of Credit, and arrange financing — so accuracy here prevents costly delays downstream.
- A poorly formatted proforma can stall customs clearance, freeze bank approvals, or kill a deal entirely.
- In our experience, the most common mistakes are omitting the HS code, forgetting the validity date, and mixing up currencies without specifying the exchange rate basis.
You found a buyer overseas. They’re interested. Now they ask: “Can you send me a proforma invoice?”
If you don’t know exactly what goes in one — or you send a sloppy document — you risk losing the deal before it starts. This guide walks you through every field, every common mistake, and every best practice so your proforma invoice works as a professional sales tool, not just a piece of paper.
Table of Contents
What Is a Proforma Invoice — and Why Does It Matter?
A proforma invoice is a preliminary document that acts like a formal sales quotation. It tells the buyer: here is what I am selling, here is the price, here are the shipping terms, and here is how I expect to be paid. Unlike a commercial invoice, it is not a demand for payment — it is a commitment to sell under specific conditions.
Buyers need it for several important reasons. Banks require a proforma to open a Letter of Credit. Government import agencies use it to grant import licenses. Freight forwarders use it to estimate duties and arrange logistics. In short, your proforma invoice unlocks the buyer’s ability to proceed.
Based on our research, errors on a proforma invoice are one of the top five reasons export deals stall at the banking stage. A missing HS code or an incorrect Incoterm can delay a shipment by weeks.
What to Include: The 12 Essential Fields
Here is a breakdown of every field your export proforma invoice must contain.
1. Document Header and Title
Label the document clearly as “PROFORMA INVOICE” at the top. Include your company logo, company name, and a unique proforma invoice number for your own records. This matters for compliance audits.
2. Seller and Buyer Details
List the full legal name, address, phone number, email, and tax ID (if applicable) for both the exporter and the importer. A common trap we see: exporters use their trading name instead of their registered legal entity name. This mismatch can cause a Letter of Credit to be rejected by the buyer’s bank.
3. Date of Issue and Validity Period
State the date the proforma was issued, and — critically — include a validity clause. Example: “This offer is valid for 30 days from the date of issue.” Without a validity date, the buyer could hold you to a price that is no longer profitable for you months later.
4. Product Description and HS Code
Describe each product clearly: name, model, material, and purpose. Then include the Harmonized System (HS) code — the international tariff classification number for your product. Customs authorities in the destination country use this to calculate duties and check import eligibility. Missing HS codes are the single most common reason proforma invoices get flagged. Refer to the WCO HS Nomenclature if you are unsure of your product’s code.
5. Quantity and Unit of Measure
State both the quantity and the unit clearly: pieces, kilograms, cubic meters, sets, cartons. Ambiguity here causes disputes at customs.
6. Unit Price, Total Price, and Currency
List the price per unit, then the total value. Always specify the currency (USD, EUR, IDR, etc.). In our experience, quoting in the buyer’s local currency can accelerate the deal — but make sure you have included the applicable exchange rate basis if pricing is in a secondary currency.
7. Incoterms 2020
State the applicable Incoterm and the named place. For example: FOB Jakarta, Incoterms 2020 or CIF Rotterdam, Incoterms 2020. The Incoterm defines who pays for freight and insurance, and who bears the risk at each point of the journey. Skipping or guessing this field can lead to serious financial disputes.
Not sure which Incoterm to use? Read our full guide: Understanding Incoterms for Export Beginners.
8. Payment Terms
Clearly state how and when you expect to be paid. Common examples: 50% advance via T/T, balance before shipment; or 100% payment via irrevocable Letter of Credit at sight. Vague payment terms are a red flag for experienced buyers and their banks.
9. Country of Origin
State where the goods were manufactured or produced. This is used by customs to determine applicable duty rates and trade agreement benefits.
10. Port of Loading and Port of Discharge
Specify where the goods will be loaded (e.g., Tanjung Priok, Jakarta) and where they will arrive (e.g., Port of Rotterdam, Netherlands).
11. Estimated Delivery Time
Give a realistic lead time. For example: 45–60 days after receipt of confirmed order and payment. This sets buyer expectations and protects you from disputes about slow delivery.
12. Packing Details and Gross Weight/Volume
Include how the goods will be packed (carton, pallet, crate) and the estimated gross weight and volume. Freight forwarders use this to calculate shipping costs accurately.
Common Mistakes That Kill Export Deals
A common trap we see with first-time exporters: they treat the proforma like a casual email quote. Here are the mistakes we see most often — and how to avoid them.
- No HS code: Many countries require this for import permit applications and customs clearance. Always include it.
- No validity date: Leaves you exposed to price disputes months later.
- Wrong Incoterm or missing named place: Results in freight cost disputes and insurance gaps.
- Mismatch between company name and bank documents: Causes Letter of Credit rejections.
- Vague product descriptions: Customs agents may hold goods for re-inspection, adding delay and cost.
Real Goods, Ready to Export
A great proforma invoice starts with a great product. At TheExporter.co, we specialize in high-quality handmade and authentic Indonesian furniture — from teak dining sets to rattan lounge collections — that are export-ready and priced for international buyers. Every piece is crafted by skilled Indonesian artisans and meets international quality standards.
Final Checklist Before You Send
Before you email that proforma invoice to your buyer, run through this quick check:
- Is the document clearly labeled “PROFORMA INVOICE”?
- Do the seller and buyer legal names match your company registration and the buyer’s purchase order?
- Is there a validity date?
- Is the HS code included and correct?
- Is the Incoterm stated with a named place?
- Is the currency explicitly stated?
- Are payment terms clearly defined?
- Are packing, weight, and volume details included?
If you answered yes to all eight, your proforma invoice is ready to send. If you missed any, go back and fix it — your buyer’s bank and their customs authority will thank you for it.
Want to understand the full shipment process once the deal is confirmed? Read our guide on Understanding Shipping and Logistics for Exporters.
