Proforma Invoice vs Commercial Invoice: Key Differences

The difference between a proforma invoice and a commercial invoice is when, and for what, each is used. A proforma invoice (PI) is a quote in invoice format, sent before the sale is final, which the buyer uses to confirm the order, pay a deposit, apply for an import licence or open a letter of credit.

A commercial invoice (CI) is the formal invoice issued at shipment and the core document for export and import clearance and duty assessment. Here is a side-by-side comparison for cosmetics buyers.

Proforma invoice vs commercial invoice compared

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What a proforma invoice is for

The US International Trade Administration’s guide to pro forma invoices¹ calls it “a quote in an invoice format”. Buyers may need one to apply for an import licence, arrange pre-shipment inspection, open a letter of credit or arrange a hard-currency transfer, and it often replaces a formal quotation. The ITA suggests including:

• seller’s and buyer’s names and addresses, and the buyer’s reference number;
• items, unit prices, totals and any discounts;
• product weights and dimensions;
• the Incoterms® rule or other terms of sale, with the delivery point;
• payment terms, estimated shipping date and validity date.

Because a PI tells the buyer and import authorities what will be shipped, the ITA advises not to change it without the buyer’s consent. For cosmetics, matching product names and sizes on the PI to the importing country’s registration documents saves trouble later with the CI and customs papers.

What a commercial invoice is for

The ITA’s commercial invoice guide² describes it as a required document for export and import clearance and the document customs in the buyer’s country use to assess duties and taxes. Adding the HS code can speed clearance, and a few countries require a specific form, so check the destination’s requirements.

On the Korean side, Article 241 of the Customs Act³ requires exports and imports to be declared with description, specification, quantity and price, and Article 246 of the Enforcement Decree⁴ adds packaging type and count, destination, origin and place of shipment, trademark and more.

The same article sets the export declaration value on a free-on-board basis, including freight and insurance to the final port of shipment. The CI and packing list must therefore agree with the export declaration.

The importing side works the same way. Hong Kong Customs’ declaration guidance⁵, for example, requires anyone importing or exporting non-exempt articles to lodge an accurate and complete declaration within 14 days.

When the PI and CI do not match

• Quantity or value differences: if less is shipped than the PI showed, the CI shows only what was shipped; agree in advance how the difference is handled (refund or credit on the next order).
• Different product names: if names differ across PI, CI, packing list and registration documents, clearance can be delayed.
• Different Incoterms® rules: a PI and CI on different terms invite disputes over freight and insurance. See our export trade terms glossary.

Checklist for cosmetics buyers

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Related pages: Brands we supply · FAQ · Contact us · Export trade terms glossary · Personal shopper vs wholesale · Cargo insurance for cosmetics

See also: Export documents checklist

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