A commercial invoice and proforma invoice are two important documents for international trade. Knowing the difference between the two and the purpose of each is essential for businesses to ensure their shipments are properly documented.
A commercial invoice is a document that is used to provide proof of sale from the seller to the buyer. It is required for customs clearance of goods shipped from one country to another. It includes information such as the seller and buyer’s name and address, description of the goods, quantity, price, currency and terms of payment. FedEx requires a commercial invoice for all shipments that require customs clearance.
A proforma invoice, on the other hand, is a document that is often used as a preliminary invoice sent by a seller to a buyer. It is usually used to confirm the details of an intended sale and provide an estimated cost. The buyer often uses this document to secure financing or to ensure that they are paying the correct amount. Proforma invoices are not required for customs clearance but could be requested to show an intent to purchase.
In summary, a commercial invoice is required for customs clearance and provides proof of sale while a proforma invoice is a preliminary invoice sent by a seller to a buyer and is used to confirm the details of an intended sale. Understanding the difference between the two will help businesses ensure that their shipments are properly documented for international trade.
Frequently Asked Questions
Q1. What is a commercial invoice?
A1. A commercial invoice is a document used in international trade to provide customs with a detailed description of the goods being shipped, including the value of the goods, and other information. The commercial invoice is used by customs to determine the customs duty that will be charged on the goods being imported.
Q2. What is a proforma invoice?
A2. A proforma invoice is a document used in international trade to provide an estimate of the cost of goods being shipped. It is a non-binding document that is used to give buyers an idea of what the costs of the goods are likely to be.
Q3. What is the difference between a commercial invoice and a proforma invoice?
A3. The main difference between a commercial invoice and a proforma invoice is that a commercial invoice is a binding document that is used to determine the customs duty that will be charged on the goods being imported, while a proforma invoice is a non-binding document that is used to give buyers an idea of what the costs of the goods are likely to be.
Q4. Does FedEx offer commercial invoicing services?
A4. Yes, FedEx offers commercial invoicing services, which provide customers with the ability to create, manage and track commercial invoices.
Q5. Does FedEx offer proforma invoicing services?
A5. No, FedEx does not offer proforma invoicing services.