27 10 月, 2026
What Is a Proforma Invoice in a Steel Order?
A proforma invoice is a preliminary invoice: it sets out what the seller proposes to supply, at what price and on what terms, before the goods exist as a shipment. It is not a tax document and not, on its own, a demand for payment. What it is, in practice, is the document your bank, your broker and your purchasing file will all work from — so an error on it travels further than the same error on a quotation.
Why it matters more than it looks
Three parties read a proforma invoice for three reasons. Your bank reads it to open or amend a credit, and a credit only pays against documents that match word for word. Your broker reads it to pre-classify the goods and, in destinations that require advance registration, to file the entry. Your file reads it as the reference the commercial invoice will be checked against.
Whatever is wrong on the proforma tends to be repeated on the commercial invoice, which is issued to match it.
What it should state
| Field | Why it matters |
|---|---|
| Legal names and addresses of seller and buyer | They must match the contracting parties, bill of lading and certificate of origin |
| Description with standard, grade and form | A grade named to its standard can be inspected; a trade name cannot |
| Quantity, unit and packages | The unit has to be the one the contract uses |
| Unit price, total value and currency | The figure a credit and a customs declaration will both quote |
| Incoterm with the named port | Fixes who pays freight and insurance, and where risk passes |
| Validity, shipment window, HS code and origin | An expired proforma cannot support a payment instrument or an import registration |
Proforma invoice, quotation and commercial invoice
| Document | Issued | What it does |
|---|---|---|
| Quotation | Before any commitment | Indicative price and terms, subject to confirmation and market movement |
| Proforma invoice | After terms are agreed, before shipment | States the intended transaction; used to arrange payment, open a credit, apply for import permits |
| Commercial invoice | At shipment | The customs value document; it should mirror the proforma and the packing list |
A proforma is firmer than a quotation and less final than a contract. It records an intention; the contract governs. Where they disagree, the contract wins — which is why the details worth arguing about are worth settling before the proforma is issued. Payment mechanics and timing are set in the contract; see payment terms for steel orders.
What to check before you act on it
- Names and addresses against the entity that will appear on the bill of lading and the mill certificate.
- Grade and standard written the way the standard writes them.
- Incoterm and named place, and whether the freight lines match it — compare FOB and CIF.
- Whether the value and description will satisfy your bank, since a mismatch becomes a discrepancy.
- HS code against what your broker will declare; see customs clearance.
Related reading
- Request a quotation
- Payment terms for steel orders
- FOB vs CIF for steel imports
- How to read a mill test certificate
- Quality and certification
Frequently asked questions
Is a proforma invoice the same as a quotation?
No. A quotation is indicative and can be revised. A proforma is issued after terms are agreed and states the intended transaction, which is why banks accept it where a quotation would not do.
Does a proforma invoice mean I have to pay?
Not by itself. It records what was agreed, including any payment structure written into the contract; the contract sets the mechanics and timing.
Can a proforma invoice be used for customs clearance?
Generally no. Customs value is declared on the commercial invoice. A proforma may be accepted earlier, for an import permit or advance registration, and should match the commercial invoice.
What if the proforma invoice does not match the offer?
Raise it before paying or opening a credit and ask for a corrected proforma, since the shipping documents will be built from it.
Send the form, grade, size range and destination port and the answer will come back against that specification. See the steel product catalogue or request a quotation.