As an importer, you often need a proforma invoice weeks before the goods arrive. Banks, customs authorities, and government licensing bodies require this document to process your import permit, estimate duty, or open a Letter of Credit — all before the actual commercial invoice exists.
Why importers need a proforma invoice
| Reason | What the proforma is used for |
|---|---|
| Import permit / licence | Many countries require a proforma invoice to grant an import licence before shipment (Nigeria Form M, Indonesia API, India IEC registration checks) |
| Letter of Credit | Your bank needs the proforma to issue an LC in favour of the supplier |
| Advance payment / wire transfer | Internal finance approval and bank wire require an invoice reference |
| Customs pre-entry / duty estimate | Customs brokers use the proforma value and HS codes to estimate import duty before goods arrive |
| Foreign exchange allocation | In countries with currency controls (Nigeria, Egypt, Pakistan), the proforma triggers foreign exchange release by the central bank |
| Insurance | Marine cargo insurance is quoted and bound against the proforma invoice value |
What an importer should check on a proforma invoice
Before accepting a proforma from your supplier, verify:
- HS codes are correct — wrong HS codes mean wrong duty rate estimates. Ask your customs broker to verify before you open an LC.
- Incoterms match your freight arrangement — if you booked the freight but the proforma says CIF, your costs will be double-counted.
- Value is realistic — under-declared values cause customs seizure or fines at the destination. Over-declared values mean you pay excess import duty.
- Description is specific — "general merchandise" will be rejected by most customs authorities. Insist on exact product descriptions.
- Country of origin is stated — needed for preferential tariff treatment under trade agreements (USMCA, RCEP, EU-UK Trade Agreement).
- Validity date is sufficient — the proforma must be valid long enough for you to process the LC, get import approval, and allow for the supplier's lead time.
Country-specific import proforma requirements
Nigeria
Nigerian importers must present a proforma invoice to their bank to obtain a Form M — a mandatory import document issued by the Central Bank of Nigeria. Goods cannot be shipped until the Form M is approved. The proforma value sets the Form M amount, so accuracy is critical.
Indonesia
Indonesian importers need a proforma invoice to apply for an API (Angka Pengenal Importir) — the importer identification number. The proforma also helps pre-classify goods in the Bea Cukai (customs) system before arrival.
Pakistan
Pakistani importers require a proforma invoice to open an LC through a scheduled bank. The State Bank of Pakistan requires the proforma to match the LC terms exactly — commodity, value, and origin must be consistent across all documents.
India
Indian importers use a proforma invoice to estimate customs duty and IGST before the consignment arrives. It is also used to apply for a Bill of Entry in advance. GSTIN of both parties should appear on the proforma for input tax credit tracking.
Saudi Arabia
Saudi importers often need a proforma invoice to register the shipment on the Saber platform (product conformity) before clearance. The proforma HS codes determine which conformity certificates are required.
What to do if the supplier's proforma has errors
- Do not open the LC or apply for the import permit until errors are corrected.
- Send the supplier a written list of required changes.
- Request a revised proforma with a new revision number (e.g. PI-2026-0042-R2).
- Keep both versions on file in case of future disputes.
If you are a supplier issuing a proforma for import, use our export proforma guide to ensure all fields are correct. Download a free proforma invoice template designed for international trade.
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