Proforma › Proforma for export

Proforma invoice for export

An overseas buyer usually needs your proforma invoice before paying or opening a letter of credit. Their bank reads it closely, so a missing detail can delay the order by weeks.

Checklist

• Exporter and buyer: full names and addresses, your IEC (Import Export Code) and GSTIN, buyer's country.
• Goods: description, HS code, quantity, unit price and total.
• Currency: say clearly if prices are in US dollars or another currency. (This maker prints amounts in rupees, so for a foreign-currency offer write the currency and rate in Notes.)
• Incoterms: EXW, FOB, CIF and so on, with the named port, for example "FOB Mundra".
• Country of origin: India.
• Packing and weight: number of cartons, net and gross weight.
• Payment terms: advance by bank transfer, letter of credit at sight, documents against payment, and your bank's SWIFT code.
• Delivery time and validity.

GST on exports

Exports are zero-rated. You either export under a Letter of Undertaking (LUT) without paying IGST, or pay IGST and claim it back as a refund. A proforma is only an offer, so no tax is due on it; mention "Export under LUT, IGST not charged" in the terms if that is how you will export, and set the GST rate on the lines to 0%.

Tips

• Match the proforma exactly with the later commercial invoice and packing list.
• Ask the buyer for their import licence or permit number if their country needs one, and add it to Notes.
• For a letter of credit, the bank will check that the LC wording matches your proforma: send the proforma before the LC is opened.