A proforma invoice is often the document a Chinese supplier sends before you pay a deposit. It can look simple, but for an overseas buyer it carries several important decisions: who you are paying, what is included in the price, which shipping terms apply, and what costs are still outside the quote.
Before you treat a proforma invoice as safe to pay, check it against the supplier identity, the product scope, the Incoterms, and your total landed cost.
If you already have prices and shipping estimates, use the China landed cost calculator to see what may be missing from the quote.
What is a proforma invoice?
A proforma invoice is a preliminary invoice used before the final commercial invoice. In China sourcing, suppliers often use it to summarize the order, price, payment terms, bank details, production timeline, and shipping terms.
It is not the same as a completed commercial invoice for customs clearance, but buyers still rely on it to decide whether to pay.
What should be included?
A useful proforma invoice should show:
- supplier legal name and address
- buyer name and address
- product name, model, specification, and quantity
- unit price and total price
- currency
- Incoterms such as EXW, FOB, CIF, or DDP
- port or delivery location
- payment schedule
- bank account details
- production time and validity period
- packaging, labeling, inspection, or document charges where relevant
If any of these are missing, the problem is not just paperwork. Missing details can change the real cost and the payment risk.
Proforma invoice vs commercial invoice
A proforma invoice is usually issued before payment or shipment. A commercial invoice is used for the actual sale and customs process.
For buyers, the key difference is timing:
- proforma invoice: used to confirm the offer before the deal is complete
- commercial invoice: used after the order is confirmed and goods are being shipped
Do not assume the commercial invoice will fix weak terms in the proforma invoice. If the supplier, bank account, Incoterms, or product scope are unclear before deposit, ask questions before money moves.
Red flags before deposit
Watch for these issues:
- the supplier name does not match the bank account
- the proforma invoice uses a trading company name you did not expect
- Incoterms are missing or incomplete
- the port is not named for FOB or CIF
- EXW price is given without pickup, export, or local China charges
- product specifications are too vague
- delivery time is described casually instead of clearly
- payment terms require a large deposit before basic verification
- warranty, inspection, packaging, or labeling terms are missing
If the supplier looks real but the payment structure feels risky, consider supplier verification before sending a deposit.
How to connect the proforma invoice to landed cost
The proforma invoice usually does not show your full import cost. It may only show the product price or a partial shipping term.
To estimate landed cost, add:
- goods value
- China local charges if the quote is EXW
- international freight
- insurance where needed
- customs duty
- broker or clearance fees
- inspection, packaging, labeling, storage, or bank charges
This is why a low supplier quote can still become expensive after shipping and customs. Use the landed cost calculator to structure the estimate before you compare suppliers.
Questions to ask the supplier
Before paying, ask:
- What is the exact legal company name on the invoice?
- Does the bank account belong to the same company?
- Are the prices EXW, FOB, CIF, DDP, or something else?
- Which port or delivery point is included?
- Are packaging, labels, inspection, and documents included?
- What is the production timeline after deposit?
- What happens if the goods fail inspection?
- Will the commercial invoice match this proforma invoice?
Clear answers do not guarantee a safe deal, but vague answers are a reason to slow down.
When to get help
If the proforma invoice is tied to a meaningful deposit, check the supplier identity and payment structure before you pay. BuyerSide Atlas can help with supplier verification, contract review, and buyer-side sourcing decisions from inside China.