Proforma Invoice (PI): What It Is & What to Check
Quick Definition: A Proforma Invoice (PI) is a preliminary invoice sent by a Chinese supplier before production begins. It outlines the product, quantity, unit price, total amount, payment terms, and delivery details. It's essentially a formal quote that becomes a payment request once you agree.
PI vs Commercial Invoice
| Factor | Proforma Invoice | Commercial Invoice |
|---|---|---|
| When Issued | Before production | After shipment |
| Purpose | Payment request / formal quote | Customs clearance document |
| Legally Binding | Not a binding contract | Legal document for customs |
| Used For | Bank transfers, L/C applications | Customs declaration, duty calculation |
What to Check on a PI
- Company name and address: Must match the factory/supplier you've been communicating with.
- Bank details: Verify independently (call the factory) — email fraud often targets bank details.
- Product description: Must match your agreed specifications exactly.
- Unit price and total: Match your negotiated price. Watch for hidden fees.
- Incoterm: FOB, CIF, or DDP — make sure it matches your agreement.
- Payment terms: Deposit percentage and balance trigger should match your contract.
- Delivery date: Realistic production timeline based on your discussions.
Red Flags
- Bank account under a different company name than the supplier
- Personal bank account instead of company account
- PI received from a different email address than your usual contact
- Significant price changes from your last quote without explanation
Need Help with China Sourcing?
Our team handles the complexity of international trade terms, logistics, and factory negotiations so you don't have to.
Send Inquiry