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Dimitris Kloussiadis & Bob ErwinUniversity of Georgia, SBDC International Trade Center

Session 12: Pro-Forma InvoicesSession 5:

Approaching the Market

Session 12

Pro-Forma InvoicesHow to quote on export sales?

Export-U.com is operated by the US Export Assistance Center, in Atlanta, a collaborative partnership including the SBDC International Trade Center of the University of Georgia, and the US Commercial Service. The SBDC program is funded by the University of Georgia and the U.S. Small Business Administration. SBA's funding is not an endorsement of any products, opinions, or services. All SBA funded programs are extended to the public on a nondiscriminatory basis. Image above all over web.

Session 12:Pro-Forma Invoices

What is a Pro-Forma Invoice?

• Price of goods• Logistics cost• Terms of sale

Photo: Sunset over Western South America, http://earthobservatory.nasa.gov/IOTD/view.php?id=50205

Session 12:Pro-Forma Invoices

When to Use a Pro-Forma?

Wheneverquoting on an

international sale

Photo: Flickr.com

Session 12:Pro-Forma Invoices

How Customers Use Pro-Formas

1. To get a realistic picture of transaction

2. To draft a Letter-of-Credit

3. To secure an import license

4. To obtain an allocation of U.S. dollars

Photo: Martin Cerny, Some rights reserved, http://www.fotopedia.com/wiki/Sunset

Session 12:Pro-Forma Invoices

Accuracy is Critical

Pro-formas must be correct to avoid added

costs and delays.

Image: All over web.

Session 12:Pro-Forma Invoices

Pro-Forma Affects on Letters of Credit

Pro-forma information used to specify L/C terms.

Pay close attention to the details, or you may loose control of the transaction.

Photo: Flickr.com, by Carl242

Session 12:Pro-Forma Invoices

Format?No particular format required.

Can use a regular invoice form with the heading:

“Pro-Forma Invoice"

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Session 12:Pro-Forma Invoices

Freight Forwarder’s Input?Costs of transportation, documentation, and insurance.

Can proofread your first few Pro-Formas.

Photo by John Beales on Flickr

Session 12:Pro-Forma Invoices

What You Need to Tell Your Forwarder

What to Tell Your

Forwarder

Product description, weight, dimensions, value

Payment terms - If paid by L/C, provide a copy

Signed P.O.

Harmonized code(s)

Special instructions or unique product info (E.g., is it affected by heat or humidity?)

Hazardous materials?

Photo: http://www.flickr.com

Session 12:Pro-Forma Invoices

Bank FeesContact your bank’s international department

for their service fees and finance charges.

Ask for a written fee schedule.

Photo: http://www.abcbullion.com.au/news/Bring-back-the-gold-standard-says-World-Bank-chief

Session 12:Pro-Forma Invoices

Reference number

Description of the goods

Weight, volume, boxes (U.S. and metric)

Shipping method (Incoterms) & transit time

Sales & payment terms

Itemized price

Currency

Ports of exit and entry

Country of origin

Special routing instructions

Fabrication time and date of shipment

Time limit on quotation

Required Content

Photo: The 'Tenacious' in Bangor Bay, by Ross, http://creativecommons.org/licenses/by-sa/2.0/

Session 12:Pro-Forma Invoices

AdditionalShippingDetails A. Transit time

B. Ports of export and import

C. Origin of goods

D. Any special routing instructions/ flag restrictions imposed by buyer or US government.

E. Estimated fabrication time or date goods will be available for export

Photo:  Dusk on Chang Jiang (Yangtze), by Andrew Hitchcock, at.

(If payment is by L/C, insert the phrase: “from date of receipt of the letter of credit deemed acceptable by us in form and content in our sole judgment”)

Session 12:Pro-Forma Invoices

Sample Pro-Forma

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Session 12:Pro-Forma Invoices

For assistance call:

1-800-USA TRADEor consult your nearest

US Export Assistance CenterIn Georgia you can also call the SBDC International Trade Center at 678-985-6820

Photo: NASA Goddard Photo and Video on Flickr 

The End

Dimitris Kloussiadis & Bob ErwinUniversity of Georgia, SBDC International Trade Center

Session 4: Costing & PricingSession 5:

Approaching the Market

Session 12:

The EndPro-Forma Invoices