Commercial and proforma invoices serve distinct purposes in the context of an export transaction documentation. Here are the main differences between these two types of invoices:

1. Purpose:

   • Commercial Invoice: This is the final invoice that reflects the actual sale of goods. It serves as a legally binding document that demands payment from the buyer.
   • Proforma Invoice: It is a preliminary invoice that precedes the commercial invoice. It is used to provide the buyer with an estimate of the cost of goods and other relevant information before the actual shipment and sale take place.

2. Legally Binding:

   • Commercial Invoice: Legally binding and mandatory in international trade. It is used for customs clearance and to request payment from the buyer.
   • Proforma Invoice: Not legally binding. It serves as a formal offer and provides essential information for the buyer to make decisions, but it does not demand payment.

3. Issuance Time:

   • Commercial Invoice: Issued after the sale is made and the goods are ready for shipment.
   • Proforma Invoice: Issued before the sale, often during negotiations or when the buyer requests a quote.

4. Payment:

   • Commercial Invoice: Requires payment from the buyer.
   • Proforma Invoice: Does not demand payment but is used to outline the costs and terms of the potential transaction.

5. Details:

   • Commercial Invoice: Contains precise details of the actual shipment, including the quantity, description, price, and total value of the goods. It may also include payment terms and shipping terms.
   • Proforma Invoice: Provides an estimate of the goods’ cost, and it may not include every detail as it is a preliminary document.

6. Customs and Shipping:

   • Commercial Invoice: Used for customs clearance and to facilitate the actual shipment of goods.
   • Proforma Invoice: May be used for customs and shipping information, but its primary purpose is to provide the buyer with an overview of the potential transaction.

7. Legal Status:

   • Commercial Invoice: A legal document that is important for tax and accounting purposes.
   • Proforma Invoice: Not legally required for tax and accounting purposes.

8. Revisions:

   • Commercial Invoice: Can be revised if there are changes in the actual shipment.
   • Proforma Invoice: Can be revised during negotiations, but once the sale is confirmed, it is typically replaced by the commercial invoice.

In summary, the commercial invoice is the final and legally binding document that confirms the sale and is used for payment and customs clearance. The proforma invoice is a preliminary document used for quoting and providing details to the buyer before the sale is confirmed and the actual commercial invoice is issued.