PI-Proforma Invoice terms and conditions

 

Proforma Invoice terms and conditions

A proforma invoice is a preliminary invoice that is issued by a seller to a buyer in advance of shipping the goods. It outlines the types and quantities of goods to be sold, as well as their price, and serves as a basis for negotiations and finalizing the sale.

The terms and conditions of a proforma invoice typically include:

  1. Description of goods: A detailed description of the goods being sold, including their quantity, unit price, and total cost.
  2. Payment terms: The payment terms agreed upon by the buyer and the seller, including the payment method, due date, and any advance payment required.
  3. Shipping details: Information on the shipping arrangements, including the estimated shipping date, mode of transportation, and any insurance coverage.
  4. Incoterms: The International Commercial Terms define the responsibilities of the buyer and the seller for the transportation and delivery of the goods.
  5. Tax information: Any applicable taxes, such as value-added tax (VAT), will be added to the final invoice.
  6. Currency: The currency in which the invoice will be issued and payment will be made.
  7. Validity: The period during which the proforma invoice remains valid and binding on both the buyer and the seller.
  8. Limitations: Any limitations or exclusions to the sale, such as warranties or guarantees.

It's important to note that a proforma invoice is not a legally binding document and may be subject to change before the final sale is completed. The final invoice, which is issued after the goods have been shipped, will reflect the final terms and conditions of the sale.

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