In some countries, Customs may accept a pro forma invoice (established by the importer and not by the exporter) when the necessary commercial invoice is not available at the time of submission of entry documents at the port of entry to remove goods from customs. For example, U.S. Customs and Border Guards use pro forma invoices to assess customs duties and verify goods, but the importer subject to the filing requirement is required to reserve a loan and submit a commercial invoice within 120 days of the import date. Where the required commercial invoice is required for statistical purposes, the importer must submit the commercial invoice within 50 days of the date the duty is transmitted to the importer. A pro forma invoice differs from a simple price offer because it is a binding agreement, although the terms of sale may change. Companies in almost every sector use pro forma invoices to complete their internal purchasing authorization process. Pro forma invoices streamline the sales process by eliminating additional round trips after a sale, as all conditions have been agreed in advance. A pro forma invoice is the same as a commercial invoice which, when used in international trade, is the detail of an international sale to customs authorities. A pro forma invoice is presented in place of a commercial invoice when there is no sale between the shipper and the importer (for example. B in the case of an RMA for replacement products), or if the terms of sale between the seller and the buyer are such that there is no commercial invoice yet at the time of international delivery. A pro forma invoice is required to indicate the same facts that would impose the commercial invoice and the content of the governments involved in the transaction.
The pro forma audience is used to obey a formal requirement. For example, a pro forma audience may be heard for a judge to order the presentation of a particular piece of evidence or to consider another date. For example, when a transaction that has a significant impact on an entity`s financial position is contemplated, the financial department develops a business plan for the audit of the general management and the board of directors containing pro forma financial statements that will determine the expected effects of the proposed transaction on the financial viability of the entity. Lenders and investors will require such statements to structure or confirm compliance with debt pacts such as debt service reserves and debt ratio coverage. Similarly, when a new company is planned, its founders will establish pro forma accounts to inform potential investors.