state uses of a proforma invoice

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A proforma invoice is a preliminary bill of sale that outlines the seller's intent to deliver goods or services to the buyer for a specific price, but it is not a final invoice. Some uses of a proforma invoice are:

1. Clarification of the transaction details: A proforma invoice helps both parties to clarify the details of a transaction before it is completed. It includes details such as the type of goods or services to be supplied, quantity, price per unit, total cost, and payment terms.

2. Customs clearance: A proforma invoice is often used in international trade to obtain import or export licenses, and custom clearances. In such cases, the invoice may also include details such as the country of origin, the Harmonized System (HS) classification number, and other relevant information required for customs clearance.

3. Pre-payment: A seller can use a proforma invoice to request the buyer for a pre-payment or deposit before production or shipment begins, especially for large or customized orders.

4. Record-keeping: Both the buyer and seller can use a proforma invoice as part of their internal record-keeping process. The seller can use the invoice to keep a track of the orders and deliveries, and the buyer can use it to monitor the payments made.

5. Prospective deals: A proforma invoice is also useful in scenarios where the buyer is just considering a purchase. The seller can use the invoice as part of a proposal to the buyer and help them evaluate whether the deal is feasible or not.
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