How to read a Chinese proforma invoice, line by line

What a proforma is, and is not

A proforma invoice (PI) sets out what the supplier will sell, at what price and on what terms. Many Chinese suppliers ask for the deposit against it, so in practice it often works as the contract. That is why every line matters: anything missing from it is something you will have to argue about later.

Check the numbers with the free China supplier quote checker before you pay. Free commercial invoice, packing list and proforma invoice templates are on our templates page.

Seller and bank

The seller's name at the top should be the same legal entity as the company on the business licence and as the beneficiary on the bank details at the bottom. If they differ, ask why in writing and ask for the business licence of the company being paid. Our scams guide explains how to check a licence.

Goods and specification

The description should name the model and the configuration: materials, dimensions, components and, for machines, the controller, motors and accessories. A PI that says only the product name lets the supplier ship any version of it. Attach or reference your specification.

Incoterm, named place and freight

The Incoterm tells you who pays for which leg and where risk passes; the named place after it matters as much as the three letters. Under EXW or FOB you arrange the main freight; under CFR or CIF the supplier does, to a named UK port, and the charges after arrival are yours. See Incoterms explained.

If freight is shown as a separate line, compare it with the volume and weight on the packing details. A freight line that looks low for the cargo is a reason to ask who the UK agent is and what it will charge; see cheap CIF quotes and UK destination charges.

HS code, packing and validity

The HS code on a Chinese PI is the Chinese export code. Its first six digits follow the international Harmonized System and should match the first six of your UK commodity code, but the UK code has 10 digits and sets the UK duty, so confirm it yourself; see finding your commodity code.

Check the packed volume and gross weight, the packing method and the price validity date. A short validity date is normal for materials that move in price, but it should not force you to pay before your checks are done.

Payment terms

A split such as a deposit on order and the balance before shipment is common. Make the balance conditional on a passed inspection of the actual goods; our guide on what to check before paying the balance lists the checks.

Some suppliers ask for 100% payment before loading, especially on small or first orders. It is a commercial term you can negotiate, not a rule, and on an FOB quote it leaves you no leverage if the goods fail inspection or the booking slips. Ask for a split such as 30% deposit and 70% after a passed pre-shipment inspection, and check that the bank beneficiary is the company you are contracting with. FOB also passes risk only once the goods are on board the vessel; for container goods handed to a carrier at a terminal, FCA is the better fit, see Incoterms explained.

If you already have a PI, we can check the quote before you pay, with a free preliminary review.