A Pro Forma Invoice is a preliminary or substitute invoice used in lieu of a commercial invoice when no commercial sale has occurred. Common scenarios include:
- Samples and prototypes of no commercial value
- Returned merchandise for repair or replacement
- Consignment shipments where title hasn't transferred
- Intra-company transfers between branches of the same legal entity
- Goods shipped before pricing is finalized
- Donations and gifts
CBP authorizes pro forma invoices at 19 CFR § 141.85, but with strings attached. A pro forma invoice must contain substantially the same information a commercial invoice would — seller and consignee, product description, country of origin, quantity, declared value, and terms. The importer must also file a bond declaration (or include a statement on the entry) committing to produce a final commercial invoice within 180 days of entry.
The declared value on a pro forma invoice still serves as the customs value for duty assessment. If goods have no commercial sale price, the importer must determine value using the alternative methods under 19 U.S.C. § 1401a — transaction value of identical or similar merchandise, deductive value, computed value, or "fall-back" value — and document the methodology.
The pro forma route is not a workaround for low-value declarations. CBP and the Office of Trade routinely audit pro forma entries, especially for:
- Intercompany transfers (looking for transfer pricing manipulation)
- Repeat samples (looking for split shipments)
- Repairs and returns (looking for 9802 Chapter 98 misuse)
For sales transactions, always use a commercial invoice — pro forma is a fallback, not a default.