On this page
- What does a pro-forma invoice do in an import order?
- What does the importer's bank require?
- What does a letter of credit application take from the pro-forma?
- What does customs read?
- Why is a pro-forma not a tax invoice?
- What should the pro-forma show?
- What the NEMBO desk prepares
- Sources and status
- Frequently asked questions
What does a pro-forma invoice do for an import, a letter of credit and customs in Tanzania?
As read on 17 October 2026, a pro-forma serves the bank paying an advance, which Regulation 13(3)(b) of the Foreign Exchange Regulations, 2022 ties to a proforma invoice, and the bank drafting a letter of credit. It records no tax. TRA lists a final invoice, not a pro-forma, among customs documents.
An importer holds a supplier's pro-forma, a bank that asks for it before an advance payment, a letter of credit application that must agree with it, and a customs entry that asks for a different invoice. One document is made to serve four readers, and each reads it for a different purpose.
This note sets out what the Foreign Exchange Regulations, 2022, the ICC rules for documentary credits and TRA's published import procedure say about the pro-forma, with a fictional USD 50,000 import showing the deposit, the balance and the dates that follow.
What does a pro-forma invoice do in an import order?
A pro-forma invoice is the supplier's priced statement of the goods before shipment. In an import it serves the importer's bank, which needs it to release an advance payment, and the issuing bank, which drafts a letter of credit from the agreed terms. It records no tax and is not the final invoice that customs files carry.
What does the importer's bank require?
Regulation 13 of the Foreign Exchange Regulations, 2022 (GN No. 294) requires an importer to pay for imports through a bank or financial institution, with other means allowed for consignments not exceeding USD 10,000 3. For a direct payment the bank requires an invoice and supporting documents. For a direct advance payment it requires an account relationship with the bank and a proforma invoice, a supply contract and other relevant documents 3.
Regulation 14(1) sets a clock: goods paid for must be consigned within ninety days of payment. The importer informs the bank within fourteen days of the expiry, and the bank reports to the Bank of Tanzania within thirty days of that information. An importer who does not report loses foreign currency from the bank until the matter is resolved 3.
What does a letter of credit application take from the pro-forma?
The terms. The credit is the issuing bank's irrevocable undertaking to honour a complying presentation, and a presentation complies when it follows the credit, the rules and international standard banking practice 1. NBC describes its import letter of credit as an irrevocable undertaking that pays suppliers against compliant documents 5. Banks deal with documents and not with goods (Article 5), so the credit text, drafted from the pro-forma, is what every later document is tested against 1.
Most modern documentary credits are issued subject to UCP 600, which has 39 articles 2. Article 18, read with Article 14(d), sets the tests for the commercial invoice, and a line on the pro-forma settles each.
| Test on the commercial invoice | Pro-forma line that settles it |
|---|---|
| Appears issued by the beneficiary 1 | Seller's full legal name, as in the credit |
| Made out in the name of the applicant 1 | Importer's full legal name, as in the application |
| Same currency as the credit 1 | One currency stated for every amount |
| Description corresponds with the credit 1 | Goods, unit and quantity fixed once |
| Data must not conflict with other documents (Article 14(d)) 1 | One set of quantities and weights throughout |
What does customs read?
TRA's import procedure lists a final invoice, a packing list, a transport document, import permits where the goods need them and an agent's authorisation letter. It does not list a pro-forma 4. A licensed clearing and forwarding agent lodges the documents in TANCIS at least 7 days before the goods arrive, and the system rejects declarations that are incomplete or insufficiently described 4.
| Reader | Pro-forma invoice | Final or commercial invoice |
|---|---|---|
| Bank, advance payment | Required with the supply contract (Regulation 13(3)(b)) | Not the named document |
| Bank, direct payment | Not the named document | Invoice and supporting documents (13(3)(a)) |
| Issuing bank, letter of credit | Source of the credit terms | Tested under UCP 600 Article 18 |
| Customs, through TANCIS | Not listed by TRA | Final invoice listed by TRA |
Source: Foreign Exchange Regulations, 2022, GN No. 294 of 13 May 2022; ICC UCP 600; TRA import procedures, read 17 October 2026.
Note: summarises the documents each published rule names, not a bank's or customs officer's decision. Nothing here is an offer or a guarantee. Worked figures in this note are illustrative.
Why is a pro-forma not a tax invoice?
A pro-forma requests payment before shipment and records no completed supply, so it supports no tax claim. TRA publishes that a person who pays VAT on importation may claim that VAT as input tax credit 6. The claim rests on the VAT paid at importation and not on any document the foreign seller issues. The three documents of a domestic sale are set out in a separate note 8.
What should the pro-forma show?
- Reference to the accepted quotation, and the deal reference carried to every later document.
- Seller's and importer's full legal names, identical in the credit application.
- Description, unit, quantity, unit price and total, in one currency.
- Place of delivery, country of origin, packing and weights, the lines customs and banks match first.
- Deposit and balance with dates, bank details with SWIFT and a payment reference.
- A statement that the tax or final invoice follows on supply.
What the NEMBO desk prepares
The Client shares the supplier, the items, the prices and the delivery terms. Zatra Consultants Limited checks the content and the figures, and NEMBO returns the pro-forma invoice on one A4 page with origin, packing and weight, bank details with SWIFT and a payment reference, and the statement that a tax invoice follows 7. It is delivered in hours and quoted in writing.
The desk prepares the document. It does not decide, and does not guarantee, the decision of any bank, issuing bank or customs officer, and it gives no advice on a particular credit.
Pro-forma invoice built for the bank and the credit
The desk prepares the pro-forma invoice on the Client's details, with origin, packing, weights, bank details with SWIFT and a payment reference, on one A4 page.
Share the import detailsSources and status
Accurate as at 17 October 2026. Every figure below was read at the source named, on the date shown.
- 1UCP 600, Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication no. 600International Chamber of Commerce (ICC Digital Library), 2007. Accessed 17 October 2026.
- 2Documentary credits: rules, guidelines and terminologyICC Academy, International Chamber of Commerce, 21 October 2024. Accessed 17 October 2026.
- 3The Foreign Exchange Regulations, 2022, GN No. 294Ministry of Finance, United Republic of Tanzania, 13 May 2022. Accessed 17 October 2026.
- 4Import proceduresTanzania Revenue Authority (TRA), undated. Accessed 17 October 2026.
- 5Trade finance: import letter of creditNBC Bank Tanzania, undated. Accessed 17 October 2026.
- 6Value Added Tax (VAT)Tanzania Revenue Authority (TRA), undated. Accessed 17 October 2026.
- 7Invoices: quotation, pro-forma and tax invoiceNEMBO, undated. Accessed 17 October 2026.
- 8Quotation, pro-forma invoice, tax invoice: three documents, three jobsNEMBO, 14 October 2026. Accessed 17 October 2026.
Figures to confirm before you act
- The documents the importer's bank requires for an advance payment or a letter of credit application, with the importer's bank.
- The invoice wording the credit requires, including whether the advance is credited, with the issuing bank.
- The current text of the Foreign Exchange Regulations, 2022 and any amendment, with the Bank of Tanzania.
- Whether the goods need an import permit, and which body issues it, with the permitting authority for the goods.
- The documents to be lodged for the shipment, with the Client's licensed clearing and forwarding agent.
This article is general information based on official sources available at the date of publication. It is not legal, tax, valuation or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra Consultants Limited before acting.
Frequently asked questions
Is a pro-forma invoice enough for a bank to release an advance payment?
It is one of the documents. Regulation 13(3)(b) of the Foreign Exchange Regulations, 2022 requires an account relationship with the bank and a proforma invoice, a supply contract and other relevant documents. The bank decides what else it needs and whether to release the payment.
Does a letter of credit application need a pro-forma invoice?
The issuing bank states the documents it needs, and NBC's published page lists none. The credit is issued on the applicant's request, and its terms are fixed in the credit text. A pro-forma gives the bank a priced statement of the goods from which those terms are drafted.
Can customs clear goods on a pro-forma invoice?
TRA's import procedure lists a final invoice, a packing list and a transport document, and does not list a pro-forma. A licensed clearing and forwarding agent lodges the documents in TANCIS, where incomplete or insufficiently described declarations are rejected.
Why must the commercial invoice agree with the credit?
UCP 600 Article 18 requires the description of the goods in the commercial invoice to correspond with the credit, the currency to be the credit's and the invoice to be made out in the applicant's name. Article 14(d) adds that data must not conflict with other documents or the credit.
How long after an advance payment must the goods be shipped?
Regulation 14(1) requires goods paid for to be consigned within ninety days of payment. The importer informs the bank within fourteen days of the expiry if they are not, and the bank reports to the Bank of Tanzania within thirty days of that information.
Which currency should the pro-forma use?
The currency of the contract, stated once for every amount. UCP 600 Article 18 requires the commercial invoice to be in the credit's currency, so the pro-forma, the application and the credit are fixed in one currency before issue.
