What Is a Commercial Invoice
As a legal document, it is one of the most important in international trade. The Commercial
Invoice is provided by the shipper and serves as a contract and evidence of sale between the
buyer and seller.
The commercial Invoice contains information about the shipment, including mainly a
description, the value of the goods and also the shipper information. A commercial invoice
is part of the documentation for importing or exporting and it is, therefore, required for
customs clearance purposes to calculate and assess the duties and taxes due.
Purpose And Importance Of Commercial Invoice
The commercial invoice is mainly used for detailing the price, value, and quantity of the
goods that are being sold. It should also include the trade or sale conditions agreed
upon by both buyer and seller of the transaction being carried out.
It can also be necessary for payment purposes (e.g. in the event of payment via Letter
of Credit) and may need to be issued by the buyer to its bank to instruct the release of
funds to the seller for payment.
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Different Types Of Commercial Invoice
The commercial invoice is considered the official document when exporting or
importing. It means that the information detailed in the CI (Commercial Invoice)
should be the final information. However, it can be adjusted if needed.
Besides the commercial invoice, there are other documents, which are not considered
official documents, therefore, they can't be used for dealing with the customs, for
example. The two most popular documents are Pro-forma Invoice and the Purchase
Order.
Pro-forma Invoice : It’s very similar to an estimate or a quote. The
Pro-forma invoice gives your buyer an estimate of the costs of products or services
they’re purchasing.
Purchase Order : It contains details similar to those found on an invoice,
but it’s issued by a buyer to serve as an offer to the seller.
Both the Pro-forma Invoice and Purchase Order are considered “Pre-Invoice”, they are
a type of “commercial invoice draft”.
- But make no mistake, unlike the B/L (Bill of Lading) the commercial invoice does not indicate the ownership of goods nor does it carry a title to the goods being sold.
Be Aware When Filling Out Your Commercial Invoice
Because it is a legal document, it is legally required to fill it out accurately. If there is any failure to do so, it might result in lengthy hold-ups and shipping delays. Remember that the CI is used for customs declaration purposes, so any misinformation may lead to underpayment of the correct amount of duties and taxes due and their legal ramifications.
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Information Required For Shipping
As we’ve noticed, filling out the commercial invoice is an important task. Given that, it is extremely important to make sure that the information described is clear and precise
Negotiation Field
- Invoice number
- Invoice date
- Order number
- Total sale amount
- Currency
- Payment instructions
Exporter And Importer Details
- Exporter/seller information (name, address, phone number, etc.)
- Exporter/seller’s tax identification number (eg. VAT, EORI, etc.)
- Importer/buyer information (name, address, phone number, etc.)
- Importer/buyer’s tax identification number (eg. VAT, EORI, etc.)
- Notify party’s information
About The Shipping Of The Merchandise
- Bill of Lading number
- Forwarding agent
- HS code
- A clear description of goods (no. of packages, units, weight, etc.)
- Incoterm under which the merchandise has been sold
- Origin of merchandise
- Insurance
- Date of exportation, means of transport, and final destination
- Shipper’s signature
- Sample Commercial Invoice
