COMMERCIAL INVOICE (CI)

 Commercial Invoice

What Is a Commercial Invoice?

A commercial invoice provides the details about the transaction, including the description of goods, prices, quantities, shipping costs, and seller and buyer details. From detailing the specifics of the trade agreement to acting as the primary document used by customs authorities for assessing duties and taxes, the commercial invoice is an indispensable part of international commerce.

Who Provides The Commercial Invoice?

The commercial invoice for international shipping is typically completed and provided by the exporter or the person (entity) who is selling the goods. The commercial invoice is important because it is used by customs authorities to assess duties and taxes. In short, it is the seller’s responsibility to ensure the commercial invoice is accurate and complete. Small and mid-size businesses (SMBs) can also ask their freight forwarder for help regarding the commercial invoice, including providing a physical or electronic version of the document, help in filling it out, and who to provide it to when shipping internationally.

What Is Commercial Invoice in International Shipping?

A commercial invoice is a critical document in international trade, primarily used for customs declaration. It provides information about the buyer, the seller, the goods being transported, and the transaction’s value. It allows customs officials to determine duties and taxes, verify shipment contents, and gather statistical data.

Components

There is a basic template used for a commercial invoice in relation to international shipping, but the components are generally the same and ensure a smooth international shipping process.

The components of a commercial invoice for international shipping include the following:

• Seller/Exporter's details
• Buyer/Importer's details
• Invoice number
• Date
• Terms of sale
• Terms of payment
• Description of goods
• Total value
• Shipping method and details
• Incoterm
• Country of origin
• Signature and declaration

Steps

Accurately completing a commercial invoice includes the following steps:

Step 1: Start by filling in the seller/exporter and buyer/importer contact information.
Step 2: Specify the date and unique invoice number for record-keeping and tracking.
Step 3: Detail the products being shipped in the description section.
Step 4: Indicate the total value of the goods.
Step 5: Record the shipping details and the agreed incoterm.
Step 6: Declare the country of origin for each good.
Step 7: Sign and date the invoice to authenticate it.

Mistakes To Avoid

• Inaccurate or incomplete description of goods
• Incorrect classification or HS codes
• Failure to specify terms of payment
 
When To Use

• For customs purposes
• For record keeping and auditing
• When establishing legal ownership and terms
• For insurance claims