A commercial invoice is a key document in international trade that serves as a formal request for payment between a buyer (importer) and a seller (exporter). It provides detailed information about the goods being sold and is used by custom authorities to assess duties and taxes.
Contents of a Commercial Invoice
Buyer and Seller Information: Includes names, addresses, and contact details of both the buyer and seller.
Invoice Details: Invoice number or purchase order is usually included along with the date it was issued.
Description of Goods: Detailed description of the goods, including quantity, unit price, total price, weight, dimensions, and commodity codes.
Terms of Sale (Incoterms): Specifies the responsibilities of the buyer and seller regarding shipping, insurance and logistics.
Shipping Information: Which courier is being used and the origin and destination of the goods.
Currency: Specifies the currency in which the transaction is being conducted.
Signatures: Signature of the seller to authorize the document
Purpose of a Commercial Invoice
Customs Clearance: Used by customs authorities to determine the value of the goods for the calculation of duties and taxes.
Financial Records: Serves an an offical record of the transaction for both the buyer and seller.