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Comprehensive Guide to Commercial Invoices: Definition and Example
What Is a Commercial Invoice?
A commercial invoice serves as an essential document for customs clearance when shipping goods internationally. This document provides detailed information about the cargo, such as its value, quantity, and other specifics. It plays a crucial role in determining duties and taxes and verifies the exact quantity of products that have been loaded and shipped.
The commercial invoice is officially issued by the exporter to the importer and serves multiple purposes, including the receipt of goods, payment facilitation, and customs declaration.
Proforma Invoice vs. Commercial Invoice: Key Differences
A Proforma Invoice (PI) is an informal document that includes the name, specifications, unit price, and other details about the cargo. Unlike commercial invoices, proforma invoices are non-binding and unofficial.
While both types of invoices serve as import and export declaration documents, commercial invoices are primarily used for large-scale international trade. In contrast, proforma invoices are generally used for small-value transactions, particularly online transactions between private parties, as well as for gifts and samples.
It's worth noting that many online sellers do not typically attach proforma invoices when shipping items. While in many instances customs clearance is possible without them, some countries' customs regulations mandate attaching proforma invoices for mail delivery, affecting customs clearance to varying degrees.
How to Complete a Commercial Invoice
When shipping cargo, the commercial invoice must be accurately completed to avoid delays at Customs. Essential elements to include are:
- Company Name and Company Number
- Origin and Destination
- Clearly state the port of departure and destination. If transshipment is involved, specify the transshipment location.
- Declared Value
- Indicate the unit price and the total value of the goods.
- Place and Date
- The place and date of the company should be located at the top right corner of the invoice. The date should not be earlier than the contract date and no later than the bill of lading's signing date.
- Cargo Description
- Provide detailed information, including weight, name, and type of the goods.
- Invoice Number
- Assign a unique number to each invoice, uniformly numbered by the issuing company.
- HS Code
- The Harmonized System (HS) code is a standardized international code used to classify traded goods for import and export statistics.
Providing this detailed cargo information not only aids your customers but also facilitates smoother operations for border authorities and couriers. If you need to make a claim on the goods, the commercial invoice will be the primary supporting document.
Partnering with a Reliable Freight Forwarder
Exporting to regions like Europe and North America requires meticulous preparation of various invoices. Partnering with a seasoned freight forwarder like ASL can ensure your commercial invoice is accurately prepared, saving you both time and costs associated with shipping. ASL has extensive experience in handling shipments, including dangerous goods. Feel free to contact us for assistance with your commercial invoice needs.
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Sample Commercial Invoice
For seamless international transport of goods, having a commercial invoice for export and customs is crucial. While commercial invoices can vary in form, we offer a free template for your reference to streamline the process.
[Free Commercial Invoice Template]
By ensuring your commercial invoice is correctly filled out and attached, you facilitate efficient customs clearance, enhancing your shipping experience.
If you have any further questions or need additional information, don't hesitate to reach out. We are here to assist you with all your commercial invoice requirements.