Commercial invoice

The exporter issues the commercial invoice, and it travels with the shipping documents to the importer and its customs broker. It typically shows seller and buyer, invoice number and date, a description of each item, quantities, unit and total prices, currency, the Incoterms rule, country of origin and often HS codes. Customs compares it with the packing list and transport document, and the declared value usually forms the basis for import duty and VAT.

A commercial invoice is often confused with a proforma invoice. The proforma is a quotation or advance bill issued before shipment, used to arrange payment or an import license; the commercial invoice records the actual sale. It also differs from the forwarder's freight invoice, which bills for transport services rather than for the goods. Some destinations require a specific format, a signed declaration or consular legalization, so the rules depend on the importing country.

Many customs delays trace back to the invoice: vague descriptions such as “parts” or “samples”, values that do not match the payment, a missing Incoterms rule, or totals that disagree with the packing list. Deliberately undervaluing goods to reduce duty is an offense in most countries. Forwarders and brokers review the invoice before the cargo arrives, because correcting it afterwards can mean storage charges while the declaration is on hold.