A commercial invoice is one of the most important documents in international trade. Whether you’re shipping goods for the first time or reviewing paperwork on behalf of a client, understanding what’s on a commercial invoice — and why each field matters — can save you from costly customs delays.
This guide walks you through every key section of a commercial invoice in plain language.
What Is a Commercial Invoice?
A commercial invoice is an official document issued by the seller (exporter) to the buyer (importer). It serves as a record of the transaction and is used by customs authorities to assess duties, verify shipment contents, and determine whether the goods comply with import regulations.
Unlike a regular sales receipt, a commercial invoice in international trade must meet specific requirements set by customs agencies around the world. Missing or incorrect information can lead to delays, fines, or even seizure of goods.
Key Fields on a Commercial Invoice
1. Seller and Buyer Information
At the top of the invoice, you’ll find the full name, address, and contact details of both the exporter (seller) and the importer (buyer). This establishes who is sending and receiving the goods.
Make sure these details match exactly what’s on other shipping documents like the Bill of Lading or Airway Bill. Discrepancies — even small ones — can trigger additional customs scrutiny.
2. Invoice Number and Date
Every commercial invoice needs a unique invoice number and the date it was issued. Customs authorities use this to track and reference the document throughout the clearance process.
The date also helps establish when the transaction took place, which can affect which tariff rates apply.
3. Description of Goods
This is one of the most critical fields. The description must be specific and accurate — vague terms like “merchandise” or “gift” are not acceptable.
A proper description includes:
- What the product is (e.g., “Men’s cotton T-shirts”)
- The material or composition
- The intended use, if relevant
Customs officials use this description alongside the HS Code to classify the goods and calculate duties.
4. HS Code (Harmonized System Code)
The HS Code is a standardized numerical code used worldwide to classify traded products. It tells customs exactly what category your goods fall into, which determines the applicable tariff rate.
For example, men’s cotton T-shirts fall under HS Code 6109.10. If you’re unsure about your product’s HS Code, it’s worth double-checking — using the wrong code can result in incorrect duty charges or customs holds.
(For a deeper dive, see our guide: [What Is an HS Code?])
5. Quantity and Unit of Measure
List the exact number of units being shipped and the unit of measurement (e.g., pieces, kilograms, boxes, liters). Customs may physically verify this against the actual shipment.
6. Unit Price and Total Value
Each item’s unit price must be clearly stated, along with the total value of the shipment. This is the basis for customs valuation — the process customs uses to calculate import duties.
Always state the currency (e.g., USD, EUR, KRW). Ambiguity here can cause problems.
7. Country of Origin
This indicates where the goods were manufactured or produced — not where they’re being shipped from. The country of origin affects tariff rates, trade agreement eligibility, and whether the goods face any import restrictions.
For example, goods from a country with an active Free Trade Agreement (FTA) with the destination country may qualify for reduced or zero duties.
8. Incoterms
The agreed Incoterm (e.g., FOB Shanghai, CIF Los Angeles) defines who is responsible for shipping costs, insurance, and risk at each stage of the journey. Including the correct Incoterm on the invoice helps customs determine the transaction value properly.
(New to Incoterms? Read our guide: [What Are Incoterms?])
9. Payment Terms
This section outlines how and when payment will be made — for example, “T/T 30 days after shipment” or “Letter of Credit at sight.” While this is primarily a commercial detail between buyer and seller, it forms part of the official transaction record.
10. Signature and Stamp
Many countries require the commercial invoice to be signed by an authorized representative of the exporting company, sometimes with a company stamp. Always check the destination country’s requirements before shipping.
Common Mistakes to Avoid
Undervaluing the shipment. Some shippers declare a lower value to reduce customs duties. This is considered customs fraud and can result in heavy penalties.
Using vague product descriptions. “Electronics” or “clothing” is not enough. Be specific.
Mismatched information across documents. The details on your commercial invoice should match your Packing List, Bill of Lading, and any other shipping documents.
Wrong or missing HS Code. This is one of the most common causes of customs delays.
Currency not specified. Always clearly state which currency the amounts are in.
Commercial Invoice vs. Proforma Invoice
A proforma invoice is a preliminary document sent before the shipment, often used to obtain import permits or open a Letter of Credit. It’s essentially a quote or estimate.
A commercial invoice is the final document issued after goods are shipped. This is what customs authorities rely on.
Don’t confuse the two — submitting a proforma invoice where a commercial invoice is required will hold up your clearance.
Final Thoughts
Reading and preparing a commercial invoice correctly is a foundational skill in international trade. Every field serves a purpose, and errors — even minor ones — can create real problems at the border.
If you’re just getting started, take time to review a real commercial invoice alongside this guide. Once you’ve done it a few times, it becomes second nature.
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