Commercial Invoice
Updated on July 18, 2023
Commercial Invoice is a formal record of the details and terms of the sale between a buyer and a seller in an international business transaction. The commercial invoice provides important information related to the goods or services being sold and facilitates customs clearance and payment processes. The commercial invoice helps customs determine the value of goods for duties and taxes. It allows buyers to verify transaction details and sellers to track payments.
Contents of a commercial invoice
Transaction details – Date of sale, buyer and seller names and addresses, payment and delivery terms.
Description of goods or services – Quantity, unit price, total price, item codes, discounts, and taxes.
Shipment details – Mode of transport, destination port, and delivery terms (e.g., FOB or CIF).
Total value and currency – Total value of goods or services sold and the currency for payment.
Incoterms – Standardized trade terms defining buyer and seller obligations.
Payment terms – Payment method, due date, and specific payment conditions.
Seller and buyer information – Complete contact details of both parties.
Additional documentation – References to related documents like packing lists or certificates.
