Commercial Invoice
The Commercial Invoice is the seller's bill to the buyer for the goods, and the single most important document in an international trade transaction. It states the seller and buyer, a full description of the goods, quantities, unit and total prices, currency, Incoterms, and payment terms — evidencing the sale and the amount owed.
Beyond payment, the commercial invoice is the basis for customs valuation: customs authorities use its declared value to assess duties and taxes, and cross-check it against the packing list, bill of lading and any letter of credit. Errors or inconsistencies — wrong value, vague descriptions, mismatched details — cause clearance delays, duty disputes and even penalties. A clean, accurate, consistent commercial invoice is fundamental to getting paid and getting goods through customs smoothly.
The commercial invoice is the hub every other trade document points to — payment, customs value, duty and letter-of-credit compliance all key off it. A vague description or a value that doesn't match the packing list or B/L can stall a shipment and trigger a duty dispute. Getting it right is the foundation of clean, fast trade.
What is the commercial invoice used for?
As the bill for the goods and the basis customs uses to value the shipment and assess duties and taxes.
How is it different from a proforma invoice?
A proforma invoice is a preliminary quotation issued before shipment; the commercial invoice is the definitive bill issued once the goods are shipped.