What Is Commercial Invoice and Why Is It Important for International Shipment?

We provide various services, including digital freight forwarding, customs clearance, cargo insurance, shipment tracking, and pre-shipment inspections. Less-than-truckload (LTL) freight rates are determined by several factors, one of which is its classification code (see National Motor Freight Classification). Every LTL freight shipment has a classification code based on its weight, dimensions, ease of handling and stowability.

• Regardless of the type, it serves as a crucial proof that the shipment has taken place and provides legal recourse if something goes wrong during transit.
• Yes, it is possible to create online shipping invoices through invoicing software like Moon Invoice.
• From currency conversion issues to incorrect billing details, there are several challenges that shippers might face.
• Many leading carriers, such as FedEx, UPS, USPS, and DHL, along with various shipping platforms, offer pre-designed invoice templates that comply with customs requirements.
• Since international commercial invoices do not show tax as international transactions, they may not be subjected to local taxes.

Commercial Invoice and Packing List: Simple Guide + 18 Items You Must Include

As explained above, the commercial invoice is also an export document that you add to all commercial shipments outside the EU. It is a binding customs document that mainly contains information about the contents of the package and the agreements made (Incoterms), such as who pays the customs costs. Based on the commercial invoice, the customs authorities determine whether import duties have to be paid on the goods. This article will mainly discuss commercial invoices for international shipping. Although both a packing list and a commercial invoice serve as crucial export documents, their role are different.

Add Quantity of Product and Measure Unit

Shipping invoices, bills of lading, and other shipping documentation are integral components of the logistics process. They ensure that shipments are properly accounted for, and payments are made on time. By understanding how to create, manage, and store these documents effectively, businesses can streamline their shipping operations and reduce the risk of disputes or delays.

• No last-minute scrambles, no costly errors—just smooth, reliable shipments every time.
• A bill of lading is required whenever goods are transported by sea, land, or air from one point to another where different parties are involved.
• A business can provide specific names, physical characteristics, serial numbers, and other information needed to identify goods.
• Once accepted, the pro forma invoice typically forms the basis for the final commercial invoice.
• A pro forma invoice serves as a preliminary estimate of costs and quantities before the sale of goods or services.

Details about the Exporter and Importer

Itemize in a row table or clear columns with product name, quantity, unit price, and subtotal entries. Align numbers to the right for easier cross-referencing and calculations. Calculate the subtotal after taxes and discounts, add shipping charges, and arrive at a total; always mention the currency. It’s not very common, but it Accounting Errors may be needed if you’re adjusting the billing for different services in one go. Provide any special instructions or notes for the carrier, such as preferred delivery time or specific handling requests.

Find out more about the six steps of the international shipping process. Follow our step-by-step guide to book your shipment and download your commercial invoice at the end. The quantity of items being shipped and their respective measurement units (e.g., pieces, ounces, kilograms) must be clearly specified for each item in the shipment. A Commercial Invoice must be provided for all seafreight and airfreight shipments. For example, if you are sending airfreight shipments with FedEx or DHL you will have to provide to FedEx a Commercial shipping invoice Invoice, or provide to DHL a Commercial Invoice.

On the other hand, a commercial invoice can serve as proof of sale and agreement between two parties, but it cannot function as a title of ownership. However, a customs invoice usually contains more information regarding customs regulations, such as harmonized tariff codes and applicable trade preferences or agreements, if any. You can also include supplemental information, such as a link to the buyer’s website.

Billing information

A commercial invoice, on the other hand, is the final, official record of the transaction and is non-negotiable for customs clearance. In short, although both are widely used in international trade, a pro forma invoice is different from a commercial invoice. While a pro forma invoice provides estimated costs before shipment, a commercial invoice specifies the actual finalized costs charged or to be charged. Like other types of invoices, a commercial invoice is fundamentally used to request payment from customers for goods or services purchased.

As a content marketing specialist, Johanna writes educational and compelling content for Sendcloud. However, to avoid Accounting Periods and Methods delays, we recommend that you always add both documents. When you bring your international shipment to our Tewksbury location, you aren’t just dropping off a box; you’re accessing a wealth of expertise. No last-minute scrambles, no costly errors—just smooth, reliable shipments every time.