GISTnet Glossary—commercial invoice

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commercial invoice

The document, issued by a seller to a buyer, which constitutes the seller's demand for payment of money in exchange for the sale of goods. It is a key component of a set of shipping documents in all cases in which goods are shipped pursuant to a commercial sale.

In addition to this primary function, in international trade the commercial invoice additionally serves other important functions: a source of information for shipping documents, including the contract of carriage, SED, destination country documents (C/O, consular invoice, and other documents as may be required), insurance certificate, and collection documents (draft, collection instructions). Equally important, the commercial invoice serves as the source document for destination customs clearance, the assessment of customs duty and VAT. In the event of cargo loss of damage in transit, the commercial invoice becomes the basis on which a claim against the transportation or insurance carrier must be made.

In general, a commercial invoice should clearly state or provide:

  1. The name and address of the seller and buyer and any other parties to the transaction;
  2. A complete and precise description, quantity and price of the goods, together with price extensions and total invoice amount and currency;
  3. Applicable trade term (delivery terms)
  4. Payment terms;
  5. Date of sale;
  6. Any other information required by the parties;
  7. All information needed to fulfill origin and/or destination country requirements; for example, the HTS number for goods being sold, number and date of an export license, import license, or, in the case of certain the U.S. exports, the destination control statement. Many foreign countries have specific requirements relating to commercial invoices to enable customs authorities to assess correct customs duty. For an example, refer to U.S. CR, 19 CFR141.86, "Contents of Invoices and General Requirements."
  8. A signature and certification by a representative of the issuer (may be added by the freight forwarder) that the invoice is "true and correct."
See also packing list, which is an important document which must either accompany or be incorporated into the commercial invoice.