Commercial invoice software for exports

What is a Commercial Invoice?

A commercial invoice is a legal document between the supplier and the customer that details a transaction and is used for the sale of goods across international borders. It serves multiple purposes, including as a contract of sale and a document for customs clearance. It provides information about the products shipped, their value, and the parties involved in the transaction.

Do I Need a Commercial Invoice for Documents?

Typically, a commercial invoice is not required for documents. Documents, being non-commercial goods, usually don't need a commercial invoice for customs clearance. However, it's essential to check with the specific country's customs regulations as exceptions might apply.

How to Fill Out a Commercial Invoice?

Filling out a commercial invoice accurately is crucial for the smooth processing of your shipment through customs. Key details include:

1. Exporter and Importer Information: Full names and addresses.
2. Description of Goods: Detailed description, including quantity, weight, and value.
3. HS Code: Harmonized System code for product classification.
4. Terms of Sale (Incoterms): Delivery terms that define the responsibilities of the buyer and seller.
5. Country of Origin: Where the goods were manufactured.
6. Signature: The invoice must be signed by the exporter or an authorized agent.

For specific platforms like FedEx, the process is streamlined through their online tools, where you can fill out and print the commercial invoice as part of the shipping process.

Differences Between Commercial and Proforma Invoices

While both documents are used in international trade, their purposes differ. A commercial invoice is used for customs and payment purposes, serving as the final bill of sale. A proforma invoice, on the other hand, is a preliminary bill of sale sent to buyers before a transaction is completed or before the goods are shipped. It provides a close estimate of the transaction's value but is not considered a final invoice.

Terms of Sale on Commercial Invoice

The terms of sale, often referred to as Incoterms, define the responsibilities of buyers and sellers in terms of freight charges, insurance, loading and unloading, and customs clearance. Common terms include EXW (Ex Works), FOB (Free on Board), CIF (Cost, Insurance, and Freight), and DDP (Delivered Duty Paid).

Attaching and Managing Commercial Invoices

When shipping internationally, the commercial invoice should be attached to the package in a clear pouch, easily accessible for customs inspection. For couriers like UPS, FedEx, and DHL, specific guidelines detail how to attach and where to place the invoice on the package.

Creating a Commercial Invoice

Creating a commercial invoice can be done manually, through a template, or via shipping platforms provided by courier services like UPS and FedEx. These platforms often offer tools to generate and print commercial invoices, streamlining the process for international shipments.

HS Code and Other Requirements

The HS code is required on a commercial invoice as it helps in identifying the goods being shipped and determining the customs duties applicable.

Non-Commercial Invoice

A non-commercial invoice is used for shipments that do not involve a sale, such as gifts, personal items, or samples. These invoices still need to detail the contents of the shipment but are marked as non-commercial.

Purpose and Requirements

The primary purpose of a commercial invoice is to provide customs with the details needed to process and clear the shipment. It is required for most international shipments, excluding documents and some other exceptions.

NGO, Non-Profit Organizations, and Special Cases

NGOs and non-profit organizations can issue commercial invoices for goods they are shipping, even if these goods are not for commercial purposes. The process and requirements depend on the country of origin and destination.

Special Considerations

• Commercial Invoice for Gifts: Even gifts require a commercial invoice, though they should be marked as such to potentially qualify for exemptions.
• Digital and Physical Copies: Depending on the shipping carrier and destination country, you may need to provide multiple copies of the commercial invoice.
• Errors and Corrections: Mistakes on a commercial invoice should be corrected promptly to avoid delays. It's crucial to issue a revised invoice if necessary

Frequently Askes Questions

How can one find a commercial invoice template for international trade?

Templates can be found on Refrens commercial invoice template page.

What specific information must be included on a FedEx commercial invoice?

It must include sender and receiver details, a description of goods, Harmonized System (HS) codes, value, country of origin, and an authorized signature.

What are the implications of incorrectly filling out a commercial invoice for customs?

It can lead to customs delays, seizure of goods, fines, or other legal issues.

How does one decide the terms of sale on a commercial invoice?

Refer to Incoterms, which define the responsibilities of buyers and sellers regarding the delivery of goods.

In the case of FedEx, how do you attach a commercial invoice to a package?

It should be placed in a clear, plastic pouch on the outside of the package for easy access by customs officials.

What is the significance of the declaration statement on a DHL commercial invoice?

A legal statement by the shipper attesting to the accuracy of the information on the invoice and compliance with all applicable export regulations.

How many copies of a commercial invoice are typically needed for international shipping?

Typically, three copies are required – one for the shipper, one for the consignee, and one to accompany the shipment.

Under what circumstances is a commercial invoice mandatory?

It's required for all international shipments except for documents or other exempt items.

Who is responsible for creating and providing the commercial invoice in a transaction?

Typically, the seller or shipper is responsible for creating and providing the commercial invoice.

What role does the consignee play on a commercial invoice, and how are they designated?

The consignee is the recipient of the goods being shipped, and their information must be accurately provided on the invoice.