Commercial Invoice

Published July 15, 2020

A commercial invoice is the primary document used in international trade transactions that records the sale of goods between an exporter and an importer. It serves as a demand for payment from the seller and as the key document for customs authorities in the destination country to assess applicable duties and taxes, verify the declared value of goods, and determine admissibility.

What a Commercial Invoice Must Include

Customs authorities in most countries require the commercial invoice to contain:

• Seller (exporter) name, address, and contact information
• Buyer (importer/consignee) name and address
• Invoice date and invoice number
• Detailed description of goods (sufficient for HTS classification)
• Quantity and unit of measure for each line item
• Unit price and total price per line item, plus invoice total
• Currency of transaction
• Country of origin for each product
• Incoterms (delivery terms — e.g., FOB, CIF, DAP)
• Harmonized Tariff Schedule (HTS) code for each item, when known

Commercial Invoice vs. Packing List

These documents work together but serve different purposes. The commercial invoice establishes value and terms of sale — customs uses it to calculate duties. The packing list describes the physical contents and packaging of the shipment — warehouses and consignees use it to verify receipt. Both are required for international shipments.

Invoice Accuracy and Customs Risk

Undervaluing goods on a commercial invoice to reduce duty liability is customs fraud and can result in seizure of goods, substantial fines, and loss of import privileges. Overvaluing goods to increase insurance coverage creates a different set of compliance problems. Accurate invoicing — reflecting the true transaction value — is both a legal requirement and a practical risk management necessity.