What a commercial invoice is
A commercial invoice is the seller’s record of a cross-border sale of goods. Customs authorities use it, together with the customs declaration and other shipment records, to identify the parties, describe and classify the goods, establish customs value, and assess duties and import taxes.
The carrier or customs broker may ask for paper copies, an electronic copy, or invoice data inside its filing system. A commercial invoice is commonly required when goods are sold internationally, but an authority may accept or require a substitute document for non-sale movements, low-value consignments or another specific procedure. Pure services and digital supplies do not use a goods customs invoice, although they can have separate tax and reporting rules. Ask the importer, carrier or broker which documents the destination requires before dispatch.
How does a commercial invoice differ from a standard or proforma invoice?
The three documents can look similar, but their purpose and contents differ.
A standard sales invoice records and bills a sale; for a domestic transaction it normally has no customs data. A proforma invoice is usually a quotation in invoice form, prepared before the sale is final. It can help a buyer arrange an import licence, letter of credit or funds, and some customs procedures accept it when there is no final sale invoice. A commercial invoice records the actual export sale and includes the data required for the shipment. A useful rule of thumb is to quote with a proforma and use the commercial invoice for a completed export sale, while following the destination authority’s procedure for non-sale goods.
| Feature | Domestic sales invoice | Proforma invoice | Commercial invoice |
|---|---|---|---|
| Main purpose | Record and request payment for a domestic sale | Set out a proposed transaction | Record an export sale and support customs clearance |
| Timing | At the invoicing point for the sale | Before the sale is final | When the export sale is invoiced |
| Customs details | Usually none | May include them | Includes those required for the shipment |
| Customs use | Not normally prepared for customs | Accepted in some procedures | Commonly used for sold goods |
| Payment role | Records the amount due | Usually not the final payment invoice | Records the actual export sale |
The customs fields a commercial invoice needs
Beyond the usual invoice basics, customs needs enough detail to classify and value the goods. There is no single global form. The destination authority, carrier, commodity and agreed trade terms determine the exact list, but the following details are commonly requested:
- Exporter / shipper
- The full legal name, address and contact details of the seller sending the goods, plus any tax or EORI/exporter registration number.
- Importer / consignee
- The full name and address of the buyer or party receiving the goods, and their tax or import registration number where required.
- Full goods description
- A plain-language description of each item - what it is, what it is made of, and what it is used for. Vague terms like "samples" or "parts" cause delays.
- HS / commodity code
- The tariff classification requested for each product. The international HS begins with six digits, while national tariff schedules add more digits.
- Country of origin
- The origin determined under the applicable wholly obtained or substantial-production rule, not simply the shipping country.
- Quantity and unit
- The number of units and the unit of measure (pieces, kilograms, litres) for each line item.
- Unit value and total value
- The price per unit and extended line total. The invoice supports customs valuation, but customs law determines which additions, deductions or alternative method apply.
- Currency
- The currency in which the values are stated, so customs can convert and assess duties correctly.
- Delivery terms
- The agreed Incoterms 2020 rule and named place, when used. It allocates specified costs, delivery duties and risk, but does not replace the sales contract.
- Reason for export
- Why the goods are being shipped - sale, gift, sample, repair, or return. This affects how customs treats the value and duty.
- Weight
- The net and gross weight of the shipment, which carriers and customs use for handling and verification.
How to avoid customs delays
Missing or inconsistent information can hold a shipment. Describe goods specifically: “men’s cotton T-shirts” is more useful than “clothing”. Confirm the tariff classification with the destination schedule, because countries extend the six-digit HS and a wrong code can change the duty or trigger a query. Declare the value using the method required for that movement. Free samples, replacements and gifts can still need a supportable customs value even when no payment is due, so do not invent a token value.
Make the invoice consistent with the packing list, transport document and customs declaration. State the full Incoterms rule and named place when the contract uses one. Under DDP, for example, the seller takes responsibility for import clearance and duties, although local law can make that impractical or impossible for a foreign seller. Add registration numbers and declarations only where required, and check whether a signature, licence or country-specific form is needed. FreeBillGen can prepare a general itemised invoice draft, but it has no dedicated HS-code, origin, Incoterms, EORI or customs-clearance workflow; complete and verify those particulars before shipping.
Commercial invoice questions
What is a commercial invoice used for?
A commercial invoice records an export sale and is one of the main documents customs uses to clear sold goods. It identifies the parties, describes and values the goods, and supports classification and the assessment of duties and import taxes. Other shipment and customs records may also be required.
What is the difference between a commercial invoice and a proforma invoice?
A proforma invoice is usually a quotation in invoice form prepared before a sale is final. A commercial invoice records the actual export sale and commonly supports customs clearance. A proforma can still be used for import arrangements or accepted in some non-sale procedures, so follow the destination rules.
Do I need an HS code on a commercial invoice?
Include the tariff code when the destination, carrier or filing procedure requires it. The first six digits come from the international Harmonized System, while national schedules can add digits. Confirm the destination classification instead of assuming one country’s full code works everywhere.
What are Incoterms and why do they appear on the invoice?
Incoterms are ICC trade rules such as EXW, FOB, DAP and DDP. They allocate delivery tasks, specified costs and risk, while particular rules address insurance and import clearance differently. State the chosen rule, version and named place when the contract uses one; it does not replace the sales contract.
Does a commercial invoice need VAT or sales tax?
It depends on the seller’s tax system, the destination, the evidence of export and the transaction. An export may qualify for zero rating, while import VAT and duty may arise at destination, but neither treatment is universal. Confirm both the export tax rules and the destination import rules.
Can I use a commercial invoice template?
A template is a useful starting point, but there is no single form that guarantees acceptance worldwide. Add the fields required by the destination, carrier, goods and customs procedure, and check whether a prescribed form, language, declaration, licence or number of copies applies.