Invoice types
Commercial invoice
A commercial invoice is a legally binding document used in international trade that declares the contents, value, and parties of a shipment for customs clearance and payment.
What a commercial invoice is
A commercial invoice is the primary document customs authorities use to assess duties and taxes on goods crossing borders. It identifies the seller (exporter) and buyer (importer), describes each item, and states quantities, unit values, and the total value of the shipment.
Unlike a standard sales invoice, a commercial invoice also carries trade-specific details such as the country of origin, Harmonized System (HS) codes, Incoterms, and the reason for export.
What to include
A commercial invoice should include the exporter and importer details, an invoice number and date, a full description of each good, quantities, unit and total values, currency, country of origin, HS tariff codes, shipping/Incoterms, and the total shipment value. Accuracy matters — discrepancies can delay a shipment at customs.
Example: A US maker shipping 50 ceramic mugs to Canada files a commercial invoice listing each line, an $11 unit value, a $550 total, HS code 6912.00, and "FOB origin" Incoterms so the carrier can clear customs.
FAQs
Frequently asked questions
Who issues the commercial invoice?
The seller or exporter issues the commercial invoice and provides it to the carrier and customs along with the shipment.
Is a commercial invoice the same as a regular invoice?
No. A commercial invoice is a customs document for international shipments and includes trade details (HS codes, country of origin, Incoterms) that a standard domestic sales invoice does not.
Related terms
Proforma invoice
A proforma invoice is a preliminary, good-faith estimate of costs a seller sends before goods or services are delivered, so the buyer can review and commit before a final invoice is issued.
Invoice
An invoice is a document a seller sends to a buyer that itemizes goods or services provided and requests payment by a stated due date.
Invoice number
An invoice number is a unique identifier assigned to each invoice so it can be tracked, referenced, and reconciled in accounting records.
Put it into practice
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