Glossary
What is a commercial invoice?
A commercial invoice is the customs document for international shipments, listing goods, values and parties. See required fields and a worked example.
Updated · By PayToMe Editorial
A commercial invoice is a document that an exporter issues for goods crossing an international border. It describes the buyer, the seller, the goods, their value and the terms of sale, and customs authorities use it to clear the shipment and calculate duties and taxes.
How it works
On a domestic sale, an invoice mainly asks for payment. On an international shipment, the commercial invoice also acts as a customs declaration. Officials, carriers and customs brokers read it to decide what the goods are, where they come from and how much duty applies. Errors can delay a shipment or cause extra fees.
Requirements differ by destination country, so confirm them with your carrier or customs broker. Commonly requested fields include:
- Seller and buyer names, addresses and contact details.
- Invoice number and date.
- A clear description of each product, quantity and unit price, as separate line items.
- Total value and currency.
- Country of origin for the goods.
- The harmonized system (HS) tariff code for each product, if you know it.
- Terms of sale, often written as an Incoterm such as FOB or DAP.
- Weight and number of packages.
- A signed statement that the information is true.
A commercial invoice is not a proforma invoice. A proforma is a preview sent before the order is final, for example so a buyer can arrange an import license or payment. Once goods ship, the commercial invoice replaces it. You can draft a proforma with the proforma invoice generator.
Be accurate about value. Declaring a false or low value can bring penalties. This is general information, not customs advice.
Example
A ceramics studio in Oregon ships a pallet of mugs to a retailer in Toronto.
PayToMe’s free generators work today, and the invoice generator handles multiple currencies for the sales invoice side. Customs-specific fields are not built in, so check your broker’s checklist. PayToMe’s own invoicing features are in development.
Related terms
- Line item: each product row on the invoice.
- Purchase order: the buyer’s order that precedes the invoice.
- Sales receipt: proof of payment after the sale.
- Reverse charge: a tax rule for some cross-border B2B services.