If you need to export goods from one country to another, one of the documents you need is a commercial invoice. Commercial invoice forms are used for customs clearance and are mandatory in international trade.
The customs rely on it to assess the value of the goods entering the country and to verify the contents of the goods. Most countries are very strict about the export and import of goods.
When shipping from China, you should prepare a commercial invoice to avoid many problems in transporting the goods. The shipping company may reject your shipment without a commercial invoice. If it is lost, customs will hold your shipment.
What Is A Commercial Invoice?
A commercial invoice is created after the buyer and seller have reached a transaction agreement. It is a bill or proof of purchase from the seller to the buyer that describes the agreement between the parties regarding the details of the sale or purchase of goods and the terms involved.
Commercial invoices are often required to accompany the goods for international dispatch. A commercial invoice fully describes the goods being shipped, the location, quantity, cost, and the name of the location or business being shipped to. Customs officials rely heavily on this document when clearing the cargo in question. Commercial invoices are used by the importing country’s customs to calculate the exact cost of the goods, calculate customs duties, collect statistics, and check the shipment of goods. Any possible incorrect descriptions and missing information will lead to strict customs scrutiny, so you must ensure that all necessary information is provided.
The Role Of Commercial Invoices
Commercial invoice plays three roles.
(1) The main use of commercial invoices in imports is to calculate tariffs.
In importing and exporting goods, the shipper or consignee must submit commercial invoices to customs, which is necessary for customs clearance and helps the customs Department inspect the goods exported and imported from another country.
(2) The importer can understand and master the overall situation of the goods shipped.
The invoice directly indicates the details of the goods. It includes the identities of the parties to the transaction, both the buyer and the seller are fully identified.
(3) Without remittance certificates, invoices may be used as supplementary documents for payment.
In addition, the invoice can be used as a claim basis for the value of the goods if the goods are damaged or lost.
A Sample Of Commercial Invoice
By using a template, you can make writing invoices an easy task. A professional invoice can reflect the company’s time to focus on every detail seriously.
Therefore, the invoice style should be designed very well, easy to fill out, and looks concise and clear.
Elements Of Commercial Invoice
The invoice is a legally binding document and must contain basic information to ensure that you do not encounter problems in the process of sea freight or air freight.
A commercial invoice containing the correct information ensures that the goods can be legally transported between countries.
Note that the items listed below are not necessary.
- Issuer: The file is usually created by the exporter. The address and contact method of the exporter.
- To: Importer’s address and contact number.
- Invoice number (No.): Generated by the exporter.
- Invoice Date: The date the invoice was generated and mentions the delivery date.
- Shipping Details: Mode of shipping.
- Contract number (L/C No.): Under the transaction, the letter of credit, and the invoice need to include the L/C number.
- Term of Payment: The terms and conditions of payment are agreed upon by the exporter and buyer.
- Terms of Sale: Trade terms also become incoterms. The common option is FOB and CIF.
- Marks and numbers: Shipping marks include information about the shipment.
- Description of Good: Name of each commodity traded.
- Quantity: The quantity of each item of goods.
- Unit Price: Cost of each item.
- Subtotal (Amount): Total value of individual commodities.
- The total value of the goods: Total value of all items.
Additional terms:
Each country’s customs laws are not the same, commercial invoices may also need to include VAT tax numbers, signatures, HS Codes and more.
How Do I Get A Template For Commercial Invoice?
There are many samples of this business document on the Internet. Entering “commercial Invoice sample” in the search engine, you find countless templates, many of which are free to download.
The commercial invoice template does not have any specific format, but it must contain important information.
As a professional freight forwarding company, we handle many commercial invoices every day.
We know how to fill out a commercial invoice project, a strictly accurate invoice as an accompanying document can help you avoid delays in shipping.
When you are shipping personal belongings, you need to make it. If you don’t know how to fill it out or need a sample, we can provide it for free.
We will also ensure that your invoice includes every necessary detail to avoid any point of detention during the import process.
Other Shipping Documents
As we know, commercial invoices are legal documents. When the goods are imported and exported, the Customs Department checks the commercial invoice, but it usually asks for more documents in order to get a thorough understanding of the shipment.
Each country’s documentation requirements for import transport are specific, and any minor discrepancies between documents are sufficient to delay your shipment.
You know which document you need to submit and when and where to help keep your shipping status and ensure things go smoothly. International transportation companies have extensive experience in cross-border transportation to ensure that your paperwork is fully completed.
Conclusion
Usually, a commercial invoice is very important in international trade. It allows your goods to be lawfully passed through the border to another country.
Therefore one must authenticate to regard it. We look forward to receiving your letter if you have any comments or questions! Do you have any other questions? Or, viewing our Shipping Blog, our experts also published another post.