The commercial invoice is one of the most important documents in international trade, as it ensures that transactions between exporters and importers are carried out efficiently, transparently and in compliance with all legal regulations.
This document not only details the key information of the operation, such as the data of the parties involved and the description of the goods, but it is also essential for customs clearance and duty calculation.
In this article, we will explore in depth what a commercial invoice is, what it is used for, how it is structured and what types exist in international trade.
What is a commercial invoice?
The commercial invoice is an essential document in international trade that functions as a proof of the transaction between the exporter (seller) and the importer (buyer). It is issued by the exporter to detail the characteristics of the commercial operation, including the description of the goods, the terms of the sale and the total value of the shipment.
This document is a key piece in exports and imports, as it not only formalizes the sale of goods, but also acts as a basis for the customs authorities when calculating tariffs duties, taxes and other applicable charges.
Differences with other types of invoices
Unlike tax invoices, whose main purpose is the accounting and tax registration of a transaction within the same country, the commercial invoice is designed specifically for international transactions. It also differs from invoices with no commercial value, which are used for non-profit shipments, such as samples or promotional materials.
In short, the commercial invoice is more than a simple sales receipt; it is a multifunctional document that facilitates international trade and ensures compliance with customs regulations. Its correct preparation is essential to avoid logistical problems and ensure a successful operation.
What is a commercial invoice for?
The commercial invoice plays a fundamental role in international trade, as its usefulness goes far beyond being a simple sales receipt. This document is key to ensuring that logistics and customs operations are carried out smoothly and in compliance with international regulations. The main uses of this document are detailed below:
Basis for customs clearance
The commercial invoice is used by customs authorities both in the country of origin and destination to:
Verify the nature of the goods: through their description, quantity and declared value.
Calculate duties and taxes: Based on the value of the goods and the HS (Harmonized System) code.
Ensure regulatory compliance: By ensuring that goods comply with export and import regulations.
Transfer of ownership
The commercial invoice acts as a legal document that certifies the transfer of ownership of the goods between the exporter and the importer.
This ensures that both parties are protected in case of disputes over the transaction.
Ensure transparency in the transaction
This document details all the terms of the operation, including the Incoterms terms of payment and delivery conditions.
This avoids misunderstandings between the parties involved and establishes a clear framework for the transaction.
Facilitation of logistics
In addition to being a legal requirement, the commercial invoice facilitates coordination between the different actors in the logistics chain, such as carriers, consignees and customs brokers. The information contained in the invoice helps ensure that the goods are handled and delivered as agreed.
In short, the commercial invoice is a fundamental pillar in international trade, as it allows logistics and commercial operations to be carried out in a secure, transparent and efficient manner. Its correct preparation and use are essential to avoid delays, penalties or legal complications.
Parts of a commercial invoice
The commercial invoice must include key information that guarantees its legal validity and facilitates its use in customs and logistics processes. Each element of the invoice has a specific purpose and is essential to the success of international operations. The following are the main parts that should appear on a commercial invoice:
Exporter and importer information
Exporter: Name, address, and contact details of the company or person sending the goods.
Importer: Name, address and contact details of the company or person receiving the goods.
Description of goods
Clear and specific details of the goods included in the shipment:
–Name and description of the product.
–Quantity (in units, weight or volume).
-Unit and total value.
–Gross and net weight of the shipment.
HS Code (Harmonized System)
International tariff classification that identifies goods according to their category. It is essential for customs authorities to determine applicable tariffs and regulations.
Transaction value
Total price of the goods, specifying the currency used (USD, EUR, etc.). Details of the payment terms agreed between the exporter and the importer.
Terms of Sale (Incoterms)
Indication of the Incoterm used (for example, FOB, CIF, DAP) to clarify the responsibilities of each party in the transportation, insurance and delivery of the goods.
Country of Origin
Declaration of the country where the goods were produced or manufactured, crucial information for customs and trade regulations.
Transportation information
Details of mode of transport (sea, air or land). Place of loading (port or point of origin) and place of destination (port or end point).
Invoice number and date
Unique invoice identification and date of issue, necessary for accounting and legal purposes.
Types of commercial invoices in international trade
In international trade, commercial invoices are adapted to the specific needs of each operation and the type of transaction being carried out. The main types of commercial invoices used in exports and imports are described below:
International Commercial Invoice
This is the standard invoice used for international trade operations. It contains all the basic elements of a commercial invoice, such as exporter and importer data, description of the goods, total value, HS code and the terms of the sale (Incoterms). It is essential for customs clearance in both the country of origin and destination.
Export Commercial Invoice
Designed specifically for export operations, it details the transaction from the exporter’s point of view. It includes additional information required for the authorities of the country of origin, such as certificates of origin or specific declarations about the goods.
It can sometimes be used in conjunction with documents such as the Bill of Lading (B/L) or Air Waybill (AWB) to coordinate logistics.
Commercial import invoice
It is the invoice used to justify the entry of goods into the destination country. It is key to the calculation of duties, import taxes and other customs charges. It includes importer-specific details and is supplemented by documentation required by local customs authorities.
Invoice without commercial value
Used in shipments that are not for commercial purposes, such as samples, promotional products or free shipments. Although it does not include a commercial value for the transaction, it must detail the characteristics of the products and the purpose of the shipment. It is required by customs authorities to determine if specific restrictions or regulations apply.
How to make a commercial invoice
Preparing a commercial invoice correctly is an essential step in any international trade operation. This document must include accurate information and comply with international regulations to avoid errors that can lead to delays, penalties or logistical complications. Below are the key steps to create a complete commercial invoice:
1. Gather the necessary information
Before drafting the invoice, make sure you have all the required data:-Detailed informationof the exporter and importer (names, addresses and contacts). -Precise details of the goods (description, quantity, weight and value). -Applicable Incoterm to define the responsibilities of the parties. –HS (Harmonized System) code to classify the goods.
2. Structure the document
Organize the invoice into clear, easy-to-read sections. The following is the content that each section should include:
Header:
-Exporter’s name and logo (if applicable). -Invoice number and date of issue.
Data of the Parties:
-Exporter: Name, address and contact details. -Importer: Name, address and contact details.
Description of Goods:
-Product name, quantity, gross and net weight, and dimensions (if applicable). -Unit price and total value of the goods.
Terms of Sale:
-Incoterms (FOB, CIF, DAP, etc.) and payment terms. -Currency used in the transaction.
Additional Details:
-Country of origin of the goods. -Port or place of loading and unloading. -HS code and container number (if applicable).
3. Use templates and tools
To facilitate the process, you can use commercial invoice templates available from specialized software tools or platforms. These templates help ensure that important details are not missing and that the format is suitable for customs processes.
4. Review the invoice before issuing it
Before sending the commercial invoice to the parties involved, verify that: -All information is complete and accurate. -The payment terms, prices and Incoterms are correct and aligned with the contract. -The document complies with the regulations of the country of export and import.
Importance of good document management in logistics
Document management is one of the fundamental pillars of international logistics. A properly prepared commercial invoice accompanied by the appropriate supporting documentation not only ensures compliance with international regulations, but also contributes to the fluidity of the supply chain and avoids delays or additional costs. Below, we explore why good document management is essential in international trade:
Facilitates regulatory compliance
Each country has its own customs regulations and documentary requirements. The commercial invoice is the basic document that allows you to comply with these regulations and avoid legal problems. Complementary documents, such as the certificate of origin or the packing list packing listare indispensable to ensure that the cargo complies with international standards.
Reduces delays and additional costs
Errors or inconsistencies in documentation can lead to additional inspections, customs detentions or even the immobilization of goods. Accurate document management allows shipments to be released more quickly, optimizing times and reducing costs associated with delays.
Improves supply chain efficiency
Good document management ensures that all actors in the logistics chain (exporters, carriers, consignees and customs brokers) have access to the right information at the right time. This facilitates coordination between parties, minimizing the risk of misunderstandings or errors in operations.
Increases transparency in operations
Clear and detailed documents allow all parties involved to understand the terms of the transaction, from costs to responsibilities assigned according to Incoterms. Documentary transparency is especially important for building trust between exporters and importers, as well as with carriers and logistics agents.
Ensures financial compliance
The commercial invoice is key to supporting payment terms between exporters and importers. In cases of international financing, such as letters of credit, the commercial invoice must meet the bank’s requirements to release the funds.
Across Logistics: Your partner for international documentation management
In international trade, accuracy and efficiency in the management of documents such as the commercial invoice are essential to ensure that logistics operations run smoothly. Across Logistics is positioned as a strategic partner that takes on end-to-end document management, allowing companies to focus on their core business while ensuring regulatory compliance and process optimization.
How can Across Logistics help you?
Comprehensive management of key documents: We take care of the preparation, review and management of essential documents for international trade, such as:
- Commercial invoices.
- Certificates of origin.
- Packing lists.
- Transportation documents such as Bill of Lading (B/L) or Air Waybill (AWB).
Regulatory compliance
Our team of experts ensures that all documentation complies with local and international regulations, avoiding penalties, delays or customs problems.
Optimization of logistic processes
We automate and digitize document management to reduce errors and improve traceability. We coordinate with all actors in the supply chain to ensure a smooth operation.
Customized support
Each customer has unique needs, and at Across Logistics we offer solutions tailored to each operation, ensuring that the documentation reflects the particularities of each shipment.
Trust Across Logistics to manage your international operations with professionalism and excellence. Contact us today to find out how we can help you simplify your logistics and ensure the success of your shipments.
