The Commercial Invoice: How to Complete the Formalities

Key Points

• A commercial invoice is an official document typically required for the international export of goods with a commercial value, particularly outside the European Union, subject to the carrier's and destination country's requirements.
• It differs from a pro forma invoice, which is used for goods with no commercial value, such as gifts or product samples.
• This document must contain detailed information about the sender, the consignee, and the goods, including the HS code, value, origin, and weight of the products.
• Depending on the carrier, shipping method, and destination country, the commercial invoice may need to be provided in multiple hard copies or submitted electronically.

What is a commercial invoice? It is an invoice that must accompany your goods if you are exporting them outside the EU for sale. (If you do not intend to sell the goods, you can use a pro forma invoice instead). The commercial invoice contains all the vital information required by the customs authorities in the destination country. You must therefore complete it accurately if you want your goods to arrive on time. Want to know more? Read on!

What is a commercial invoice?

A commercial invoice is an official document required when exporting goods outside the EU. It serves as a reference document for customs clearance and contains essential information about the goods, such as the HS code and the Incoterms© applicable to the shipment.

It can also be useful to include a statement on origin or other proofs of export for customs and tax authorities on the invoice itself or within the accompanying documents.

Is a commercial invoice always essential? It is required when the following three conditions are met:

• The goods are shipped to a country located outside the EU.
• The goods have a commercial value (they are intended for sale).
• The goods are subject to customs duties (for example, standard documents are exempt).

Commercial invoice vs. pro forma invoice

The commercial invoice is frequently compared to the pro forma invoice, as both relate to products subject to customs duties that are shipped outside the EU. What is the difference between these two types of invoices?

A commercial invoice is intended for products with a commercial value. Conversely, a pro forma invoice must accompany goods that are not for sale, such as gifts or product samples.

What must a commercial invoice contain?

A commercial invoice must include several specific elements. Let's review what a standard commercial invoice template should include.

Sender Information

• Sender's company letterhead.
• Sender's name.
• Sender's full address.
• SIRET number (or local company registration equivalent).
• Intra-community VAT number.
• EORI number: It is mandatory for the exporter to have an EORI (Economic Operators Registration and Identification) number, which is used for all customs operations outside the EU.

Consignee Information

• Consignee's name.
• Consignee's full address.
• Consignee's contact details.
• Telephone number.
• Consignee's VAT number or commercial registration number (if available or required by the destination country).

Information About the Goods

• Clear and detailed product description.
• Reason for export.
• HS code.
• Quantity.
• Unit value.
• Net value (excluding tax) of each product.
• Country of origin.
• Currency.
• Number of parcels.
• Gross and net weight of the parcels.
• Shipment dimensions (if required by the carrier or for logistics purposes).

Other Information

• Carrier's Track & Trace number.
• Applicable Incoterms©.

At Landmark Global, our commercial invoicing agents are ready to help you prepare your documentation. Explore our customs clearance services and trust our experts to ensure your invoices are fully compliant and your products clear customs swiftly.

What else should you know about the commercial invoice?

Knowing what a commercial invoice should look like is just the beginning; there are other requirements beyond the content that you must be aware of. What are they?

Language In practice, the commercial invoice is usually written in English, as it is widely accepted by customs authorities worldwide. However, it is always advisable to check the specific requirements of both the destination country and your carrier.

Additional Forms If you work with a commercial logistics partner, you typically won't need to complete extra forms. However, if you ship via certain postal operators, additional customs forms like the CN22 or CN23 may be required, depending on the nature, weight, and value of the shipment, as well as the operator's specific rules.

Number of Copies You must always provide three copies of the commercial invoice: one for the customs authorities in the country of departure, one for the authorities upon arrival, and one for the consignee.

How to send the invoice?

There are two ways to submit your customs invoice:

• Hard copy: You physically attach the three copies of the commercial invoice to the shipment.
• Electronic Trade Documents (ETD): You create and transmit the invoice electronically. However, please note that this option is not accepted in all countries, so you must verify the specific requirements of your target destination.

Why is the commercial invoice important?

It is important to complete a commercial invoice correctly for several reasons:

• It is mandatory: As this document is a legal requirement, any errors can delay your shipments. This leads to customer dissatisfaction due to late deliveries.
• It helps calculate landed costs: The detailed information on your invoice allows for accurate estimation of customs duties and taxes, helping you determine the overall cost of your shipments.

Does the commercial invoice include shipping costs?

Yes, it is highly recommended to clearly indicate shipping costs on the commercial invoice, especially when they form part of the total amount paid by the buyer or influence the shipment's declared value. Customs authorities use the commercial invoice to assess the goods' value and calculate any applicable duties and taxes. Therefore, it is best to itemise the price of the products, transport costs, and, where applicable, insurance or other shipment-related fees separately.

Do you need a commercial invoice to ship documents?

Generally, a commercial invoice is not required for sending documents with no commercial value. Carriers typically distinguish between document shipments and goods shipments, with commercial invoices being requested primarily for parcels containing products or other items of commercial value. However, even for documents, a minimum declared value may sometimes be required for transport or customs clearance purposes. It is always advisable to check the exact rules of both your carrier and the destination country before shipping.

Key Takeaways

We hope this guide has answered your questions regarding commercial invoices. If you require further assistance, please do not hesitate to contact us. We would be delighted to help you with your invoices, general customs clearance, and the logistics of your cross-border shipments.

Essential information on the commercial invoice:

• The commercial invoice is a document generally required for the international export of goods with a commercial value, particularly outside the EU. It contains essential information such as the description of the goods, the HS code, value, origin, and Incoterms©.
• The commercial invoice applies to products with a commercial value, while the pro forma invoice is used for non-commercial shipments, such as gifts or samples. The pro forma invoice does not apply to products intended for sale.
• A commercial invoice must include information about the sender and the consignee, as well as details about the goods, such as the description, quantity, value, and weight. It must also mention the Incoterms© and the carrier's tracking number.
• The commercial invoice must be written in English and accompanied by three copies for each shipment. Depending on the destination country, additional forms may be necessary. Accurately completing the invoice is essential to avoid shipping delays and to accurately estimate customs fees.

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