One of the key differences of international versus domestic shipping is the requirement of a customs invoice. When shipping internationally, there is often confusion regarding the sales receipt invoice and what documentation is necessary for customs. The commercial invoices for international shipping is fundamental. To learn about commercial invoices, their purpose, and how to fill them out, keep reading.
If you plan on expanding your business and shipping internationally, then you're going to need to understand commercial invoices.
One of the most important documents in cross-border trade, the commercial invoice serves as a customs document. A commercial invoice is useful for import control, valuation, and duty determination.
We'll cover the basics in this post and how Jetship can help you streamline the process of creating, printing, and downloading a commercial invoice.
Gain from a discussion with our seasoned professionals. Contact our team for an initial consultation.
A commercial invoice contains important information about the export. It includes extra details than regular sales invoices to calculate tariffs and confirm the shipment is legal. Commercial invoices form the basis of a customs declaration.
Getting your commercial invoices right is essential for preventing hold-ups with your shipments and staying on good terms with customers and customs authorities. In the sections below, we’ll look at what you need to include on your commercial invoices. Doing so ensures the shipping process runs smoothly for you (the seller) and your overseas buyer.
A commercial invoice is a basic requirement for all international shipments. We recommend including a commercial invoice even if you are sending documents.
A commercial invoices are official declarations for export and import. Misinformation can result in lengthy delays, additional costs, and penalties.
A pro-forma invoice is issued by a seller before goods ship. It is not a legally binding document and typically does not demand payment. A pro-forma invoice clarifies the expectations between the buyer and seller. The Commercial Invoice finalizes the transaction. Pro-forma invoice.
A commercial invoice provides customs officials with transactional information between the buyer and seller. It typically includes information such as:
What all types of invoices have in common are that they serve as a record of a commercial transaction. Invoices clarify the terms of sale between a the buyer and seller including pricing and payment terms.
Invoices serve as the official documentation of sale and are crucial for supporting insurance claims, payment terms and costs.
International shippers should become familiar with Canadian Customs invoice requirements and international customs declarations.
Importers to Canada can use a Canadian Commercial Invoice. This is an official CBSA form. A standard commercial invoice can be used as long as it includes the necessary data.
A commercial invoice serves as the basis for the customs declaration in the destination country. For customs, it should include:
In general, it important to note that more details on the invoice for customs helps facilitate customs clearance.
Generally, it is more important to focus on the necessary data. Usually, the format is less important. A specific country you are exporting may have specific template. In addition, all carrier shipping systems include invoice preparation. See link below the the Canadian Commercial Invoice.
You can also ask a customs broker or export specialist to assist you with assigning proper HS codes. Identifying this code can be difficult. Read more about HS codes.
Many companies shipping towards into Canada use a Canadian Customs Invoice or CCI. The Canadian Customs Invoice is useful for shipping goods to and from Canada. Although a Canada Customs Invoice differs from a commercial invoice, they share the key data points.
Here is a link for a Canadian Customs Invoice
The Commercial Invoice is among the most important documents for importing to the USA. Data from the invoice is useful for customs entry information, certifications, value, and admissibility.
* The name and complete address of the foreign individual or firm who is responsible for invoicing the merchandise.Ordinarily the manufacturer/seller. If not, the party who sold the merchandise for export to the United States or made the merchandise available for sale.
Note: The manufacturers name and address is necessary for any wearing apparel entries. If the country of origin is China, the full name and address of the manufacturer including the zip code is necessary for entry.
Useful information regarding basic concepts for importing to the USA.
The country of origin is often mandatory. It is useful in the importing country to determine the rate of duty and admissibility. Rather than a separate certificate of origin, the certification can often be made directly on the invoice. We recommend including both a certification of origin statement on the invoice and a separate certification of origin (CoO).
Often times, the shipping item is a sample, warranty part or otherwise without an actual invoice. The term "pro-forma invoice" is useful when there is no commercial transaction.
Examples of when there is no commercial invoice for international shipments:
It is best in international shipping to avoid using the term "pro-forma invoice." This type of invoice is not acceptable in some countries.
Even if a good is not sold, sent as a gift or has no commercial value, a value is necessary.Read more: Useful information regarding valuation for international shipments.
Rather than make a declaration to customs using a "pro-forma invoice" it is often better to use the term "invoice for customs." Include the reason for shipping (as in the above examples) and noting that there is no commercial value.
The packing list helps determine the physical location of items within a total shipping consignment. It is a document that’s required in the event of any disputes or claims that may arise with the shipping line, customs, or between the buyer and seller for goods.
The information listed on the commercial invoice and packing list should correspond to each other.
The Bill of Lading is the shipping document and contract between the shipper and carrier. For parcels and pallet shipments, this is commonly the waybill (air waybill in the case of air shipments).
See above. The packing list outlines key information the shipment as which contents are in which box and how many packages. A packing list functions as a verification tool. Some countries require a packing list for export.
Jetship clarifies the process of creating your commercial invoice, shipping labels, and other shipping documents
After you download and print the commercial invoice, attach it to the package along with the shipping label. Use a clear packing shipping envelope. When sending multiple pieces, number each box in sequence:
Paperless trade is simply a way of submitting and invoice. The invoice is still necessary. It can be upload into a carriers system. Alternatively, you can create an invoice in the carriers system. Not all countries accept invoices electronically.