Trade Documents
What is a Commercial Invoice?
Commercial invoice requirements — mandatory fields, HS codes, Incoterms, and customs clearance role.
The commercial invoice declares goods value and sale terms for customs duty assessment and must match other export documents.
Meaning and When to Use Commercial Invoice
Commercial Invoice (Commercial Invoice) is an Incoterms® 2020 rule for international trade. Used for all modes — air, sea, road, rail — whenever goods cross borders commercially.
Always state the full format in contracts — e.g. "Commercial Invoice Shanghai, Incoterms® 2020" — not the acronym alone.
Choose Commercial Invoice based on who can best arrange carriage, insurance, and import clearance.
Division of Responsibilities, Risk, and Cost
Under Commercial Invoice, responsibilities typically split as follows:
- Seller: Issue invoice with accurate value, description, HS code, origin, and Incoterms
- Seller: Sign and match packing list quantities and weights
- Buyer: Submit invoice to customs for duty calculation
- Buyer: Retain for import records and tax compliance
Under-declaration or mismatch with B/L may cause customs holds, fines, or LC rejection.
Pricing and Cost Practice
Invoice total follows quoted Incoterm (FOB/CIF/DDP). Use Invoice Generator and FOB Calculator for consistency.
Documents and Compliance
Related: packing list, B/L/AWB, certificate of origin, insurance certificate. Download our commercial invoice template for Excel format.
Examples
Example — FOB invoice line
Line: 500 pcs Bluetooth speaker HS 8518.22 — USD 28,500 FOB Shenzhen, Incoterms® 2020.
Example — Customs hold
Invoice weight differs from packing list — customs requests re-inspection delaying release.
FAQ
- Is commercial invoice the same as tax invoice?
- No — commercial invoice is for customs/international trade; tax invoice follows local VAT rules.
- Must HS code be on commercial invoice?
- Most customs require at least 6-digit HS code on invoice lines.
- Who signs the commercial invoice?
- Usually exporter or authorized signatory — some countries require blue ink original.
- Commercial invoice vs proforma?
- Proforma is pre-shipment quote; commercial invoice is final declared value for clearance.
- Can invoice be in Chinese?
- Often English or bilingual — follow destination customs language rules.
Conclusion
Commercial invoice is the customs anchor document. Use our template and Invoice Generator to stay compliant.