What Is Commercial Invoice?
The exporter's invoice for goods shipped across a border, which customs uses to identify and value them.
Detailed Explanation
It records the sale (seller, buyer, price and terms) and gives customs the details an ordinary invoice leaves out: a precise description of the goods with package marks, quantities and weights, the price per item and currency, freight and insurance shown separately, the country of origin and the transport details. It is not the same as a domestic tax invoice, which carries what VAT or GST rules require, though one document can serve both if it has every required detail.
Example
An exporter in England sends a commercial invoice with a shipment of stoneware to a buyer in Oregon, listing each line's HS code, weights, value and country of origin.
Why It Matters
Customs works from the invoice. A vague description, missing charges or weights that do not match the packing list can hold the shipment for questions, and a materially false invoice can lead to penalties.
Key facts
- For goods imported into the US, 19 CFR 141.86(a) lists what each invoice must show: the port of entry; when, where, by whom and to whom the goods were sold; a detailed description with the marks and numbers of the packages; quantities; the purchase price of each item in the currency of purchase; all charges itemised by name and amount (freight, insurance, commission, containers, packing); rebates; the country of origin; and assists such as dies, molds or engineering work not included in the price.
- The same US rule requires the invoice to be in English or come with an accurate English translation, to state what is in each package, to list every discount from the base price and to name a responsible employee of the exporter who knows about the transaction (19 CFR 141.86(d), (e), (g) and (j)).
- UK government export guidance says to use the price you are selling the goods for, or their market value if they are not being sold, to list freight and export insurance included in the price separately, and that the invoice must travel with the goods. Its export invoice checklist also lists the HS commodity code, the Incoterms rule, package marks, weights, country of origin and transport details.
- HS (Harmonized System) codes classify goods for customs. The first six digits are shared internationally; the importing country adds further digits, which the buyer or customs broker confirms.
- Incoterms are the International Chamber of Commerce's rules for who pays freight, insurance and import charges and where risk passes. The current edition, Incoterms 2020, has eleven rules and has applied since 1 January 2020; write the rule, the named place and the edition, for example "CIP Portland, Oregon, Incoterms 2020".
- Under 19 U.S.C. 1592, entering goods into the US by means of a material false statement or omission, through fraud, gross negligence or negligence, can lead to monetary penalties. Clerical errors are not violations unless they are part of a pattern of negligent conduct. This entry is general information, not customs or legal advice.
How it shows up in practice
Illustrative example: a cork supplier in Portugal sells 400 cork boards to a retailer in New Jersey, shipping to the port of Newark. The first draft of the commercial invoice shows one line, "cork boards, 400 at €14.15, €5,660", with freight and insurance folded into the price. The retailer's customs broker asks for a corrected invoice, because the US rule wants charges itemised by name and amount. The reissued invoice lists 400 agglomerated cork notice boards, 60 x 90 cm, at €12.50 each (€5,000), sea freight €620 and cargo insurance €40, total €5,660, in euros as the currency of purchase, with Portugal as the country of origin, the carton marks and weights matching the packing list, and the supplier's export manager named as the responsible employee. The broker then confirms the full US tariff number and files the entry.
Common mistakes
- Vague descriptions such as "parts" or "samples" instead of material, function and size.
- Folding freight, insurance or packing into the unit price instead of itemising each charge.
- Weights and carton counts that do not match the packing list and the bill of lading or air waybill.
- Writing an Incoterms rule without the named place or edition, so it is unclear who pays freight and import charges.
- Leaving out the country of origin, or giving one origin when lines come from different countries.
- Guessing the importing country's full tariff code instead of confirming it with the buyer or customs broker.
Frequently asked questions
What's the difference between a commercial invoice and a tax invoice?
A commercial invoice is for a cross-border sale of goods and gives customs what it needs to identify and value them. A tax invoice is the invoice VAT or GST rules require, with details such as the seller's tax number and the tax charged. One document can serve both purposes if it carries every detail both sets of rules require.
What is the difference between a commercial invoice and a proforma invoice?
A proforma invoice is issued before shipment, as a quote or so the buyer can arrange payment or an import licence. The commercial invoice is the final invoice that travels with the shipment and is used for customs clearance.
Does a commercial invoice need HS codes?
UK government export guidance lists the HS commodity code among the contents, and customs brokers need it to classify the goods. The US invoice rule (19 CFR 141.86) asks for a detailed description rather than the code itself, but the importer's entry still needs the full US tariff number, so including the six-digit HS code helps.
Who is responsible for the accuracy of a commercial invoice?
The exporter prepares it, or a freight forwarder prepares it from the exporter's information, and the exporter is responsible for its accuracy. Import duties and taxes are usually paid by the importer of record, who can also face penalties for entering goods with a materially false invoice.
Which currency should a commercial invoice use?
The currency of the sale. For goods imported into the US, 19 CFR 141.86 asks for the purchase price of each item in the currency of purchase. Show the currency code, such as USD, EUR or GBP, next to every amount.
Can InvoiceQuickly create a commercial invoice?
Not a full one. InvoiceQuickly creates ordinary invoices with line items, one tax rate and one discount rate, but it has no fields for HS codes, weights, package marks, country of origin or Incoterms, and its PDF is not designed as a customs document. Use the editable commercial invoice template instead.
Related Resources
- Commercial invoice template
- Proforma invoice: definition
- Freight invoice: definition
- Customs invoice template
- Packing slip template
- International invoicing guide
- How to write an invoice
Last verified: October 2026
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