A quick guide to commercial invoices

21Aug, 2017

The commercial invoice (CI) is the record of a sales transaction and a crucial part of any import/export shipment. In a transaction, these documents record the buyer and seller’s information, detailed descriptions and quantities, trade terms, price, reference marks regarding the packaging and contents, payment arrangements, and the signature of the exporter that are agreed upon by both parties as a verifiable contractual obligation. The commercial invoice also acts as a guide for customs clearance and insurance purposes in case of questions during the import process. Even in shipments for loan, testing and sampling are required to have a CI with pricing to clarify the cost of the goods and terms of the transaction.

Customs invoices are the primary source of information that Customs will use to determine the classification, value and duty owed on import shipments. It’s paramount that the details of the invoice are in compliance with Customs’ requirements so cargo can be expedited through the clearance process. While most forwarders will accept a pro-forma or shipper’s invoice to begin arranging transportation these documents don’t represent the contract of sale between parties and it’s important that the actual CI is available once the shipment departs as terms are no longer negotiable and final details must be exact. Using anything but a commercial invoice can cause customs delays and, even in cases of “no commercial value,” duties can be ascribed based on the merit of the goods as determined by customs.

Requirements –

  • -The seller’s name, address, contact information, and possibly its tax identification number.
  • -The buyer’s full name, address, contact information, and possibly its tax identification number.
  • -The ship to party’s full name, address, contact information
  • -A detailed description of the product/goods.  (For example “Hat” should read “Woven cap – 60% cotton, 40% polyester”.)
  • -The country of origin.
  • -Inco terms and associated location.
  • -A signature, signor’s title, and date of signing.
  • -The name/address of the actual factory making the goods. Many companies use selling agents or trading companies and US Customs wants to know specifically where it was manufactured.
  • -Know your product. If there is an HTS code you prefer to use, please list it. Know what other information Customs wants along with the value. Do they ask for pieces? Kg? Meter squared?
  • -Is there a partner government agency involved like the FDA, EPA or ATF? Your broker will have lots of questions for you and can walk through the process.

The commercial invoice also provides a record of value for the shipment for insurance purposes. While cargo can be insured for less than the invoice price, this document will provide a record to insurance as to the exact quantity and cost of the shipment if the cargo is damaged or lost during transit. CI’s also help determine which entity is in legal possession of the cargo at the point it was lost or damaged, based on the trade terms (INCO Terms 2010) listed on the document.

If you have questions about the information in your commercial invoices, or those you received for an import shipment, we at Everglory Logistics are available to advise on the specifics of your invoice based on the destination requirements. We understand the complicated nature of exporting cargo and can help you prepare to deliver complete information to expedite the clearance and avoid costly delays and fines.

CTPAT Statement of Support

As a proud member of the U.S. Customs and Border Protection (CBP) CTPAT program since February 9th, 2012, supply chain security continues to be an integral part of the Everglory Logistics, Inc. culture and business processes.

Since its inception in 2001, CTPAT remains a voluntary public-private sector partnership program where members work with CBP to strengthen their international supply chains and ultimately improve border security, protecting the supply chain from criminal activities such as drug trafficking, terrorism, human smuggling, and illegal contraband.

Everglory Logistics, Inc. has developed, and maintains, a multi-layered security program that is consistent with the CTPAT minimum-security criteria (MSC), and remains committed to protecting our organization and supply chain from any illegal or illicit activities.

Security is everyone's responsibility. All employees and business partners, including contractors, service providers, and visitors are educated and must comply with the company's CTPAT policies and procedures that are in place at each facility.

Copyright © 2024 | Everglory Logistics : Brought to life by Position : Global