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What is a commercial invoice?

A commercial invoice is the document that accompanies an international shipment and tells customs authorities in both the exporting and importing country what's being shipped, its value, and who's involved — it's the primary basis customs uses to assess duties and taxes, and clear the shipment.

How it's different from a standard invoice

A standard invoice just needs to tell your customer what they owe. A commercial invoice needs to satisfy a customs officer who has never seen the goods and has no other context — so it requires several fields a domestic invoice typically doesn't:

• HS code (Harmonized System code) for each item — the standardized international classification used to determine duty rates.
• Country of origin for each item — where it was manufactured or produced, not where it's shipping from.
• Weight (and sometimes dimensions) for each item or the shipment as a whole.
• Incoterms (e.g. FOB, CIF, DDP) — who's responsible for shipping costs, insurance, and duties at each stage of transit.
• Currency stated explicitly, since the shipment crosses currency zones.
• Reason for export — sold, gift, sample, repair/return, and so on, which can affect how duties are assessed.

What else it needs (same as a standard invoice)

Alongside the customs-specific fields, a commercial invoice still needs the basics: a unique invoice number, issue date, complete exporter (seller) and importer (buyer) details, a clear description of each item, quantity, unit price, and total value — customs needs to see the actual commercial transaction, not just a packing list.

Commercial invoice vs. proforma invoice

A proforma invoice is sent before a sale is finalized — it's a preliminary quote used for the buyer to arrange financing, apply for an import license, or open a letter of credit. A commercial invoice is sent for an actual, completed sale and is what physically travels with (or precedes) the shipment for customs clearance. They often look nearly identical in layout — the difference is what stage of the transaction they represent.

Why accuracy matters more here than on a domestic invoice

An error on a domestic invoice is usually just an inconvenience to fix. An error on a commercial invoice — a wrong HS code, an understated value, a missing country of origin — can delay a shipment at the border, trigger a customs audit, or result in incorrect duty being charged (which you may not be able to recover after the fact). Getting the customs fields right the first time is worth the extra care.

Incoterms, explained

Incoterms (International Commercial Terms) are a standardized set of three-letter codes that state exactly who's responsible for shipping costs, insurance, and risk at each stage of a shipment's journey — they're one of the most commonly misunderstood fields on a commercial invoice, since getting the wrong one can shift real costs to the wrong party. The most common ones:

Term	Meaning
EXW (Ex Works)	Buyer takes on all cost and risk from the seller's own premises onward — the seller's obligation ends the moment goods are made available for pickup.
FOB (Free On Board)	Seller covers cost and risk until the goods are loaded onto the shipping vessel; the buyer takes over from there. Common for sea freight.
CIF (Cost, Insurance, Freight)	Seller pays for shipping and insurance to the destination port, but risk transfers to the buyer once goods are loaded, same as FOB.
DDP (Delivered Duty Paid)	Seller handles everything, including import duties, all the way to the buyer's door — the maximum obligation on the seller's side.

There are 11 Incoterms in total (the ones above are the most frequently seen on small-to-mid-size international shipments); the full list is maintained by the International Chamber of Commerce and updated periodically, so confirm you're using a current version if your contract references one.

Commercial invoice vs. packing list

These two documents travel together but serve different readers. The commercial invoice is the financial and customs document — value, HS codes, Incoterms, the actual transaction — read primarily by customs officials and the buyer's accounts-payable team. The packing list is a logistics document — what's physically in each box or pallet, item counts, weights and dimensions per package — read primarily by warehouse and freight-handling staff, and often doesn't show pricing at all. Customs generally wants to see both; confusing one for the other, or omitting the packing list because "it's all on the invoice already," is a common cause of clearance delays.

A pre-shipment checklist

• Unique invoice number and issue date.
• Complete exporter and importer details, including contact information.
• HS code for every distinct item, not just a category-level code.
• Country of origin per item (manufactured, not shipped-from).
• Accurate, itemized value — the real transaction value, not an estimate.
• Currency stated explicitly.
• Correct Incoterm for the agreed shipping arrangement.
• Reason for export (sold, gift, sample, repair/return).
• Total weight and package count, matching the accompanying packing list.
• Signature or authorized declaration, if your destination country requires one.

This isn't customs or trade-compliance advice

Specific documentation requirements vary by country, product category, and trade agreement. This guide explains what a commercial invoice generally contains, not the exact requirements for your shipment — check with your customs broker or the relevant customs authority for anything you're not certain about.

Questions about customs paperwork

Is a commercial invoice the same as a packing list?

No, though they usually travel together. A commercial invoice is a financial/customs document — it states value, HS codes, and the parties to the sale, and is what customs uses to assess duty. A packing list is a logistics document — it states what's physically in each box or pallet (item counts, weights, dimensions per package) so the shipment can be checked and handled correctly, without necessarily showing pricing at all.

Who fills out the commercial invoice — the seller or the buyer?

The seller (exporter) prepares it, since they're the one with the transaction details, item values, and HS codes for what they're shipping. The buyer (importer) then uses it to clear customs on their end and, in most cases, to pay any duties assessed.

Do I need a certificate of origin as well?

Sometimes — a certificate of origin is a separate document (often from a chamber of commerce or similar authority) that formally certifies where goods were manufactured, and is commonly required to claim preferential duty rates under a specific trade agreement. It's not always required for every shipment; whether you need one depends on the destination country, the trade agreement in play, and the product category.

What happens if the declared value on a commercial invoice is wrong?

An understated value can trigger a customs audit, back-owed duty, and potential penalties; an overstated value means you overpay duty unnecessarily and may complicate a future refund claim. Either way, the declared value should be the actual transaction value — what was actually paid or agreed for the goods — not an estimate or a value picked to minimize duty.

Can I use the same commercial invoice for multiple shipments?

No — each shipment needs its own commercial invoice reflecting exactly what's in that specific shipment, since customs is assessing duty on the actual contents crossing the border at that time, not a general description of your typical orders.

Create one

Our commercial invoice generator includes the HS code, country of origin, and weight fields built in, plus templates designed for international trade documents.

Create a Commercial Invoice