Commercial Invoice

Definition and Function

A Commercial Invoice is a legal document issued by the seller to the buyer that details the transaction and the shipped goods. Unlike a standard sales invoice, the CI's primary function is not payment collection, but rather customs declaration. It allows customs officials globally to accurately calculate tariffs, maintain trade statistics, and verify compliance with import regulations.

Required Components

To be accepted by customs agencies, a Commercial Invoice must contain precise and complete information, including:

• Country of origin / manufacture (where the products were made)

• Full name and address of the supplier / manufacturer

• Full name and address of the business or person buying the products (noting if this person or business is different from the importer)

• Full name and address of the person or business to whom the goods are being shipped (the consignee)

• Quantity of units for each product

• Unit value for each product (both in US dollars and the supplier’s currency)

• A complete description of the product that includes: what the product is, what the product is used for, and what the product is made of

Expert Advice

Accuracy is paramount. Discrepancies between the Commercial Invoice and other documents, like the packing list or bill of lading, can lead to significant delays, seizure, or heavy fines (customs penalties).

Note: A declared value for every product imported is required. A $0 value is not acceptable for Custom purposes, even if the goods are promotional samples. Logicmile suggests the fair market value of the product must always be declared, even if you are receiving the goods free of charge. Furthermore, a SKU or part number is never a sufficient product description; customs requires descriptive clarity.

Key Takeaways

• The CI is essential for duty and tax calculation, preventing shipment stops.

• Ensure product descriptions are detailed and meet customs requirements (SKU is insufficient).

• All items, regardless of whether they are samples or gifts, must have a declared, non-$0 value.