What Is a Commercial Invoice?
A commercial invoice is the document that tells customs what's in an international shipment of goods, what it's worth, and where it was made. Customs authorities use it to classify and value the goods and to work out duties and import taxes, so an incomplete one is among the most common reasons a parcel sits at the border.
This guide covers who prepares a commercial invoice, what it typically needs to show, how it differs from a proforma invoice, and the mistakes that cause delays. Requirements vary by country and by carrier, so treat this as the common core and check the specifics for each destination.
What a commercial invoice is for
When goods cross a customs border, the importing country needs a declaration of what's arriving and what it's worth. The commercial invoice is the core of that paperwork: it supports the customs declaration, the calculation of duties and import taxes, and any claim that the goods qualify for a trade agreement.
For a sale, some exporters use one document for both jobs, as long as it also meets their local invoicing and tax rules; many keep them separate. If you issue two — a sales invoice for payment and a commercial invoice that travels with the goods — make sure every figure on them matches.
Who prepares it
The exporter or shipper prepares the commercial invoice — usually the seller. If you ship through a courier, its booking tool will typically ask for the same details and can generate the document, but the information is still yours to get right.
Freight forwarders and customs brokers work from it to file the actual customs entries. Anything vague or inconsistent on the invoice becomes their question, and their question becomes your delay.
What it typically includes
Expect to show the seller and the buyer with full addresses and contact details, the consignee if different, an invoice number and date, and the currency. Each item needs a specific description, quantity, unit value, and total value, plus its country of origin.
Many destinations also expect Harmonized System (HS) codes, gross and net weights, the number of packages, the delivery terms — an Incoterms rule such as DAP or DDP plus a named place, like "DAP Lyon" — and the reason for export, such as sale, sample, repair, or return. A signed declaration that the information is true and correct usually closes the document.
Some countries require extra certificates or specific wording on top of this. Check the carrier's guidance and the destination's customs requirements before you ship.
Commercial invoice vs proforma invoice
A proforma invoice is a preliminary document issued before a sale is final — so a buyer can arrange payment or an import license, for example. Shipments that involve no sale, such as free samples or goods sent for repair, often travel on a proforma or a no-commercial-value invoice instead.
For a completed sale, customs generally expect a commercial invoice showing the price actually paid or payable. If you issued a proforma first, prepare the commercial invoice once the order is confirmed.
Mistakes that hold shipments up
Vague descriptions are one of the most common problems. "Parts", "gifts", or "samples" tell customs nothing; "stainless steel hex bolts, M8 x 40 mm, 500 pieces" tells them exactly what they're looking at.
Declaring a lower value to reduce duty is customs fraud and invites inspections and penalties, so always declare the real price. Other frequent errors are HS codes that don't match the description, totals that don't add up, and a commercial invoice that disagrees with the packing list or waybill.
Keep a copy of every commercial invoice with your shipping records. Customs can review imports after the fact, and your invoice is the evidence of what you declared. In many VAT and GST systems, it's also part of the proof that lets you charge no tax on an export.