Evrenus Fırat Polat · ·
If you're shipping goods across an international border, a regular invoice usually isn't enough on its own. Customs authorities need a commercial invoice, a specific document built to support the customs clearance process rather than just requesting payment.
What a commercial invoice is for
Where a regular invoice's job is getting you paid, a commercial invoice's job is telling customs officials exactly what's crossing the border, so they can assess duties and taxes and confirm the shipment is legal to import. It often travels with the shipment itself, attached to the package or held by the carrier, rather than going only to the buyer's accounts-payable department.
What it needs that a regular invoice usually doesn't
- Country of origin for the goods: where they were manufactured, not shipped from.
- Harmonized System (HS) codes, the standardized classification customs uses to determine duty rates.
- Detailed, specific item descriptions. "Electronics" isn't sufficient. Customs needs enough detail to classify and assess the goods correctly.
- Weight and dimensions, often per item as well as total.
- Incoterms (like FOB, CIF, DDP) clarifying who's responsible for shipping costs, insurance, and risk at each stage of transit.
- Reason for export: sold, gifted, returned for repair, since duty treatment can differ.
- Full names and addresses of seller, buyer, and consignee if different, plus tax or customs registration numbers where required.
- Currency and value of each item and the total, including shipping and insurance if they are part of the declared value.
Worked example
A small ceramics studio in Portugal sells 40 handmade mugs and 10 bowls to a customer in Canada.
| Description | HS code | Origin | Qty | Unit price | Line total |
|---|---|---|---|---|---|
| Ceramic mugs, glazed stoneware, 350 ml | 6912 (check exact code) | Portugal | 40 | EUR 12.00 | EUR 480.00 |
| Ceramic bowls, glazed stoneware, 18 cm | 6912 (check exact code) | Portugal | 10 | EUR 18.00 | EUR 180.00 |
- Goods value: 480 + 180 = EUR 660.00
- Freight: EUR 85.00
- Insurance: EUR 10.00
- Invoice total on a CIF basis: 660 + 85 + 10 = EUR 755.00
- Gross weight: 24 kg. Net weight: 21 kg.
- Incoterm: CIF Toronto. Reason for export: sale.
The HS code is shown only as an illustration. Always confirm the exact code for your product with your customs broker, courier, or the tariff database of the destination country. The same goods may have a longer code with extra digits in the importing country.
Step by step: preparing one
- Gather the order details: buyer, delivery address, products, quantities, prices.
- Look up the HS code for each product type and check it with your carrier or broker.
- Confirm the Incoterm with the buyer so both sides know who pays freight, duty and insurance.
- Weigh and measure the packed goods.
- Fill in all fields, including origin, reason for export, and currency.
- Print the number of copies your carrier requires (often three) and attach one to the outside of the package in a pouch.
- Keep a copy for your records and send a copy to the buyer.
You can start from our invoice generator and add the customs fields in the notes or line item descriptions. If you ship before payment, a pro forma invoice may be the right document at that stage.
Who typically needs one
Any business regularly shipping physical goods internationally, even in small volumes, will need commercial invoices as standard practice. It's less relevant for services, digital goods, or domestic-only shipping, none of which cross a customs border. Shipments inside some customs unions have simplified rules, so ask your carrier whether paperwork is needed.
Getting the details wrong has real consequences
An inaccurate or incomplete commercial invoice is one of the most common causes of shipments held at customs, sometimes for days, occasionally leading to fines or the shipment being returned. Unlike an ordinary invoice, where a minor error might just mean a follow-up email, an error here can hold up the physical goods.
Common mistakes
- Vague descriptions such as "gift" or "samples" without detail.
- Understating the value to reduce duty. This is risky and can be treated as customs fraud.
- Wrong origin. The country of origin is where goods were made, not where you ship from.
- Missing the Incoterm, which leaves the buyer surprised by a duty bill on delivery.
- Different values on different documents. The commercial invoice, the shipping label and the payment record should agree.
- Assuming one country's rules apply everywhere. Requirements, duty thresholds and tax rules vary between the US, UK, EU and others.
It doesn't replace your invoice
A commercial invoice supports customs clearance. It doesn't replace the regular invoice you send for payment. Many businesses use the same document for both purposes by including the additional customs fields directly on their standard invoice. Others keep them separate. Either approach works as long as the required customs information is present when the shipment crosses the border. Related shipping documents include the packing slip and delivery note.
FAQ
Is a commercial invoice the same as a pro forma invoice?
No. A commercial invoice is a final record of a completed sale. A pro forma invoice is a preliminary document sent before the sale or shipment, for example for a customs estimate or to get payment upfront.
Do I need one for samples or gifts?
Usually yes. Customs still wants a description and a value. Mark the reason for export clearly, and note "no commercial value" only if that is true and acceptable in the destination country.
Who prepares the commercial invoice, seller or carrier?
The seller is normally responsible. Some carriers offer online tools to help create one.
Can I rely on this guide for duty rates and legal requirements?
No. Use it as a checklist, then confirm details with your carrier, a customs broker or the destination country's customs authority.