Commercial invoice
What is a commercial invoice in shipping?
A commercial invoice is a crucial document used in international trade transactions to provide details of the goods being shipped and their corresponding value. It serves as a formal request for payment from the buyer to the seller and is essential for customs clearance and regulatory compliance.
How to create a commercial invoice
To create a commercial invoice, sellers must include specific information such as the names and addresses of the buyer and seller, a detailed description of the goods, quantity, unit price, total value, and applicable incoterms. Additionally, it should include details of payment terms, shipping terms, and any additional charges or fees.
Proforma invoice vs. commercial Invoice
While a proforma invoice is a preliminary bill issued before the completion of a transaction, providing an estimate of costs and terms, a commercial invoice is the final invoice issued after the shipment has been made. Unlike a proforma invoice, a commercial invoice is a legally binding document that serves as proof of the transaction and is required for customs clearance and payment processing.