These might be sent monthly to your client, with the last one called a final invoice.ĭon't mix this with a recurring invoice, which is more for a subscription-based good or service. Once the transaction is final, you would give them a commercial invoice afterward.Ī big project such as in construction would use an interim invoice if the work down or goods delivered is split over a longer period of time, such as different phases or shipments. However, if you need to inform your customer how much is supposed to be paid once the goods or service is delivered or performed, you would issue a pro forma invoice to them. The buyer would call it a purchase invoice, while the seller calls it a sales invoice. The most common and basic type is the purchase or sales invoice. There are six common types that you may come across as you do business. In the US, there are popular types of invoices that serve various purposes. But invoices can have more uses than just a simple log of business done, too. Whether you have a broad consulting business, or a specific business like in pest control or retail, a record of your sales must be kept for when tax season arrives. Its best to get professional advice from your freight forwarder or customs clearance agent with help in correctly classifying the products to be imported.Invoice templates are important tools for your business. The products included on the commercial invoice must be correctly classified using HS or HTS codes. Any discrepancies or inaccuracies in the commercial invoice can lead to delays in customs clearance and may result in additional costs or penalties. Why is it important to ensure the accuracy of the commercial invoice in foreign trade?Īccuracy in the commercial invoice is crucial in foreign trade as it impacts the assessment of customs duties and taxes. The exporter or the authorized agent will transmit the commodity information using the AES system. The commercial invoice is an important component of the AES, providing crucial data about the exported goods that is required by the system for export control purposes. government to collect electronic export information from shipping documentation. The Automated Export System (AES) is a system used by the U.S. What is the Automated Export System (AES) and its relation to the commercial invoice? They play a crucial role in the assessment of duties and taxes in the customs clearance process. What is the significance of a commercial invoice in customs clearance?Ĭommercial invoices are important documents in international trade as they are used by customs officials to classify the products, verify the value and origin of the goods.
Read more about the difference between a Proforma Invoice and Commercial Invoice. Local customs will use the Commercial Invoice document to accurately assess customs duties, ensuring that all applicable tariffs and taxes are correctly applied to the imported goods. The Commercial Invoice is used by the importer to facilitate the clearance of products through customs in the country of import. While a proforma invoice is a preliminary document sent to the buyer before the completion of the sale, a commercial invoice is used after the sale is made. In some cases, exporters will provide a Proforma Invoice before the goods have been shipped (pre-shipment), then provide a Commercial Invoice post shipment.įAQ’s on the Commercial Invoice How is a commercial invoice different from a proforma invoice? Note that a Commercial Invoice is issued after the goods have been delivered or shipped (post-shipment). For example, if you are sending airfreight shipments with FedEx or DHL you will have to provide to FedEx a Commercial Invoice, or provide to DHL a Commercial Invoice. This comprehensive documentation aids customs authorities in accurately assessing customs duties, ensuring that all applicable tariffs and taxes are correctly applied to the imported goods.Ī Commercial Invoice must be provided for all seafreight and airfreight shipments. When products are shipped internationally, the exporter, acting as the seller, creates a Commercial Invoice template and other shipping documentation to share with the importer, effectively transferring the details of the sale from the seller to the buyer.Īs a key customs document, the Commercial Invoice template, along with packing lists and other common export documents, is used by the importer to facilitate the clearance of products through customs in the country of import.