Commercial Invoice:
- A Commercial Invoice is a document issued by the seller (exporter) to the buyer (importer) that provides a detailed breakdown of the goods sold in an international transaction.
- It serves as a formal request for payment and acts as evidence of the agreement between the buyer and the seller for the purchase of goods.
- The Commercial Invoice includes essential information required for customs clearance, such as the description of goods, unit prices, total value, terms of sale, and shipping details.
- It serves as a basis for calculating import duties, taxes, and fees by customs authorities in the importing country.
- The Commercial Invoice also serves as a record of the transaction for accounting, taxation, and audit purposes.
Key Information on a Commercial Invoice:
- Seller/Exporter: The name, address, and contact details of the party selling the goods.
- Buyer/Importer: The name, address, and contact details of the party purchasing the goods.
- Invoice Number: A unique identifier assigned to the Commercial Invoice for tracking and reference purposes.
- Date of Invoice: The date on which the invoice is issued.
- Description of Goods: Detailed information about the goods being sold, including the quantity, unit price, and total value.
- Harmonized System (HS) Code: The internationally recognized code that classifies and identifies the goods being exported.
- Total Value: The total value of the goods, including any applicable taxes, fees, or discounts.
- Terms of Sale: The agreed-upon terms and conditions of the sale, including the Incoterms (International Commercial Terms) that define the responsibilities and obligations of the buyer and seller.
- Shipping Details: Information about the shipment, such as the mode of transportation, place of origin, destination, and any relevant shipping documents (e.g., Bill of Lading or Air Waybill).
- Payment Terms: The agreed-upon terms and conditions for payment, including the currency and payment due date.
- Signatures: The Commercial Invoice is typically signed by authorized representatives of the seller and buyer to indicate their agreement to the terms stated.
The Commercial Invoice is a critical document in international trade, serving as a basis for customs clearance, calculating duties and taxes, and facilitating payment transactions. It provides a detailed breakdown of the goods sold, ensuring transparency and accuracy in international transactions.