What is a Commercial Invoice used for?

A Commercial Invoice must be provided for all seafreight and airfreight shipments. When products have been shipped internationally, the exporter will need to create a Commercial Invoice document along with any other shipping documentation to share with the importer to arrange clearance at customs, and in cases where a Letter of Credit was used for payment, the importer will submit the Commercial Invoice to their bank to initiate a release of funds. Customs authorities rely on the description of goods and the value of the goods stated on the Commercial Invoice to determine applicable taxes & duties and it is therefore important that the Commercial Invoice contains all relevant information to avoid importers having any issues or delays when clearing the goods through customs.

How to create a Commercial Invoice

1. Open IncoDocs

   Open IncoDocs in your browser and navigate to the 'Invoices' section.

2. Create a new Commercial Invoice

   Click on 'New Invoice' and select the Commercial Invoice from the dropdown menu.

3. Fill out & customize your doc

   Fill out document info, customize document fields to your needs and add your company letterhead. If you use Xero or Quickbooks Online, you can also connect your account and autofill data from invoices or quotes in your accounting system.

4. Sign & seal

   Click on the signature box at the bottom of your document to create and place a digital signature then hit “Save & Quit”. On the document preview screen, click on the ‘More’ dropdown button and select “Add company seal” to place a digital stamp.

5. Download or send

   Download or share invoices from IncoDocs in 1-click. You'll know when recipients have viewed your invoice and recipients can even pay the invoice online via credit card for convenience.

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Your questions, answered.

What is the difference between a Proforma Invoice and a Commercial Invoice?

A Proforma Invoice is a preliminary document issued before the goods are shipped. It shows estimated quantities, prices, and terms based on the buyer’s order. It is often used for customs pre-approval, payment planning, or to initiate Letters of Credit.

A Commercial Invoice is the final version issued after goods are packed and ready to ship. It confirms the actual quantity sent, product details, and final value for customs and payment purposes.

Why the two invoices may differ:

Due to these changes, the Commercial Invoice is only issued after the goods are ready for export. It reflects the confirmed shipment details used by banks, freight agents, and customs.

What information is included on a Commercial Invoice document?

What happens if I do not have a Commercial Invoice or fail to fill it out accurately?

If your commercial invoice is missing or incomplete, your shipment may be delayed, rejected, or held at customs. Clearance depends on the information provided in this document, and without it, officials cannot assess duties or taxes.

Incorrect values or product descriptions can lead to underpaid duties. This may result in fines, penalties, or legal issues depending on the destination country’s regulations. Delays can also result in storage fees while your goods are being held.

To avoid these problems, make sure your commercial invoice is complete and accurate. Using a reliable template helps reduce mistakes and supports faster processing through customs.

When do you need a commercial invoice and when don't you need it?

A commercial invoice is generally required when goods are being shipped internationally for commercial purposes, as it serves as a customs declaration by the exporter. Here are some scenarios when you would need a commercial invoice:

You need a commercial invoice for:

You don’t need a commercial invoice for:

Is a commercial invoice a proof of payment?

A commercial invoice is not proof of payment. It is a trade document that outlines the details of a transaction. The purpose of the invoice is to provide information for customs clearance and accounting, not to confirm that payment has been made.

Proof of payment is provided separately, usually through a payment receipt, bank transfer confirmation, or remittance advice issued after the buyer has completed the payment.

Can a commercial invoice have no value?

Yes, in certain cases, a commercial invoice may show no commercial value. This often applies when goods are sent as samples, replacements, or returns. However, customs authorities still require an estimated fair market value to assess duties, even if the goods are not sold. A detailed description and declared value must still be included.

Where does the Commercial Invoice go?

The commercial invoice should be placed in a clear pouch on the outside of the package or carton. This makes it easy for customs officers to inspect the shipment without needing to open it. A copy is also usually sent electronically to the freight forwarder or customs broker. Some businesses include an extra copy of the document inside the package for reference.

Is this Commercial Invoice Template free to use?

Yes, the commercial invoice template is free to use on IncoDocs. You can create a free account to access it and other trade documents used for shipping goods internationally. This includes templates for the Certificate of Origin, Packing List, and other relevant documents.