Commercial Invoice for International Shipping: What Customs Needs

A commercial invoice is the invoice that goes with an international shipment of goods. The buyer uses it as the bill; customs authorities use it to identify the goods, confirm their value and origin, and calculate duties and taxes. Couriers like FedEx, UPS and DHL will ask you for one on almost any international shipment that isn't just documents.

When you need one

• Shipping goods across a border to a business or consumer
• Sending samples or replacements, even free of charge (the invoice then states the value for customs purposes and that there's "no commercial value" to the buyer, or similar wording the carrier specifies)
• Returning goods for repair

Pure services (consulting, software development, design) don't need a commercial invoice. A normal invoice is fine. See invoicing international clients.

What customs expects to see

Requirements vary by country, but a commercial invoice that includes all of the following will satisfy most:

Parties

• Seller / exporter: name, address, phone, and tax or EORI number where relevant (EORI is used for customs in the UK and EU)
• Buyer / importer: name, address, phone, and their tax or import number if known
• Consignee, if different from the buyer (who receives the goods)

Shipment

• Invoice number and date
• Carrier and tracking or air waybill number
• Number of packages, total gross weight and net weight
• Incoterms (e.g. DAP, DDP, FOB) with a named place
• Reason for export: sale, sample, repair, return, gift

Goods, line by line

• A clear description (not "parts" or "gift" but "cotton T-shirts, men's, knitted")
• HS code (Harmonized System tariff code), ideally 6 digits or more
• Country of origin (where the goods were made, not where they shipped from)
• Quantity and unit of measure
• Unit value and total value, in the stated currency

Totals and declaration

• Currency
• Subtotal, freight, insurance, other charges and total
• A declaration that the information is true and correct, with name, signature and date

Example line

Description	HS code	Origin	Qty	Unit value	Total
Stoneware mugs, glazed, 350 ml	6912.00	United Kingdom	240	£6.40	£1,536.00
Stoneware serving bowls, 24 cm	6912.00	United Kingdom	60	£14.00	£840.00

Incoterms: who pays for what

Incoterms (published by the International Chamber of Commerce; the current set is Incoterms 2020) define where responsibility and cost pass from seller to buyer. A few you'll see often:

Term	Meaning, roughly
EXW (Ex Works)	Buyer collects from your premises and handles everything
FOB (Free On Board)	Seller delivers onto the vessel at the named port (sea freight)
CIF	Seller pays cost, insurance and freight to the destination port
DAP (Delivered At Place)	Seller delivers to the destination; buyer pays import duties and taxes
DDP (Delivered Duty Paid)	Seller delivers and pays import duties and taxes

For parcels to consumers, DAP is common (the customer may pay duties on delivery), while DDP gives a smoother customer experience but means you pay the duties.

Proforma vs commercial invoice

A proforma invoice comes before the sale is final, for advance payment or import permits. The commercial invoice goes with the goods. See proforma invoices.

Tips from the loading dock

• Be specific in descriptions. Vague descriptions are the most common reason shipments are held.
• Declare the real value. Undervaluing to reduce duties is customs fraud, and it also limits your insurance claim if the parcel is lost.
• Check the carrier's format. Carriers often generate the commercial invoice in their own shipping tool; if you use your own, print three copies (one attached to the box in a document pouch, two with the carrier) unless told otherwise.
• Restricted and dangerous goods (batteries, liquids, food, cosmetics) have extra rules. Check before you ship.
• Keep copies. Export records may be requested years later.

Customs rules vary by country and change often. For regular or high-value shipments, a customs broker or freight forwarder is worth the fee.