Steps to Create a Commercial Invoice for Shipping: Requirements and Format

The products are packed securely, the invoice for shipping is ready, and the goods are set to leave the warehouse. But soon, you get to know that your shipment has been delayed.

You had the shipping document prepared, so what actually went wrong?

Customs can hold on to goods when there are missing values, vague product descriptions, or no country of origin in the invoice. 

A commercial invoice for shipping is one of the main documents customs uses to check the authenticity of the goods and their origin. This document is also used to calculate the duties or taxes that must be levied on these goods. 

A single mistake with this document can lead to shipment delays and higher customs costs. 

This article explains what a commercial invoice for shipping is, when a shipment requires a commercial invoice, which fields to include in the format, and how to avoid issues that cause customs delays.

What is a Commercial Invoice? 

A commercial invoice is prepared by the seller and outlines the parties involved, the type of goods, their value, and the country of origin. It’s usually attached to the shipment depending on the carrier type and the destination country’s requirements.

It’s one of the main legal documents because: 

• It helps customs identify what type of goods are being shipped.
• The customs calculate the tariff, duties, and taxes based on it.
• It supports import and export checking.
• It’s legally required and confirms whether the goods can enter the destination country. 

A shipment invoice is only required for international trade involving goods with commercial value. It’s not needed for document-only shipments, such as contracts or business correspondence.

The Difference Between a Commercial Invoice and a Regular Sales Invoice

A sales invoice is primarily used for domestic transactions to receive payment from the buyer. A shipment invoice is a legally required document, without which customs cannot clear the goods for shipment. 

Beyond customs review, the commercial invoice is also used for import or export verification. It may include specific fields that a regular sales invoice might miss, such as:

• Harmonized System (HS) code to classify traded goods 

• Incoterms to define who’s responsible for the shipping costs, insurance, and customs clearance

• Reason for export

• Package weight

• Detailed goods description

While there could be similarities between the two invoices, do not use the regular accounting invoice for shipping unless it satisfies the information required for customs clearance. 

In the next section, we’ll learn the steps to properly create a shipping invoice.

How to Create an Invoice for International Shipping

Here are the essential steps to prepare a shipping invoice.

1. Understand if a Commercial Invoice Applies to Your Shipment

If you have physical goods that will cross your country’s border, you’ll certainly need a shipment invoice. This rule does not apply to document-only shipments, such as business cards, contracts, etc.

Cross-check the commercial invoice rules, as these vary by carrier, destination country, type of goods, and the purpose of shipment. 

1. Collect Shipment and Product Details Before Filling the Form

Having the information ready before filling out the fields can reduce errors and speed up the process. Make sure you have the following ready:

• Buyer and seller details
• Product descriptions
• HS codes
• Country of origin
• Quantity and values
• Package weights
• Delivery terms
• Reason for export

With these details, it’s unlikely you’ll make mistakes with the form.

1. Create, Review, and Save a Clean PDF Version

A PDF is often the go-to format for most exporters creating invoices. It’s easy to print, email, attach to other documents, or upload to the portal.

Keep the following details in mind as you prepare a PDF commercial invoice:

• Add your company logo.
• Use clear formatting with consistent fonts and spacing.
• Make sure the text is selectable or searchable.
• Include the correct information on goods, their value, etc.
• Ensure the PDF file size is within the attachment limits for email or carrier portal. 

When the information changes before dispatch, you can use a browser-based tool to edit PDF files instead of creating them all over. An online PDF editor can help you change dates, names, values, product descriptions, etc., before you submit the final version.

What to Include in Your Commercial Invoice Format?

A shipment invoice with the right details and a clear format makes it easier for the customs officers to review and process it. 

The following are standard fields and must be present in every invoice: 

Field	What to Include	Purpose
Seller or exporter’s details	Company name Full business address Contact person Phone number Email address Tax ID / VAT number / EORI number (if applicable)	To identify the seller and the authenticity of the business
Buyer or consignee details	Recipient or company name Delivery address Contact phone number Email address	It makes it easier for the customs to contact the receiving party
Invoice number and date	Unique invoice number Invoice issue date	It’s useful for tracking, recordkeeping, and reference
A detailed product description	Clear product names Material or composition Intended use (if relevant) Model or SKU numbers (if applicable)	Accurate descriptions help customs officers classify the products Note: Avoid using vague terms like items, parts, samples, or goods
HS or commodity code	The HS code for each product	It enables authorities to calculate applicable taxes or tariffs
Country of origin	The region of goods manufacture	This is important information for customs compliance
Quantity, unit value, and total value	Quantity of each item Unit price Total line value Overall invoice total	The declared values allow customs to calculate duties and taxes
Currency	The currency used for the transaction	It highlights the value declared on the commercial invoice
Shipping, insurance, and freight charges	Shipping cost Insurance charges Freight charges (if applicable)	Include them if they apply while calculating taxes
Incoterms or payment terms	Agreed Incoterm (EXW, FOB, CIF, DDP) Payment terms if applicable	It defines who’s responsible for customs clearance, shipping costs, and insurance
Package details	Number of packages Gross weight Net weight Package dimensions (optional but recommended)	It helps carriers verify the weight of goods for shipment
Reason for export	Sale Return Repair Sample Gift Replacement	It determines taxes and procedures depending on the reason
Signature/declaration	Authorized signature Name and title Company stamp (if required) Declaration statement if required by the carrier or the destination country	It shows the authenticity of the shipment

Elements to include in the invoice for shipping

Common Reasons for Shipment Delays 

An incomplete invoice could be the main culprit for your shipment getting delayed. Customs officers find it hard to process documents with missing information.

You want to steer clear of these common setbacks:

• • Unclear product descriptions: Mention the goods’ name explicitly, instead of terming them merchandise, accessories, or items.

• Incorrect values: Ensure to declare the correct values that match the transaction and supporting documents. Details that don’t match could make the authorities suspicious about your shipment.

• Wrong or no country of origin: Customs uses this information to assess duties, and a lack of it can lead to delays and further verification.
• No mention of HS codes: An incorrect classification of products can lead to shipment delays.
• Missing shipping terms: It creates confusion regarding shipment responsibilities and costs.
• Mentioning the wrong consignee: When details do not match, it could raise questions with the carrier and customs.
• Invoice not matching the shipping documents: If there is a discrepancy between the invoice and the transport documents, noncompliance or suspicion may arise. That is why you need to ensure that your waybill, commercial invoice, packing list, and carrier information match. Otherwise, the goods may be returned to you.

Commercial Invoice Checklist 

Your invoice is ready when you have completed the following:

• The correct seller and buyer details.
• Invoice number and date.
• Specific product descriptions.
• Mention of HS codes where required.
• Country of origin.
• The correct quantity, unit value, total value, and costs.
• Shipping, freight, and insurance charges.
• A clear Incoterms and payment terms.
• The package count and weight match the shipment.
• Reason for export.
• Same information on the final PDF and shipment documents.

It will be faster to check whether all necessary items have been added to your invoice rather than having to recreate the entire document because of an issue at customs.

Prepare the Commercial Invoice Well Ahead of the Shipment

A commercial invoice for shipping is one of the primary documents that moves your shipment forward. As a comprehensive document, it tells customs:

• Who the buyer and seller are.
• What type of goods are in the shipment.
• Where are they coming from.
• Where are the goods heading.
• Which shipment terms apply.

Before your next international shipment, take the time to review the fields, verify the final PDF, and ensure all details match the shipping documents.