What Is a Commercial Invoice? A Guide for Shipping & Customs

A commercial invoice is the legal document that accompanies an international shipment and declares what is being sent, how much it is worth, and where it was made. Customs authorities use it to identify the goods, assess import duties and taxes, and decide whether to clear the shipment — which is why almost every cross-border parcel of goods needs one.

If you sell physical products to buyers in other countries — or even send a sample or a gift abroad — you will run into the commercial invoice. It is not the same as the ordinary sales invoice you send for payment, and it is not a proforma invoice either. This guide explains exactly what a commercial invoice is, what it is used for, what to put on it, and how it differs from the other documents that travel with a shipment.

What is a commercial invoice?

A commercial invoice is a customs and trade document that the exporter (the seller or sender) creates to describe an international shipment of goods. It states the parties involved, an itemised list of the products, their value, the currency, the country of origin, and the terms of sale. Couriers like DHL, FedEx, and UPS, national postal services, freight forwarders, and government customs agencies all rely on this single document to process the shipment.

Think of it as the "passport" for your goods. A standard invoice answers the question how much does the customer owe? A commercial invoice answers a wider set of questions that border officials care about: what is in this box, what is it worth, where did it come from, and why is it crossing the border? If you want a refresher on the everyday document, our explainer on what an invoice is covers the basics; a commercial invoice builds on that with the extra fields that customs needs.

A commercial invoice is not primarily a request for payment — it is a declaration. Its main audience is customs, not just your customer.

What is a commercial invoice used for?

The commercial invoice does several jobs at once during the journey of an international shipment:

• Customs clearance. Officials use the declared description, value, and origin to classify the goods and decide whether they can enter the country.
• Calculating duties and taxes. Import duty, VAT, GST, or sales tax is usually calculated from the value and tariff classification stated on the invoice.
• Proof of the transaction. It evidences a genuine sale (or transfer) between the exporter and the importer, which matters for trade records and audits.
• Payment and accounting. Because it reflects the real, final amount, the buyer can use it to pay and both parties can use it for their books.
• Insurance and claims. If a shipment is lost or damaged, the declared value on the commercial invoice often forms the basis of a claim.

In short, the commercial invoice is the document that lets goods move legally across a border and lets the importing country collect the right amount of tax. Get it wrong and your parcel can be delayed, held, fined, or returned.

What to include on a commercial invoice

There is no single global template, and the exact fields required can vary by destination country and courier. That said, a complete commercial invoice typically includes the following. Treat this as a general checklist and confirm any country-specific extras with your carrier:

1. Exporter (shipper) details — full legal name, address, contact, and any tax or EORI number where required.
2. Importer (consignee) details — who receives the goods, plus their tax/registration number if the destination asks for it.
3. Invoice number and date — a unique reference so the shipment can be tracked and matched to records.
4. Full description of each item — plain, specific wording (not just "parts" or "goods"). Vague descriptions are a leading cause of customs delays.
5. HS codes (Harmonized System codes) — the international tariff classification number for each product, used to determine duty rates.
6. Quantity and unit of measure — how many of each item, and the unit (pieces, kg, litres).
7. Unit value and total value — the price per item and the line and grand totals.
8. Currency — the currency the values are stated in.
9. Country of origin — where each product was manufactured or produced (this is not always the same as where it is being shipped from).
10. Incoterms — the agreed shipping terms (for example, DAP, DDP, or EXW) that define who pays for freight, insurance, and import charges, and where responsibility transfers.
11. Reason for export — sale, gift, sample, repair, return, and so on. Customs treats these differently.
12. Weight and number of packages — gross/net weight and how many cartons make up the shipment.
13. Signature and declaration — a statement that the information is true and correct, signed by the exporter.

A quick note on a few of these. HS codes are the backbone of international tariffs: the first six digits are standardised worldwide, and many countries add further digits. Using the correct code ensures the right duty is applied. Country of origin matters because trade agreements and tariff rates often depend on where something was actually made. Incoterms decide who is on the hook for import duties — under DDP (Delivered Duty Paid) the seller covers them, while under DAP the buyer usually does — so naming them removes expensive surprises at delivery.

Worked example: a small international shipment

Imagine a workshop in Manchester selling 20 handmade leather notebooks to a stationery shop in Toronto. A simplified commercial invoice for that order might read:

• Exporter: Pennine Leather Co., Manchester, United Kingdom (with EORI number).
• Importer: Maple Lane Stationery, Toronto, Canada.
• Invoice no. / date: CI-2026-0142 / 23 June 2026.
• Description: A5 hand-bound leather notebooks, 100 pages, blank.
• HS code: 4820.10 (registers, notebooks, and similar articles — confirm the exact subheading for your product).
• Quantity: 20 pieces.
• Unit value: 18.00 GBP · Total value: 360.00 GBP.
• Country of origin: United Kingdom.
• Incoterms: DAP Toronto (buyer pays Canadian import duties and taxes).
• Reason for export: Sale of goods.

With those fields in place, Canadian customs can classify the notebooks, apply any duty, and add GST/HST on the declared value before releasing the parcel to the buyer. Note that thresholds for when duty and tax kick in — sometimes called de minimis values — vary widely by country and change over time, so the amount the importer pays will depend on the destination's current rules.

Commercial invoice vs proforma invoice

This is the comparison people most often get tangled up in, because the two look similar and share many of the same fields. The difference is about timing and purpose:

• A proforma invoice comes first. It is a preliminary quote or estimate issued before the sale is finalised — used to confirm prices, secure a buyer's commitment, arrange financing, or apply for an import licence. It is not a demand for payment and it does not, on its own, settle customs duties.
• A commercial invoice comes last. It is the final document that travels with the actual goods, reflecting the real agreed amounts. This is the one customs uses to clear the shipment and the one the buyer pays against.

A useful way to remember it: the proforma is the promise, the commercial invoice is the proof. If you need to send an estimate up front, you can build one with our free proforma invoice generator, then issue the matching commercial invoice once the deal is locked in. For a deeper dive on the earlier document, see our guide to what a proforma invoice is.

Proforma before the sale, commercial invoice with the shipment. Same look, different jobs — only the commercial invoice clears customs.

Commercial invoice vs standard (sales) invoice

A standard sales invoice and a commercial invoice can describe the same transaction, but they are aimed at different readers. The standard invoice is built for your customer and your accounts — it focuses on amounts owed, payment terms, and tax due in your own country. The commercial invoice adds the export-specific data customs needs: HS codes, country of origin, Incoterms, weights, and a reason for export. For domestic sales you only need the standard invoice; once goods cross a border, the commercial invoice takes over.

Commercial invoice vs packing list

These two documents travel together but are not interchangeable. The commercial invoice is about value — prices, totals, and the financial side of the shipment that customs uses for duties. The packing list is about the physical contents — how the goods are packed, carton by carton, with quantities, dimensions, and weights, but usually no prices. Customs and the receiver cross-check one against the other: the packing list confirms what is physically in the boxes, and the commercial invoice confirms what it is all worth. Many shipments require both.

Who fills out a commercial invoice?

The exporter — the seller or the person sending the goods — is responsible for preparing and signing the commercial invoice. It is your declaration, so the legal responsibility for accuracy sits with you, even if a freight forwarder, customs broker, or courier's online shipping tool helps you generate it. Under-declaring value to dodge duty, or writing a vague description, is the sender's risk: it can lead to delays, penalties, or seizure. The importer typically does not create the invoice, but they rely on it being correct to avoid unexpected charges on delivery. If you are new to billing customers in other countries, our walkthrough on how to invoice international clients covers currencies, tax, and payment alongside the shipping paperwork.

Common mistakes that get shipments held

Most customs delays trace back to a handful of avoidable errors on the commercial invoice:

• Vague descriptions — "samples" or "gift" with no detail. Be specific about what each item actually is.
• Wrong or missing HS codes — these directly affect duty, so guessing can cause re-classification or fines.
• Under-declared value — declaring less than the true value to reduce duty is treated as a serious offence in most countries.
• Missing country of origin — without it, customs cannot apply the correct tariff or trade-agreement rate.
• No Incoterms — leaving them off creates disputes over who pays import charges.
• Currency confusion — always state the currency clearly, especially when invoicing across regions.

Keep copies of every commercial invoice you issue. Many tax and customs authorities expect businesses to retain trade and accounting records for a number of years — commonly in the range of five to seven, though the exact period varies by country and the type of record — so treat these documents as part of your permanent paperwork.

How to create a commercial invoice

You do not need specialist software. The steps are straightforward:

1. Gather exporter, importer, and shipment details.
2. List every item with a clear description, HS code, quantity, and value.
3. Add the currency, country of origin, Incoterms, and reason for export.
4. Total the values and include weights and package counts.
5. Sign and date the declaration, then attach copies to the shipment.

You can start with a professional, customisable invoice in seconds using our free online invoice generator — add your line items, switch among 160+ currencies, and export a clean PDF with no sign-up. Just remember to include the export-specific fields above so the document doubles as a valid commercial invoice for customs.

Frequently Asked Questions

What is a commercial invoice used for?

It is the customs document that declares the contents, value, and origin of an international shipment so authorities can assess duties and taxes and clear the goods.

What is the difference between a commercial invoice and a proforma invoice?

A proforma is issued before the sale as an estimate; a commercial invoice is the final document accompanying the actual shipment, used for customs clearance and payment.

What information goes on a commercial invoice?

List: exporter/importer details, invoice number/date, full goods description with HS codes, quantity, unit and total value, currency, country of origin, Incoterms, and reason for export.

Do I need a commercial invoice for shipping?

Yes — for most international shipments of goods (not documents), couriers and customs require a commercial invoice.