A Commercial Invoice is a legal document issued by the exporter to the importer that details the goods being sold, including price, quantity, and terms of sale. It is one of the most important documents used in international trade and customs clearance.
How It Works:
- The exporter prepares the invoice after confirming the order.
- It includes details such as product description, value, quantity, and payment terms.
- The document accompanies the shipment.
- Customs authorities use it to assess duties and taxes.
- The importer uses it to process payment and accounting records.
Benefits:
- Provides proof of the sales transaction.
- Essential for customs clearance and duty calculation.
- Helps maintain accurate financial and trade records.
- Facilitates smooth international trade documentation.
Example:
An exporter shipping garments to the UK issues a commercial invoice showing the quantity, price per unit, and total shipment value for customs processing.