Commercial Invoice
What is a commercial invoice?
A commercial invoice is a core international trade document issued by the seller to the buyer. It records the details of the goods being sold, including the buyer, seller, product description, quantity, price, currency, delivery terms and payment terms.
It is used for customs clearance, shipping, taxation, record-keeping and payment processing.
Why does a commercial invoice matter?
The commercial invoice is one of the most important documents in an international trade transaction. Customs authorities use it to assess the value of goods, apply duties and taxes, and verify what is being imported or exported.
Buyers, banks, freight forwarders and customs brokers may also rely on the commercial invoice to confirm that the shipment matches the agreed transaction.
What information is usually included?
A commercial invoice usually includes:
seller and buyer details
invoice number and date
goods description
quantity and unit price
total value and currency
Incoterm
country of origin
HS code, where required
payment terms
shipment details
Common mistakes
Common mistakes include:
vague product descriptions
missing or incorrect HS codes
inconsistent values across documents
incorrect buyer or seller details
unclear payment terms
mismatch between invoice and packing list
How iTradeDigital helps
iTradeDigital helps buyers and sellers create and manage commercial invoices as part of a structured digital trade workflow. By reusing transaction data across documents, it reduces manual re-entry and helps avoid document inconsistencies.
Related terms
• Packing list
• Certificate of origin
• Customs declaration
• Incoterms®
• Payment terms
FAQs
Is a commercial invoice the same as a pro forma invoice?
No. A pro forma invoice is usually issued before the sale is final. A commercial invoice is the formal invoice used once the transaction is agreed.
Who prepares the commercial invoice?
The seller or exporter usually prepares the commercial invoice.
Is a commercial invoice required for customs?
In most international shipments, yes. It is commonly required for import and export clearance.