A commercial export invoice is the most significant document/ paper in international trade.
It is a document which is been reviewed by the freight forwarder, an insurance company, transporter, custom officer as well as an international banker. This kind of invoice would reflect details related to the fulfillment of the sales contract and would also provide all the necessary details for the third party.
A commercial invoice is a document that a destination country would require it prior to customs clearance of goods.
This kind of invoice acts as a sales bill and is issued only after the order is been placed.
The information one needs to include might vary from country to country but below mentioned are the basic set of items that need to be included on the Export invoice document
1. Date and number of Invoice
For the ease of reference, the exporter would be providing the invoice number.
2. Buyer’s name and address
The customs office/officer would require basic details related to the buyer of the goods
3. Reference number of the Buyer
It is required for easy access
4. Payment method
When the payment is due, the buyer would come to know through the invoice details
5. International sales terms
International sales term (Incoterms) is a rule/ document, which specifies the details of the party, which is liable for the cargo along with details of when the responsibility would be transferred from the buyer to the seller of the goods.
6. Description of the product, its number, unit price, and the total price of the shipment
It is very important to include details such as the type of product, its number code, the price per product, and the total price of the quantity to be shipped related to the product in the invoice.
7. HTS (Harmonized Tariff Schedule) ’s classification number
HTS means the first 6 – digit number of the Schedule –B. This classification number helps to ease the process.
8. Product’s country of origin
Based on the origin of the country to which the product needs to be sent, the customs duty would be applied.
9. Transportation mode
The details related to the shipping of the goods are provided in this section.
10. The currency of the invoice
If the payment is for the United States, USD should be mentioned in the invoice and if it is in India, Rupees should be mentioned. ISO code should be referred to for the currency code. It makes the process of payment easy.
11. Insurance coverage type
It is a very important item that should be included in the invoice as it helps the buyer to know which party is responsible in case of loss or damage of the goods.
12. Sign
The commercial invoice needs to be signed by both parties assigning would mean that they are agreeing to the terms and conditions mentioned in the agreement. Only an authorized signatory should sign the same as he is the one who is aware of all the details of the agreement.
