A commercial export invoice is the most significant document/ paper in international trade.
It is a document which is been reviewed by freight forwarder, insurance company, transporter, custom officer as well as international banker. This kind of invoice would reflect details related to fulfillment of sales contract and would also provide all the necessary details for the third party.
Commercial invoice is a document that a destination country would require it prior to custom clearance of goods.
This kind of invoice acts as 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 needs to be included on the Export invoice document –
- Date and number of Invoice –
For the ease of reference, the exporter would be providing the invoice number.
- Buyer’s name and address –
The customs office/officer would require basic details related to the buyer of the goods
- Reference number of the Buyer –
It is required for the easy access
- Payment method –
When the payment is due, buyer would come to know through the invoice details
- 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.
- 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.
- 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.
- Product’s country of origin –
Based on the origin of the country to which the product needs to be sent, the custom duty would be applied.
- Transportation mode –
The details related to the shipping of the goods are provided in this section.
- Currency of invoice –
If the payment is for United state, 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.
- 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.
- Sign –
The commercial invoice needs to be signed by both the parties as signing would mean that they are agreeing to the terms and conditions mentioned in the agreement. Only a authorized signatory should sign the same as he is the one who is aware of all the details of the agreement.