GLOSSARY

Commercial Invoice

A bill for the goods from the seller to the buyer used in foreign trade.

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What is Commercial Invoice?

A commercial invoice is a bill that is used in foreign trade to provide information about a shipment of goods. It is used by customs officials to determine the value of the goods and to calculate import duties and taxes. The commercial invoice is also used by the buyer and seller to track the shipment and to settle the financial terms of the sale.

A commercial invoice typically includes the following information:

Name and address of the seller and the buyer
Date of the invoice
Terms of sale
Description of the goods
Quantity of the goods
Unit price of the goods
Total value of the goods
Harmonized System (HS) code for the goods
Country of origin of the goods
Method of shipment
Freight charges
Insurance charges
Total cost of the shipment

It’s important to include all the required information. Incomplete or inaccurate invoices delays the clearance of goods through customs and can lead to additional fees and penalties for the importer.

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