Commercial Invoice

A commercial invoice is a detailed document that establishes the financial and commercial terms of an air cargo transaction between the seller (shipper) and buyer (consignee). This mandatory document describes the commercial transaction between the seller (shipper) and the buyer (the importer). As such is it a key accounting document, providing the core of what's needed for export compliance and the customs clearance process. The Commercial Invoice provides the financial foundation for customs clearance by documenting the transaction's commercial terms and cargo value. Customs authorities use this document to assess duties and taxes. The commercial invoice is one of the most important documents required as this contains most of the basic information required related to the shipment. This includes a breakdown of all of the items within the cargo, the quantity, weight, value and the origin location.

A shipment of electronic components from a U.S. manufacturer to a German importer on Lufthansa Cargo flight LH8404 with AWB 020-87654321 requires a commercial invoice showing the seller's address in Chicago, the buyer's address in Frankfurt, product descriptions, unit values, and commodity codes for customs clearance. For a FedEx Express shipment of pharmaceutical supplies from DHL Hub Cincinnati (CVG) to Singapore Changi (SIN) under AWB 023-11223344, the commercial invoice must include detailed product specifications, total declared value of USD 45,000, and proper HS codes to ensure smooth customs processing at destination.

• invoice
• customs invoice

What specific information must be included on a commercial invoice for air cargo shipments?

This includes a breakdown of all of the items within the cargo, the quantity, weight, value and the origin location. A commercial invoice also requires a commodity code to be filled out, which is a unique number that differentiates your products from others. It establishes value, origin, seller and buyer details, currency, and payment terms. HS code accuracy and declared Incoterms directly affect duties, taxes, and clearance responsibility. For commercial shipments, please provide a minimum of three commercial invoices, each either typed or handwritten on company letterhead (if applicable), signed with an original signature in ink.

How do HS codes on commercial invoices affect air cargo customs clearance?

The HS code system uses 6-digit international codes that countries extend to 8 or 10 digits. Selecting the precise code requires detailed commodity knowledge. HS code mistakes: Using incorrect or generic HS codes leads to wrong duty assessments and customs review. These errors often trigger reclassification requests and delay release. Customs authorities calculate applicable duties and taxes based on declared values, HS codes, and country of origin information.