When used in

foreign trade International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (see: World economy) In most countries, such trade represents a significant ...

, a commercial invoice is a

customs Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods, including animals, transports, personal effects, and hazardous items, into and out of a country. Traditionally, customs ...

document. It is used as a

customs declaration A customs declaration is a form that lists the details of goods that are being imported or exported when a citizen or visitor enters a customs territory (country's borders). Most countries require travellers to complete a customs declaration form w ...

provided by the person or corporation that is exporting an item across international borders. Although there is no standard format, the document must include a few specific pieces of information such as the parties involved in the shipping transaction, the goods being transported, the country of manufacture, and the

Harmonized System The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products. It came into effect in 1988 and has ...

codes for those goods. A commercial invoice must often include a statement certifying that the invoice is true, and a signature. A commercial invoice is used to calculate

tariffs A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and polic ...

international commercial terms The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. Incoterms define the responsiblities of exporters and ...

, and is commonly used for customs purposes. Commercial Invoices are generally not needed for shipments between EU Countries—just between EU Countries and non-EU Countries. Commercial invoices in European countries are not normally for

payment A payment is the voluntary tender of money or its equivalent or of things of value by one party (such as a person or company) to another in exchange for goods, or services provided by them, or to fulfill a legal obligation. The party making the ...

. The definitive

invoice An invoice, bill or tab is a commercial document issued by a seller to a buyer relating to a sale transaction and indicating the products, quantities, and agreed-upon prices for products or services the seller had provided the buyer. Payment ...

for payment usually has only the words "invoice". This invoice can also be used as a commercial invoice if additional information is disclosed. Beginning in 2018, European Invoices must be electronic for use in public procurement as laid out in Directive 2014/55/EU. A sample commercial invoice format

References

International trade documents {{international-trade-stub

See also

References