Ecommerece shippers sending products to international customers need to adhere to very specific documentation. One of the most common and most important shipping documents you’ll need for a smooth customs clearance process is a commercial invoice. It has all the necessary information for customs to process your international shipment properly.
Without the correct information on your commercial invoice, your shipments can be delayed or held up at customs, which will cost you.
Here are the ways you can make sure you get your commercial invoice right to pass customs quickly, and keep your international customers satisfied.
What is a Commercial Invoice?
A commercial invoice (CI) is a customs document that outlines the details of your shipment clearly for customs officials. It must follow the correct commercial invoice template and all fields must be accurately and properly filled out. Any misinterpretation of this information may result in product holds by customs authorities, or additional fees.
There are two types of checks that packages need to clear customs: export and import. Each requires important documents that include a detailed description of the goods being moved across the border.
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Information Needed on a Commercial Invoice
Most basically, the information on a commercial invoice includes what the products are (classification, also known as HTS or HS code), where they are manufactured (certificate of origin), and where they are going (destination country). These are basic required items, but some countries may have additional requirements.
The information that is included on a CI will inform the tariff codes and customs duties to be paid.
List of Common Commercial Invoice requirements:
- Company name, website, logo
- Item description – be sure to get specific on the item description, this should include the materials used, not the marketing language for the product. If there are multiple items included, use the packing list to ensure you give a complete item description for everything included.
- Country of Origin – this is where the products or components are manufactured. It’s important to trace the provenance of each part of the product if they come from different places.
- HS Code (Harmonized System) or HTS Code (Harmonized Tariff Schedule) – this is an international standard system of names and numbers for classifying traded products. All products can be classified in the existing HTS utilizing the General Rules of Interpretation.
- ECCN (Export Control Classification Number) – this is a crucial item description that determines whether an export license is needed or not, items that require an ECCN are goods can only be legally sold overseas by licensed exporters.
- Quantity – also written “Qty”, this should list the specific and accurate quantity of items that are in the shipment.
- Unit Price – sometimes referred to as “value of the goods” this is the retail unit price.
- Extended Price – here you should add up the price for every line of product for the total value of the shipment. There may be multiple items in the shipment, or multiple prices that are included in the total shipment.
- Ship-To Info – this is the destination where your shipment is going, usually this will be a distribution center or warehouse.
- Bill-To Info – who is required to pay the bill? This is often the merchant but depending on the partners a merchant works with it could be an outside party.
- Custom Clearance Info – this is the tax, tariff, or duty information required upon the shipment’s import.
- Incoterms – these are abbreviated terms that denote the description and definition of who is responsible for the goods being imported. Their purpose is to aid communication and reduce confusion when dealing with the many parties involved in importing goods internationally.
Is a Commercial Invoice Always Required?
Shipments that come to the US from other countries (Canada and Mexico included) always require a commercial invoice. This is true for merchants whose products are manufactured overseas, in Asia, the EU, or anywhere outside of the US.
There are a few very specific instances when a commercial invoice is not needed. Shipments that move between two states that are part of the US federal government do not require a commercial invoice. For example, a shipment from New York, coming through California does not require a commercial invoice. They are only necessary when products cross international borders.
How Do I Create a Commercial Invoice?
It can be daunting to pull together the resources to get your products across international borders. If you work with a 3PL or freight forwarder they can help give you templates, and ensure you are filling the documents out correctly. Remember, no matter how great your shipping partners are, you are responsible for collecting and providing the accurate information required on a CI.
By getting your CI information right the first time around, you’ll eliminate any extra fees, or shipment delays.
Bottom Line
International shipping is very complex. Before launching into any new markets, it is highly recommended you work with an expert or an international broker who understands the regulations that are specific to the regions where you will be shipping.
Each country has a different set of regulations, and they change often, strict adhere to these is imperative for smooth shipping and cost optimization.
If you are looking for international shipping support, reach out to DCL Logistics for a quote. We have excellent international partners who integrate seamlessly into our systems. You can get flawless fulfillment from DCL and also freight forwarding from Flexport, or international shipping support from Passport Shipping.
Tags: International
