Export Health Certificates Explained
October 4, 2020Why Do I Need a Customs Agent?
October 7, 2020A Commercial Invoice contains a great deal of information and acts as a Bill of Sale between a Buyer and Seller.
It should entail:
- Addresses of seller/shipper & buyer/receiver
- Credit terms and methodology for payment
- Currency of transaction
- Date of invoice / transaction
- Description of what is being transported
- EORI or tax ID numbers
- Net weight
- Other information required to allow the goods to cross international frontiers e.g. Commodity (Tariff) Codes & supplementary units & country of origin
- References numbers & important transaction numbers e.g. part or purchase order numbers
- The Incoterms (and freight charges for pre-DAP terms)
It might include:
- Any changes from a Contract or previous agreement
- Any other marks, numbers and measures
- Invoice number or other auditable reference numbers
- Packages, pallets, crates etc.
- Port of export and import
- Proforma reference number
- Transport tracking number e.g. CMR, bill of lading
Preparing the Form
Paying attention to detail while setting-up a Commercial Invoice system will be rewarded.
Your invoice must be prepared exactly as you and your customer agree, and as per the proforma invoice if one has been produced. This includes intricate details e.g. whether you should prepare the commercial invoice on your company letterhead or not.
A proforma Invoice is usually one generated when e.g. an order is transmitted to a supplier. A Commercial Invoice will detail the goods after they are prepared for transport and that will omit things like, parts that have failed quality control.
Uses
The Commercial Invoice is the building block on which all shipping is built upon, it is not only Customs Brokers who require this document.
Exporters might use it to assist with Loans, Grant programs, & Reclamations.
It is an important supporting document for any potential insurance claim where a suitable policy exists.
If a letter of credit is required, the buyers bank will require to examine it before release of payment.
Customs Authorities will need it for calculation of duties, determining the true value of the goods, inspection purposes and trade statistics.
Used along with an Inspection Certificate it can prove the quantity and quality of a consignment.
Notes Regarding Proforma Invoices
It is a pre-advice document which serves as an Instruction for Action, it can be used define Information, to initiate the Negotiation Process and it outlines the expectations for an Export Sale. This widely recognised document can serve as a quotation and can contain validity period as well as estimated transport costs.
It can easily be converted to a Commercial Invoice and can be used by banks where e.g. they are acting as an Intermediary.