This difference can be due to many reasons, however the most common is that a supplier is having manufacturing issues or delays or that the supplier did not correctly plan how many products would fit inside shipping containers.
This is because the quantity of goods ordered (from the Proforma Invoice) can be different to the actual quantity of goods that have been shipped (on the Commercial Invoice). The 2 documents are essentially the same, however, there can sometimes be a difference in the quantity of goods stated on the Commercial Invoice to what is on the Proforma Invoice. What is the difference between a Proforma Invoice and a Commercial Invoice? You'll know when recipients have viewed your invoice and recipients can even pay the invoice online via credit card for convenience.Ĭreate in IncoDocs Your questions, answered. Its best to get professional advice from your freight forwarder or customs clearance agent with help in correctly classifying the products to be imported.Download or share invoices from IncoDocs in 1-click. The products included on the commercial invoice must be correctly classified using HS or HTS codes. Any discrepancies or inaccuracies in the commercial invoice can lead to delays in customs clearance and may result in additional costs or penalties. Why is it important to ensure the accuracy of the commercial invoice in foreign trade?Īccuracy in the commercial invoice is crucial in foreign trade as it impacts the assessment of customs duties and taxes. The exporter or the authorized agent will transmit the commodity information using the AES system. The commercial invoice is an important component of the AES, providing crucial data about the exported goods that is required by the system for export control purposes. government to collect electronic export information from shipping documentation.
The Automated Export System (AES) is a system used by the U.S. What is the Automated Export System (AES) and its relation to the commercial invoice? They play a crucial role in the assessment of duties and taxes in the customs clearance process. What is the significance of a commercial invoice in customs clearance?Ĭommercial invoices are important documents in international trade as they are used by customs officials to classify the products, verify the value and origin of the goods. Read more about the difference between a Proforma Invoice and Commercial Invoice. Local customs will use the Commercial Invoice document to accurately assess customs duties, ensuring that all applicable tariffs and taxes are correctly applied to the imported goods. The Commercial Invoice is used by the importer to facilitate the clearance of products through customs in the country of import. While a proforma invoice is a preliminary document sent to the buyer before the completion of the sale, a commercial invoice is used after the sale is made. In some cases, exporters will provide a Proforma Invoice before the goods have been shipped (pre-shipment), then provide a Commercial Invoice post shipment.įAQ’s on the Commercial Invoice How is a commercial invoice different from a proforma invoice? Note that a Commercial Invoice is issued after the goods have been delivered or shipped (post-shipment). For example, if you are sending airfreight shipments with FedEx or DHL you will have to provide to FedEx a Commercial Invoice, or provide to DHL a Commercial Invoice. This comprehensive documentation aids customs authorities in accurately assessing customs duties, ensuring that all applicable tariffs and taxes are correctly applied to the imported goods.Ī Commercial Invoice must be provided for all seafreight and airfreight shipments. When products are shipped internationally, the exporter, acting as the seller, creates a Commercial Invoice template and other shipping documentation to share with the importer, effectively transferring the details of the sale from the seller to the buyer.Īs a key customs document, the Commercial Invoice template, along with packing lists and other common export documents, is used by the importer to facilitate the clearance of products through customs in the country of import.