Fulfillment Wiki

Commercial Invoice

A commercial invoice is the seller's invoice for an international shipment that lists the parties, goods description, quantity, value, currency, country of origin, and sale terms, used by customs to assess duties.

Why it matters for ecommerce brands

The commercial invoice is the main document CBP uses to set your duty, so a wrong value or vague description can mean overpaid duty, penalties, or a hold. Your broker classifies and values each line from it. For example, if an invoice lists 2,000 cotton shirts at $8 each instead of the $10 actually paid, the declared value is $16,000 instead of $20,000. At a 20% duty rate, that underpays duty by $800 and creates penalty risk if CBP finds it. Ask suppliers for detailed descriptions, origin, manufacturer, and Incoterms on every invoice.

Common questions

What must a commercial invoice include for US Customs?
It should identify the seller and buyer, describe the goods in enough detail to classify them, and show quantities, unit and total values, currency, country of origin, and the terms of sale. Your customs broker may ask for more, such as HTS codes and manufacturer identification.
What is the difference between a commercial invoice and a pro forma invoice?
A commercial invoice records the actual sale and is the document customs relies on. A pro forma invoice is a preliminary version that CBP accepts in some cases when the commercial invoice is not available, usually with a bond to produce the final one.
Can I undervalue goods on a commercial invoice to lower duty?
No. Declaring less than the price actually paid or payable is a customs violation that can bring penalties, seizure, and back duty with interest. Assists, royalties, and some commissions may also need to be added to the value.

Laws and regulations