Sep 14,2022
How to Build a Better 3PL
International trade involves a lot of paperwork, and one of the most important documents is the commercial invoice. This document outlines the cost of the goods being imported and is used by the buyer to pay for the shipment. Unlike the pro forma invoice, the commercial invoice indicates the owner of the shipment. Accurately filling out the commercial invoice is crucial to ensure timely delivery of your shipment. Any mistakes or inaccuracies on the commercial invoice could result in shipping delays or paying the wrong duty rate, leading to overpaying or underpaying for the import. the commercial invoice is an essential document in cross border trade that helps buyers and sellers agree on the terms of sale and facilitate the payment and clearance of goods.
A commercial invoice is a crucial document in international trade that serves as a formal request for reimbursement by the seller to the buyer. This document has several functions for your export shipments, which are outlined below:
1. Required by the importing country’s authorities for custom clearance
2. Used by exporter and consignee as an invoice to outline all items that are bought and sold
3. The destination country requires it before clearing the goods through customs.
4. If there is an insurance claim on the shipment, it serves as a key supporting document.
5. The buyer uses it to release funds through its bank to the seller.
6. A bank examines it before reimbursing funds under a letter of credit or documentary collection.
7. U.S. export regulations require that exporters retain it for five years from date of shipment.
8. Exporters can use it to support foreign credit risk insurance claims.
While there is no single "best" commercial invoice template, there are certain elements that are necessary to include in any commercial invoice. The template you choose should include:
Information related to the transaction
l Invoice number
l Invoice date
l Order number
l Total sale amount
l Currency
l Payment instructions
Information related to the exporter and importer
l Exporter/seller information (name, address, phone number, etc.)
l Exporter/seller’s tax identification number
l Importer/buyer information (name, address, phone number, etc.)
l Importer/buyer’s tax identification number
l Notify party’s information
Information related to the shipping of the merchandise
l Bill of Lading number
l Forwarding agent
l HS code
l Clear description of goods (no. of packages, units, weight, etc.)
l Incoterm under which the merchandise has been sold
l Origin of merchandise
l Insurance
l Date of exportation, means of transport, and final destination
l Shipper’s signature
How to Get A Commercial Invoice?
If you are using an e-commerce platform like eTower, you can generate a commercial invoice automatically based on the information provided for each order. When creating the orders with URL, our system can get the description and the product picture through the provided URL and generate the commercial invoice which can be used for customs clearance.
eTower is a cross-border e-commerce logistics collaboration platform. If you want to know more information and other applications, welcome to contact us, please visit our website at https://www.etowertech.com/ . We will be happy to help you out!
