Question 1

What is a commercial invoice for international shipping?

Accepted Answer

A commercial invoice is the primary customs document for international shipments. It records the transaction between the seller and buyer and is used by customs authorities to assess duties and taxes. It must include: seller and buyer details, a detailed description of goods, HS codes, quantity, unit value and total value, country of origin, currency, and Incoterms. Without a complete commercial invoice, shipments may be held at customs.

Question 2

Do I need a commercial invoice for every international shipment?

Accepted Answer

Yes, a commercial invoice is required for virtually all international commercial shipments. Even shipments below the de minimis threshold may require a commercial invoice or simplified customs declaration. Gifts and personal shipments use different forms (such as CN22/CN23), but any B2C or B2B commercial shipment needs a commercial invoice for customs clearance.

Question 3

What Incoterm should I use on my commercial invoice?

Accepted Answer

For B2C e-commerce, DDP (Delivered Duty Paid) is the most buyer-friendly term — the seller handles all costs including import duty. For B2B, FOB (Free On Board) or EXW (Ex Works) are common when the buyer arranges their own freight. DAP (Delivered at Place) is a good middle ground for B2B — seller handles shipping, buyer handles customs clearance. Always specify the Incoterms 2020 edition and a named place.

Question 4

Does the commercial invoice need to include HS codes?

Accepted Answer

Including HS codes on your commercial invoice is not legally required in all jurisdictions, but it is strongly recommended. It speeds up customs clearance, reduces the chance of misclassification by customs agents, and helps ensure the correct duty rate is applied. For EU imports, many customs brokers require HS codes on the invoice. For US imports, including the HTS code helps CBP process the entry faster.

Free Commercial Invoice Generator