Commercial Invoice

Posted in Operations and Supply Chain Terms, Total Reads: 1506

Definition: Commercial Invoice

Commercial Invoice is the most basic document which acts as a base for creation of all other essential documents. It provides relevant information like detailed information about the goods, Harmonized Systems nomenclature (HSN), the price of the goods, shipment terms and the numbers on the package containing the goods. Other relevant information like the date, name and address of both buyer and seller, name of the shipping vessel and the port of destination should also be included in the commercial invoice.

It is of utmost importance that the information of the merchandise on the invoice should match with the information on the letter of credit and all other documents. The marks and numbers on the commercial invoice, bill of lading lists, and insurance documents must be coherent with each other.

While we study about commercial invoice, it is imperative to know about proforma invoice. A temporary commercial invoice which is sent to the importer by the exporter is termed as a proforma invoice. It includes contemplated shipment which may or may not be made in future. It helps the importer as it gives an indication to the foreign buyer to obtain an import license, essential for a particular commodity. In addition to this, it also helps in initiating a letter of credit in favour of the exporter.

For a commercial invoice, for example: DHL suggests inclusion of the items like, company letterhead, sender's name and address, receiver's address, waybill (AWB) number, details of the shipment, full description of the goods, customs commodity code, country of origin, quantity, total value and currency, reason for export, declaration and invoice type.


Hence, this concludes the definition of Commercial Invoice along with its overview.

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