The freight commercial invoice serves as the bill of sale between both buyer and seller. It also provides information on what is being exported as well as any important transactions numbers and / or other references. The freight commercial invoice in the agreement selling form between seller and buyer. It is also the vehicle for payment. This means any changes of price or terms must be included. Here is how to issue a commercial invoice for export purposes.

The Basics

In order to issue a commercial invoice correctly, you have to include the next details:

• Complete name and address information for both shipper and consignee
• A complete description of the item: What is the item? What is the item used for? Material?. You can resume all these questions withe the Harmonized Tariff Codes (HS CODE) , if known. You also can ask for HS Code to a professional freight forwarder.
• Number of units, unit value, and total value (purchase price) of each item
• Country of origin (where manufactured) for each commodity
• Number of packages and total weight. If you issue a Packing List, then it's not necessary add this information in freight commercial invoice.
• Shipper's signature and date

Payment and Currency

When preparing an export invoice, clearly stating all information pertaining to payment is necessary. The method of payment has to be stated as well as all reference numbers related to it. The commercial invoice should always identify the currency in which the transaction will be made.

Terms of Sale (Incoterm) -Shipping

Next, shipping terms from the price quotation has to be included. We have one post related to the Terms of Shipping or Incoterms 2010.

Proforma vs Freight Commercial Invoice

Proforma is not valid for shipping purposes in several countries. Freight Commercial Invoice is require by Customs. Proforma is used as pre-selling between buyer and seller, but its not valid for export purposes.