Commercial Invoice

A commercial invoice is the bill the seller issues to the buyer for goods sold in international trade. For a US import it is also CBP's main evidence of what the goods are, what was paid for them and where they were made. A commercial invoice must be filed for each shipment not exempted by 19 CFR 141.83(d), prepared in the manner customary in the trade (19 CFR 141.83(c)).

What the invoice must show (19 CFR 141.86)

• The US port of entry the goods are destined for
• For goods sold: when and where they were sold, and by whom to whom
• A detailed description: the name each item is known by, its grade or quality, the marks and numbers under which it is sold, and the marks and numbers of the packages
• Quantities in the weights and measures of the country of shipment
• The purchase price of each item in the currency of purchase, and the kind of currency
• All charges on the goods itemized by name and amount, including freight, insurance, commission, containers and packing
• All rebates, drawbacks and bounties, itemized separately
• The country of origin

The invoice must be in English or carry an accurate English translation (141.86(d)), and it must state in adequate detail what merchandise is in each individual package (141.86(e)).

How CBP uses it

• Value: duty is normally assessed on transaction value, the price actually paid or payable plus certain additions such as packing, selling commissions, assists and royalties (19 U.S.C. 1401a(b)). The price excludes the cost of international freight and insurance to the United States, which is why those charges must be itemized rather than buried in the price
• Classification: the description decides the HTS classification and so the duty rate
• Origin: the country of origin decides which duties and trade preferences apply, and must agree with the origin marking on the goods (19 CFR 134.11) and any certificate of origin

Commercial invoice vs pro forma invoice

A pro forma invoice is a preliminary invoice the seller sends before shipment, usually as a quotation or to arrange payment. For customs, a pro forma invoice in the form set out in 19 CFR 141.85 is a substitute used only when the commercial invoice is not available. If the importer cannot produce the required invoice for a cause beyond its control, CBP may accept a pro forma with a bond equal to one and one-half times the invoice value, and the commercial invoice must then be produced within 120 days of filing the entry summary (19 CFR 141.91).

Commercial invoice vs packing list

The invoice records the sale: parties, prices and charges. The packing list records the packing: what is in each carton or pallet, with weights and dimensions. They must agree with each other and with the bill of lading or air waybill.

Errors that cause holds

• Vague descriptions such as “parts”, “samples” or “gifts” that cannot be classified
• Piece counts, weights or descriptions that differ from the packing list, bill of lading and ISF
• A missing or wrong country of origin
• A value that does not match what was actually paid, which can lead to penalties under 19 U.S.C. 1592
• Freight and insurance included in the price without being shown separately

On the shipments Airlift moves, the invoice and packing list are checked against each other, and the entry is filed by a licensed broker in its network. See customs clearance.