Commercial invoice
Learn what a commercial invoice is and how it clears customs for Indonesian importers and exporters.
Published Monday 17 August 2026
Table of contents
Key takeaways
- A commercial invoice is a document used in international trade that details the goods being shipped, their value, and the parties to the transaction. Customs authorities use it to assess duties and taxes.
- Accurate commercial invoices help your goods clear customs faster and support shorter payment cycles, especially when you set clear payment terms.
- Key details include seller and buyer information, a description of the goods, Harmonised System (HS) codes, the total value, and shipping terms such as Incoterms.
- In Indonesia, Bea Cukai uses the commercial invoice to set the customs value and calculate import duty and taxes, so getting it right keeps your shipments moving.
What is a commercial invoice?
A commercial invoice is a document that records the details of a sale between a buyer and seller in different countries. It acts as the primary record customs authorities use to determine the value of imported goods, calculate duties and taxes, and verify that shipments comply with trade regulations.
If you sell or buy goods internationally, you will meet commercial invoices regularly. They are essential for getting your products across borders smoothly and meeting your legal obligations.
What to include on a commercial invoice
A commercial invoice needs enough detail for customs officials to identify what is being shipped, who is sending it, and how much it is worth. At a minimum, include the following information:
- Full names and addresses of both the seller (exporter) and buyer (importer)
- A clear description of each product, including quantity, weight, and unit price
- The Harmonised System (HS) code for each item
- Total invoice value and the currency used
- Shipping terms (Incoterms), country of origin, and port of destination
Why customs needs a commercial invoice
Customs authorities, such as Indonesia's Directorate General of Customs and Excise (Direktorat Jenderal Bea dan Cukai, or Bea Cukai), rely on commercial invoices to assess the correct duties and taxes on imported goods. Without a valid commercial invoice, your shipment can be held at the border, delayed, or even refused entry.
The invoice also helps authorities verify that the goods match the declared description and value. This is different from a bill of lading, which acts as proof of ownership and a receipt for the shipped goods rather than a record of the sale itself.
What information goes on a commercial invoice?
A well-prepared commercial invoice covers five categories of information. Getting each one right helps your goods clear customs without unnecessary holdups.
- Seller information: your business name, address, tax ID (NPWP), customs registration number (NIK) if you are a registered exporter, and contact details
- Buyer information: the importer's full name, address, and any tax identification numbers required by their country
- Product details: a clear description of each item, including quantity, weight, HS code, and country of manufacture
- Financial information: the unit price and total value for each line item, the currency of the transaction, and any discounts or additional charges
- Shipping details: the Incoterms (such as FOB, CIF, or EXW), the port of loading, the port of destination, and the shipping method
Why accurate information matters
Errors or missing details on a commercial invoice can lead to customs delays, additional inspections, or even fines. If the declared value does not match the actual goods, authorities may hold your shipment while they investigate.
Accurate invoices also protect your business financially. When the details are correct from the start, you are less likely to overpay on duties or face disputes with your buyer about what was shipped and at what cost.
Commercial invoices for import and export in Indonesia
In Indonesia, the commercial invoice sits at the centre of customs clearance. Bea Cukai (the Directorate General of Customs and Excise), which operates under the Ministry of Finance, uses it to set the customs value (nilai pabean) of your goods, usually on a cost, insurance and freight (CIF) basis. That value is the starting point for calculating import duty (bea masuk) and import taxes (PDRI), such as value-added tax (PPN) and import income tax (PPh Pasal 22).
The commercial invoice is also a required supporting document for your customs declaration. Exporters file an export declaration (Pemberitahuan Ekspor Barang, or PEB) and importers file an import declaration (Pemberitahuan Impor Barang, or PIB), both lodged electronically through the customs CEISA system or the Indonesia National Single Window. To keep those declarations moving, your invoice should line up with the details Bea Cukai expects:
- Business identifiers: your tax ID (NPWP) and, for registered traders, your customs registration number (NIK, or Nomor Identitas Kepabeanan). This customs NIK is issued by Bea Cukai and is not the personal population ID that shares the same abbreviation.
- HS codes: Indonesia classifies goods under the Buku Tarif Kepabeanan Indonesia (BTKI), which extends the international Harmonised System to 10 digits and determines the duty rate for each item.
- Incoterms and value: state the agreed Incoterms clearly, since Bea Cukai assesses customs value on a CIF basis and an invoice quoted FOB needs adjusting before submission.
Because the same invoice feeds both your customs declaration and your tax records, accuracy here protects you on two fronts at once.
How to create a commercial invoice
Follow these five steps to produce a clear, compliant commercial invoice for your next international shipment, and treat it as one part of your wider invoicing process.
Step 1: Gather required information
Before you start filling in the invoice, collect all the details you will need. This includes your buyer's full name and address, a detailed description of the goods, HS codes, unit prices, and the agreed shipping terms (Incoterms).
Having everything ready upfront saves time and reduces the chance of errors. Check with your freight forwarder or customs broker if you are unsure about specific requirements for your destination country.
Step 2: Choose your format
You can create a commercial invoice using accounting software, a spreadsheet template, or a dedicated trade document tool. Many businesses find that learning how to make an invoice in software keeps things consistent and reduces manual data entry.
Whatever format you choose, make sure it includes all the required fields and looks professional. A clear, well-organised invoice reflects well on your business.
Step 3: Complete the invoice
Fill in each section carefully. Start with the seller and buyer details, then list each product with its description, quantity, unit price, and HS code. Add the total value, currency, and shipping terms.
Double-check that the product descriptions are specific enough for customs officials to identify the goods. Vague descriptions like "electronics" or "clothing" can trigger delays.
Step 4: Review and verify
Before sending, review every detail on the invoice. Confirm that the values, quantities, and descriptions match your purchase order and packing list. Make sure the HS codes are correct for each item.
Getting invoices right the first time also supports faster payments and smoother customs clearance, because accurate, well-prepared documents give customs fewer reasons to hold your goods.
Step 5: Create copies
Prepare multiple copies of your commercial invoice. You will typically need at least three: one for yourself, one for the buyer, and one (or more) for customs at the origin and destination countries.
Keep your copies stored safely for your records. In Indonesia, you are generally required to keep customs and tax records for at least 10 years, under both the customs law (Pasal 51 ayat 3 UU Kepabeanan) and the tax law (Pasal 28 ayat 11 UU KUP). Check with Bea Cukai for current record-keeping requirements.
Common mistakes to avoid
Errors on a commercial invoice can lead to customs delays, fines, or shipment holds, and they often mean chasing overdue payments later. Watch out for these common mistakes.
- Using vague product descriptions: generic terms like "parts" or "samples" do not give customs enough information, so use specific descriptions that clearly identify each item
- Entering incorrect HS codes: using the wrong Harmonised System code can classify your goods incorrectly, leading to wrong duty rates or shipment holds
- Undervaluing goods: declaring a lower value than the actual transaction price is illegal and can result in penalties, seizure of goods, or both
- Leaving information incomplete: missing fields such as the buyer's address, Incoterms, or country of origin give customs a reason to delay your shipment
- Creating contradictions between documents: if your commercial invoice states one quantity but your packing list states another, customs may hold your goods until the discrepancy is resolved
Commercial invoice vs regular invoice
Both types of invoice record a transaction between a buyer and seller, but they serve different purposes and contain different information. Understanding the distinction helps you use the right document at the right time.
Here is how they compare:
- Purpose: a regular invoice requests payment for goods or services in a domestic transaction, while a commercial invoice acts as a customs declaration for goods crossing international borders
- Required information: a regular invoice typically includes the seller, buyer, items, and total amount, while a commercial invoice adds HS codes, country of origin, Incoterms, and other customs-specific details
- Use cases: you will use a regular invoice for everyday sales within Indonesia, while a commercial invoice is required whenever you export or import physical goods
- Legal requirements: Bea Cukai requires commercial invoices for customs clearance, while regular invoices are not submitted to customs authorities
You might also come across a proforma invoice, a preliminary document sent before a sale is finalised. It outlines the expected terms, prices, and goods but is not a binding request for payment. Once the sale goes ahead, you replace the proforma invoice with a formal commercial invoice for customs purposes.
Simplify your invoicing with Xero
Managing international invoicing alongside your day-to-day bookkeeping takes time. Xero's invoicing tools let you create, send, and track invoices from one place, with automated payment reminders and online payment options that help you stay on top of outstanding amounts.
Whether you are sending a commercial invoice to an overseas buyer or a regular invoice to a local customer, Xero helps keep your records organised and your cash flow visible. See how it works and get one month free.
FAQs on commercial invoices
Here are some frequently asked questions about commercial invoices.
Do I need a commercial invoice for every international shipment?
Yes, customs authorities require a commercial invoice for all cross-border shipments of physical goods. The main exception is documents or items with no commercial value, which may use a simplified declaration instead.
Who provides the commercial invoice?
The seller (exporter) is responsible for preparing and providing the commercial invoice. It travels with the shipping documents and is submitted to customs at both the origin and destination.
Can I make my own commercial invoice?
Yes, you can create your own commercial invoice using accounting software, a spreadsheet, or a template. Any format works, as long as your invoice includes all the information customs requires.
Do I need to include my NPWP or NIK on a commercial invoice?
Including your tax ID (NPWP) and, if you are a registered exporter, your customs registration number (NIK) helps identify your business to Bea Cukai and can speed up customs processing. These details also keep your invoice consistent with your PEB or PIB declaration.
Is a commercial invoice the same as a tax invoice (faktur pajak)?
No, they are different documents. A commercial invoice supports international trade and customs clearance, while a faktur pajak is issued for domestic value-added tax purposes in Indonesia.
What happens if my commercial invoice has errors?
Errors can lead to customs delays, additional inspections, incorrect duty charges, or fines. In serious cases, such as deliberate undervaluation, goods may be seized, so review your invoice carefully before shipping.
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.