What is a commercial invoice?

Published Monday 22 June 2026

Table of contents

• What is a commercial invoice?
• What information goes on a commercial invoice?
• How to create a commercial invoice
• Commercial invoice vs other shipping documents
• Manage your international invoicing with Xero
• FAQs on commercial invoices

Key takeaways

• A commercial invoice is a customs document required for international shipping that declares the contents, value, and terms of a shipment.
• It must include seller and buyer details, product descriptions with Harmonized System (HS) codes, financial information, and shipping terms like Incoterms.
• Accurate commercial invoices help you avoid customs delays, fines, and shipment seizures at the border.
• Commercial invoices differ from regular invoices, pro forma invoices, and packing lists in purpose and required detail.

What is a commercial invoice?

A commercial invoice is a customs document used in international shipping to declare the contents, value, and terms of a shipment. It serves as proof of sale between the exporter and importer, and customs authorities use it to calculate import duties, taxes, and tariffs.

You'll need a commercial invoice any time you ship commercial goods across international borders. Without one, your shipment can't clear customs. Personal gifts and small parcels may use simplified customs forms like CN22 or CN23 instead, but any goods shipped for sale require a full commercial invoice.

If your commercial invoice is missing, incomplete, or inaccurate, your shipment could face delays, additional inspections, fines, or even seizure by customs authorities. Getting it right from the start saves you time, money, and frustration.

What information goes on a commercial invoice?

A commercial invoice includes all the details customs authorities need to process your shipment, calculate duties, and verify compliance. Each section of the invoice plays a specific role in getting your goods across the border without delays.

Start with the details about who's involved in the transaction and what's being shipped.

• Seller (exporter) information: your business name, address, phone number, email, and tax identification number. Customs may contact you if questions arise about the shipment.
• Buyer (importer) information: the recipient's name, delivery address, contact details, and any import license number. This helps authorities verify that the goods are going to a legitimate importer.
• Consignee details: if the consignee differs from the buyer, include their name and address separately. The consignee is the party who receives the goods at the destination.
• Product details: detailed descriptions of each item, including quantity, weight, unit price, and country of origin. Label each product clearly so customs can classify it accurately.
• Harmonized System (HS) codes: every product needs an HS code for customs classification. The international standard uses 6 digits, but US customs requires a 10-digit code from the Harmonized Tariff Schedule of the United States (HTSUS), also called Schedule B for exports. You can look up the correct code through the US Census Bureau or the US International Trade Commission.

You'll also need to include the financial and shipping terms for the transaction.

• Financial information: total shipment value, currency, payment method, and any discounts. Customs uses these figures to calculate duties and taxes.
• Incoterms: these are standardized trade terms from the International Chamber of Commerce that define who pays for shipping, insurance, and customs duties. Common Incoterms 2020 terms include FOB (Free on Board, where the buyer takes responsibility once goods are loaded onto the ship), CIF (Cost, Insurance, and Freight, where the seller covers shipping and insurance to the destination port), and DAP (Delivered at Place, where the seller delivers goods to an agreed location). Always specify which Incoterm applies to your shipment.
• Shipping details: shipping date, method of transport, port of departure, port of arrival, and any insurance or freight charges.
• Marks and numbers: any identifying marks, numbers, or symbols on the packaging that help match your goods to the invoice during inspection.

Most customs authorities require 3 signed original copies of the commercial invoice: 1 for the exporter's records, 1 for the importer, and 1 for customs. Some countries may require additional copies, so check the destination country's requirements before shipping.

How to create a commercial invoice

Creating a commercial invoice is straightforward once you know what information to include. Follow these 5 steps to make sure your invoice meets customs requirements and keeps your shipment moving.

Step 1: Gather required information

Before you start filling in the invoice, collect all the details you'll need. This includes product descriptions, quantities, unit prices, total values, HS codes, and the country of origin for each item.

You'll also need your business details, the buyer's information, the consignee's details (if different from the buyer), the shipping method, insurance costs, and any additional handling charges. Having everything ready upfront helps you avoid errors and missing fields.

Step 2: Choose your format

There are several ways to format a commercial invoice depending on your business needs.

• Accounting software: platforms like Xero offer invoice templates designed for international shipping, so you can fill in the required fields without starting from scratch.
• Shipping carrier templates: FedEx, UPS, and DHL provide downloadable commercial invoice templates on their websites.
• Custom format: you can create your own invoice using a spreadsheet or document, as long as it includes all the required fields listed above. Download a free invoice template to get started.

You can also download a free commercial invoice template to help you get started. Whichever format you choose, make sure it looks professional and is easy for customs officials to read.

Step 3: Complete the invoice

Fill in your commercial invoice with all the details you gathered in step 1.

• Label the document clearly as "Commercial Invoice" in the header.
• Assign a unique invoice number for tracking purposes.
• Use the shipment date, not the sale date, so customs records match your shipping timeline.
• Include complete seller, buyer, consignee, product, financial, and shipping information.
• Double-check that HS codes and Incoterms are correct for each item and shipment.

Step 4: Review and verify

Go through every field before you finalize the invoice. Confirm that product descriptions match what you're actually shipping, prices are correct, HS codes are accurate, and Incoterms reflect your agreed terms with the buyer.

Even small errors can trigger customs delays, additional inspections, or fines. A thorough review protects you from unexpected costs and keeps your shipment on schedule.

Step 5: Create copies and attach to your shipment

Print at least 3 signed original copies of the commercial invoice. Keep 1 copy for your own records, provide 1 to the importer, and include 1 with the shipment for customs.

Place the customs copy in a clear shipping envelope attached to the outside of the package, so customs officials can access it without opening the shipment. If your shipping carrier or freight forwarder supports electronic submission, upload a digital copy as well. Many carriers now accept electronic commercial invoices alongside physical copies.

Commercial invoice vs other shipping documents

International shipping involves several different documents, and it's easy to confuse them. Understanding the differences helps you use the right document at the right time and avoid compliance issues.

Commercial invoice vs regular invoice

A regular invoice is a payment request you send to a customer for goods or services. It focuses on billing details like payment terms, due dates, and tax amounts. You use it for domestic transactions and internal record-keeping.

A commercial invoice is a customs document required for international shipments. It includes everything a regular invoice has, plus customs-specific details like HS codes, country of origin, Incoterms, and shipping method. US Customs and Border Protection (CBP) coordinates with multiple federal agencies to process imports and enforce trade compliance, so your commercial invoice needs to meet their standards.

Commercial invoice vs pro forma invoice

A pro forma invoice is a preliminary estimate you send to the buyer before a sale is finalized. It outlines the expected products, quantities, prices, and shipping terms so the buyer can arrange financing, apply for import licenses, or get approval from their government.

A pro forma invoice isn't a binding document and can't be used for customs clearance. Once the sale is confirmed and the goods are ready to ship, you replace it with a commercial invoice that reflects the actual transaction details. If the final quantities, prices, or terms change from the pro forma, the commercial invoice must reflect those updated figures.

Commercial invoice vs packing list

A packing list describes the physical contents of each package in a shipment. It includes details like the number of boxes, dimensions, weight, and how items are packed. Customs officials use it to verify that the physical shipment matches the paperwork.

A commercial invoice covers the financial and regulatory side: the value of goods, payment terms, HS codes, and Incoterms. You'll typically need both documents for an international shipment. The packing list helps with inspections and logistics, while the commercial invoice handles duties, taxes, and compliance.

Some countries also require a customs invoice, which is a country-specific form with additional details. Canada and Australia, for example, have their own customs invoice requirements. Check the destination country's regulations before shipping to make sure you have all the documents you need.

Manage your international invoicing with Xero

Keeping your international invoicing organized doesn't have to be complicated. With the right tools, you can create professional invoices, track payments across currencies, and keep your records in order for tax time.

Xero's cloud-based accounting software helps you manage invoicing from anywhere. You can set up invoice templates, send automated payment reminders, and track multi-currency transactions in real time. That means less time on paperwork and more time focused on growing your international business. Get one month free.

FAQs on commercial invoices

Here are some frequently asked questions about commercial invoices and how they work in international trade.

Is a commercial invoice needed for shipping digital goods or services?

Generally, no. Commercial invoices apply to physical goods crossing borders. Digital products and services delivered electronically don't go through customs, so they don't require a commercial invoice; a standard sales invoice is sufficient.

How long should I keep commercial invoice records?

US Customs and Border Protection requires importers and exporters to keep all customs-related records for at least 5 years from the date of entry. Store both physical and digital copies so you're covered in the event of an audit.

Does a commercial invoice need to be signed?

Most customs authorities require the exporter's signature on the commercial invoice to certify its accuracy. Some countries also require the signature to be notarized or certified by a chamber of commerce.

Can I correct a commercial invoice after my shipment has left?

Yes, but you'll need to issue an amended or corrected invoice and notify your customs broker or freight forwarder immediately. Delays in correcting errors can result in holds, fines, or reclassification at the destination port.

What currency should I use on a commercial invoice?

Use the currency agreed upon in your sales contract with the buyer. If you're invoicing in a foreign currency, include the exchange rate or note the equivalent value in US dollars so customs can calculate duties accurately.

What is the US de minimis threshold for commercial invoices?

Shipments valued at $800 or less entering the US may qualify for de minimis clearance, which means reduced customs processing. You'll still need accurate documentation, but the duty and tax requirements are simplified for qualifying low-value shipments.