Commercial invoice

Definition and role

The commercial invoice is the foundational document of any international trade transaction. It constitutes proof of sale and serves as the basis for:

• Customs value determination (basis for calculating duties and taxes)
• Tariff classification of goods
• Verification of product origin
• Accounting for the operation

Mandatory particulars

To be accepted by customs, the commercial invoice must include:

• Date of issue and invoice number
• Full identity of seller and buyer (name, address, EORI number where applicable)
• Precise description of goods (commercial designation, characteristics)
• Quantities (number of items, net and gross weight)
• Unit price and total amount in the agreed currency
• Terms of sale: Incoterm used and agreed place
• Payment terms
• Country of origin of goods

Customs value

Under UCC Article 70, the customs value is primarily based on the transaction value (price actually paid or payable). The commercial invoice must faithfully reflect the transaction conditions. Adjustments may be necessary (UCC Article 71) for commissions, licence royalties, and transport costs to the EU entry point.

Key watch points

• Any under-invoicing or false declaration of value constitutes a serious customs offence
• The invoice must be consistent with other documents (packing list, B/L, certificate of origin)
• In case of related parties (seller and buyer belonging to the same group), the transaction value may be challenged by customs