Commercial Invoice – The Bill! 🧾
What is it? It is the Seller's Bill for the goods sold. It is the first document prepared by the exporter.
Why is it important?
- For Buyer: Tells him how much to pay.
- For Customs: Tells them the value of goods (to calculate Tax/Duty).
- For Banks: Proof that goods are sold.
Contents of a Commercial Invoice 📝
A good invoice must answer: Who, What, Where, How Much?
1. Seller & Buyer Details"Names & Addresses"
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2. Description of Goods"100 Laptops (Model X)"
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3. Price & Currency"$50,000 (USD)"
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4. Terms of Sale"CIF / FOB (Incoterms)"
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5. Shipping Marks"Box 1 of 100"
Proforma Invoice vs Commercial Invoice 🆚
- Proforma Invoice: A "Quotation" or "Draft". Sent before the sale to show the buyer what the final bill will look like. (Not a demand for payment).
- Commercial Invoice: The "Final Bill". Sent after the sale. (Demand for payment).
Customs Valuation
Customs officers look at the Commercial Invoice to catch "Under-Invoicing". If you sell a Ferrari for $500 to save tax, they will reject your invoice!
Quiz Time! 🎯
Test Your Knowledge
Question 1 of 5
1. Who prepares the Commercial Invoice?
💡 Final Wisdom: "An invoice is not just a request for money. It is a legal declaration of value. Lie on it, and you go to jail!" 👮♂️
Next up: Bill of Lading (B/L) - The document that proves you OWN the goods! 🚢