Commercial invoice for exports: the fields customs need

What a commercial invoice is for

A commercial invoice is the invoice that travels with goods across a border. It does the normal job of asking for payment, but it is also the main document customs use to value the shipment and calculate duty and import VAT.

It is different from a proforma invoice, which is a quote-like document sent before the sale, and from a packing list, which lists boxes and contents but not prices. Couriers usually ask for three copies or an electronic upload.

Parties and references

• Exporter (seller): legal name, full address, VAT number and EORI number.
• Importer (buyer) and consignee: if the goods go to a different address from the buyer, list both. Include the importer’s tax or EORI number where the destination asks for it.
• Invoice number and date, plus the buyer’s order number if they gave one.
• Transport details: carrier, airway bill or tracking number, port or airport of loading and of discharge, when known.

An EORI number identifies a business to customs. In the UK you need one starting with GB to move goods into or out of Great Britain, and applying through GOV.UK is free. In the EU an EORI is mandatory for customs clearance, and each business holds one valid EORI at a time, issued by the member state where it is established.

Describing the goods: HS code, origin, quantity

Each line should say exactly what the item is, not just a product name. “Men’s cotton T-shirts, knitted, 100% cotton” is useful. “Apparel” or “samples” is not, and vague wording is a common reason for delays.

• HS code (commodity code). The first 6 digits are shared worldwide. The UK and EU use longer codes for exports and imports, and the US uses a 10-digit HTS code on import. Look up the code in the destination country’s tariff if you can.
• Country of origin. Where the goods were made or last substantially transformed, not where you shipped them from. This drives duty rates and preference claims under trade agreements.
• Quantity and unit (pieces, kg, litres).
• Unit price, line total and currency. State the currency code, for example GBP, EUR or USD.

If you claim preferential origin under a trade agreement such as the UK–EU Trade and Cooperation Agreement, the exact origin statement wording is set by that agreement. Copy it from the official text rather than paraphrasing.

Incoterms 2020: who pays for what

Incoterms are eleven three-letter rules published by the International Chamber of Commerce. Incoterms 2020 came into force on 1 January 2020 and is still the current edition. Write the rule, the version and a named place, for example “FCA Felixstowe, Incoterms 2020”.

The Incoterm matters for value: under CIF the invoice price includes freight and insurance, under EXW it does not. Customs may adjust the value either way, so show freight and insurance as separate lines where you charge them.

Weights, packages and the reason for export

• Net weight (goods only) and gross weight (with packaging), per line or in total.
• Number of packages and their type, for example “4 cartons, 1 pallet”.
• Reason for export: sale, sample, repair, return, gift. Couriers ask for this on every shipment.
• A declaration and signature, for example “I declare that the information on this invoice is true and correct.” Not every country requires a signature, but couriers often do.

UK, EU and US differences

UK. Since Brexit, goods between Great Britain and the EU need full customs paperwork. Exports are usually zero-rated for VAT if you keep proof of export, so the invoice shows 0% VAT with a note such as “Zero-rated export”. You need a GB EORI. Northern Ireland trade has its own rules and an XI EORI.

EU. Exports out of the EU are generally exempt from VAT with proof that the goods left. Within the EU there is no customs declaration, so you do not need a commercial invoice for customs between member states, only a normal VAT invoice, but you do between the EU and the UK, Switzerland or Norway.

US. US Customs and Border Protection rules for invoice contents are in 19 CFR 141.86. They include the port of entry, a detailed description, quantities, purchase price and currency, charges such as freight and insurance, and the country of origin. The invoice must be in English or come with an English translation. Some goods, such as textiles, have extra requirements.

A quick example

A UK maker ships 200 ceramic mugs to a shop in Lyon on FCA terms.

• Exporter: Northfield Pottery Ltd, GB EORI on the invoice.
• Importer: a French SARL, with its EU EORI and VAT number.
• Line: “Stoneware mugs, glazed, 350 ml”, HS code in the 6912 heading, origin United Kingdom, 200 pcs at £6.50 = £1,300.00.
• Incoterms: FCA Stoke-on-Trent, Incoterms 2020.
• VAT: 0%, zero-rated export.
• Packages: 5 cartons, net 70 kg, gross 78 kg. Reason: sale.

Under FCA the French buyer pays import VAT and any duty. If the mugs qualify as UK-origin under the trade agreement, the invoice can carry the origin statement so the buyer can claim zero duty.

Common mistakes that hold shipments

• Undervaluing goods. Writing a low value to save the buyer duty is customs fraud, and customs can and do re-value shipments. Use the real transaction price.
• Vague descriptions. “Parts”, “accessories” or “gift” give customs nothing to classify. Say what the item is made of and what it does.
• Missing currency. “1,300” without GBP, EUR or USD is ambiguous on a cross-border document.
• Origin confused with dispatch country. Chinese-made goods shipped from a UK warehouse are still of Chinese origin.
• No Incoterm, or no named place. “DAP” alone does not tell anyone where delivery happens.
• Different values on different documents. The commercial invoice, the courier’s declaration and the packing list must agree.

Most courier delays come from one of these. A careful two-minute check before booking the collection saves days at the border.

Producing the invoice

Start from the commercial invoice template. Invoiceferry lets you set a custom title, a per-line tax rate (0% for exports), shipping as a separate line and any currency, and you can put the HS code, origin and weights in the item descriptions and notes. Print it to PDF and send copies to the buyer and courier.

If something changes after dispatch, issue a credit note or debit note and tell your forwarder.

Related tools and articles

• How to invoice international clientsInvoicing clients abroad: choosing a currency, VAT and reverse charge, what to include, getting paid across borders, and a worked example.
• Credit note vs debit note: what is the difference?Credit note vs debit note: what each one is, when to issue it, what to include, and how UK and EU VAT rules expect you to reference the original invoice.
• Commercial invoiceThe invoice customs read first.