Commercial Invoice The commercial invoice is considered to be the most important international trade document and should be prepared

as accurately as possible. It is the main document used by customs to accept or reject the customs entry prepared by the customs broker. Even with a sample shipment, a commercial invoice is required, and needs to state the fact that the goods are not for resale - are samples only - and have little commercial value. This is the basic document in an export transaction. It contains all the information which is required for the preparation of all other documents. It is, thus, a document of content. It gives the description of the goods, Harmonized Systems nomenclature (HSN), price charged, terms of shipment and the marks and numbers on the packages containing the merchandise. The date name and address of both buyer and seller, name of the shipping vessel and the port of destination should also be specified. There is no standard firm of commercial invoice. The exporter has to design the invoice form to be used. Some countries, prescribe their own forms. In such cases, the exporter has necessarily to use the form prescribed by the importing country. The description of the merchandise in the commercial invoice must correspond exactly to the description in the letter of credit. Unless the letter of credit specifically states otherwise, generic description of merchandise is usually acceptable in the other documents. It is preferable however that merchandise description in all documents corresponds to the description in the letter of credit. Marks and numbers on the commercial invoice, insurance documents, bill of lading lists must correspond. The commercial invoice should reflect the exact nature and terms of the agreement that exist between the buyer and the seller. Most duties are applied at an Ad Valorem rate, which are on the value of the goods upon their arrival, usually CIF, Cost Insurance and Freight. The invoice would be totaled to that amount and the duties paid accordingly, so it is key in most customs clearances. Often, the commercial invoice will be prepared by the seller and totaled to the desired trade term, then depending on the method of payment, submitted through banking channels or sent directly to the importer for payment. These arrangements need to be agreed upon between the seller and the freight forwarder prior to shipping the goods. Although there is no standard form for a commercial invoice, the following information should be included:

Sellers name and address Buyers name and address Exact description of goods (kind, grade, quality, weight) Agreed-upon price in U.S. dollars (in order to reduce foreign exchange risk) Description of packages (number, kind, markings, dimensions) Type of container Delivery point Terms of payment

Date and place of shipment Method of shipment Signature of shipper/seller

2.1 Types of invoice The most important form which the exporter has to prepare is the invoice; an invoice must accompany every shipment even if the goods are being supplied free of charge. The invoice is the basic document used in export, and every other document draws upon the information that appears on the invoice. The purpose is to confirm to the purchaser the terms of the transaction. There are several different types of invoice:(a) commercial invoice;(b) proforma invoice;(c) commercial invoice with declaration;(d) certified invoice;(e) legalised invoice;(f) consular invoice. 2.2 Commercial invoice The most critical document in the export process, the commercial invoice links the contract of sale between the buyer and seller and gives details of the goods being purchased. It is issued by the exporter. An example of a commercial invoice is shown in 2.3 Proforma invoice Proforma invoices are prepared by the exporter and may be needed by the importer for quotation purposes, to draw up a letter of credit or to apply for the foreign exchange to pay for the goods. This applies to markets with exchange controls, particularly in Africa and South America. The invoice is sent in advance of the goods, but does not differ from a standard commercial invoice. 2.4 Commercial invoice with declaration Certain countries may require a specific declaration to be included on the invoice in order to comply with certain import regulations in the country of destination. 2.5 Certified invoice Some countries require certified invoices, particularly when goods are being shipped against letter of credit (see , Methods of export payment). These are invoices which are certified by a Chamber of Commerce before goods are despatched. Exporters present the invoice to the IEA or a Chamber of Commerce, and they then stamp the document. The exporter lodges authorised signatures with the IEA or the local chambers who verify the signature before stamping the document. 2.6 Legalised invoice

Occasionally, customs in the Middle East, require invoices to be both certified and legalised. After certification, invoices have to be presented to the embassy of the destination country for legalisation. This involves presentation of the certified invoices to the embassy who then attach their stamp to the documents. Points to remember when presenting legalised invoices are: (a) Allow sufficient time for presentation as goods should not be despatched before the invoices are legalised. Legalisation can take between five and seven working days depending on the embassy concerned, and whether or not there is an embassy in Dublin. (b) Embassies charge for legalisation either a flat fee or a percentage of the value of the transaction. 2.7 Consular invoice These are particularly common in South America. The details of the invoice are transferred onto a standard form prepared by the country of destination. The precise format of a consular invoice depends on the country of destination. All details and supporting paperwork should be submitted to the countrys commercial section prior to the despatch of the goods. (In some cases, the exporters invoice is stamped and signed by the Consul of the importing county.) It is particularly important to: (a) allow sufficient time for the procedure to be completed usually several days; (b) make an allowance in the quotation for consular fees which are often based on the value of the consignment. A consular invoice is usually needed in addition to a normal commercial invoice. 2.8 Signed original invoices Signed original invoices are occasionally sought by foreign countries. This means that each individual invoice has to be signed; even if the invoice is a photocopy, it must still have an individual original signature. As most printed invoices are in black ink, it is advisable to use blue ink for signing when an original signature is required.