Commercial Invoice

Content of the Commercial Invoice  

Although there is no standard format exist for commercial invoices a commercial invoice to be used in an international trade transaction should cover below points;

  • Name of the Exporter, address and contact details. : "consignor"
  • Name of the Importer, address and contact details : "consignee"
  • Title of the document, commercial invoice number, commercial invoice date : "Commercial Invoice Date : 26.June.2012", "Commercial Invoice No : CI26062012"
  • Definition of goods : "Crushing and Screening Machine" etc...
  • Delivery term : "FAS ANTWERP PORT, Incoterms 2010", "FOB PORT OF SINGAPORE, Incoterms 2000" etc...
  • Quantity, Unit Price, Currency Code, Total Price : "10Mtons of "Titanium Dioxide Rutile" from 3.000USD per Mton, Total Amount is 30.000,00USD CIF HAMBURG PORT, Incoterms 2010."
  • Payment Terms : "Irrevocable Letter of Credit payable at 30 Days from Bill of Lading Date", "Cash Against Documents at Sight" etc...
  • Delivery Period : "4 weeks after confirmation", "5 weeks after issuance of the letter of credit"
  • Bank account details of the exporter and all other additional conditions regarding the sales.
  • Insurance coverage and cost (if applicable)
  • Shipping charges (if applicable)
  • Signature and stamp (not required under letter of credit rules but it is asked by most of the custom authorities and government institutions.)

Commercial Invoices in Letters of Credit Transactions :

  • A letter of credit requiring an “invoice” without further definition will be satisfied by any type of invoice presented such as commercial invoice, customs invoice, tax invoice, final invoice, consular invoice, etc. But invoices identified as “provisional”, “pro-forma” or the like are not acceptable under letters of credit rules and standard banking practices.
  • When a credit requires presentation of a commercial invoice, a document titled “invoice” will be acceptable. 
  • The description of the goods, services or performance in the invoice must correspond with the description in the letter of credit text.
  • The description of goods, services or performance in an invoice must reflect what has actually been shipped or provided.
  • An invoice must evidence the value of the goods shipped or services or performance provided. 
  • Unit price(s), if any, and currency shown in the invoice must agree with that shown in the credit. 
  • The invoice must show any discounts or deductions required in the credit.
  • The invoice may also show a deduction covering advance payment, discount, etc., not stated in the credit. (with this article letters of credit rules allow mixed payments under letter of credit payments. For example %25 advance payments outside letter of credit and %75 payable by at sight letter of credit is possible)
  • If a trade term is part of the goods description in the credit, or stated in connection with the amount, the invoice must state the trade term specified, and if the description provides the source of the trade term, the same source must be identified (e.g., a credit term “CIF Hamburg Port Incoterms 2000” would not be satisfied by “CIF CIF Hamburg Port Incoterms”). Charges and costs must be included within the value shown against the stated trade term in the credit and invoice. Any charges and costs shown beyond this value are not allowed.
  • The quantity of merchandise, weights and measurements shown on the invoice must not conflict with the same quantities appearing on other documents.

Special Hints on Commercial Invoices for Letters of Credit Transactions :

  • Although it is not required by letter of credit rules please do not forget to sign and stamp commercial invoices that you need to present under letter of credit transactions. Signature and stamp on the commercial invoices are asked by most of the custom authorities and government institutions.
  • Please pay attention to your company name indicated on the letter of credit text correctly. If your company name is written mistakenly contact with your customer and have it corrected.
  • Please make sure that description on the commercial invoice is matching with the description stated on the letter of credit text.
  • Do not write additional product names to the invoice which are not mentioned on the letter of credit rules even if you give them free of charge.

Commercial Invoice Sample for Letters of Credit Transactions

You can reach a sample commercial invoice in Microsoft Excel (xls) document here very soon. 

letterofcredit.biz is your gateway to International Trade Finance World designed & developed by a Certified Documentary Credit Specialist.
What is commercial invoice? How can we use a commercial invoice in a letter of credit transaction? 
Commercial invoice is a commercial document which is used mostly in international trade transactions. It is a commercial document required by customs to determine true value of the imported goods, for assessment of duties and taxes. 

Letter of Credit | About Us | Our Services | Contact | CDCS | Certified Documentary Credit Specialist |© 2009-2010 Letter of Credit Consultancy Services. All rights reserved. Best view with 1024 X 768 resolution. Privacy Policy |
Hi, my name is "Ozgur Eker" (CDCS). You can connect with me either via my contact form or Google Plus.

  • commercial invoice cif l/c
  • letter of credit commercial invoice
  • commercial invoice for letter of credit template excel
  • commercial invoice sample for letters of credit transactions
  • examples of a commercial invoice free of charge for a letter of credit
  • sample commercial invoice for letter of credit