How to Make Commercial Invoice – Free Template Included
Commercial invoices are used primarily for international shipping, so you must get along with them before sending anything abroad. It often needs clarification on what documents to include so your package will reach its destination without problems. In this article, we’ll explain all the details regarding the shipping process and export documentation and make everything smooth for the shipping company.
Commercial Invoice – Your Best Friend for International Shipping
What is a Commercial Invoice?
A commercial invoice is a shipping document necessary for the import and export clearance process. In the buyer’s country, it’s used by customs officials to assess taxes and import duties. A properly prepared and filled commercial invoice speeds up the process, as customs authorities know exactly what taxes to put on your package.
Death and taxes are the only certain things in your life, so there’s no point in noodling around; you’ll only delay your package and still pay the taxes. The good news is this doesn’t apply to countries within the EU. You don’t need any special invoice unless the country you’re sending the package to isn’t part of the EU customs territory.
Keep in mind that some international shipments require a customs declaration. These are known as CN22, CN23, a CP71 dispatch note, and a Certificate of Origin (CO). We will discuss them below.
Benefits of Using an Invoice Template
Using one template for every package is far more convenient than producing a new document each time you need an invoice. Here are the benefits of using such a template:
- Unification. You’ll use the same template every time but with different details.
- Professional look. Simple, clean, and easy to read. Packages with properly filled templates will cross the border faster.
- Time saver. Fill in the details, print, and send. Rinse and repeat.
- Accuracy. You don't have to worry about missing information that may result in your shipment being held up at customs.
The Difference Between Commercial Invoice and a CN22/23 Forms
Sending a package outside the EU requires several documents. These documents may vary depending on where you are sending the package. Unifying those regulations would make everything a lot easier, but it is what it is, so no wonder people are confused.
In short, both documents give customs authorities the necessary information on what packages are entering and leaving the country. However, they shouldn’t be mixed up as they’re completely different documents. First, let’s discuss what each document involves.
CN22 and CN23
These forms are mandatory customs for shipments going outside the EU. Postal companies use them, and the type of document is determined by the value and weight of the package. It contains package content information, which is used to specify whether you must pay the tax or not. A CN23 form must include a CP71 dispatch note.
Commercial Invoice
While CN22 and CN23 documents are not always necessary, the commercial invoice is a must-have export document added to all commercial shipments outside the EU countries. It contains all information about the contents of the package and additional agreements, such as who pays the customs costs.
Based on this document, customs authorities decide whether import duties must be paid. So what’s the difference between commercial invoices and CN documents? The idea behind them is the same, but CN22 and CN23 provide additional information that determines if the package can enter the country and what taxes to impose.
When to Include a CN22 or CN23 Form?
You must include one of the following forms if sending a package outside the EU. The Universal Postal Union uses the CN22 and CN23 documents, so you can’t skip them. Of course, a commercial invoice is also required. There is an exception, though.
If you use the services of carriers such as DPD or DHL instead of postal services, therefore CN22 and CN23 forms are not required. In summary, a commercial invoice is always required with e-commerce shipments, but if you send packages via postal services, CN22 and CN23 documents are mandatory. However, you can always add both documents to ensure there won’t be any delays.
Paperless Trades via UPS or DHL Express
Carriers are well aware of the annoying paperwork clients must fill out. Therefore, some companies offer the “Paperless Trade” option. It simply sends custom forms to the carrier electronically. It means that all necessary documents are sent immediately, and you don’t have to worry about them. So, if you’re shipping outside the EU, consider using DHL Express or UPS for your own convenience.
Commercial Invoice Templates
International shipping is getting easier than ever, but we understand that paperwork is usually the hardest. You have to spend some time filling out all the necessary credentials, but it’s nothing complicated.
However, if you’re worried your invoice won’t be properly completed, you can check the glossary below. Most of these templates are in Excel or Word formats, so you need a proper Office suite to use them. At RoyalCDKeys, you can buy Microsoft Office 2021 Professional Plus Key Retail Global for less than $12, which is a bargain. And you’re getting an entire package for the price.
Template #1 – Pro Forma Invoice
The “Pro forma” means that this invoice should be delivered to a client before a transaction is finalized. It lists all the items and the total value of the shipment prior to reaching the customer.
Download:
Template #2 – Blank Commercial Invoice
An all-purpose invoice that can be easily customized to fit within the company shipping the goods. If you need a simple all-rounder, this template is for you. It’s in docx. format, so you can easily make the necessary changes.
Download:
Template #3 – FedEx Proforma Invoice
Use this template if you’re shipping with Federal Express (known as FedEx). It must be filled out, printed, and included on every package you send. This one is in PDF only but can be easily edited even from the browser.
Download:
Template #4 – UPS Commercial Invoice
An obligatory template for every package that is sent outside the United States. Use this ONLY if you’re shipping with UPS.
Download:
Template #5 – DHL Pro Forma Invoice
Use this template if you’re using DHL as your carrier. They require more details than other carriers, but it speeds up the process, and the customs agent will quickly deduce the package is safe and secure.
Download:
Commercial Invoice Terms
Having a commercial invoice template is one thing, but filling it properly is a different story. Follow our glossary if you have any doubts, as we included the description of the most common terms found here. Commercial invoices are written in English ONLY.
- From. Who’s sending the package.
- To. To whom you’re sending the package.
- Intermediate Consignee. If the package is addressed to an intermediary, fill in the details here.
- Date. When you sent the package.
- Invoice Number. Your invoice number.
- Customer PO No. Order number or reference of your sale.
- Currency Used. Dollars, Euros, etc.
- Country of Origin. Where your product comes from.
- Reason for Export. Tick what’s applicable.
- B/L/AWB/No. This refers to the transport document. Carriers are responsible for filling this one.
- Final Destination. Where your package heads to.
- Export Route/Carrier. Shipping company name or the route your package will take.
- Terms of Sale. Also known as Incoterms.
- Terms of Payment. For example, direct deposit or payment within 30 days of receipt.
- Terms of Freight. Also known as Freight Conditions. These can also be put in Terms of Sale or Incoterms.
- No. of Packages. How many packages you are sending.
- Comments. Usually, your shipping or delivery instructions, you can leave it blank.
- Contents. What you are sending.
- HS Code. Also known as commodity code.
- Value. Price per product.
- Net Quantity. A total number of products.
- Weight KG. Total weight of your package.
- Freight. Put shipping costs here.
- Insurance. Put insurance costs here.
- Date and signature. Your name, signature, and date. Without this data, your package can’t be sent.
Add Commercial Invoice to Your Shipment
You need three copies of your commercial invoice. One for your country, one for the country you’re shipping to, and one for the recipient. The first two have to be in the packing list envelope on the outside of the package, and the last one inside it.
Your package also has to meet certain requirements:
- Make it sturdy enough to withstand a fall from 1.5 meters.
- Fill the package with padding material like polystyrene or foam. You can also use paper but not newspapers due to censorship rules.
- Reinforce the corners of the box with tape.
Lastly, always double-check commercial invoices and any CN22 or CN23 documents. A major mistake in one of the documents may result in high customs fees.
And that’s it, everything you need to know when sending packages internationally. Good luck!