Commercial Invoice Checks - why are these so important?

Commercial Invoice Checks - why are these so important?

Overview

When it comes to shipping goods to international clients, there are standard document requirements used for exporting. One of the most important ones you’ll need to issue is a commercial invoice. Unlike a regular sales invoice, a commercial invoice includes all of the necessary extra details for crossing the border, such as country of origin, harmonized system (HS) code, freights terms, etc. 

In this guide, we will explain what a commercial invoice is, and what checks we request that you carry out in instances where CIs are issued, prior to us shipping these and the goods leaving our facilities. 

What is a Commercial Invoice? 

A commercial invoice is a document that serves as a request for payment, for goods sold internationally.

This special export document is required by customs, the authority responsible for controlling imports. They need the commercial invoice to quickly decide what taxes, tariffs, or duties apply to the package and prevent any hold-ups.

Is a Commercial Invoice always required? 

No, a commercial invoice isn’t required everywhere -  the document is only necessary for shipments across international borders.


For our UK Warehouses, any orders being sent outside of the UK, including ROI, will need a CI. 
For our NL Warehouse, any orders being sent outside of the EU, will need a CI. Further to this, any orders being sent to a country outside of the Schengen Area (Norway, Iceland, Switzerland, and Liechtenstein), will also require a CI to be provided too. 

In instances where your shipments require a CI, your dedicated CSR will be in touch. We will attach the CI that has been generated and will require you to review the document and sign that you are happy that all the information provided within the CI, are accurate and correct. 


Why do I need to check the Commercial Invoice that has been generated? 

To ensure smooth processing of your international shipments, we will require the generated a Commercial Invoice (CI), to be reviewed. This document is crucial for customs clearance, and we kindly request that you carefully check the following details to avoid any potential delays, additional costs, or fines:

Key Information to Review on the Commercial Invoice:

  1. Invoice Number & Date: Ensure that the invoice number and the date of issuance are correct.
  2. Shipping Information:
    • Ship From: Verify the details of the sender, including the company name, address, and EORI/VAT numbers.
    • Ship To: Ensure the recipients details, such as company name, address (Country check is also important here), and contact information, are correct. Any mistakes could result in shipment delays or customs issues.
  3. SKU and Product Descriptions:
    • Ensure the SKU codes and product descriptions (name, model, size, etc.) are accurate. Customs authorities rely on this information to identify the goods.
    • Check that the Country of Origin and HS Code (Harmonized System Code) for each item are correct, as this impacts duties and taxes.
  4. Quantity & Pricing:
    • Verify the quantities of each item.
    • Confirm that the unit price and total line price for each item match your records. Incorrect pricing could lead to inaccurate duty calculations.
  5. Weights and Dimensions:
    • Review the unit net and gross weight for each item, as discrepancies could cause customs clearance issues.
  6. Incoterms:
    • Check the Incoterms (currently set to DDU Delivered Duty Unpaid), which outline who is responsible for shipping costs, insurance, and duties. Miscommunication here can lead to unexpected costs.
  7. Total Invoice Value:
    • Confirm that the total invoice amount, including any discounts, is accurate. This amount is used by customs to calculate duties and taxes.

Why Is This Important?

Customs authorities use the information provided on the CI to process your shipment. Accurate documentation is essential to avoid any potential issues with your shipment. and if any of the details are incorrect, it could lead to:

  • Shipment delays or seizures.
  • Additional customs duties, fines, or penalties.
  • Increased administrative costs to resolve errors.

What are the next steps? 

Once you have checked the Commercial Invoice (CI) and are happy that all of the information is correct, please sign the CI and return this to your CSR at the earliest opportunity. This updated document will then be uploaded to the sales order, and shared with the Warehouse Team, who will then ensure that this CI is attached to the shipment and that the order is fulfilled for you, ASAP. 

Need more help?

If you have any questions or need further clarification, please feel free to reach out and the Team will be happy to help! 


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