How do you create a Commercial Invoice?

A commercial invoice is a bill issued by the exporter to the importer.

In simple terms, think of it as a bill that says, 'I sent this item, so please pay this amount.'

This document serves more than just a billing function.

- It acts as a basis for customs clearance in the importing country

- It determines the amount of customs duties to be paid

- It must be submitted when receiving payment

Therefore, the amount stated on the invoice = customs duty basis = actual billed amount.

The commercial invoice must include all necessary items without exception. If even one is missing, it could cause issues during customs clearance.

Assuming you are exporting cosmetics to the United States, let me show you a sample commercial invoice.

In L/C (Letter of Credit) transactions, every single document is crucial. Since banks review the documents, even the slightest discrepancy can lead to payment rejection.