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Commercial Invoice

The invoice/commercial invoice, in ultimate sense, is the seller’s bill for the merchandise. The document describes the goods which are the subject of contract of sale between the buyer and seller. Invoice shows the description of shipped goods. Commercial invoice cannot be replaced by pro-forma invoice or provisional invoice, as these two show the description of offered goods. The importer may require several copies of the invoice to satisfy his/her own needs and also those of customs and other authorities in his country. The authorities may also require the invoice to bear other details such as the name of the vessel/carrier, the ports of dispatch and destination, freight, insurance, origin of goods etc. There is no standard form for commercial invoice. Each exporter designs its own commercial invoice form.

 Commercial Invoice Basic Contents:

-Name and address of the Buyer and Seller
-Shipped Goods description
-Unit price (if any) and total price
-LC/ Contract Currency
-Trade Terms and source of Trade Terms
-Date and Sign are not mandatory as per UCP 600
-Advance Payment, discount, transportation and insurance charges can be
mentioned
Below key points should be keep in mind regarding Commercial Invoice:
1) Must issued by the beneficiary /or as stipulated in the LC
2) Made out in the name of the applicant.
3) Description, unit price, quantity etc. should not differs with the L/C terms or mentioned properly.
4) Marked as “Original”, Duplicate, Triplicate etc.

Typical Commercial Invoice

Commercial Invoice Types:

Some other forms of invoice are in use in global trade transactions. These include Consular Invoice, Customs Invoice, Certified Invoice, Tax Invoice, and Legalized Invoice.
Consular Invoice: Consular Invoice is required by some countries for their imports. It is made out on a prescribed format certified by the consulate of the importing country stationed in the exporter’s country. It serves the purpose of authenticating the particulars of the goods that are to be imported into their country. But in some cases it is also seen that exporter’s own invoice are authenticated by the embassy or consulate (instead of issuing consular invoice), then these invoices are to be called Legalized invoices.
Customs Invoice: Some countries require custom invoices. These are the specific forms supplied by the consular office of the respective importer, duly filled and signed by the shipper and serve the purpose of making easy entry of the merchandise into the importing country usually at preferential tariff rates.
Certified Invoice: An importer may require a certified invoice, which an invoice, bearing a signed statement by someone in the importer’s country who have inspected the goods and found them in accordance with those specified in the contract.
Legalized Invoice: It is issued by the beneficiary/ exporter, in terms similar to a commercial invoice and in terms of the documentary credit. In addition, the invoice must show that it has been legalized by the embassy or consulate of the country of import in the country of export or as specified in the documentary credit, or notarized by a notary public.
Tax Invoice:
A tax invoice is an invoice issued by a registered dealer to the purchaser, showing the amount of tax payable.

Insurance Document

International trade is very much risk ridden. So, it is necessary to insure the goods against the risks of loss or damage. Insurance is a contract whereby the insurer is undertaking to indemnify the assured to the agreed manner and extent against fortuitous losses. Insurance is, therefore, a contract of indemnity. The document is which contract of indemnity (or, insurance) is embodied is called a policy. The man (or firm) who undertakes to insure is called insurer. When the insurer will subscribe his name in the policy then he will be called an underwriter. The owner of the goods (which are insured) is called assured. The thing or property insured is called the subject matter of insurance. The interest which the assured has in the subject matter is known as his insurable interest. The payment for which insurer undertakes to indemnify is termed as premium. An insurance document should carry certain information that is noted.

 Insurance Documents Contents

  • Name of the insurer or his agent,
  • Name of the ship/carrier.
  • Name of assured,
    -the subject matter of insurance,
  • Time and/or voyage insured,
  • Peril(s) insured against,
  • Date and subscription,
  • Valuation,
    -Coverage date
    -Coverage journey
    -the stamp etc.

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