When it comes to import transactions, international commercial invoices contain critical information needed to clear goods into the United States. Customs and Border Protection (CBP) is very clear about the types of invoices accepted and the information required. Imports with incomplete information risk delays and penalties. To ensure import compliance, importers must insist on proper invoices from suppliers.
Types of Invoices for International Transactions
Chapter 141 of the 19 Code of Federal Regulations (CFR) explains that two types of invoices are acceptable for imports. The first and most commonly used is the commercial invoice. This type of invoice is prepared by the foreign manufacturer or shipper. It is the main document used by Customs to verify the tariff classification, value, and determine the amount of duties owed. Even when entry data is submitted electronically to customs, the actual document may be requested.
The other acceptable type of invoice is the proforma invoice. This type of invoice is prepared by the importer of record in the United States. It is usually created when the commercial invoice from the foreign supplier or manufacturer does not have all of the required information.
Requirements for Commercial Invoices and Proforma Invoices
In general, customs requires that all invoices used for international transactions must be in English and contain the following information:
1. Purchase information:
- Time and place of sale
- Seller name and address
- Buyer name and address
2. Shipment details:
- Terms of sale
- Date of shipment
- Place of export
- Port of destination
- Shipper’s name
- Consignee’s name
3. Merchandise details:
- Detailed merchandise description that supports the tariff classification
- Marks and numbers visible on packaging
- Quantities including net weights and measures
- Country of origin
4. Information to determine value:
- Unit and total price
- Type of currency
- Charges not included in the price such as packing and inland transportation
- All commissions or rebates
- Any materials or services provided to produce the goods (dies molds, engineering work or other assists) not included in the price
- Discounts
5. Name of a responsible individual who can provide information regarding the transaction.
Certain commodities such as glassware, machines, and bearings require additional information. Customs usually does not require original invoices unless special entry procedures are necessary.
Invoices and Import Compliance
Since importers do not prepare the commercial invoice, they may believe they have no control over it. However, because they are the one ordering and purchasing the goods, they actually have more control than they may realize.
One way to encourage compliance is to provide the supplier with a commercial invoice template containing fields for all the needed information. If the supplier uses software to generate the invoice, instruct them to add the missing data to future invoices. It is also helpful to use the full description with tariff codes on the purchase order and request the same verbiage be reflected on the invoice.
By understanding invoices used for international transactions and customs requirements, importers can use reasonable care to ensure import compliance. Invoices prepared correctly result in accurate customs entries and fewer delays.
Sherri Nield - Sherri Nield has a Bachelor of Science degree from the Indiana University Kelly School of Business. Her major was Business Administration ...
Join the Conversation