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Step-by-Step: Creating a Commercial Invoice

Creating a commercial invoice for international shipping requires attention to detail. Missing or incorrect information causes customs delays, carrier rejection, or incorrect duty calculations. This step-by-step guide walks you through each section of the invoice, explaining what's required and why it matters.

Cross-border shipments can require multiple customs and carrier documents. Product descriptions, tariff classifications, values, origin, and party details commonly support the customs declaration, but exact fields vary by route.

Follow these steps in order. Each section builds on the previous one, and completing them systematically reduces the risk of errors.

Step 1: Choose Invoice Type

Before filling in any details, decide whether you need a Commercial Invoice or Pro Forma Invoice. This choice affects how customs processes your shipment.

  • Commercial Invoice: Use for final sale shipments. It records the transaction and provides customs valuation details; its legal effect depends on the sales contract and applicable law.
  • Pro Forma Invoice: Commonly used for quotes and some preliminary or non-sale purposes when the carrier and destination accept it.

Why this matters: Using the wrong type causes customs confusion. Commercial invoices for samples can trigger payment expectations. Pro Forma invoices for paid shipments may be rejected by customs. Learn more about the difference →

Step 2: Enter Shipment Information

Start with basic shipment details. These fields appear at the top of the invoice and help customs and carriers identify your shipment.

Common Fields:

  • Invoice Number: Unique identifier for this invoice (e.g., "INV-2026-001234"). Use a consistent format for tracking.
  • Ship Date: Actual or planned shipping date. Must be accurate—discrepancies with carrier records cause verification delays.
  • Tracking Number: Optional but recommended. Helps customs and carriers match invoices to shipments.
  • PO Number: Optional purchase order number if your buyer provided one.

Common mistakes: Using duplicate invoice numbers, incorrect ship dates, or missing tracking numbers when available. These errors cause confusion and delays.

Step 3: Enter Exporter (Shipper) Information

The exporter is the party shipping the goods. This information must be complete and accurate—customs uses it to verify business registration and contact you if needed.

Common Information:

  • Name: Complete business name or individual name (not abbreviations). Example: "ABC Trading Co., Ltd." not "ABC Co."
  • Address: Complete street address, city, state/province, postal code, country. P.O. Boxes are usually not acceptable.
  • Country: Full country name, not abbreviations. Customs needs this for origin verification.
  • Tax ID: EIN (US), VAT (EU/UK), EORI (EU), or other tax identifier when required by destination country.
  • Phone: Include country code (e.g., "+1-555-123-4567"). Customs may need to contact you.
  • Email: For customs communication and verification requests.

Why accuracy matters: Incomplete or conflicting exporter information can prompt identity or declaration questions. Include tax or customs identifiers only when required for the correct party. Learn about business identifiers →

Step 4: Enter Consignee (Importer) Information

The consignee is the party receiving the goods. This must match the delivery address exactly—discrepancies cause delivery delays and customs issues.

Common Information:

  • Name: Complete business or individual name matching the delivery address.
  • Address: Complete delivery address. Must match carrier shipping label exactly.
  • Country: Destination country. Customs uses this to determine applicable regulations.
  • Tax or customs ID: Include the correct party's identifier when the transaction or destination procedure requires it.
  • Phone: Include country code. Carrier needs this for delivery coordination.

Common errors: Incomplete addresses, missing tax IDs when required, or addresses that don't match shipping labels. These cause delivery failures and customs holds.

Step 5: Add Line Items

Line-item details support customs classification and valuation. The required fields depend on the goods and destination declaration, but omissions can prompt follow-up.

For Each Item, Include:

  • Description: Detailed product description. "Cotton T-Shirt, Adult Size Large, Color: Navy Blue, 100% Cotton" not "T-shirt" or "clothing." Customs needs specifics to classify goods.
  • Quantity: Exact number of units. Use consistent units (pieces, sets, boxes, etc.).
  • Classification: Use the six-digit HS code and add any destination-specific tariff digits required for the shipment. Learn how to find HS codes →
  • Country of Origin: Manufacturing country, not shipping country. Required for duty calculation and trade agreement verification.
  • Unit Value: Price per unit in the invoice currency. Must be accurate—discrepancies trigger verification.
  • Total Value: Quantity × unit value. Automatically calculated, but verify accuracy.

Review point: Provide the destination-required classification, a specific description, origin, quantity, and a supportable value for each relevant item. Do not use placeholder codes or vague descriptions.

Step 6: Set Shipping Terms and Currency

Shipping terms (Incoterms) and currency affect duty calculations and payment responsibilities. These must match your agreement with the buyer.

Incoterms:

  • DAP (Delivered At Place): Seller delivers to destination, buyer handles import duties
  • DDP (Delivered Duty Paid): Seller handles everything including duties and taxes
  • EXW (Ex Works): Buyer handles all shipping and costs from seller's location
  • FOB (Free On Board): Seller delivers to port, buyer handles shipping
  • Other terms available based on your agreement

Currency: Use standard ISO codes (USD, EUR, GBP, JPY, etc.). All values must be in the same currency. Learn more about Incoterms →

Why this matters: Wrong Incoterms misrepresent payment responsibilities, causing disputes and incorrect duty assessments. Incorrect currency codes cause calculation errors.

Step 7: Add Declaration and Signature

Declaration and signature requirements vary by destination, product, and carrier workflow. Add them when the applicable instructions require them.

When Required, Include:

  • Signatory Name: Full name of person signing (usually exporter representative)
  • Title: Job title (e.g., "Export Manager," "Owner")
  • Date: Date of signature (usually ship date or invoice date)
  • Signature: Physical, digital, or electronic signature depending on carrier and destination requirements

Carrier requirements: Check the current carrier workflow for electronic-document and signature rules. If a signature is required, confirm whether an electronic or physical signature is accepted for the shipment.

Step 8: Review and Generate PDF

Before generating the PDF, review all information for accuracy. Once generated, changes require creating a new invoice.

Pre-Generation Checklist:

  • All required fields completed (no blanks)
  • Addresses match shipping labels exactly
  • The six-digit HS code and any required destination extension match the product
  • Product descriptions are detailed (not vague)
  • Values and quantities are accurate
  • Incoterms match your agreement with buyer
  • Currency is correct and consistent
  • Tax IDs included when required by destination
  • Signature or declaration completed when required

After review, generate the PDF and follow the carrier's paper or electronic-document workflow. Sign it only if required and keep a copy for your records. Complete documentation supports review but cannot prevent inspections or other customs holds.

Common Mistakes to Avoid

Even experienced shippers make these mistakes. Being aware of them helps you avoid customs delays:

  • Vague descriptions: "Electronics" or "clothing" aren't specific enough. Customs needs details to classify goods.
  • Missing classifications: Omitted destination-required tariff codes can delay entry preparation.
  • Wrong country of origin: Using shipping country instead of manufacturing country causes incorrect duty calculations.
  • Incomplete addresses: Missing postal codes or incomplete street addresses cause delivery delays.
  • Missing required identifiers: Verify which party, if any, must provide an EORI, importer number, VAT ID, or other identifier.
  • Incorrect Incoterms: Wrong terms misrepresent responsibilities and cause disputes.
  • Missing declarations: Check whether the selected route or electronic-document workflow requires a signature or certification.

Ready to Create Your Invoice?

Use DocInvo to organize common invoice fields, then verify the generated PDF against current carrier, destination, and product requirements.

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