How to prepare a commercial invoice: a guide for international shipments

When an international shipment is held up in customs, the problem is often due to the commercial invoice: missing information, an incorrect HS code, or an inconsistent value declaration can halt the shipment for days. Sellers who complete the commercial invoice preparation process in the correct order speed up customs clearance and avoid the risk of additional taxes. This guide, along with examples, shows what information a commercial invoice must contain and how to fill it out step-by-step.

1. Fill in the sender and recipient information completely

2. Determine the product description and HS code

3. Calculate quantity, unit price, and total amount

4. State the country of origin and terms of delivery

5. Add invoice number and date

6. Write the payment terms and currency

7. Sign the invoice and attach it to the shipping documents

Table of Contents

1. Requirements before preparing a commercial invoice

2. Steps to prepare a commercial invoice

1. Step 1: write the sender and recipient information

2. Step 2: determine the product description and HS code

3. Step 3: calculate quantity, unit price, and total amount

4. Step 4: state the country of origin and terms of delivery

5. Step 5: add invoice number and date

6. Step 6: specify payment terms and currency

7. Step 7: sign the invoice and attach it to documents

3. Checking the accuracy of the commercial invoice

4. Common mistakes and solutions

5. Difference between a commercial invoice and a proforma invoice

6. Frequently asked questions

Requirements before preparing a commercial invoice

Before preparing a commercial invoice, basic information about the shipment must be ready. Without the following information, the invoice remains incomplete and customs clearance is delayed.

• Full name, address, and contact details for the recipient and sender

• Description, quantity, and unit price of the product sold

• Country of origin of the product and its HS code

• Payment method and currency used

• Shipment or tracking number obtained from the carrier

This information is requested on the panel when requesting a shipping quote via Navlungo; when the information is ready beforehand, the shipment creation process takes only a few minutes.

Steps to prepare a commercial invoice

A commercial invoice consists of fixed fields that must be filled out in order. The following steps can be followed using the sample table.

Step 1: write the sender and recipient information

At the top of the invoice, write the full name, physical address, tax number (if applicable), and phone number of the sender and recipient. If shipping on behalf of a company, use the company name; for individual shipments, use the recipient's full legal name.

> Tip: The recipient's address must be exactly the same as the delivery address provided to the carrier; a differently written address may lead to a request for additional verification at customs.

Step 2: determine the product description and HS code

Clearly write what the product is for each item; general terms like "gift" or "goods" are not accepted in customs. The HS code (a six to ten-digit code system that allows the classification of products in international trade) must be stated separately for each product item.

For example, writing "cotton men's t-shirt, 100% cotton" results in fewer queries than just writing "t-shirt." For shipments to the US, customs duty based on the HS code can be estimated in advance using the US customs duty calculation tool.

Step 3: calculate quantity, unit price, and total amount

In each product row, show the quantity, unit price, and line total separately; at the end of the invoice, write the sum of all lines as the total amount. The declared amount must match the actual sale price; an undervalued amount leads to the risk of penalties at customs.

Sample table:

| Product description | HS code | Quantity | Unit price | Total | Country of origin |

|---|---|---|---|---|---|

| Cotton men's t-shirt | 6109.10 | 50 pieces | 5 USD | 250 USD | Turkey |

| Leather wallet | 4202.31 | 20 pieces | 12 USD | 240 USD | Turkey |

Step 4: state the country of origin and terms of delivery

The country where the product was manufactured is written in the "country of origin" field for each item, and this information directly affects the customs duty rate. Incoterms (a set of international trade terms defining how shipping, insurance, and customs responsibilities are shared between parties) are specified on the invoice with abbreviations such as DAP, DDP, or FOB.

> Warning: When DDP (Delivered Duty Paid) is selected, customs duty is billed to the sender; an invoice sent without checking this option may cause the recipient to face unexpected tax payments.

Step 5: add invoice number and date

Each commercial invoice is given a unique invoice number and date of issue. This number, along with the shipment tracking number, makes record-keeping easier and is used as a reference in customs inquiries.

Step 6: specify payment terms and currency

The currency used in the invoice (such as USD, EUR, TRY) is clearly written, and the payment method—cash, wire transfer, or cash on delivery—is specified. If the currency is not specified, the customs officer may misinterpret the amount and the valuation could be incorrect.

Step 7: sign the invoice and attach it to documents

The invoice is signed or stamped by the sender's authorized person; digital signatures are also accepted for e-commerce shipments. The signed invoice is attached to the shipping package as a hard copy and uploaded to the carrier as a digital copy.

On the Navlungo panel, this document is uploaded to the shipment creation screen and automatically transmitted to carriers such as DHL or FedEx.

Checking the accuracy of the commercial invoice

To verify that the commercial invoice has been prepared correctly, check that all fields match the shipment information exactly. The total amount on the invoice must match the amount in the payment record and the contents of the package.

• Is the recipient's address the same as the address on the shipping label?

• Are the HS code and country of origin written for each product item?

• Does the total amount match the actual sales price?

• Is the invoice number associated with the shipment tracking number?

When these four items are verified, the invoice is considered ready for customs clearance.

Common mistakes and solutions

• Undervaluing product value: the actual selling price must be written; low declaration may lead to customs fines.

• Leaving the HS code blank: the correct code must be searched for each item; if the code cannot be found, confirmation should be obtained from a customs broker.

• Using general product descriptions: instead of terms like "goods" or "samples," the type and material of the product must be clearly written.

• Not specifying the currency: the currency code (USD, EUR) must be added next to each amount.

• Missing signature or stamp: the invoice must be completed with an authorized signature or stamp before shipment.

Difference between a commercial invoice and a proforma invoice

A commercial invoice is issued for a shipment whose sale has been completed and is being delivered; a proforma invoice (a preliminary document prepared in the form of a pre-sale price quote, not considered an official document in customs) is prepared for a sale that is not yet finalized. The primary valid document in customs clearance is the commercial invoice; the proforma invoice is usually used during the letter of credit or price confirmation phase.

| Feature | Commercial invoice | Proforma invoice |

|---|---|---|

| Stage of use | After the sale is completed | Pre-sale offer |

| Customs validity | Official document | Usually not accepted |

| Content | Final price and quantity | Estimated price and quantity |

Frequently asked questions

How many copies of the commercial invoice should be prepared?

Usually, three copies are sufficient: one is attached to the package, one is digitally transmitted to the carrier, and one is kept by the sender. The customs administrations of some countries may request additional copies, in which case the carrier's instructions are followed.

Should VAT be shown on the commercial invoice?

In export transactions, VAT is usually applied at a zero rate, and this is stated on the invoice. The customs administration of the importing country calculates its own taxes and duties separately based on the value of the goods on the invoice.

Are electronic commercial invoices accepted at customs?

Most countries accept a commercial invoice prepared digitally and sent electronically to the carrier. Instead of a wet signature, a digital signature or stamp image is usually sufficient, but some customs administrations may request an original wet-signed copy.

Will the shipment be held in customs if the commercial invoice is prepared incorrectly?

Yes, an incomplete product description, incorrect HS code, or inconsistent value declaration will cause the shipment to be held for inspection at customs. Such a delay may last until the corrected invoice is sent and may lead to additional processing fees.

In which language should the commercial invoice be prepared?

The invoice is usually prepared in English because the customs administrations of most countries process this language without problems. Some countries may request additional documents in their official language, in which case the carrier's country-specific instructions should be checked.

Is the commercial invoice prepared differently for shipments made from marketplaces like Amazon, eBay, or Etsy?

The basic fields remain the same, but marketplaces like Amazon, eBay, and Etsy usually require the order number to be shown on the invoice as well. The Navlungo panel automatically transfers this information to the invoice template when store integration is completed.