In the set of import–export documents, the Commercial Invoice (CI) plays a central role, directly affecting customs clearance, taxation, and international payments. Preparing it incorrectly or using the wrong type of invoice may expose businesses to customs inspections, price consultations, or shipment delays.

This article helps businesses gain a correct, complete, and compliant understanding of Commercial Invoices and how to distinguish them from Non-Commercial Invoices.

What Is a Commercial Invoice?

What Is a Commercial Invoice?

A Commercial Invoice (CI) is a trade invoice issued by the seller to the buyer in an international goods transaction where payment occurs.

The Commercial Invoice is a mandatory document in the customs dossier and is used to:

• Declare exports and imports to customs
• Determine the customs value for taxation
• Serve as a basis for international payment
• Be cross-checked with the sales contract, Packing List, and transport documents

>> Read More: Proforma Invoice in Export–Import 

The Role of the Commercial Invoice in Import–Export

A Commercial Invoice is not merely an accounting document; it also carries legal and customs-compliance value.

1. Basis for Determining Customs Value and Taxes

Customs authorities rely on the CI to determine:

• Customs value
• Import duty
• VAT and other applicable taxes

2. Basis for Customs Risk Control

The CI is cross-checked against:

• Customs declaration
• Packing List
• Bill of Lading / Airway Bill
• Sales contract

Even minor discrepancies in price, description, or delivery terms may result in a change to a higher inspection channel.

3. International Payment Document

The Commercial Invoice is a mandatory document for:

• T/T (Telegraphic Transfer)
• L/C (Letter of Credit)
• D/A, D/P (if applicable)

Mandatory Contents of a Commercial Invoice

A valid Commercial Invoice must clearly include the following information:

1. Seller and Buyer Information

• Company name
• Address
• Country

2. Invoice Number and Date

• Invoice Number
• Invoice Date

3. Description of Goods

• Product name
• Specifications and type
• Model / Specification (if any)

The description must accurately reflect the actual goods and avoid vague or generic terms.

4. Quantity and Unit of Measure

• Quantity
• Unit (PCS, SET, KGS, CBM, etc.)

5. Unit Price and Total Value

• Unit Price
• Total Amount
• Currency of payment (USD, EUR, etc.)

6. Delivery Terms (Incoterms)

For example: EXW, FOB, CIF, DDP, etc.
Delivery terms directly affect the customs value.

>> Read More: The Impact of Incoterms on Costs and Responsibilities in International Trade

Common Mistakes When Preparing a Commercial Invoice and Consequences

Common Mistakes When Preparing a Commercial Invoice and Consequences

1. Incorrect or Misleading Goods Description

→ Risk of incorrect HS code classification and physical inspection.

2. Abnormally Low or High Unit Price

→ Price consultation and customs value adjustment.

3. Missing or Incorrect Incoterms

→ Inaccurate customs valuation and additional tax liabilities.

4. Inconsistencies with the Packing List or Transport Documents

→ Delayed clearance and document amendments.

How to Prepare a Compliant Commercial Invoice (CI)

To minimize risks, businesses should prepare Commercial Invoices according to these principles:

• Seller and buyer information consistent with the contract
• Detailed and accurate description of goods
• Declared value aligned with market benchmarks
• Clear statement of delivery terms

Common Commercial Invoice Templates

Depending on the type of transaction, a Commercial Invoice may follow:

• A free-format template compliant with international trade practices
• A bank-required template for L/C transactions
• A template specific to the importing market

Commercial Invoice Templates 1

Commercial Invoice Templates 2

Commercial Invoice Templates 3

What Is a Non-Commercial Invoice?

A Non-Commercial Invoice is an invoice without commercial nature, applied to shipments not intended for sale or purchase.

It is commonly used for:

• Samples
• Gifts or donations
• Goods sent for repair or warranty
• Internal transfers

A Non-Commercial Invoice is still required for customs declaration purposes to determine the import purpose and applicable tax obligations.

Differences Between a Commercial Invoice and a Non-Commercial Invoice

Import–Export & Logistics Solutions from King Freight Logistics Vietnam (KFLV)

The import–export market is expanding rapidly, while documentation and customs clearance procedures are becoming increasingly complex—especially for industrial goods, plastics, chemicals, and agricultural products.

King Freight Logistics Vietnam (KFLV) supports businesses with stable transport routes, fast customs clearance, and optimized logistics costs.

KFLV supports businesses with:

• International FCL & LCL transportation – on schedule and secure
• Customs clearance and import–export documentation support
• Consultation and risk control for documents such as Commercial Invoices, Packing Lists, and C/O
• Logistics cost optimization and minimization of port storage and demurrage charges

Hotline: +84 (0) 938 188 796
Email: cs1@hcm.kfkingfreight.com

Contact KFLV today for a comprehensive logistics solution—safe, efficient, and fully compliant with the latest regulations of each market.