The global economy means even small businesses are shipping goods from New York to London, or Toronto to Tokyo. But crossing borders brings bureaucracy.
If you attach the wrong document to your box, it won't just be delayed; it might be seized, returned at your expense, or slapped with massive fines. The two most common documents are the Proforma Invoice and the Commercial Invoice. They look similar, but they serve completely different legal functions.
The Proforma Invoice (The "Before" Document)
A Proforma Invoice is a preliminary bill of sale sent to the buyer before the shipment happens.
- Purpose: To help the buyer arrange financing, open a Letter of Credit, or get an Import License from their government.
- Status: It is a "Good Faith" estimate. Prices might change slightly.
- Customs: In most countries, you cannot use a Proforma for customs clearance. It is not a finalized legal demand for payment.
The Commercial Invoice (The "During" Document)
The Commercial Invoice is the finalized legal document that travels with the package (usually in a pouch on the outside of the box).
Customs officers use this specific document to determine:
- Value: How much is the stuff worth? (To calculate Duty).
- Origin: Where was it made? (To apply Tariffs or Embargoes).
- Owner: Who is buying and who is selling?
Critical Fields You Must Include
To ensure smooth sailing, your Commercial Invoice must include specific data points that aren't on a regular invoice:
- Country of Origin: Not where it shipped from, but where it was manufactured.
- Harmonized (HS) Codes: This is a universal 6-10 digit code that tells customs what the object is (e.g., "6109.10" = Cotton T-shirts). If you guess this code, your package will be inspected.
- Incoterms: A 3-letter code (like DAP, DDP, FOB) that tells the carrier who is paying the tax. Is it you (the sender) or the customer (the receiver)?
- Original Signature: Unlike digital invoices, commercial invoices often require a physical pen-and-ink signature in blue ink to be considered valid by strict customs agents.
Summary: Send the Proforma to the client to get the deal signed. Attach the Commercial Invoice to the box to get it delivered.