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STEP 17: EXPORT DOCUMENTATION
You are here: Step 17: Export documentation > Documents required to export goods from South Africa > Commercial invoice  
The Commercial Invoice

Introduction

After the pro-forma invoice is accepted, the exporter must prepare a commercial invoice - this is your document, usually prepared on your stationery. The commercial invoice is required by both the exporter (to obtain the necessary export documents to enable the consignment to be exported, to prove ownership and to enable payment) and importer (who requires the commercial invoice to facilitate the import of the goods in question). In exporting, the commercial invoice is considered a very important document as it serves as the starting document that underpins an export transaction.

The commercial invoice is a key export document

The commercial invoice is essentially a bill (i.e. invoice) from the seller (the exporter) to the buyer (the importer) describing the goods to be sold and the terms involved. The commercial invoice will normally be presented on the exporter's letterhead and will be addressed to the importer. It should contain full details of the consignment, including price and other related costs, in order to facilitate customs clearance. It must be signed and dated. Freight and insurance, when included in the selling price, should be itemised separately as these charges are not subject to duty in certain countries.

Based on the terms specified in this commercial invoice, the importer will instruct his/her bank (referred to as the issuing bank) to issue a letter of credit. This letter of credit (or the documentation associated with any other form of payment) will also need to reflect the terms specified in the commercial invoice exactly, while all subsequent documentation must reflect the terms of the L/C; there can be no exceptions. From this explanation, it is clear that the commercial invoice plays a central role in an export transaction.

What should appear in the commercial invoice

The following details need to appear in the commercial invoice:

  • The name of the shipper/exporter and their contact details, including physical address
  • The name of the importer/consignee and their contact details, including physical address
  • An order number of reference to correspondence between the supplier and importer
  • A complete and clear description of the goods in question (including brandmarks and the HS number)
  • The packing details unless provided in a separate packing list
  • The quantity of goods in question including the number and kinds of packaging involved
  • The external dimensions, cubic capacity, weight, numbers and contents of each package shipped.
  • The total price of the goods (and unit price where applicable) usually quotes as a CIF/FOB price
  • The currency in which the goods will be sold (e.g. US dollars or rands)
  • The type and amount of discount given
  • The likely delivery schedule and delivery terms
  • The payment methods, for example cash in advance or L/C
  • The payment terms, for example 30 days on sight
  • The Incoterm to be used
  • Who is responsible for the banking fees and other related costs (insurance and freight costs are covered by the incoterm in question)
  • What the freight and insurance charges are
  • The exporter's banking details
  • A declaration of the country of origin of the goods
  • The expected country of final destination
  • Any freight details such as the port of loading and discharge
  • Any trasshipment requirements
  • Any other information relevant to the order

Customs' and consular invoices

Some countries, however, may require the commercial invoice to be completed on their own specified forms - such commercial invoices are known as "Customs' invoices" and may be provided in lieu of or in addition to the standard commercial invoices referred to above. In addition, a "consular invoice" is required by certain countries. The consular invoice must be prepared in the language of the destination country and can be obtained from the country's consulate, and often must be "consularised" (i.e. stamped by an authorised Consul official in the exporting country).

Tip

The importer needs the commercial invoice since it is often used by Customs authorities to assess duties. For this reason, it is common practice to prepare a commercial invoice in English and in the language of the destination country. The freight forwarder can advise you when a translated copy is necessary.

Commercial invoices are the basis for assessing duties and statistics

Commercial invoices are often used by governments to determine the true value of goods when assessing customs duties and recording trade statistics. Governments that use the commercial invoice to control imports, will often specify its form, content, number of copies, language to be used, and other characteristics.

Examples of commercial invoice

  • Unzco commercial invoice with instructions for completing the invoice
  • WOSA commercial invoice
  • Meridian commercial invoice
  • BellAir commercial invoice
  • Top of page

    Step 17: more information

    Step 17: Export documentation
          Documents involving the importer
          Documents required to export goods from South Africa
                .Exporter registration form
                .Letter of credit
                .Bill of entry export
                .Exchange control forms
                .Export permit
          Documents required for transportation
          Documents required for payment
          Marine Insurance

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    More information on Step 17
    Learning to export... The export process in 21 easy steps
    Step 1: Considering exporting
    Step 2:Current business viability
    Step 3:Export readiness
    Step 4:Broad mission statement and initial budget
    Step 5:Confirming management's commitment to exports
    Step 6: Undertaking an initial SWOT analysis of the firm
    Step 7:Selecting and researching potential countries abroad
    Step 8: Preparing and implementing your export plan
    Step 9: Obtaining financing for your exports
    Step 10: Managing your export risk
    Step 11: Promoting the firm and its products abroad
    Step 12: Negotiating and quoting in exports
    Step 13: Revising your export costings and price
    Step 14: Obtaining the export order
    Step 15: Producing the goods
    Step 16: Handling the export logistics
    Step 17: Export documentation
    Step 18: Providing follow-up support
    Step 19: Getting paid
    Step 20: Reviewing and improving the export process
    Step 21: Export Management
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