Commercial Invoice
What a compliant commercial invoice needs, and the most common mistake that causes customs holds.
The commercial invoice is the single most important document in an international shipment — it's what customs on both ends uses to assess the goods, verify the declared value, and calculate duty. Getting it right is the biggest lever you have over avoiding customs delays.
What a compliant commercial invoice needs
- Exporter and importer details — full name, address, and contact information for both parties
- Invoice number and date
- A specific goods description — not "gift" or "sample" for anything commercial; describe what the item actually is, materials if relevant (especially for jewellery or textiles), and quantity
- Declared value — per unit and total, in a stated currency, and this value must match the shipping bill exactly
- HS (Harmonized System) code, if known — helps customs classify the goods correctly and speeds up duty assessment
- Country of origin
- Terms of shipment (e.g. who's responsible for duty — DDP or DDU) and terms of sale if applicable
- IEC number, for commercial exports
The single most common mistake
The declared value on the commercial invoice not matching the value on the shipping bill (CSB-IV/CSB-V) is the single most frequent cause of a customs hold on Indian export-side clearance. Always generate both from the same source figure, or double-check them against each other before the shipment is booked.
Why the description matters more than most shippers think
A vague description ("gift," "sample," "accessories") forces a customs officer to either guess at classification or flag the shipment for manual review — both bad outcomes. A specific description ("18k gold pendant with 0.3ct diamond, 3g" or "cotton printed scarf, 1 unit") lets customs classify and clear the shipment quickly and accurately.
Declared value: accurate, not minimised
Under-declaring value to reduce duty exposure is a compliance risk, not a savings strategy — customs on either end can reassess based on the actual goods, and a caught under-declaration causes far more delay (and potential penalty) than the duty saved. Declare the real transaction value.
A quick pre-send check
- [ ] Value matches the shipping bill exactly
- [ ] Description is specific, not generic
- [ ] IEC included for commercial shipments
- [ ] Currency clearly stated
- [ ] Both parties' full contact details included
Frequently asked questions
What is the most common mistake on a commercial invoice?
The declared value not matching the shipping bill exactly -- this is the single most frequent cause of a customs hold on Indian export-side clearance.
Should I under-declare value to reduce duty?
No -- under-declaring is a compliance risk, not a savings strategy. Customs can reassess based on the actual goods, and a caught under-declaration causes far more delay than the duty saved.
What goods description should I use?
A specific description of what the item actually is (materials, quantity) rather than a generic term like "gift" or "sample" for a commercial item -- vague descriptions are a common trigger for manual customs review.
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