Commercial Invoice
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🔖 This article is part of the Customs Glossary Guide |
Commercial Invoice (CI) Explained
The foundational document for all customs declarations, serving as the official record of the transaction between buyer and seller.
Definition
A Commercial Invoice (CI) is a document provided by the seller (exporter) to the buyer (importer) that describes the parties involved in the shipping transaction and the goods being transported. It is the primary document used by customs agencies (CBP and CBSA) to assess duties, collect taxes, and determine the admissibility of the goods.
Unlike a Pro Forma Invoice—which is merely a preliminary quote or estimate sent before a sale—the Commercial Invoice is the finalized "demand for payment" and legal record of the sale.
Regulatory Requirement:
According to 19 CFR 141.86 (USA) and Memorandum D1-4-1 (Canada), the invoice must provide a detailed description of the merchandise, not just a generic label like "Auto Parts."
Essential Data Elements
To be accepted by Customs, a commercial invoice must contain specific data points. Missing or vague information is the #1 cause of border delays.
| Field | Requirement |
|---|---|
| Parties Involved | Full names and addresses of the Vendor (Seller), Purchaser (Buyer), and Consignee (Receiver). |
| Detailed Description | A clear description of what the item is, what it is made of, and what it is used for. (e.g., "Steel Screws" instead of just "Hardware"). |
| Country of Origin | The country where the goods were manufactured or significantly transformed (not necessarily where they were shipped from). |
| Value & Currency | The unit price and total value of the goods, along with the Currency of Settlement (e.g., USD, CAD, EUR). $0 values are generally not accepted; a fair market value must be declared even for samples. |
| HS Code | The 6-to-10 digit Harmonized System code is highly recommended (and often mandatory for the broker) to determine duty rates. |
Commercial vs. Pro Forma
Carriers often ask: "Can I use a Pro Forma invoice at the border?"
Pro Forma Invoice
- Purpose: A quote or estimate.
- Timing: Issued before goods are shipped.
- Customs Use: Generally not accepted for final accounting, unless the goods are "Sold on Consignment" or not pursuant to a sale (e.g., gifts/samples), provided it lists a fair market value.
Commercial Invoice
- Purpose: A bill of sale / Proof of Transaction.
- Timing: Issued after the order is confirmed.
- Customs Use: The standard document required for CBP (Entry Summary 7501) and CBSA (Canada Customs Invoice CI1).
Integration in BorderConnect
While the Customs Broker files the formal entry using the full invoice, the carrier must enter key invoice data into the eManifest to satisfy **Section 321** or **Pre-Arrival** cargo reporting requirements.
Entering the Data
In BorderConnect, this data is entered under the Shipment > Commodities section:
1. Shipper/Consignee: These match the Vendor/Buyer on the invoice. 2. Value: Enter the total value from the invoice (Required for Section 321 or Low Value shipments). 3. Description: Transcribe the description exactly as it appears on the invoice to ensure it matches what the broker files.
Canada Customs Invoice (CCI):
For shipments into Canada, if the exporter provides a generic commercial invoice that lacks required fields (like Country of Origin), they must often supplement it with a CI1 Form (Canada Customs Invoice) to be compliant.