Commercial Invoice

The commercial invoice serves as the foundational document for international textile transactions, describing exactly what was sold, for how much, and under what terms. Customs authorities use it to assess duties, banks use it to verify LC compliance, and buyers use it to confirm they received what they ordered.

A properly prepared commercial invoice includes complete identification of both parties (seller and buyer names, addresses, contact information), a unique invoice number and date, and reference to the purchase order or contract. The goods description should be detailed enough for customs classification—for textiles, this means specifying fiber composition, fabric construction, weight, and width alongside the commercial product name.

Quantities must be precise and match the packing list exactly. Unit prices, extended amounts, and the total invoice value should be clearly stated in the agreed currency. The Incoterm (FOB, CIF, etc.) defines what's included in the price and must be specified along with the named location. HS codes for each product enable proper customs classification, and the country of origin must be declared.

For textile exports, best practice includes detailed fabric specifications beyond the minimum customs requirements. Stating "100% polyester woven fabric, 150cm width, 120gsm, plain weave" provides clarity that prevents disputes and speeds customs processing. Any referenced certifications, test reports, or compliance declarations should be noted.

When payment is by letter of credit, the commercial invoice demands extra scrutiny. The beneficiary name must match the LC exactly—even minor variations like "Co." versus "Company" can cause rejection. Product descriptions should mirror the LC language precisely, and the invoice amount cannot exceed the LC value. All required statements or clauses specified in the LC must appear on the invoice.

The commercial invoice typically gets prepared first, with other documents—packing list, certificate of origin, bill of lading—following its lead on descriptions and quantities. This sequencing helps maintain the consistency across documents that both customs and banks require.