I (Meaning and importance of Exports) Unit Structure

13.2 COMMERCIAL INVOICE 
13.2.1 MEANING 
Commercial invoice is the statement of account sent by the 
seller to the buyer and is prepared on seller‟s letter-head. It is an 
exporter‟s bill for the goods shipped. 
Commercial invoice is the basic document in an export 
transaction. All other documents are prepared with the help of 
information contained in commercial invoice. It contains such 
information as description of goods, price charged, term of 
shipment and the marks and numbers on the packages containing 
the merchandise. It is the seller‟s bill for the goods which contains 
complete particulars about the consignment.
The commercial invoice should contain: 
a) The name and address of the exporter and the importer. 
b) The description of goods like quality, quantity, weight etc. 
c) The value of goods, less discounts, if any. 
d) The net amount payable by the importer. 
e) Terms and conditions for sale. 
f) The signature of the exporter.
Other details of shipment to be included as 
– 
g) Name of the ship 
h) Letter of credit number. 
i) Import-Export licence number of the export. 
j) Bill of lading number. 
k) Packaging specification and marketings there on
l) Identification marks on the package. 
m) Shipping bill number and date. 

---

213 
n) Shipping terms and conditions. 
o) Freight charges and Marine Insurance premium. 
p) Any other details if required. 
13.2.2 IMPORTANCE OF COMMERCIAL INVOICE 
The commercial invoice is important both to the exporter and 
to the importer. 
Importance to the Exporter 
– 
1) Payment collection 
– 
Commercial invoice is the exporter‟s bill which the importer 
has to pay. It enables the exporter to collect payment from the 
importer.