Commercial invoice and packing list

Two documents, two purposes

The commercial invoice states what was sold and for how much. The packing list states how it is packed. Together with the bill of lading they make up the core shipping set. Customs officers use them to classify and value the goods, banks use them to check compliance, and the buyer uses them to receive and reconcile the cargo.

What a commercial invoice contains

• Seller and buyer names and addresses, spelled as in the contract and credit.
• Invoice number and date, and a reference to the contract or purchase order.
• Full description of the goods, in terms that match the contract and the other documents.
• Quantity and unit, unit price and total amount, with the currency.
• Incoterm and named place, for example CFR Mersin.
• Payment terms and, where relevant, the letter of credit number.
• Country of origin of the goods, and the harmonized system code when required.
• Shipping details: vessel or means of transport, ports, and bill of lading or container reference.
• Signature or stamp as required.

Proforma, provisional and final invoices

What a packing list contains

A good packing list lets the buyer or inspector match what is on the quay with what is on paper, which is what makes shortages and substitutions visible.

• Reference to the invoice and contract.
• Description of each type of package: bags, bales, drums, bundles, containers.
• Number of packages and the net and gross weight of each, and in total.
• Dimensions or volume where relevant.
• Shipping marks, batch or lot numbers, and container and seal numbers.
• For mixed shipments, a breakdown by item.

How customs and banks use them

Customs authorities use the invoice to determine the customs value, the description and the origin, and may question prices that look unusual. Banks check that invoice amounts do not exceed the credit and that the description corresponds to the credit wording. For letters of credit, an invoice description is often required to match the credit word for word, which is stricter than other documents.

Mismatches that cause delay

• Quantity or weight differences between invoice, packing list, bill of lading and inspection certificate.
• Different spellings or abbreviations of the company names and addresses.
• Invoice total above the credit amount or the unit price different from the contract.
• Missing or wrong Incoterm, so the freight and insurance lines do not make sense.
• A product description that is more general, more specific or different from the contract wording.
• A date that falls before the contract date or after the shipment date.

A short checklist before sending

• Read the contract and credit side by side with the draft invoice.
• Compare weights with the inspector's figures.
• Compare names, addresses and bank details with those on file.
• Check arithmetic: unit price times quantity equals total.
• Have a second person check the set before it goes out.

Handling currency and tolerance

Invoice in the currency stated in the contract. If the quantity is delivered within an agreed tolerance, invoice the actual quantity at the contract price, and say so on the invoice or a separate note. Where the price follows a formula, show the reference, the date or average used and the premium, so the buyer can follow the calculation.

Frequently asked questions

Is a proforma invoice a legal bill?

No. A proforma invoice states the terms of an offer or expected sale. The commercial invoice issued after shipment is the bill used for payment and customs.

Who prepares the packing list?

The seller or its forwarder, usually when the goods are packed or loaded. It should agree with the inspection report.

Do bulk cargoes need a packing list?

Bulk cargo has no packages, so a weight certificate or loading report takes the place of detailed packing lists, unless the contract asks for a packing list anyway.

Can an invoice be corrected after shipment?

Yes, by issuing a corrected invoice, but under a letter of credit this must be done within the presentation period and may need the bank's agreement. It is cleaner to get it right first.