A commercial invoice is a required document for international shipments. It gives customs authorities the details they need to assess duties, taxes and import compliance. Carriers and brokers also use it to process and clear shipments at the destination.
Warning: Descartes recommends being careful about adjusting the contents of commercial invoices and consider that the audience is carriers and brokers, not customers. Adding unnecessary or inappropriate information can delay shipments.
In Descartes Pacejet, the commercial invoice is generated from shipment data that starts in your ERP system and moves through order entry, packing and shipping. Instead of entering invoice details manually, Pacejet pulls together item, value and party information that already exists in the order and shipment records.
This article explains how a commercial invoice is created during the shipping process, what data it includes and where that data comes from as it moves from the ERP to the final document. The examples used in this article are referencing templates available in the Pacejet self-service shipping paperwork (learn more here).
The commercial invoice usually includes seller and buyer information, ship-to and consignee details, item descriptions, quantities and values, country of origin and harmonized tariff codes, along with shipment terms, currency and totals. The sections below explain how each part is populated as orders move into Pacejet, through packing and into shipment execution.
Order Information and Commodity Enrichment
The commercial invoice starts with order data received from your ERP system. Pacejet imports the order header, parties and product lines, then enriches that data with configured commodity profiles so it is ready for export documentation.
Order Summary
This example shows a shipment from the United States to Canada with multiple product types. The values below illustrate the kind of order information Pacejet can use to build the invoice.
Order: TX0624EXPCI4
Ship Date: Today
Declared Customs Value: USD $29,500.00
Exporter / Ship From (Seller)
ShipItFaster.com
709 E. 44th
Lubbock, TX 79404, US
Contact: Steve Sellers · 877-722-3538
Consignee / Ship To (Buyer)
Canada Retail Imports
250 King Street West
Toronto, ON M5V1J2, CA
Contact: Receiving Department · 416-555-2200
Line Items From ERP
The ERP sends product lines with a reference to a Commodity Name, quantity and pricing. It does not send export classification data in this example, so Pacejet fills in those details from the matching commodity profiles.
Product |
Commodity Name |
Description |
HTS Code |
Country of Origin |
Qty |
Unit Price |
Extended Value |
|---|---|---|---|---|---|---|---|
MACBK |
391234 |
COMPUTER EQUIPMENT |
8504.40.6001 |
US |
4 EA |
$2,500 |
$10,000 |
IPADAIR |
IPAD-TABLET-APPLE |
PORTABLE TABLET COMPUTER WITH TOUCHSCREEN DISPLAY |
8471.30.0100 |
CN |
7 EA |
$900 |
$6,300 |
IPHONE |
IPHONE |
CELLULAR TELEPHONE (SMARTPHONE) |
8517.13.0000 |
CN |
11 EA |
$1,200 |
$13,200 |
Total quantity: 22 EA
Total declared value: $29,500
How Commodity Profiles Populate Export Data
Pacejet uses the Commodity Name on each line to find the configured commodity profile. That profile supplies the export-specific attributes required for the commercial invoice, so you can maintain the data in one place and keep invoice output consistent across shipments.
Description: Becomes the invoice line description
HTS Code: Is applied to the line
Country of Origin: Is assigned to the line
Note: The commercial invoice uses the unit price, which reflects the transaction value to the buyer. Extended values and the declared customs value are calculated from unit price multiplied by quantity. Unit cost is not used for customs valuation.
Reviewing International Details on the Rate & Ship Page
On the Rate & Ship page, the Commodity / International section brings together the export-related data that will appear on the commercial invoice.
The information in this section is populated automatically from the order, commodity profiles and packed cartons. Before you process the shipment, review the fields below to confirm the shipment information is complete and accurate.
Products: Shows product information grouped by commodity, each line item with commodity description, HTS code, country of origin, quantity and value
Customs Value: The total value of the shipment based on item unit price and quantity
Note: Product descriptions, HTS codes and country of origin are populated from the commodity profile based on the Commodity Name provided by the ERP.
Processing the Shipment
Once packing is complete, the shipment is ready to be processed through a carrier. In this example, the shipment is rated and shipped using UPS. Pacejet uses the packed shipment data and commodity-enriched order details to populate the international shipping fields and generate the required export documents. Commercial invoices can be printed or sent electronically for some carriers.
After reviewing the shipment details, click Process Shipment to submit the shipment to UPS.
Pacejet sends the shipment data to the carrier and, when required, files the electronic export information. Once processing is complete, the shipment is assigned a shipment number and marked with a status of Complete.
The processed shipment record includes the carrier, service level, total packages and total shipment weight. These values reflect the packed cartons and are used to generate shipping labels and documentation.
Commercial Invoice Output
After the shipment is processed, Pacejet generates the commercial invoice using the packed shipment and enriched export data. You can access the document from the shipment record, print it or include it with the shipping documents.
The commercial invoice organizes shipment data into the format required by customs authorities and brokers. It includes transaction and reference information, party details, line items, totals and the exporter certification section.
Transaction and Reference Information: Identifies the shipment number, order reference, ship date and carrier
Parties: Lists the exporter and consignee details
Line Items: Shows each commodity description, HTS code, country of origin, quantity, unit value and total value
Totals and Summary: Displays total quantities, total shipment weight and declared customs value
Certification: Includes the exporter’s declaration and signature block
Each section of the document is built directly from data captured earlier in the process. Order data defines the transaction, commodity profiles supply classification and origin, and packing determines quantities, weights and package structure. The result is a complete commercial invoice that reflects both the financial transaction and the physical shipment.
Some operations may wish to use a commercial invoice which summarizes lines by product description instead of commodity description. The Pacejet self-service shipping paperwork includes a template for each option of "Commercial Invoice with Commodities" or the "Commercial Invoice with Products" (as shown below).