The role of the commercial invoice in shipping

The commercial invoice serves as the foundation for the shipping process. It outlines the terms of the sale, facilitates the movement of goods, helps with customs clearance, and supports compliance.

The commercial invoice is the backbone of every international shipment. It’s the document that keeps your goods moving and ties your supply chain together.

Customs officers review it first to determine tariff classification, country of origin, and duties. Freight forwarders and carriers rely on it to book and transport cargo. And your finance team uses it to calculate landed costs and settle accounts.

Get it right, and your shipment clears quickly, your freight partners can do their job, and your costs stay predictable.

Get it wrong, and you risk delays, penalties, and added expenses.

Because a commercial invoice is the foundation of compliance and the key to keeping your shipments on the move, here’s everything you need to know about it.

What is a commercial invoice?

A commercial invoice is the main document used in international trade to record the sale of goods between an exporter and an importer. 

It serves as both a financial record confirming sale terms and a customs document that enables border agencies to verify the shipment's nature, value, and origin.

The Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) require a commercial invoice for every shipment.

They use it to assess duties and taxes, enforce trade laws, and confirm compliance with import regulations.

Commercial invoice requirements in Canada

Under CBSA Memorandum D1-4-1 (Appendix A), every commercial shipment to Canada must be supported by an invoice that includes the following details:

• Full names and addresses of the seller and consignee/buyer
• A detailed description of each item, including HS code, quantity, and unit price
• The total invoice value and currency
• Country of origin of the goods
• Conditions of sale/terms of payment and delivery

If a supplier’s invoice lacks any of these, a Canada Customs Invoice (CCI, Form CI1) is required to fill in the missing fields.

For shipments valued at CAD $2,500 or more, CBSA requires the use of a CCI when the commercial invoice does not already include all required fields.

There is no fixed format for a CCI. What matters is that all required data is presented.

Commercial invoice requirements in the U.S.

Under 19 C.F.R. § 142.6, the commercial invoice (or acceptable substitute) must accompany every shipment and include at least these elements:

• An adequate description of the merchandise
• The quantities of merchandise
• The values or approximate values of the merchandise
• The appropriate eight-digit HTSUS subheading (tariff classification)
• The name and complete address of the party liable for invoicing

This list is not comprehensive. Additional information may be required for certain goods, such as textiles, footwear, food and drug products, chemicals, and other items.

How Cole International can help

At Cole International, we provide freight forwarding solutions to help businesses like yours navigate the entire shipping journey.

Our team can work with you to:

• Prepare accurate commercial invoices that meet CBSA or CBP requirements
• Review documents to avoid errors that can cause delays or penalties
• Verify the correct value and tariff classification of your shipment for smooth clearance
• Ensure your full compliance with customs regulations

Our goal is to help you ship your goods smarter and faster.