When you're shipping goods across international borders, you should issue a commercial invoice. This document serves as a customs document and contains more information than a traditional invoice. This invoice should be attached to the package along with the shipping label, preferably in a clear plastic sleeve. You can choose to create your own commericial invoice or use your Supplier's invoice.
In this article, we will cover how to correctly fill out a commercial invoice, and the important terms associated with the Customs Entry Page from the Australian Border Force.
What is a Commercial Invoice?
A commercial invoice is a document used for detailing price, value and quantity of goods being sold. It is used by the Australian Border Force to generate a Customs Entry Page. This document provides Customs with information about your shipment such as value, classification and origin. Customs will use this form to calculate the duties and taxes owed on imported goods.
The importance of commercial invoices in eCommerce
Everyone knows that shipping goods to foreign destinations can be tricky. One mistake can completely halt your shipment, or cost you to correct. If you fill out the commercial invoice correctly, it will allow customs authorities to calculate the duties and taxes owed on your import quickly. This allows your package to clear customs in an appropriate amount of time. And, if you're a business, for your customer to receive their package in a timely manner.
How to correctly fill out a commercial invoice
Correctly filling out a commercial invoice can make or break your shipment. Incorrect details can cause delays or cost you more. These are the items required to be on your commercial invoice:
- Country of origin: What is the origin of the merchandise?
- The exporter and consignee details: The name and address of the buyer and seller must be listed, as well as the country of origin of the goods.
- A detailed description of the merchandise: What are the items exactly? What are they made of? What are they used for? This information is important so that Customs can properly assess duties.
- Quantities and weights: Make sure that the units of measure and quantities of each item are exact and accurate. The purchase price of each item: How much did you pay for these items? This is calculated individually per unit.
If this is your first time importing use the expertise of a customs broker to ensure that the process goes smoothly. If you're shipping with Interparcel, your selected carrier becomes the broker for your shipment. They will manage the process on your behalf. There are a few things that you can include in your booking to ensure a smooth process:
- A tariff code
- A certificate of origin
- A copy of known Free Trade Agreements (if applicable to your goods)
How Interparcel helps with your shipping documents
Once you have completed a booking, you will be directed to a page that has downloaded .pdfs of your shipping label and commercial invoice. These documents will also be emailed to you. If you at any time lose these documents, you can go to Help > Download Documents, enter in your order number and you will be able to re-download your shipping documents.
How to read a customs entry page
After you have completed your booking, the details on your Commercial Invoice will be used by your selected carrier to populate a Customs Entry Page. This page is populated by Australian Border Force and must match all the details on your Commercial Invoice. This page will include:
- Customer name
- Carrier name
- Mode of transport
- Valuation date
- Factor (currency)
- Invoice price
- Duty rate
- GST
Acronym list
- FOB: Free On Board. The seller is responsible for delivering the goods from their place of business, clearing Customs in the country of export and loading the goods onto the vessel at the port of export. This is the most common.
- CIF: Cost, Insurance, Freight. The seller is responsible for clearing the goods for export, loading the goods onto the vessel at the port of export and paying overseas freight and insurance charges.
- GRWT: Girth Weight. This is the billable weight of your shipment, calculated in kilograms (kgs). This is calculated by multiplying the package length by the width by the height.
- T&I: Transport and Insurance. This is the amount spent on freight transportation and insurance for your shipment.
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