Commercial invoices in a produce import

The commercial invoice is the exporter’s statement of what the goods cost, in what currency and on what Incoterm. Customs values your import from it and calculates duty on that figure, which is why an entry cannot be filed without one.

In most trades that is the end of the story. In fresh produce it is not, because the price on the invoice is frequently a price nobody knew when the container was loaded.

The consignment problem #

A large share of produce moves on consignment, or on sale-on-arrival terms: the fruit is sold after it lands, at whatever the market pays that week, and the grower is paid the proceeds less costs. The invoice raised at loading therefore carries a provisional value — a reasonable estimate, not the sale.

That is normal and accepted, but it has consequences. The customs value is provisional too, and a final account settled weeks later can differ from the figure duty was paid on. It also means your finance team is reconciling against a number that was always going to move, which is a different exercise from checking an invoice that was fixed at order.

Why it is worth reading carefully #

The invoice and the packing list describe the same goods from two directions — one says what it cost, the other says what is physically there. Neither is written to check the other, which is exactly what makes the comparison useful. If the invoice bills 1,200 boxes and the packing list details 1,180, one of the two documents is wrong, and finding that out before the entry is filed is considerably cheaper than finding out after.

FAQ #

What is the difference between a commercial invoice and a proforma invoice? #

A proforma is a quotation: it states what the goods would cost, and it is used to open a letter of credit or arrange an import licence. The commercial invoice is the actual demand for payment against a real shipment, and it is the one customs values from.

Can I clear customs without the commercial invoice? #

Generally no. It and the packing list normally form the entry together, because one supplies the value and the other supplies the description and quantities. Which documents a given country requires varies, but for fresh produce both are usually needed.

The final price differs from the invoice. Is that a problem? #

On consignment terms it is expected, and most customs regimes have a procedure for it. What matters is that the provisional value was declared honestly and the adjustment is made through the proper route rather than left unreconciled.