May 14, 2022 •Chase Flashman
In today's global economy, international shipping is commonplace for companies across a wide variety of industries. For businesses, understanding the intricacies and requirements that accompany shipping internationally is critical for business success. One of the most critical documents that companies need to be aware of is the commercial invoice, which is the building block for all other shipping documents that accompany an international shipment.
Getting the finer details right on your commercial invoices can help companies get the most out of their parcel invoice audit down the road, and it may even help companies avoid certain FedEx surcharges. This article will explore what a commercial invoice is, why you need one, and how to access easy-to-use templates for completing your commercial invoices.
What Is a FedEx Commercial Invoice?
A commercial invoice with FedEx or any other shipping company is an official document and a transactional record used for the import and export clearance process for international shipments. A commercial invoice is required any time you're shipping something that holds commercial value internationally, which applies to most non-document shipments.
Commercial invoices serve as the foundation for any other required or recommended international shipping documents. They provide more detailed shipping information than standard invoices, and they are used by customs officials when a parcel crosses international borders to calculate import taxes and duties. As such, it is essential that the information provided on a commercial invoice is detailed and accurate and that it matches any information provided on a shipping label.
Why Do I Need a Commercial Invoice for FedEx?
A FedEx commercial invoice is required for any commodity parcels being shipped across international borders. Here are just a few of the reasons why a commercial invoice is necessary.
- International Requirement: Because commercial invoices are required, filling them out fully and completely is essential to maintaining good relationships with customs authorities.
- Taxes and Duties: Commercial invoices are used by the majority of foreign customs agencies to process and control imports and determine taxes and duties. This information is essential for the smooth running of shipping operations worldwide.
- Prompt Delivery: Accurate and detailed commercial invoices help prevent potential hold-ups and delays in shipping, which ensures your customers get their items on time.
How Do I Get a FedEx Commercial Invoice?
There is no standard format for a commercial invoice. However, FedEx provides blank commercial invoice templates for shippers to use should they choose to. This interactive FedEx commercial invoice PDF can be completed by typing all the pertinent information and printing it. Alternatively, companies may print a blank copy of the PDF and hand write it.
FedEx also offers a number of other interactive FedEx forms online, including blank Certificates of Origin forms, for your convenience.
What Is Required For a Commercial Invoice?
Because there is no standard international format for commercial invoices, it is important to understand any particular requirements for the country you are shipping too. FedEx International Shipping Assist is an excellent resource for filling out commercial invoices, and it can help shippers find information such as the correct Harmonized System code and estimated shipping costs.
With that said, commercial invoices generally include the following pieces of information.
- Shipper Contact Information: Information such as company name, tax ID number, contact name and information, and full address
- Country of Manufacturer: This should indicate where each item in the parcel was originally manufactured
- Consignee Information: Contact information for the ultimate recipient of the parcel
- Importer: If the shipment is being handled by someone other than the final recipient, the full name and address should be included
- FedEx International Air Waybill Number: Include this as the main reference number, and ensure the values on the commercial invoice match the values on the Air Waybill
- Item Description: Each item should include a full description, including the Harmonized System code (where applicable), number of units, weight, the reason for export and intended use, serial numbers (where applicable), and value
- Signature: FedEx requires a signature for each commercial invoice, and the signature must be present on the original commercial invoice and each of the three required copies
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Understanding the ins and outs of commercial invoicing can certainly help keep international shipping costs and delivery times down. But for companies truly looking to get the most out of their shipping spend, a larger parcel invoice auditing process can help.
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Frequently Asked Questions About FedEx Commercial Invoices
What signature requirements apply when submitting international parcel shipping documents?
FedEx requires a signature on the original commercial invoice and on each of the three required copies. This means every complete submission includes four signed documents.
What information must be listed for each product in an international parcel shipment?
Each item requires a full description, the Harmonized System code where applicable, number of units, weight, reason for export, intended use, serial numbers where applicable, and declared value. These fields enable customs agencies worldwide to process the shipment and apply the correct duties.
What are the consequences of submitting incorrect international shipping documents at customs?
Inaccurate or incomplete shipping documentation creates hold-ups and delays at border crossings as customs officials review the discrepancy. The values on the shipping documents must also align with those on the Air Waybill and shipping label to avoid further complications.
Which agencies use international shipping documents to determine import taxes and duties?
Foreign customs agencies use commercial invoices to process imports and calculate the applicable taxes and duties. This is one reason accuracy matters: errors on the document directly affect the duty assessment for the shipment.
What online tool helps shippers identify the correct Harmonized System code for international parcels?
FedEx International Shipping Assist is an online resource that helps shippers find the correct Harmonized System code and estimated shipping costs. It is designed to guide shippers through the more technical fields on a commercial invoice.