Commercial Invoice: What Must a Commercial Invoice Include to Clear Customs?

Your container is stuck at the port, and the reason is paperwork. A simple error on your commercial invoice¹ is now costing you thousands in delays. It’s a frustrating and expensive problem.

A commercial invoice¹ is the primary legal document U.S. Customs and Border Protection (CBP)² uses to determine the value of your goods, assess duties and taxes, and ensure compliance. It must accurately detail the transaction between the shipper in China and you, the U.S. importer.

Getting this document right is not just about filling out a form. It's about creating a legal declaration that stands up to scrutiny from customs officials. As someone who manages China to USA shipments every day, I've seen firsthand how a correct invoice ensures a smooth process, while a bad one creates chaos. Let's break down exactly what you need to know to avoid the headaches.

Is a Commercial Invoice Required for Customs Clearance?

Thinking your invoice is just a formality for your records? This mistake can get your entire container shipment stopped at the border, with no movement until the proper document is provided.

Yes, a commercial invoice¹ is mandatory for nearly all commercial goods imported into the United States, especially for FCL and DDP shipments³ from China. U.S. Customs will not release your cargo without one. It is a non-negotiable part of the customs entry process.

I often have to explain to new importers that the commercial invoice¹ is the backbone of the entire customs declaration. For any shipment with a commercial value, especially those exceeding $2,500, CBP legally requires it to classify and value your products. Without it, your customs broker⁴ cannot even file the entry. I've personally seen containers sit for weeks, accumulating expensive demurrage fees⁵, all because a supplier in China forgot or delayed sending the final commercial invoice¹. For my clients shipping full containers (FCL) or using DDP terms, I always stress that this document must be ready before the ship even arrives. It's that critical.

What Information Must Appear on a Commercial Invoice?

You sent an invoice, but a single missing detail gets your entry flagged. Now CBP wants to review everything, and a simple import has turned into a week-long delay and a major headache.

A compliant commercial invoice¹ must clearly state the full shipper and consignee details, a very specific description of the goods, quantities, unit and total values, country of origin, and the Harmonized Tariff Schedule (HTS) code⁶ for each item. Missing fields are a primary trigger for customs hold⁷s.

Over the years, I've developed a simple checklist to ensure my clients' invoices from their Chinese suppliers are perfect every time. A vague description is one of the most common mistakes I see. "Auto parts" is not enough. It needs to be "10,000 units of steel brake calipers, model #BC-54321." The more detail, the better. CBP needs this information to verify that you are using the correct HTS code and paying the right amount of duty. An incomplete invoice tells CBP that the importer might not have full control of their supply chain, which invites extra scrutiny.

Commercial Invoice Checklist

Here is a table outlining the essential information:

What Value Should Be Declared on a Commercial Invoice?

You might be tempted to ask your supplier for a lower invoice value to save on duties. But if U.S. Customs discovers this, you could face penalties that are many times the amount you tried to save.

You must declare the full "transaction value¹¹" on the commercial invoice¹. This is the total price you actually paid for the goods. It must also include the value of any "assists," such as molds, tooling, or design work you provided to the factory for free or at a reduced cost.

Undervaluation is one of the biggest risks an importer can take, and CBP is extremely focused on finding it. The "transaction value¹¹" isn't just the number on the invoice; it's the reality of the deal. I once had a client, let's call him Mark, who was importing plastic casings from China. He had paid his supplier $50,000 for a custom mold, but that cost was not reflected in the per-unit price of the casings. During a customs audit, CBP flagged this as an "assist." They argued that the value of the mold should have been spread across the price of the imported goods. Mark ended up with a significant bill for back-duties¹² and a penalty for negligence. It was a tough lesson: CBP has databases of typical values for goods. If your declared value is suspiciously low, they will notice.

Should Freight, Insurance, and Incoterms¹³ Be Included on the Invoice?

You see "FOB Shanghai" on one invoice and "DDP Los Angeles" on another, and you're not sure how it affects your costs. This confusion can lead you to pay duties on non-dutiable charges, costing you money.

Yes, the Incoterm (e.g., FOB, DDP) must be stated on the commercial invoice¹ because it dictates how the dutiable value¹⁰ is calculated. For an FOB shipment, you add international freight costs to the product value. For a DDP shipment, you subtract them.

This is where many importers get confused. U.S. Customs duties are calculated on the value of the goods plus the cost to get them to the U.S., but not the costs inside the U.S. The Incoterm tells CBP which costs are included in your invoice total.

Let's look at a simple FCL container shipment from China:

• FOB (Free On Board)¹⁴ Example: Your invoice from the supplier is $80,000 for the products. This is the FOB value. You then separately pay $5,000 for ocean freight and insurance. For customs, the dutiable value¹⁰ is $85,000 ($80,000 + $5,000).
• DDP (Delivered Duty Paid)¹⁵ Example: Your invoice from the supplier is $100,000. This price includes the product, ocean freight, insurance, duties, and U.S. inland delivery. To find the dutiable value¹⁰, your customs broker⁴ must show a breakdown and subtract the non-dutiable costs (like U.S. inland freight) from the $100,000 total.

Stating the Incoterm clearly on the invoice prevents disputes and ensures you only pay duty on the correct amount.

Commercial Invoice vs Customs Invoice: What’s the Difference?

Your supplier sends a document titled "Pro Forma Invoice¹⁶," and you assume it's good enough for customs. This simple mistake gets your entry rejected, and your cargo sits idle while you chase the correct paperwork.

For U.S. imports, a standard "commercial invoice¹" is what you need. A "customs invoice" is a specific form required by other countries, not the U.S. The title doesn't matter as much as the information; as long as your document has all the required fields, CBP will accept it.

This is a common point of confusion, but the solution is simple. The United States does not have an official government form called a "Customs Invoice" that you must use. A well-prepared commercial invoice¹ from your seller is the standard and accepted document. The key is to avoid using a Pro Forma Invoice¹⁶. I've had to explain this to clients many times: a pro forma invoice is a quote or an estimate, not a record of a final sale. CBP will reject it every time because it doesn't represent the actual transaction. You must insist that your supplier in China provides a final "Commercial Invoice" that reflects the actual payment and shipment details.

What Happens If a Commercial Invoice Is Incorrect or Incomplete?

You figure a small error on the invoice is no big deal. But that "small error" gets your container pulled for a full customs exam¹⁷, costing you an extra $2,000 and two weeks of lost time.

An incorrect commercial invoice¹ leads to customs hold⁷s, costly exams, duty reassessments, and even severe financial penalties. Consistently filing bad paperwork damages your reputation with CBP, leading to more inspections on your future shipments. It's a serious compliance failure.

The consequences are not theoretical; they are very real. First, your shipment stops. Your broker will report a rejection, and you'll have to scramble to get a corrected invoice from your supplier in China, losing days to the time difference. This delay can trigger an exam. A simple X-ray (VACIS exam¹⁸) can cost hundreds of dollars, while a full physical exam where they unload your container can cost thousands. If CBP finds a value discrepancy, they will issue a new bill for the higher duty and can levy penalties for negligence or fraud, which can be multiples of the duty owed. Worst of all, it puts a black mark on your record as an importer. Your company's risk profile increases, making every future shipment more likely to be flagged for inspection.

Conclusion

For China-USA FCL and DDP imports, the commercial invoice¹ is not just paperwork. It is a legal declaration to the government, and its accuracy is the foundation of predictable customs clearance.