The commercial invoice is a legal document between the supplier and the customer that clearly describes’ the sold goods, and the amount due on the customer. Is a document required by customs to determine true value of the imported goods, for assessment of duties and taxes.
The commercial invoice is one of the main documents used by customs in determining customs duties? When used in foreign trade, a commercial invoice is a customs document. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders.
It is a legal document between the supplier and the customer that clearly describes’ the sold goods, and the amount due on the customer. The commercial invoice is one of the main documents used by customs in determining customs duties. Unlike the Bill of Lading, the commercial invoice does not indicate the ownership of goods nor does it carry a title to the goods being sold. It is, however, required for customs clearance purposes to calculate and assess the duties and taxes due.
Record Keeping is one major importance of commercial invoice is record keeping. A Commercial invoice does not only aid good record keeping but also, helps in determining your stock level per given period of time.
Commercial invoices also serve as sales evidence. It helps in preventing a customer from denying a transaction. An invoice is a legal evidence with which to demand payment. Also, it is needful when the need to prove your case in a law court arises. It clearly shows buyer’s acknowledgement of goods sold.
Commercial invoice protects merchants from exploitation reason being that its detailed nature helps in exposing fraudulent buyer or seller who tries to play smart on the other party.
Although a commercial invoice isn’t a payment instrument, it plays major role in payment assurance reason being that it’s a legal document that proves that transaction actually takes place. Also, a seller could refer to an unpaid debt with the aid of a commercial invoice and this will invariably propel the customer to pay up their debts.
One major benefit of commercial invoices is that they provide enough information needed by importer when checking orders and receipts accuracy. With the aid of an invoice, a buyer can check to know if goods supplied corresponds with his order both in quality and quantity.
An invoice could serve as notice for due payment. Also, use of invoice as payment notice aids prompt payment. Furthermore, it is a tool for good customer relationship.