In this article, we want to know what invoice is and get to know its types. An invoice is an important part of any business transaction. In fact, the invoice is a legal and standard document that shows the details of the product, the service provided and the agreed price. To learn more about this concept, stay with us until the end of the article.
To better understand this concept, we must first answer the question, what is an invoice and what is its use? It is important to understand exactly what an invoice is and what a professional invoice should look like.
Writing the list correctly and professionally is also very important. This is especially important in international trade. When writing an international commercial invoice, the currency must be specified in the invoice. Also, the commercial invoice and packing list must be registered and signed on the letterhead of the sending company.
What is an invoice?
The invoice is one of the most important documents in customs transactions and it is essential to have it. In today’s business world, this invoice is considered one of the vital documents of business transactions that people must prepare before the transaction.
In fact, the invoice represents the validity and value of the goods sold and the number of goods purchased. This document contains detailed information about the transaction, which allows the buyer to carefully check the details of the transaction.
The packing list, or the fair list, plays a significant role in performing customs formalities in the field of export and import of goods. This commercial document helps to facilitate the customs process by showing complete details of the traded goods, such as the number of packages, the size and volume of the packages, the net weight of the shipment, etc. Also, the packing list helps the shipping companies to have accurate information about the shipped cargo.
Information recorded in the invoice
After getting acquainted with the concept of invoice, in this section we want to know what items are mentioned in the invoice. In general, each invoice or list includes the following:
Invoice Date: includes the date of invoice issuance.
Commercial invoice number: The invoice must have a unique number (machine gun number).
Shipper/Seller: In this section, the full name of the company, postal address and phone number of the seller should be written.
Consignee/Buyer: In this section, the full name of the company, postal address and phone number of the buyer company are written.
Total price of goods (product or service) (Total Price in Currency): The total cost of the goods is mentioned.
Unit price of goods (product or service) (Unit Price in Currency): The price of one unit of goods is mentioned.
Quantity: Shows the total number of goods.
Customs tariff code (HS Code): indicates the customs tariff code or HS Code for international trade.
Description: Contains a brief description of the product.
Number (No): This part of the list shows the numbering of the goods.
Commercial invoice and its importance in transactions
In this section, we want to get to know the importance of the invoice or business list. The commercial register is a very vital document in the world of trade and commerce, which is used to complete the import and export of goods. This document contains general information related to the shipping process, customs, banks and brokers related to the transaction. Not having this document can lead to fines and heavy costs.
What is meant by Proforma Invoice? Proforma invoice is a proforma invoice that is provided by the seller to the buyer before the transaction. This document contains details about the goods, terms of sale, delivery time and other relevant information.
Purpose and importance of commercial invoice in customs transactions
Commercial invoice, or invoice, is a very important document in customs transactions. The invoice provides detailed and complete information about products and goods. This information includes product details, prices, quantities and other features. This information is important to verify the authenticity of the transaction by the buyer and the seller. Also, if the goods are freight insurance and the buyer needs an insurance claim, the invoice serves as the reason for this claim.
In general, the invoice allows the buyer to clear the goods quickly and accurately from the customs of the buyer’s country. The buyer pays the seller using the invoice. This money exchange is done according to the detailed information in the invoice. The government also uses the invoice to assess the goods at customs and determine the amount of customs duties and taxes.
Common types of invoices
Types of invoices are used in commercial transactions and transportation according to different needs and restrictions. In the following, we introduce the 3 main types of invoices:
Certified Invoice: Certified Invoice is a type of commercial invoice that has been approved by an authority or chamber of commerce. This invoice contains accurate and reliable information about the transaction, prices, goods and terms of the transaction. This list is usually used in international transactions.
Legalized Invoice: Legalized Invoice is a document that is approved by government authorities or special authorities. These confirmations are used to ensure the correctness and legality of the transaction and its information. This type of invoice is necessary for transactions that require legal approvals.
Consular Invoice: Consular Invoice is a type of commercial invoice issued by the consular authorities of the country of origin or destination. This type of invoice is usually used for goods sent to a specific country and needs to be approved by the authorities of that country.
Choosing the right type of these invoices depends on the type of transaction, destination or origin of the goods, and related regulations. Each of these invoices are used for transactions and transportation with their own characteristics and purposes.
last word
In this article, we answered the question of what invoice is and what are its uses. We also introduced different types of invoices. Now, if you want to get more information about writing commercial and international lists, get help from our consultants at Tejarat Joyan. It should be noted that Tejarat Joyan Trading Company provides services for registering goods, purchasing goods, preparing bills of lading and transporting goods, customs clearance, obtaining necessary permits, etc.