The commercial invoice may be first in a line of export documents that you must issue to get your goods shipped from the United States, cleared through customs at the final destination and delivered to your customer’s warehouse. However, an export packing list provides important information to all the interested parties.
Export Packing List Purpose
The export packing list provides the exporter, the international freight forwarder, and the ultimate consignee with information about your shipment, the packing details and the marks and numbers noted on the outside of the boxes. [You'll find an export packing list template here.]
Your freight forwarder uses the packing list to prepare the bill of lading for the international carrier and to prepare export clearance documentation, such as the Electronic Export Information required for filing through AESDirect on the Automated Commercial Environment [ACE] platform. It itemizes the amount and kind of merchandise contained in each individual package that is to be loaded aboard a truck, railcar, vessel or aircraft.
A packing list is also used as a supporting document in the event of a dispute between the carrier and the exporter regarding the measurement and weight of the cargo.
It is a means by which customs authorities in the importing country assess security and compliance. And, it is a required document to file a claim with the carrier or insurance company in the event of cargo damage or loss.
If the term of payment is a letter of credit, the bank issuing the letter of credit will require a packing list be presented under instruction from the buyer.
What to Include on an Export Packing List
A good packing list provides fairly detailed information about the merchandise:
- Product description
- A reference to the relevant commercial invoice number and/or item number
- The type of package[s], e.g. box, carton, vials, etc.
- The net and gross weights of each package stated in pounds or tons and converted into a metric equivalent, except where the buyer or government regulations require otherwise
- The legal measurements expressed in inches and cubic feet and converted into a metric equivalent, except where the buyer or government regulations require otherwise
- Package markings
- Buyer and seller references
Remember, a packing list is not the same as a pick list, which is a document that lists the material to be picked for manufacturing or shipping orders.
The packing list is an important document to you, your customer, your freight forwarder and customs. All the particulars in this document will facilitate the shipment of your goods.
This post was originally published in June 2002 and has been updated to include current information, links and formatting.
Pro-forma invoice acts as a contract and is preliminary quotation for any trade. Commercial Invoice and Packing List are necessary for export of goods to file shipping bill and other necessary documents. It is always recommended to have a physical document with information regarding the transaction in case of any mishap. In addition, commercial invoice and Packing List are mandatory documents for export and import of goods.
Pro-Forma Invoice
is a quotation containing information issued by the seller to the customer concerning the goods before purchase. Further, it describes in detail the cost, shipping charges, shipment weight and so on. However, it is only issued when the seller is enquired by the customer before the actual transaction or a Commercial invoice. This invoice is not mandatory, nevertheless, it is a good practice to issue it with every transaction.
A Pro-forma Invoice contains the following details- Pro-forma Invoice No
- Date and validity
- Name and Address of the export company
- Name and Address of the importer company and consignee
- Details of the goods with packaging detail
- Payment Terms
- Stipulations and conditions of sale
- Net Weight
- Total Amount of Invoice
- Specification of Goods
Commercial Invoice is a legal bill that stands as proof of the transaction between the customer and the supplier. Usually, it is the document required by customs to release the shipment. As it contains information on the shipment such as the value of the shipment, the number of units shipped and the conditions for sale between the parties. Also, is it very important for the information provided in the invoice to correspond to the packing list. The Pro-Forma invoice and the commercial invoice, though they look alike they are not entirely identical. One striking difference between the two is that one a pro-forma is issued the buyer can forfeit the deal. However, on issuing the Commercial invoice, the buyer is bound to his duties of the deal.
Commercial Invoice Contains the following:
- List of Goods in the Shipment
- Name and Address of the Seller
- A detailed description of packaging [the type of container and shipment weight]
- Name and Address of the Buyer
- Respective quantity of goods
- Name and Address of Consignee
- Value of each Item
- Final price, unit price, and other charges
- Invoice number and date of invoice
- IEC Code and GST Number
- Terms of Sale
- Payment Terms
- Bank Details
- GST Amount
Packing List is a more informative and detailed description of the packed goods for import or export. It indicates the packing material used for packaging and the number of bags per master packaging. Markings, HS Code, Net Weight, Gross Weight and individual bags weight is necessary to be mentioned on the packing list. In addition, customs and shipping agents use packing list to determine the exact cargo weight and volume.
The Packing List Contains the Following- Invoice No and Date
- Shipper Name and Address
- Consignee Name and Address
- Buyer Name and Address
- HS Code
- Marking
- Net Weight
- Gross Weight
- Weight of Individual Item
- Master Packing Weight
- Type of Packaging
- Date of Packaging
- Date of Expiry of Goods [if applicable]
Unlike the Pro-Forma invoice, the commercial invoice is mandatory for all exports and imports. Additionally, the price declared in the commercial invoice stands as the definitive non-negotiable cost of goods. Most importantly, the commercial invoice stands as a proof of goods.
In conclusion, failing to issue the commercial Invoice and packing list may result in the delay of shipment, no shipping of consignment in case of export or no entry of consignment in case of import.