🧾 How to Read a Customs Invoice
Every field on a commercial invoice, what it means, and which ones decide how much duty gets charged
What a customs invoice is
A customs invoice — usually called a commercial invoice, and sometimes a pro forma invoice when no sale took place — is the document customs uses to decide what your shipment is, what it's worth, and what to charge. It is not a receipt and it is not the shipping label. FedEx, UPS, and DHL require one on every international non-document shipment; postal services use a CN22 or CN23 instead, though a CN23 often travels with an invoice attached. Whoever is sending the goods prepares it, which is why the version in your hands may have been filled in by a supplier on the other side of the world.
Reading It Field by Field
Invoices vary in layout but not in content — customs requires the same information everywhere. Work down the document in this order:
| Field | What it means | Why it matters |
|---|---|---|
| Invoice number & date | The seller's own reference and the date of issue. | How customs and the carrier tie the paperwork to the parcel. A mismatch with the air waybill causes holds. |
| Shipper / exporter | Who is sending the goods, with address and tax ID. | Must match the sender on the waybill exactly. |
| Consignee | Who legally receives the goods. | Normally the party billed for duty, whether or not they bought anything, unless the sender shipped DDP. |
| Ship to | The physical delivery address, if different from the consignee. | Common with dropshipping and gifts; the charge still normally follows the consignee. |
| Country of origin | Where each item was manufactured — not where it shipped from. | Sets the duty rate and decides whether a trade agreement applies. Especially important for U.S. imports, where tariffs now vary by origin. |
| Description of goods | What each item actually is, in plain words. | "Samples", "gift", or "parts" invites inspection. "Men's cotton t-shirts, 100% cotton, knit" does not. |
| HS / HTS code | The 6–10 digit harmonized tariff code for each line. | Directly determines the duty percentage. Six digits are international; the U.S. uses 10. Worth verifying rather than trusting. |
| Quantity & unit | How many, in pieces, kilos, litres, or pairs. | Some duties are charged per unit rather than by value. |
| Unit price & line total | Value per item and per line. | The declared customs value. Under-declaring here is fraud, not a discount. |
| Currency | The currency the values are stated in. | Customs normally converts at its own official rate, not the day's market rate. |
| Incoterm | DDP, DAP, EXW, FOB, CIF — who pays for what. | The field that decides whether you get the duty bill. See below. |
| Freight & insurance | Shipping and insurance charges, listed separately. | Many countries, including the EU and UK, add these to the value before calculating duty; others such as the U.S. generally leave international freight out. |
| Reason for export | Sale, gift, sample, repair, or returned goods. | "Returned goods" and "repair" can qualify for relief; "sale" never does. |
| Signature | A named, authorised person. | An unsigned invoice is not a valid declaration and can be rejected outright. |
The Incoterm Decides Who Gets the Bill
If you are reading an invoice to work out whether a duty bill is coming, this is the field to find first. It usually sits near the totals as three letters:
- DDP (Delivered Duty Paid) — the sender has already paid duty and tax. Nothing more should be due on delivery. Many larger retailers shipping to consumers use this.
- DAP (Delivered at Place, formerly DDU) — the sender pays freight, you pay duty, tax, and the carrier's clearance fee before the parcel is released. This is where surprise bills come from.
- CIF / CFR — the price includes freight (and insurance for CIF) up to the destination port. Duty is still yours.
- EXW (Ex Works) — you are responsible from the seller's door onwards, including export clearance. Rare and expensive for small shipments.
- FOB — the seller's responsibility ends when the goods are loaded. Everything after that is yours.
Once you know the Incoterm and the declared value, our duties and taxes guide shows how duty, VAT/GST, brokerage, and handling stack into the total landed cost, and whether a low-value threshold applies. Those thresholds have shrunk: the U.S. $800 exemption is suspended and the EU's €150 duty relief has ended.
Red Flags When Checking an Invoice
- Value far below what was paid. Some suppliers "helpfully" under-declare to reduce your duty. If customs checks, the consignee — you — carries the penalty, and the shipment can be seized.
- "Gift" on a commercial purchase. Gift relief only applies to genuine person-to-person gifts under a low threshold. Marked on a supplier shipment, it is a false declaration.
- Country of origin copied from the shipping address. Goods made in Vietnam and shipped from a Chinese warehouse originate in Vietnam. Getting this wrong can mean the wrong duty rate in either direction.
- Missing HS codes. Customs will classify the goods for you, and it will not choose the favourable code.
- Totals that don't add up. Arithmetic errors can look suspicious rather than careless and invite questions.
- No freight line on a CIF/DAP shipment. Customs may estimate freight itself, which may not work in your favour.
How Many Copies, and Where They Go
Carriers differ, so follow the booking instructions. Printed copies, often three, travel in a clear document pouch on the outside of the box, not sealed inside it: an invoice packed inside means customs has to open the box to find it. FedEx, UPS and DHL also offer paperless options that let you upload the invoice at booking, which avoids the pouch coming off in transit. Destinations that need a legalised or chamber-stamped invoice still need a physical original.
Commercial Invoice vs Other Documents
| Document | Use it for |
|---|---|
| Commercial invoice | Goods sold, sent by courier or with a postal CN23. |
| Pro forma invoice | Goods with no sale, such as gifts, samples or repairs. It has the same fields, and you still state a real value. |
| Packing list | Supplements an invoice by showing what is in each box. It doesn't replace one. |
| CN22 / CN23 | Postal customs declarations. U.S. senders must generate them electronically. |
| Air waybill | The carrier's transport contract and tracking record. |
Related guides
Not sure whether you need an invoice or a postal declaration? Start with the customs forms overview. For postal shipments, see the CN22 form for small low-value parcels and the CN23 form for anything larger or being returned. To estimate what the recipient will actually be charged, read duties, taxes & landed cost. If an invoice problem has already stopped a shipment, see package stuck in customs.