How to Read a Customs Invoice

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.	This is the party customs bills for duty, whether or not they bought anything.
Ship to	The physical delivery address, if different from the consignee.	Common with dropshipping and gifts; customs still charges 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. The most commonly wrong field on the whole form.
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. 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 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 add these to the value before calculating duty.
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 to pay on delivery. Most reputable retailers shipping to consumers use this.
DAP / DDU (Delivered At Place) — 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 the de minimis threshold means you owe nothing at all.

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 are treated as suspicious rather than careless, and reliably trigger inspection.
No freight line on a CIF/DAP shipment. Customs may estimate freight itself, usually generously.

How Many Copies, and Where They Go

Three signed originals is the safe default: one for the destination customs authority, one for the consignee, one for the carrier. They travel in a clear document pouch on the outside of the box, not sealed inside it — an invoice packed inside means customs opens the box to find it. Most carriers now also accept electronic trade documents uploaded at booking, which is faster and avoids the pouch coming off in transit. If you are shipping to a country that requires a legalised or chamber-stamped invoice, that copy must be a physical original.

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.

All Customs Forms Duties & Taxes

🧾 How to Read a Customs Invoice