Introduction to the Invoice Document and Its Application in Transportation

Introduction to the Invoice Document and Its Application in Transportation

In international transportation and trade, various documents are collectively referred to as transport documents. These documents provide detailed information on goods and shipments and are among the most important in foreign trade transactions.

They function as the identity record of goods. One of the most significant of these documents is the invoice, familiarity with which is essential for traders and commercial actors.

The Role of the Invoice in International Transportation of Goods

Importance of Transport Documents

The necessity of transport documents in international transportation lies in their use of specialized transportation terminology and detailed shipment information. In practice, the buyer can clear the goods through customs only with these documents, after fulfilling financial obligations and settling accounts with the seller or the bank.

Among the most important commercial documents used in international transportation are the waybill, bill of lading, certificate of origin, and invoice.

Classification of Transport Documents

In general, transport documents fall into two categories: standard or customary documents and special documents.

Standard Transport Documents

• Bill of lading.
• Pro forma invoice.
• Commercial invoice.
• Certificate of origin.
• Packing list.
• Detailed packing list.
• Test or inspection certificate.
• Insurance policy.
• Export certificate.

Special Transport Documents

• Certified invoice.
• Approved invoice.
• Weight certificate.
• Consular invoice.
• Blacklist certificate.
• Manufacturer’s analysis certificate.
• Health and sanitary certificate.
• Full inspection certificate at origin.
• Disinfection certificate.

Concept of the Invoice

In customs procedures, an important commercial document, known as an invoice, purchase statement, or commercial bill, is used. Goods purchased from abroad are accompanied by an invoice that specifies the quantity and value. Under international transportation regulations, the invoice must be prepared by the exporter or seller during customs formalities and issued in the buyer’s name.

After preparation, the invoice must be signed and approved by the authorized person within the seller’s company. Submission of the invoice to customs authorities is also required. Presenting the invoice at customs clearance in the destination country is essential for review and approval.

Required Information in an Invoice

Each seller may determine the invoice format at their discretion, as no predefined structure has been imposed. However, certain information must be included. This information must be stated, along with the date of issuance, on official company letterhead.

The required information includes the following:

• Date of the invoice.
• Serial number, invoice number, or reference number.
• Seller, sender, or exporter information, including full company name, telephone number, and postal address.
• Buyer or consignee information.
• Customs tariff code.
• Total price of the goods.
• Unit price of the goods.
• Quantity of goods.
• Clear and precise description of the goods.
• Item or service reference number.

Types of Invoices in Transportation

In addition to the general definition of an invoice, there are circumstances in which the buyer’s additional information results in the issuance of other types of invoices. These types include the following:

• Certified Invoice: In this type of invoice, the seller certifies that the exported goods comply with the contract and are not subject to export restrictions. This invoice is usually required to be approved and signed by the local chamber of commerce or a competent authority.
• Approved Invoice: In addition to approval by the chamber of commerce, the seller must obtain approval and a signature from the buyer’s consulate or embassy. This type of invoice is commonly required by buyers in certain Middle Eastern countries.
• Consular Invoice: This invoice is a printed form that must be completed and stamped by the embassy of the seller’s country. The costs associated with issuing this invoice are borne by the seller.

Difference Between a Pro Forma Invoice and a Commercial Invoice in Transportation

A commercial invoice is an official, binding document, whereas a pro forma invoice has no formal legal status and its terms are subject to change.

Frequently Asked Questions About the Invoice Document