Commercial Invoice: Template and Rules for Exporting From Australia

A commercial invoice is the document that travels with internationally shipped goods and tells customs what's in the box, who sold it to whom, what it's worth and where it was made. Customs authorities and freight forwarders use it to classify the goods, value them and work out duty and import taxes. When you export from Australia, goods you export within 60 days of being paid or invoicing are generally GST-free, and consignments worth more than AUD 2,000 need an Export Declaration lodged with the Australian Border Force. A copyable commercial invoice template is below.

What is a commercial invoice?

A commercial invoice is the seller's invoice for an international sale of goods, written with the detail customs needs. It's the main document an importing country's customs authority uses to decide what the goods are, what they're worth and how much duty and tax to charge, and the exporter's customs broker uses it to complete the export paperwork.

It does two jobs at once. Commercially, it's a request for payment, just like any invoice. For customs, it's a declaration of the transaction, so every description, quantity and value on it has to be accurate and match the other shipping documents. A vague line like "parts, $500" is the commonest reason a parcel sits in a warehouse waiting for questions.

What is a commercial invoice used for?

Customs clearance is the main use, but the same document is relied on by everyone in the shipping chain. Your freight forwarder or courier needs it to book and declare the shipment, and the buyer's customs broker needs it to lodge their import entry.

• Import clearance in the destination country: classification, valuation, duty and import GST or VAT.
• Export reporting from Australia: your broker uses the invoice details to complete the Export Declaration where one is required.
• Origin claims: a lower tariff rate under a free trade agreement usually needs a separate origin declaration or certificate, which is checked against the invoice.
• Payment: under a letter of credit, the bank checks the invoice against the credit terms before it pays.
• Insurance and disputes: the declared value is the starting point if goods are lost or damaged.

What information must a commercial invoice include?

A commercial invoice needs the parties, a precise description of each item, quantities, unit and total values in a stated currency, the country of origin, a tariff (HS) code, the Incoterms rule and the reason for export. Requirements vary by destination country, so check with your freight forwarder, but this list covers what most customs authorities expect.

• Seller/exporter: business name, address, ABN, contact person, phone and email.
• Buyer/importer: name, address and, where the destination requires it, the importer's tax or customs number.
• Consignee (who receives the goods) if different from the buyer.
• Invoice number and date, plus the buyer's purchase order number.
• Item descriptions in plain words: what it is, what it's made of and what it's for. "Women's cotton knit t-shirt" rather than "apparel".
• HS code for each line (the first six digits are shared internationally).
• Country of origin for each line: where the goods were made, not where you shipped from.
• Quantity, unit price and line total, with the currency stated (AUD, USD and so on).
• Incoterms rule and place, for example "FOB Port Botany, Incoterms 2020".
• Freight and insurance charges shown separately if they're included in the price.
• Number of packages, gross and net weight, and dimensions if your carrier asks.
• Reason for export: sale, sample, repair and return, gift, or warranty replacement.
• Payment terms and your bank details for an international transfer (SWIFT/BIC and account details).
• A signed declaration that the information is true and correct.

Commercial invoice template you can copy

Copy this layout into your invoice or your courier's commercial invoice form, replace the bracketed placeholders and add one line per distinct product. Keep the descriptions specific; customs officers can't open a spreadsheet to find out what "SKU 4471" is.

Most couriers will print their own commercial invoice from what you enter at booking. If you use theirs, transfer the same details; don't let the booking screen's short description field tempt you into "goods".

Commercial invoice for export from Australia: is it GST-free, and do you need an Export Declaration?

Exported goods are GST-free if you, the supplier, export them within 60 days of receiving any payment or issuing an invoice, whichever happens first. Separately, the ABF needs an Export Declaration for any consignment worth more than AUD 2,000, or for goods that need an export permit regardless of value.

GST-free exports and the 60-day rule

Under the ATO's export rules, you don't charge GST on goods you export within 60 days of the earlier of payment or invoice. If the buyer pays by instalments, the clock runs from the final instalment's payment or invoice. If shipping will be delayed past 60 days, you can ask the ATO for an extension through Online services for business before the period ends.

Three practical points for small exporters:

• You still claim GST credits on the inputs you bought to make or source the goods, even though the sale itself is GST-free.
• Exports count towards your GST turnover. The ATO's own example is a seller with $50,000 of local sales and $50,000 of overseas sales, who must register because total turnover reaches the $75,000 threshold.
• Keep proof of export, such as the air waybill or bill of lading and the courier's tracking record, with the invoice. Without it, a sale looks like a domestic one you forgot to charge GST on.

The 60-day rule applies when you export the goods. If an overseas buyer collects goods in Australia and arranges the export itself (for example on EXW terms), different conditions apply, so check with your tax agent before leaving GST off.

When you need an Export Declaration

The ABF says goods must be reported on an Export Declaration if they:

• are worth more than AUD 2,000
• need an export permit, whatever their value
• are goods on which duty drawback is being claimed, or
• are dutiable or excisable goods with the duty or excise unpaid.

Goods worth less than AUD 2,000 are generally exempt. Declarations are lodged electronically through the Integrated Cargo System or at an ABF counter on Form B957, and can be lodged up to six months before export. Most small exporters have a customs broker or freight forwarder lodge it for them, and the ABF recommends using one. You must keep the related records for five years. There are no customs duties on exports from Australia.

One declaration covers one consignment: goods from one consignor to one consignee. Shipping to three overseas customers at once means three declarations.

Incoterms 2020: which rule goes on the invoice?

The Incoterms rule tells customs and the buyer who pays for freight and insurance, and where risk passes from seller to buyer. Put the three-letter rule, the named place and "Incoterms 2020" on the invoice, because it affects the customs value the importing country uses.

Incoterms are published by the International Chamber of Commerce; the 2020 edition has 11 rules. If you're unsure, ask your freight forwarder which rule matches the quote you gave the buyer.

How do you find the HS code for your goods?

Look up the product in the destination country's tariff, or for exports, Australia's AHECC export classification, which builds on the international Harmonized System. The first six digits are the same in most countries; the extra digits are national.

Classify by what the product is and what it's made of, not by its brand or marketing name. A wrong code can mean the wrong duty rate, delays or penalties for the importer, which makes you a harder supplier to buy from. If a product is borderline, your customs broker or the buyer's broker can confirm the code before you ship.

What is the difference between a commercial invoice, a tax invoice and a pro forma?

A tax invoice is what Australian GST law requires for a taxable sale to a local customer; a commercial invoice is the customs-facing invoice for an international sale; a pro forma invoice is a preliminary quote-style document issued before the sale is final. One shipment can involve a pro forma first and a commercial invoice later, but rarely a tax invoice.

A pro forma sent before shipping can be used as a customs invoice for samples or no-charge goods, but for a sale the final commercial invoice should replace it. Our guide to pro forma vs tax invoices covers the domestic side, and tax invoice requirements lists the ATO's fields.

What does the ABF need when you import into Australia?

If you're buying goods from overseas, your supplier's commercial invoice is what you or your customs broker use to clear them. Consignments worth more than AUD 1,000 need a full Import Declaration and attract duty, import GST and an import processing charge; consignments of AUD 1,000 or less are cleared on a Self-Assessed Clearance declaration and generally have no duty or GST at the border.

• Over AUD 1,000: lodge an Import Declaration and pay duty, GST and charges. The ABF expects the bill of lading or air waybill, commercial invoices, evidence of identity and any permits.
• AUD 1,000 or less: generally free of duty and GST at the border, except tobacco and alcohol. GST on these low value goods is instead collected at the point of sale by overseas sellers and marketplaces registered for Australian GST.
• First-time importer? The ABF encourages first-time and infrequent importers to use a licensed customs broker.

Ask overseas suppliers for a commercial invoice that shows the real transaction value, a clear description and origin. If you're GST-registered, the import GST you pay on a declaration is usually claimable as a GST credit, which is one more reason to keep the invoice with your records.

What mistakes hold up a shipment at customs?

• Vague descriptions such as "parts", "gift" or "samples" with no detail.
• Undervaluing goods or marking a sale as a gift to save the buyer tax. It's a false declaration and the importer bears the consequences.
• Mismatched documents: different values or quantities on the invoice, packing list and air waybill.
• No currency stated, so "$4,800" could be Australian, US or Singapore dollars.
• Country of origin confused with country of shipment. Goods made in China and shipped from Sydney are of Chinese origin.
• Charging GST on an export, then having to issue an adjustment. Our credit note guide explains how to correct an invoice properly.

This article is general information, not customs, legal or tax advice. Export permits, prohibited goods and destination requirements vary. Check the Australian Border Force, the ATO and your freight forwarder or a licensed customs broker before you ship.

Frequently asked questions