How to read a commercial invoice for a China import

What the commercial invoice is

The commercial invoice is the document your Chinese supplier issues to record the sale of goods to you. It is not a packing list (which records what is physically in the shipment) and not a bill of lading (which records the transport contract). It is the sale record: what was sold, to whom, for how much, and under what trade terms.

CBP requires a commercial invoice for every formal entry. Your customs broker uses it to classify the goods, calculate duties, and file the entry. If the invoice is incomplete, inaccurate, or inconsistent with the other shipping documents, CBP can hold the shipment, issue a query, or assess additional duties.

Every field on a commercial invoice and what it means

A correct commercial invoice for a China import should include all of the following:

• Seller name and address: your supplier's full legal company name and address in China. Must match the export documents.
• Buyer name and address: your full legal name and US address. This becomes the importer of record on the CBP entry.
• Invoice date: the date the invoice was issued. CBP uses this to determine exchange rates for duty calculation.
• Invoice number: a unique reference number from your supplier. Used to match the invoice to the entry filing.
• Description of goods: a clear, specific description of what is being shipped. Not 'merchandise' or 'parts' -- the actual product name, material, and intended use. CBP uses this to verify the HS code classification.
• Quantity: the number of units, pieces, or other units of measure. Must match the packing list.
• Unit value and total value: the price per unit and the total transaction value in the agreed currency. This is the value CBP uses to calculate ad valorem duties.
• Currency: the currency of the transaction (usually USD or CNY). CBP converts non-USD values to USD using the rate on the invoice date.
• Country of origin: where the goods were manufactured. For China imports this should be 'China' or 'People's Republic of China'. Section 301 tariffs and other China-specific measures apply based on country of origin.
• HS code (Harmonized System code): the 6-digit or 10-digit tariff classification. Not all suppliers include this, but CBP will classify the goods whether it is on the invoice or not. If the supplier's code differs from what your broker files, CBP may query the discrepancy.
• Trade terms (Incoterms): EXW, FOB, DDP, or whichever applies. Determines who bears risk and cost at each stage, and affects how CBP calculates the transaction value for duty purposes.

The most common commercial invoice mistakes

These are the errors that most often trigger CBP queries, holds, or additional duties:

• Undervalued goods: declaring a value lower than the actual transaction price. CBP compares invoice values against known market prices for the product category. If the value looks too low, CBP can assess duties on a higher estimated value and open a fraud investigation. Accurate declared value is always the safer choice.
• Vague product description: 'miscellaneous goods,' 'samples,' 'parts,' or similar terms that do not clearly identify what the goods are. CBP needs enough information to confirm the HS code. Vague descriptions trigger manual review.
• Value marked as zero or 'no commercial value': common on samples or gifts. CBP looks at what the goods are worth, not what you paid for them. A $500 product declared at $0 is still a $500 import for duty purposes.
• Mismatched quantities between the invoice and packing list: even small discrepancies flag the shipment for review.
• Missing country of origin: required on the invoice and, for many product categories, must also appear on the goods themselves as a physical marking.
• Currency not specified: if the currency is ambiguous (e.g., '$' without specifying USD or another dollar), the broker has to guess and CBP may query it.

How to check your invoice before the shipment departs

The best time to catch invoice problems is before the goods leave China, not after they arrive at a US port. Ask your supplier for a draft invoice as soon as the order is confirmed and check these things:

• Is the product description specific enough? If you cannot tell what the product is from the description alone, CBP cannot either.
• Does the declared value match what you actually paid? If you negotiated a lower price or received a discount, the invoice should reflect the actual transaction value.
• Is the country of origin stated? It should say China or People's Republic of China.
• Do the quantities match your purchase order and what the packing list shows?
• Is the HS code present? If so, does it match what your broker or a tariff lookup tells you?
• Are your name and address correct as the buyer?

If your supplier's invoice has errors or omissions, ask them to correct it before the shipment is loaded. Correcting an invoice after the goods are in transit is possible but adds time and can cause customs delays.