INVOICES

 

INVOICES 

10. Commercial Invoice 

A commercial invoice, signed by the seller or shipper, or his agent, is acceptable  for CBP purposes if it is prepared in accordance with Section 141.86 through 141.89 of  the CBP Regulations, and in the manner customary for a commercial transaction  involving goods of the kind covered by the invoice. Importers and brokers participating  in the Automated Broker Interface may elect to transmit invoice data via the Automated  Invoice Interface or EDIFACT and eliminate the paper document. The invoice must  provide the following information, as required by the Tariff Act: 

• The port of entry to which the merchandise is destined, 

• If merchandise is sold or agreed to be sold, the time, place, and names of buyer  and seller; if consigned, the time and origin of shipment, and names of shipper  and receiver, 

• A detailed description of the merchandise, including the name by which each item  is known, the grade or quality, and the marks, numbers, and symbols under which  it is sold by the seller or manufacturer to the trade in the country of exportation,  together with the marks and numbers of the packages in which the merchandise is  packed, 

• The quantities in weights and measures, 

• If sold or agreed to be sold, the purchase price of each item in the currency of the  sale, 

• If the merchandise is shipped for consignment, the value of each item in the  currency in which the transactions are usually made, or, in the absence of such  value, the price in such currency that the manufacturer, seller, shipper, or owner  would have received, or was willing to receive, for such merchandise if sold in  the ordinary course of trade and in the usual wholesale quantities in the country of  exportation, 

• The kind of currency, 

• All charges upon the merchandise, itemized by name and amount including  freight, insurance, commission, cases, containers, coverings, and cost of packing;  and, if not included above, all charges, costs, and expenses incurred in bringing  the merchandise from alongside the carrier at the port of exportation in the  country of exportation and placing it alongside the carrier at the first U.S. port of  entry. The cost of packing, cases, containers, and inland freight to the port of  exportation need not be itemized by amount if included in the invoice price and so  identified. Where the required information does not appear on the invoice as  originally prepared, it shall be shown on an attachment to the invoice, 

• All rebates, drawbacks, and bounties, separately itemized, allowed upon the  exportation of the merchandise, 

• The country of origin,

• All goods or services furnished for the production of the merchandise not  included in the invoice price. 

If the merchandise on the documents is sold while in transit, the original invoice  reflecting this transaction and the resale invoice or a statement of sale showing the price  paid for each item by the purchaser shall be filed as part of the entry, entry summary, or  withdrawal documentation. 

The invoice and all attachments must be in the English language, or shall be  accompanied by an accurate English translation. 

Each invoice shall state in adequate detail what merchandise is contained in each  individual package. 

If the invoice or entry does not disclose the weight, gauge, or measure of the  merchandise necessary to ascertain duties, the importer of record shall pay expenses  incurred to obtain this information prior to the release of the merchandise from CBP  custody. 

 Each invoice shall set forth in detail, for each class or kind of merchandise, every  discount from the list or other base price that has been or may be allowed in fixing each  purchase price or value. 

When more than one invoice is included in the same entry, each invoice with its  attachments shall be numbered consecutively by the importer on the bottom of the face of  each page, beginning with number 1. If an invoice is more than two pages, begin with  number 1 for the first page of the first invoice and continue in a single series of numbers  through all the invoices and attachments included in one entry. If an entry covers one  invoice of one page and a second invoice of two pages, the numbering at the bottom of  the page shall be as follows: Inv. 1, p.1; Inv. 2, p.2; Inv. 2, p.3, etc. 

Any information required on an invoice may be set forth either on the invoice or  on the attachment. 

Specific Requirements 

1. Separate Invoice Required for Each Shipment. Not more than one distinct shipment  from one consignor to one consignee by one commercial carrier shall be included on the  same invoice. 

2. Assembled Shipments. Merchandise assembled for shipment to the same consignee  by one commercial carrier may be included in one invoice. The original bills or invoices  covering the merchandise, or extracts therefrom, showing the actual price paid or agreed  to be paid, should be attached to the invoice.

3. Installment Shipments. Installments of a shipment covered by a single order or  contract and shipped from one consignor to one consignee may be included in one  invoice if the installments arrive at the port of entry by any means of transportation  within a period not to exceed 10 consecutive days. 

 The invoice should be prepared in the same manner as invoices covering single  shipments and should include any additional information that may be required for the  particular class of goods concerned. If it is practical to do so, the invoice should show the  quantities, values, and other invoice data with respect to each installment, and the  identification of the importing conveyance in which each installment was shipped. 

4. Production “Assist.” The invoice should indicate whether the production of  merchandise involved costs for “assists” (e.g., dies, molds, tooling, printing plates,  artwork, engineering work, design and development, financial assistance, etc.) that are  not included in the invoice price. If assists were involved, state their value, if known, and  by whom supplied. Were they supplied without cost, or on a rental basis, or were they  invoiced separately? If the latter, attach a copy of the invoice. 

 Whenever CBP requires information on the cost of production of goods for  customs valuation, the importer will be notified by the port director. Thereafter, invoices  covering shipments of such goods must contain a statement on the cost of production by  the manufacturer or producer.  

5. Additional Information Required. Special information may be required on certain  goods or classes of goods in addition to the information normally required on the invoice.  Although the United States importer usually advises the exporter of these special  situations, section 141.89 of the CBP Regulations, which covers the requirements for  these goods, has been reproduced in the appendix. 

6. Rates of Exchange. In general, no rate(s) of exchange may be used to convert foreign  currency for customs purposes other than the rate(s) proclaimed or certified in 31 U.S.C.  5151. For merchandise imported from a country having a currency for which two or more  rates of exchange have been certified by the Federal Reserve Bank of New York, the  invoice will show the exchange rate or rates used in converting the United States dollars  received for the merchandise into the foreign currency and the percentage of each rate if  two or more rates are used. If a rate or combination of rates used to pay costs, charges, or  expenses is different from those used to pay for the merchandise, state that rate or  combination of rates separately. When dollars have not been converted at the time the  invoice is prepared, state that fact on the invoice, in which case the invoice shall also  state the rate or combination of rates at which the dollars will be converted, or that it is  not known what rate or rates will be used. Rates of exchange are not required for  merchandise unconditionally free of duty or subject only to a specific rate of duty not  depending on value.

11. Other Invoices 

Pro Forma Invoice 

If the required commercial invoice is not filed at the time the merchandise is  entered, a statement in the form of an invoice (a pro forma invoice) must be filed by the  importer at the time of entry. A bond is given for production of the required invoice not  later than 120 days from the date of the entry summary, or entry if there is no entry  summary. If the invoice is needed for statistical purposes, it must generally be produced  within 50 days from the date on which the entry summary is required to be filed. 

The exporter should bear in mind that unless he or she forwards the required  invoice in time, the American importer will incur a liability under his bond for failure to  file the invoice with the port director of CBP before the 120-day period expires. 

Although a pro forma invoice is not prepared by the exporter, it is of interest to  exporters as it gives a general idea of the kind of information needed for entry purposes.  A pro forma invoice indicates what the importer may find necessary to furnish CBP  officers at the time a formal entry is filed for a commercial shipment, if a properly  prepared CBP or commercial invoice is not available at the time the goods are entered.  An acceptable format for a pro forma invoice is reproduced in the appendix. 

Some of the additional information specified for the commodities under section  141.89 of the CBP Regulations may not be required when entry is made on a pro forma  invoice. However, the pro forma invoice must contain sufficient data for examination,  classification, and appraisement purposes. 

Special Invoices 

Special invoices are required for some merchandise. See 19 CFR 141.89. 

12. Frequent Errors In Invoicing 

Foreign sellers or shippers must exercise care in preparing invoices and other  documents used to enter goods into the commerce of the United States in order for their  importers to avoid difficulties, delays, or possibly even penal sanctions. Each document  must contain all information required by law or regulations, and every statement of fact  contained in the documents must be true and accurate. Any inaccurate or misleading  statement of fact in a document presented to a CBP officer in connection with an entry, or  the omission from the document of required information, may result in delays in  merchandise release, the detention of the goods, or a claim against the importer for  domestic value. Even though the inaccuracy or omission was unintentional, the importer  may be required to establish that he exercised due diligence and was not negligent, in  order to avoid sanctions with consequent delay in obtaining possession of goods and  closing the transaction. (See 19 U.S.C. 1592.)

 It is particularly important that all statements relating to merchandise description,  price or value, and amounts of discounts, charges, and commissions be truthfully and  accurately set forth. It is also important that the invoices set forth the true name of the  actual seller and purchaser of the goods, in the case of purchased goods, or the true name  of the actual consignor and consignee when the goods are shipped otherwise than in  pursuance of a purchase. It is important, too, that the invoice otherwise reflect the real  nature of the transaction pursuant to which the goods were shipped to the United States. 

 The fundamental rule is that both the shipper and importer must furnish CBP  officers with all pertinent information with respect to each import transaction to assist  CBP officers in determining the tariff status of the goods. Examples of omissions and  inaccuracies to be avoided are: 

• The shipper assumes that a commission, royalty, or other charge against  the goods is a so-called “nondutiable” item and omits it from the invoice.  • A foreign shipper who purchases goods and sells them to a United States  importer at a delivered price shows on the invoice the cost of the goods to  him instead of the delivered price. 

• A foreign shipper manufactures goods partly with the use of materials  supplied by the United States importer, but invoices the goods at the  actual cost to the manufacturer without including the value of the 

materials supplied by the importer. 

• The foreign manufacturer ships replacement goods to his customer in the  United States and invoices the goods at the net price without showing the  full price less the allowance for defective goods previously shipped and  returned. 

• A foreign shipper who sells goods at list price, less a discount, invoices  them at the net price, and fails to show the discount. 

• A foreign shipper sells goods at a delivered price but invoices them at a  price f.o.b. the place of shipment and omits the subsequent charges.  • A foreign shipper indicates in the invoice that the importer is the  purchaser, whereas he is in fact either an agent who is receiving a 

commission for selling the goods or a party who will receive part of the  proceeds of the sale of the goods sold for the joint account of the shipper  and consignee. 

• Invoice descriptions are vague, listing only parts of numbers, truncated or  coded descriptions, or lumping various articles together as one when  several distinct items are included.