What Are the Different Types of Export Invoices?

In the export business, every aspect, whether the paperwork, permits, negotiation process, export declaration form, quality control, or shipping charges, has a crucial role. Keeping this in mind, our team at LeRemitt strives to provide as much information and support as possible through our cross-border platform and website.

This article will examine the different types of invoices that could be involved in the export business. This is not an exhaustive list, but it will help you understand what role these invoices play in your export business. For instance, the invoice required to avail of a bill discounting facility from a bank must have specific details to be viable.

Any business negotiates and exchanges proposed costs before concluding a deal and finalizing an order. In the case of exports, this can mean more details than a domestic deal, where both parties are more likely to negotiate in person.

What are the different types of export invoices involved in international trade?

Since exporters must go through several steps before a transaction is completed, you are likely to encounter several invoice formats in the export trade. Each will meet the requirements of different stakeholders and authorities involved in an export transaction. Here are the general invoice types.

Proforma invoice

This initial invoice is sent to the buyer before the seller ships the goods. It will include details such as the product details, quality parameters, quantity, and the general terms of the sale. This invoice is often considered a quotation and indicates the cost the buyer will incur. The buyer will use this proforma invoice to confirm the order, and it can also be used by the buyer to get an import license.

Commercial invoice

This primary document has the final list of goods being exported, the price agreed upon, the terms of the sale, the delivery details, and the payment modalities. The parties involved in the trade are also included in this invoice, which is also used for customs clearance as it serves as the transaction proof.

Consular invoice

This invoice is certified by the consulate of the buyer or importing country. This document provides customs with the requisite information to validate the value of the goods, the quantity, and the nature of the import. This invoice also ensures the correct taxes and duties are applied to the goods.

Customs invoice

This is a document or invoice that the customs authorities in the importing country require. It contains the information to determine and collect the correct duties and taxes. Countries with strict import regulations require customs invoices to ensure the right processes are followed.

Certified invoice

A designated authority like the Chamber of Commerce must certify the commercial invoice to confirm the origin of the goods. A certified invoice is often required for the export of certain products.

Legalized invoice

This type of invoice is similar to the certified invoice, but the consulate provides the validation of the country importing the goods. It is commonly required when exporting to North Africa and the Middle East countries.

Packing list

While this document is not an invoice, it is used along with an invoice to provide a list of each package's contents. It specifies the weight, length, and other dimensions. The packing list is required to manage inventory and get customs clearance.

Export license invoice

This is an invoice you require when you export goods that require an export license and has additional information that the licensing authority requires.

Combined invoice

As the name suggests, the combined invoice consolidates the commercial invoice, the packing list, and other related information into a single document. It reduces paperwork and makes the documentation process easier. This can have details like the UTR Number, among other information.

Tax invoice

When you export to areas with specific tax regulations, like the EU, you will need the tax invoice, which includes VAT (value-added tax) details and helps you comply with local tax authorities' requirements.

As you can see, each invoice type will help you meet the specific requirements of the export process and ensure compliance with the regulations. Want to learn more? Click here to learn how LeRemitt can help you!