How to read a commercial invoice for UK imports
Match the commercial invoice to your order, packing list and payment records. Check the parties, references, goods, quantities, prices, currency and delivery terms, then flag unexplained differences. HMRC’s valuation-documentation page lists supporting records rather than mandatory invoice fields. You can ask Cambridge China Bridge.
Use the invoice as part of the shipment file
Start with the invoice for the goods actually being shipped. Compare it with the agreed order and flag changes before sending it to your customs agent. For checks on the supplier’s earlier offer, use reading a Chinese proforma invoice.
HMRC’s valuation-documentation page lists supporting records rather than a mandatory invoice-field checklist. Use the checks below to identify missing information and unexplained differences. For the wider shipment file, see UK customs clearance documents.
Identify the parties and invoice references
Check the seller’s full company name and address against the order. Check the buyer’s company name and address separately from the delivery address. If a trading company invoices goods made by a factory, ask for a written explanation linking the seller, factory and order.
Look for an invoice number, issue date and purchase-order reference. For a partial shipment, ask the supplier to identify which order lines it covers and what remains outstanding. When an invoice is corrected, ask for a clearly identified replacement and tell your customs agent which version to use.
Read each goods line and recalculate the amounts
Match each description to the ordered model, material, intended use and specification. Flag generic wording such as parts or accessories and ask what the items actually are. Compare the invoice quantities with the packing list, keeping pieces, sets, cartons and weight distinct. For Chinese-only versions, see our guide to Chinese invoices and packing lists.
Multiply each quantity by its unit price, then reconcile the line amounts with the invoice total. Check the currency is explicit throughout. Ask for an explanation of discounts, credits and additional charges. If the document shows only the balance due, request a reconciliation showing the goods’ full price, the deposit already paid and the remaining payment.
Connect delivery terms to the charges
Check the delivery term and named port or place against the order and freight booking. Ask the supplier to state which transport, insurance and handling charges are included in the invoice total and which are billed separately. Use delivery terms explained for the responsibilities behind the terms.
Under HMRC’s transaction-value guidance, transport, insurance, loading and handling costs connected with delivery to the UK border must be included in the customs value. Give your customs agent the charge breakdown and freight bills so included costs are not counted again and separately billed costs are considered.
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Separate invoice omissions from evidence gaps
Mark missing names, references, descriptions, units, prices, currency or the named delivery place as invoice queries. Separately, ask your customs agent which supporting valuation records are needed from your file, such as supplier invoices, purchase orders, previous import entries, manufacturers’ cost breakdowns, supplier agreements, bills of lading, bank statements and shipping or freight bills. Treat this as a supporting-document comparison, rather than an instruction to attach every listed record to every invoice.
For each unexplained amount, ask what was charged, where it appears in the agreement and how it connects to the payment or shipment. Obtain a corrected invoice or supporting explanation as appropriate. Keep the earlier version and the correction together, and send your customs agent a clear account of what changed.
Frequently asked questions
Does HMRC publish a mandatory commercial invoice template?
The linked valuation-documentation page lists supporting records, rather than a mandatory template or invoice-field checklist. Ask your customs agent what information is missing from your shipment file.
What if the invoice only shows the unpaid balance?
Ask for a reconciliation showing the full goods price, the deposit already paid and the balance due. Match it to the order and payment records before sending it to your customs agent.
What if invoice quantities differ from the packing list?
Check whether the documents use pieces, sets, cartons or weight. Ask the supplier to reconcile the units and confirm the shipped quantities, then correct whichever document is wrong.
Does the invoice total equal the customs value?
Do not assume so. HMRC’s transaction-value guidance includes delivery costs to the UK border. Ask your customs agent to reconcile the invoice and separate freight charges without counting costs again.