If you are a filmmaker sending equipment, footage or merchandise over an international border, there’s a good chance you’ve been asked for something called a commercial invoice. It may seem like a random piece of paper but it is actually one of the most vital documents in getting your shipments through customs, or to their destination, in time. Let’s go over the definition of a commercial invoice, when you need one, and how to fill one out.
What Is A Commercial Invoice, Anyway?
A commercial invoice is an official document used in international shipping. Consider it to be a detailed receipt, for customs agents; it describes what you’re shipping, where it’s going, and how much it’s worth. For filmmakers, you might need it when:
- Shipping filmmaking equipment to another country for a shoot
- Sending a DCP (Digital Cinema Package) drive to a film festival
- Mailing merchandise to backers of your crowdfunding campaign in a different country
- Exporting costumes, props, or artwork for collaboration, or exhibitions.
The commercial invoice is the way that officials at the border determine the duty, tax levies on the outbound, and whether the items are cleared into the country.
If your shipment does not have a properly completed and executed commercial invoice, you can expect your shipment will be delayed or confiscated.
When Should You Use a Commercial Invoice vs. a Pro Forma Invoice?
The fundamental difference between these two types of invoices is the intent behind them. A commercial invoice is used for actual shipment, meaning that the goods are sold, transferred, or have commercial value. Customs officials use it to assess import duties.
A pro forma invoice is more of a preamble invoice. It is used before sale or shipment, usually to provide quotes, applications for funding, or festival documentation. In this case, it outlines what you plan to send but not what you have already sent.
So if you are simply providing an estimate to ship DCPs to a distributor, your invoice will be a pro forma invoice. However, when you are shipping that drive to them, it will be a commercial invoice.
When an ATA Carnet Might Replace it
If you are traveling with your own gear temporarily, e.g. taking a camera to film in another country, and you aren’t selling it, you might instead use an ATA Carnet. ATA Carnet is essentially a “passport for your gear.” It allows you to transport your professional equipment in and out of the country without paying customs duties and taxes if you take the equipment back home.
For any goods that are sold, gifted, or traveling to remain, a standard commercial invoice will need to be completed.
Critical Sections Customs Requires to See
To mitigate clearance delays, your commercial invoice needs to include all of the information customs authorities need. Make sure to include:
- Exporter and importer information
- Invoice number and date
- Detailed description of goods
- Quantity and unit value
- The total declared value, where the currency is clearly stated
- The items’ country of origin
- HS (Harmonized System) codes
- Reason for export
- Signature and Declaration Statement –
To minimize the chances of formatting errors or missing fields, use a ready-made template like Invoice Simple. It is a simple option with a commercial invoice format that already has all the essential components in place. It will save you time and help reduce any possibility of customs issues.
Endnote
It may seem like a hassle to have to use a commercial invoice, but if you are a filmmaker, and your work takes you around the world, you will find it necessary. You are in business to create and collaborate. Whether you are sending a DCP halfway across the globe or sending a stack of fan merch to backers, you want to be able to count on your work to get to its destination on time and in one piece.
Using a trusted tool to create a compliant commercial invoice can help you make the entire process more efficient, clear and much less stressful for you. You can then focus on what you do best: making great films.
