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GET HELP FORCDCSPrepared By :Sunil MudhanurINVOICEREFRESHER GUIDECLASS NOTES SERIES JUN 2023

INDEXTypes of invoice...............................................................................................................Sample Invoice................................................................................................................. Key Items in Invoice........................................................................................................ Doc Exam Checklist Invoice ..................................................................................... Common Discrepancies...............................................................................................Invoice Bytes.........................................................................................................................True / False Questions....................................................................................................1.2.3.4.5.6.7.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /INVOICE REFRESHEREDITORS NOTEWe have gathered extensive information from various sources, includingboth on and offline resources, to help simplify complex trade financetopics. We have tried to obtain permission from the original writers ofthese resources wherever possible. However, for certain articles, we havenot received a response from the authors regarding reprint permission. Ifyou have submitted any work, and we haven't received your consent,please reach out to us. Provide us with the necessary source informationto give you credit and reprint your work.Please feel free to email me at sunilbytes@gmail.com if you have anyqueries or comments regarding these refresher series These materials serve as a refresher for our trainees. To gain a betterunderstanding, we recommend reading relevant ICC sources andpublications.Version. 01

TYPES OF INVOICETypes of InvoicesConsularInvoiceA consular invoice is a document certifying a shipmentof goods and shows information such as the consignor,consignee, and value of the shipment. Generally, aconsularinvoicecan be obtained through a consularrepresentative of the destination country and must becertified by the consul of the country of destination,who will stamp and authorize the invoice.Pro FormaInvoice A pro forma invoice is a preliminarybill of salesent tobuyers in advance of a shipment or delivery of goods.The invoice will typically describe thepurchased itemsandother important information, such as the shippingweight and transport charges.Pro forma, Latin for “as amatter of form” or “for the sake of form,”invoices oftencome into play with international transactions,especially for customs purposes on imports .. CustomsInvoiceA customs invoice is a document that travels with yourparcel and contains information about the items insideyour parcel. The customs invoice is required forcustoms clearance, and your shipment can’t leave thecountry without one. If you are sending a parcel to acountryoutside of the EU, you must fill out a customsinvoice that details every item you are exporting.INVOICE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

INVOICE REFRESHERSAMPLE INVOICER e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /05KEY ITEMS IN EXPORT INVOICECurrency in which transactionwill be madeThe date on which the invoicewas filled out.Performa invoice referencenumbername and address of theshipper, and/or seller, name and address of the buyer, Pricing and quantities of theshipmentMethod of payment | Shipmentterms The No of packages, marks,weight, and measures.Country of origin notation andthe HS Code authorised Signature - stamps12345678910INVOICE REFRESHER

01020304DOC EXAMINATIONCHECKLIST -INVOICECheck is required number of originals and copies of invoicepresentedInvoice to be issued by beneficiary indicated unlessotherwise stipulated in LC.Check for the Beneficiary’s name and address (at least thecountry must be the same) on invoice matches to that onLC.Applicant’s name and address (at least the country must bethe same) on commercial invoice consistent with LC.05Check is required number of originals and copies of invoicepresented.06Ensure the description of the goods on the commercialinvoice must correspond with LC.07Unit prices and quantities on commercial invoices same asLC.08Calculations and extensions are correct on the commercialinvoice.09The calculation total on the commercial invoice does notexceed the LC balance.10The amount on the commercial invoice matches the amounton the draft. INVOICE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

11121314DOC EXAMINATIONCHECKLIST -INVOICECommercial Invoice amount covers complete shipment ofmerchandise (when LC prohibits partial shipments) and iswithin the toleranceIncoterms commercial invoice consistent with those on theeLCCommercial Invoice amount covers complete shipment ofmerchandise (when LC prohibits partial shipments) and iswithin the toleranceWhen LC permits partial shipments, invoice value isproportionate to partial shipment.15Quantity of merchandise, weights and measurements oncommercial invoice are consistent with LC and otherdocuments16Check if LC calls for singed and date invoice.17Check if invoice indicates an over shipment,18Check if invoice covers goods not covered by LC. Includingfree samples and promotional items19Commercial invoice is legalized, notarized or visaed, ifrequired.20Shipping marks and numbers, if shown, are consistent withthose appearing on the transport documents and any otherdocument on which they appear.INVOICE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Buyer and/or seller name and/or not in accordance with the letterof creditProforma or similar are presentedInstead of a Commercial Invoice The invoice Shows Merchandisenot Called for in the Letter ofCredit Commercial Invoice Not Issued bythe BeneficiaryInvoice evidence different naturegoods vs called in the creditinvoice shows short shipment orover shipmentrequired legalization not donefrom a stated entityzero value items supplied notcalled in the LCAny certifications as required byDC are not stated or incorrectlystatedzero value (FOC) items suppliednot called in the LCChange in beneficiary's legal nameas per the creditNot signed, if so required by thedocumentary credit.COMMON DISCREPANCIESINVOICE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

The invoice must be issued by thebeneficiary (or second beneficiary incase of a transfer LC).The invoice does not need to be signedor dated.The invoice must be made out in thename of the applicant (or firstbeneficiary in case of a transfer LC).The invoice must be in the samecurrency as the LC.The invoice must indicate the value ofthe goods shipped or delivered, orservices or performance provided.The invoice must indicate unit prices, asstated in the credit.The invoice may indicate any discount ordeduction required by the credit.The invoice may indicate a deduction ofany discount or any advance payment ifany received from applicant.The invoice can be issued for more thanthe LC amount. However, the honor ornegotiation should not exceed thepermitted LC amount.When it comes to international trade,invoices are a crucial component of theprocess. Here are some important points tokeep in mind regarding invoices from UCP600 and ISBP 745:The description of goods and servicesmust correspond with the LC. However,the goods and services cannot be ofdifferent nature, classification, orcategory. The details need not beconcentrated at certain place.The invoiced amount or invoicedquantity can show a default tolerance of+/- 5% quantity and -5% in amount (note:quantity should not be in numbers orpieces).Where words like "about" or"approximately" are used in connectionwith amount/quantity/unit price, itshould be interpreted as an allowance oftolerance of +/-10% to which they refer.(Beneficiary can look these details in 45Aor 47A).The invoice should not be titled as"provisional" or "professional" etc. Aninvoice issued for tax purpose isacceptable.Goods description in invoice showingadditional details would not make itdiscrepant.When the LC states Incoterms and itsversion as a part of Goods Description,the Invoice should reflect the same.(Note: When the LC states Incoterms +Version + Place + Country, the Invoiceshowing just Incoterms + Version + Placewithout stating country is acceptable.)An invoice showing charges andadditional costs incurred in relation withIncoterms is acceptable.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /INVOICE REFRESHER

The invoice should have a uniquenumber. When it is issued in multiplepages, the page numbers should bemarked to identify its completeness.The applicant's full name and countryshould correspond with the LC.Weight, measurement, marks or anyother details shown in the invoice shouldbe consistent with other documentscalled in the LC.When the beneficiary's legal namechanges in the course of the transaction,the invoice showing the new legal nameproviding its former name as stated inthe LC is acceptable.The invoice should not show any goodsor services which are not stated in theLC, such as samples, FOC, orpromotional items.Any corrections to the invoice must beauthenticated by the issuer. When thedocument is certified/visaed/legalizedby multiple entities, the authenticationof correction by any one of such entitiesis acceptable.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /INVOICE REFRESHER

GETFO RCDCSHE LP1When the beneficiary or second beneficiary has changed its name and the credit mentions theformer name, the beneficiary must amend the dc to reflect the the new name2An invoice can show a deduction such advance payment, discount, etc., that is not stated in thecredit.3When the DC is silent, an invoice may not be dated but it must be signed by the beneficiary 4An invoice is not to indicate goods, services or performance not called for in the credit except theyare stated to be free of charge.5When a credit requires presentation of a “commercial invoice,this will also be satisfied by thepresentation of a document titled “Tax Invoice"6The description of the goods, services or performance shown on the invoice is to correspond withthe description shown in the credit.7The final total value of the invoice or total of multiple invoices presented should never exceed theDC Value 8When DC calls “Invoice in 4 copies” or “Invoice in 4 fold” will be satisfied by the presentation of atleast one original invoice and any remaining number as copies9Any correction in the invoice document issued by the beneficiary must be authenticated andcorrections in copy of invoice need not be authenticated10When the DC is silent about the the issuer of the invoice, anybody including beneficiary can issuethe invoice 12345678910EXPORT INVOICETRUE FALSER e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /