When exporting goods from South Africa, the legalisation of commercial invoices is often a customs requirement for any internationally sold shipment of goods. When a commercial invoice is used in foreign trade, it becomes a customs document. It is prepared by the exporter (individual or company) exporting goods across international borders as a customs declaration. The commercial invoice contains the details of the parties involved in the transaction. As it is one of the primary documents used by Customs, it is essential that the invoice is properly prepared and legalised as it is also used for customs clearance and the calculation of duties.
For both exporters and importers, understanding commercial invoices and their legalisation process is essential for smooth international transactions, as they play a central role in customs clearance. This article examines in detail what commercial invoice legalisation in South Africa entails, what it is used for and how it is structured for international trade. Their legalisation facilitates communication between businesses and customs authorities.
What’s a Commercial Invoice ?
A commercial invoice is a proof of sale issued by the seller to the buyer. This document describes the goods being sold and details the price, value and quantity of the goods, as well as other important information. In international trade, the commercial invoice differs from the typical business invoice in that it is an invoice created for customs officials, not just end buyers. The breakdown of costs on a commercial invoice is used by Customs to calculate and assess the duties and taxes due on the shipment. It may also be used or required for payment, for example when a buyer pays by letter of credit. This means that businesses must use commercial invoices correctly. If they don’t, they risk having their goods seized. This can lead to avoidable delays and increased costs.
Key Details to Include on a Commercial Invoice
Not all commercial invoices look the same or follow the same format. However, when it comes to creating a commercial invoice, there are some key pieces of information you’ll need to include. Here’s a breakdown of the most important details:
- Shipper and consignee information: Your invoice needs to make it clear who’s selling the goods and who’s buying them. Include full names, addresses, tax IDs, and contact information for both parties.
- Invoice date and number: Every invoice needs a date and a unique number to identify it. This helps track transactions and maintain accurate records.
- Country of export and ultimate destination (and reason):
- Description and quantity of goods: What exactly are you shipping? Provide a very detailed description of the goods, along with the number of items. For example, Men’s Full Grain Leather Boots, Dark Brown, Size 10, Quantity: 200 pairs
- Total weight and value of goods: This section needs to outline the price and weight of the goods being shipped. The numbers here have to be genuine, as this value is used to calculate duties and taxes.
- HS code: The Harmonised System (HS) code is an internationally standardised system of names and numbers used to classify traded goods. It is used by customs authorities to determine appropriate tariffs.
- Terms of sale, also known as the Incoterms, are internationally recognised rules that facilitate trade. These terms help buyers and sellers clearly communicate their contract terms, so there are no misinterpretations regarding transportation management.
More specifically, Incoterms clarify:
Which party takes charge of shipping, insurance, and customs costs- Who arranges transport and up to which point
- Who is liable for the goods at every step of the delivery
Which party takes charge of shipping, insurance, and customs costsLegalisation of commercial invoices by Apostille
Commercial invoice legalisation is a procedure by which authorised bodies verify the authenticity of a commercial invoice issued in South Africa. This ensures the document is legitimate and can be used in international transactions. This legalisation is particularly important in international trade, where legal compliance, customs clearance and safe financial transactions are priorities. Certified invoices are legally compatible, less prone to conflict and processed more efficiently than non-legalised invoices.
The legalisation of commercial invoices can be achieved through an Apostille or a certificate of authenticity issued by the Department of International Relations and Cooperation (Dirco) or the courts. Apostille certificates are currently accepted by over 127 member countries of the Hague Convention (as of December 2024).The Hague Convention of 1961 introduced apostille certificates as a form of legalisation for different types of documents, such as commercial invoices.
Should the commercial invoices be intended for utilisation in a country that is not a signatory to the Hague Convention like Vietnam, further legalisation through the Embassy of the intended country is required.
Frequently Asked Questions about commercial invoices in South Africa
Q1: What is the difference between a commercial invoice and a standard invoice in South Africa?
A1: A standard invoice details the sale and requests payment after a business delivers a product or service. Commercial invoices, on the other hand, are invoices used in international trade.
Q2: What is a commercial invoice for customs?
A2: A commercial invoice for customs is a legal document proving a sale transaction between a buyer and seller. It is used for customs clearance and helps assess duties and taxes payable on imported goods.
Q3: Why are commercial invoices so important for cross-border business?
A3: Whether you’re running a small enterprise or a global corporation, a commercial invoice is an incredibly important component in the international shipping process. It is mandatory for customs clearance and therefore must contain all of the necessary information about goods being shipped. A commercial invoice is also used by customs officials to calculate tax and import duties.
Q4: Who is responsible for issuing a commercial invoice?
A4: The shipper or exporter is responsible for issuing a commercial invoice. It is one of the most important documents in international trade that provides details about the goods, their value, and payment terms. Additionally, it also offers compliance with customs regulations and facilitates smooth transactions.
Q5: Does a commercial invoice expire at some point?
A5: No, it never expires.
Global Apostille, your document legalisation partner
With over 10 years of expertise in document legislation in South Africa, Global Apostille is your ideal partner for navigating the regulatory landscapes of international markets. Our approach is tailored to meet the unique needs of each client, ensuring a smooth and efficient process to obtain Apostille Certificates. Here’s why you should choose us to assist you:
- Expert guidance: Our regulatory experts provide in-depth insight and support throughout the process.
- Streamlined processes: We handle all aspects of the certification process, making it straightforward and hassle-free.
Tel: 012 348 3134;
Mobile: 081 347 6060;
Email: info@apostillelegalisation.co.za.
www.apostillelegalisation.co.za
