Q. What are the rules with regard to details that should be put on an invoice for goods being sent outside the EU? Our customer has asked us not to include the commodity code. Is this allowed?
A. There are no internationally agreed 'rules' as to the data requirements for invoices. UN Recommendation 6 provides an aligned layout key that contains all the items considered necessary for invoices for international trade transactions. This covers information relating to the transaction such as the parties, the transport details and the terms of delivery and payment; to the goods themselves including item descriptions and amounts; and to the ancillary costs such as freight and insurance as well as the invoice total. A full list of these items is at http://www.sitpro.org.uk/trade/faqs.html#comminv. Some countries have specific requirements for commercial invoices including, for example, the number of copies required for customs purposes, the language to be used, the use of facsimile signatures, the need for consular certification and whether or not the commodity code should be included. These details can be found in any good reference guide for exporters or on the EU's Market Access Database http://mkaccdb.eu.int in the section entitled "Exporters Guide to Import Formalities".
The invoice is generally the document on which declarations to customs are based. A commodity code is used to identify goods to ascertain the correct duty and tax rates. As a general rule there is only one commodity code per good. If you have correctly identified the code and the customer does not wish it to appear on the invoice, it could suggest that they wish to declare the goods under a code with a more advantageous duty rate, contrary to customs regulations. However, if the country in question does not specify that the commodity code must be included, you do not have to put it on the invoice.
If you need help with a trade procedures query, call the Helpdesk on
020 7215 8150 or email helpdesk@sitpro.org.uk 
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Return to SITPRO News: Issue 64, Spring 2008