Commercial invoice, packing list and bill of lading: what each does and what must match
Updated
Three documents travel with almost every export shipment. Different parties issue them for different purposes, but customs, banks and buyers expect them to tell the same story.
At a glance
| Commercial invoice | Packing list | Bill of lading | |
|---|---|---|---|
| Issued by | Seller (exporter) | Seller (exporter) | Carrier, or a forwarder acting as carrier |
| Purpose | Bill for the goods; basis for the customs value and duties | How the goods are packed: packages, weights, dimensions | Receipt for the goods, evidence of the contract of carriage and, if negotiable, document of title |
| Key data | Seller and buyer, goods, quantity, unit price, total, currency, Incoterms, payment terms, HS codes, origin | Number and type of packages, net and gross weight, measurement (CBM), marks and numbers | Shipper, consignee, notify party, vessel and voyage, ports, container and seal numbers, packages, gross weight, on-board date |
| Used by | Customs in both countries, the buyer, banks | Customs inspection, forwarder, warehouse, buyer | Carrier, consignee (to collect the goods), banks |
Commercial invoice: what it should contain
There is no single legal format, but customs authorities and banks expect at least:
- Names and addresses of the seller and the buyer.
- Invoice number and date.
- A description of the goods precise enough to classify them.
- Quantity and unit, unit price and total, with the currency.
- The Incoterms® rule with its named place, for example “FOB Busan”.
- Country of origin, and the HS code for each line where the importing country requires it.
- Payment terms, and marks and numbers or another reference to the packages.
Under a letter of credit the invoice description must also correspond with the credit — see the L/C document checklist.
Packing list: what it should contain
- Number and type of packages (cartons, pallets, crates).
- Contents of each package or line.
- Net and gross weight per line and in total.
- Dimensions or volume (CBM).
- Marks and numbers that match the cargo, and the invoice reference.
Net weight is the goods alone; gross weight includes packaging. Gross weight can never be lower than net weight — when it is, the packing list contains a typing error.
Bill of lading: how it is produced
The exporter or its forwarder sends a shipping instruction (S/I) to the carrier with the shipper, consignee, notify party, goods description, packages, weights and container details. The carrier issues the B/L from that data, so mistakes in the S/I end up on the B/L. Check the draft B/L against the invoice and packing list before it is issued; corrections afterwards cost time and fees.
A forwarder may issue its own house B/L (HBL) while the shipping line issues a master B/L (MBL) to the forwarder. Under a letter of credit, whichever B/L is presented must meet the credit's requirements.
What must match across the three documents
| Data | Invoice | Packing list | B/L |
|---|---|---|---|
| Number and type of packages | Often | Yes | Yes |
| Gross weight | Sometimes | Yes | Yes |
| Goods description | Detailed | Detailed or general | General terms allowed |
| Marks and numbers | Yes | Yes | Yes |
| Consignee / buyer | Buyer | Buyer | As instructed (may be “to order”) |
| Ports | Per the Incoterms rule | Optional | Yes |
Small differences — 747.5 kg on the packing list and 750 kg on the B/L, or 60 cartons against 59 — are enough for a bank to refuse documents or for customs to hold a shipment.
How LADEO helps
LADEO generates the commercial invoice, packing list and shipping instruction from one reviewed set of data, so totals, packages and weights are the same in all three. When the B/L, certificate of origin or insurance document comes back, upload it and LADEO compares it with the invoice and packing list.