What constitutes a "commercial invoice" in customs entry?

A commercial invoice is a critical document used in customs entry that details the transaction between the buyer and seller. It typically includes essential information such as the names and addresses of both parties, an itemized list of the goods being shipped, quantities, unit prices, total value, payment terms, and any applicable trade terms (like Incoterms). This document serves multiple purposes: it acts as a request for payment, facilitates the processing of international shipments through customs, and offers essential details necessary for customs duties and taxes calculations.

The specificity and comprehensiveness of the information provided in a commercial invoice are vital for customs authorities to evaluate the shipment accurately. This ensures compliance with import/export regulations and helps prevent delays in the clearance process. In contrast, other options do not encapsulate the multi-faceted role of a commercial invoice. For instance, while a bill of lading relates to the transport of goods, it doesn't inherently detail the transaction itself. A receipt for customs duties paid is solely focused on payment and not the transaction, and a summary of shipment contents does not fulfill the broader requirement of documenting the terms between buyer and seller.