Frequently Asked Questions

Incoterms, or “International Commercial Terms,” are globally recognized trade rules established by the International Chamber of Commerce (ICC). These terms define the responsibilities of buyers and sellers for the transportation of goods in international trade, covering costs, risks, and logistics. First introduced in 1936, Incoterms are updated regularly, with the most recent version being Incoterms 2020. They ensure clarity in trade agreements, reducing the likelihood of disputes and streamlining shipping operations.

Here are the 11 current Incoterms divided into two categories:

Rules for Any Mode of Transport:

  1. EXW (Ex Works): Buyer assumes all risks and costs from the seller’s premises onward.
  2. FCA (Free Carrier): Seller delivers goods to a location chosen by the buyer, such as a carrier or warehouse.
  3. CPT (Carriage Paid To): Seller pays for transport to a destination, but the buyer assumes risk after delivery to the carrier.
  4. CIP (Carriage and Insurance Paid To): Similar to CPT, but the seller also covers insurance up to the delivery location.
  5. DAP (Delivered at Place): Seller delivers goods to a named destination; buyer handles import duties.
  6. DPU (Delivered at Place Unloaded): Seller delivers and unloads goods at the destination; buyer covers import duties.
  7. DDP (Delivered Duty Paid): Seller covers all costs, including import duties, to deliver goods to the buyer.

Rules for Sea and Inland Waterway Transport Only:

  1. FAS (Free Alongside Ship): Seller delivers goods alongside the vessel; the buyer assumes costs and risks from there.
  2. FOB (Free on Board): Seller delivers goods onto the ship; the buyer assumes risks once goods are loaded.
  3. CFR (Cost and Freight): Seller covers the cost and freight to the port of destination; buyer assumes risks at the port of departure.
  4. CIF (Cost, Insurance, and Freight): Similar to CFR, but the seller also covers insurance to the destination port.

Understanding and applying the correct Incoterms is essential for defining responsibilities and minimizing confusion in international trade agreements.

Reference : Incoterms® 2020 Guide by the International Chamber of Commerce (ICC)
https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/

What is an HS Code?
An HS Code (Harmonized System Code) is a standardized numerical classification system for traded goods. It was developed by the World Customs Organization (WCO) to facilitate international trade by creating a universal language for product classification.

Structure of an HS Code
The HS Code typically consists of 6 digits, divided into sections that describe the product:

  • First 2 digits: Identify the product’s chapter (e.g., textiles, machinery).
  • Next 2 digits: Define the product heading within the chapter.
  • Final 2 digits: Specify the subheading, providing more detail about the product.
    Some countries extend the code to 8 or 10 digits for more specific classification.

Who Uses HS Codes?

  • Customs Authorities: To determine duties and taxes.
  • Importers and Exporters: To declare goods accurately during shipping.
  • Trade Regulators: To monitor trade compliance and apply trade policies.

Why Are HS Codes Important?
Accurate HS Code classification is crucial to:

  • Ensure compliance with customs regulations.
  • Avoid shipment delays or penalties.
  • Determine applicable tariffs and taxes.

This universal system simplifies global trade, ensuring smooth customs clearance and standardized reporting across borders.

Reference: World Customs Organization – HS Code Information
https://www.wcoomd.org/en/topics/nomenclature/overview.aspx

To export or import shipments to and from Egypt, specific documents must be prepared to comply with customs regulations and ensure smooth trade operations. Here is a list of essential documents:

  1. Commercial Invoice: Details the goods, their value, and the terms of sale.
  2. Packing List: Describes the packaging, quantity, and weight of the goods.
  3. Bill of Lading (BOL): Serves as proof of shipment and outlines transport terms for sea freight.
  4. Airway Bill (AWB): Used for air shipments, providing shipping details and carrier information.
  5. Certificate of Origin (COO): Certifies the origin of the goods, often required for preferential trade agreements.
  6. EUR1 Certificate: Necessary for goods manufactured in Europe to claim preferential tariff rates under trade agreements.
  7. Proforma Invoice: Preliminary document stating the estimated value and details of goods before the final invoice.
  8. Customs Declaration Form: Declares goods to customs for clearance.
  9. Import or Export License: May be required for regulated goods.
  10. Insurance Certificate: Covers the goods during transit.

Accurate and complete documentation is critical to avoid delays, fines, or disputes at customs. Ensure all documents meet the regulatory standards and requirements specific to the nature of the goods being transported.

Reference: Egypt Customs – Import and Export Guidelines
https://www.customs.gov.eg/Docs/default_en.aspx

Certain documents must be legalized by both the Chamber of Commerce and the Embassy to ensure they are recognized for official and legal purposes in international trade. In Egypt, this process is often required for imports and exports to meet customs and regulatory requirements.

Documents typically requiring legalization include:

  1. Commercial Invoice: Legalization verifies the authenticity of the invoice details and ensures compliance with trade regulations.
  2. Certificate of Origin: Confirms the origin of the goods for preferential trade agreements and tariff purposes.
  3. Packing List: If requested, legalization may confirm the accuracy of packaging and shipment details.
  4. Shipping Documents: Bills of Lading or Airway Bills may require legalization for certain goods or countries.
  5. Authorization Letters: In cases where an agent or third party is handling the shipment, authorization letters might require legalization.

The Chamber of Commerce typically authenticates the documents first, followed by the respective Embassy of the importing or exporting country. Legalization ensures that the documents are valid, recognized by customs authorities, and comply with international trade laws.

Shipping cargo via air or sea requires detailed information to ensure smooth transportation and compliance with customs and logistics requirements. Here are the key details typically required:

  1. Shipment Information:
    • Type of cargo (e.g., general goods, hazardous materials, perishable items).
    • Volume and weight of the shipment.
    • Dimensions of the cargo, particularly for oversized shipments.
  2. Origin and Destination:
    • Precise addresses for the pickup location and delivery point.
    • Port of loading (POL) and port of discharge (POD) for sea shipments.
    • Airport of origin and destination for air shipments.
  3. Documentation:
    • Commercial Invoice and Packing List.
    • Bill of Lading or Airway Bill.
    • Certificate of Origin or other regulatory certificates as needed.
  4. Handling Instructions:
    • Special requirements such as refrigeration or handling for fragile or hazardous goods.
  5. Insurance Details:
    • Coverage for the shipment during transit.
  6. Shipping Terms:
    • Incoterms specifying responsibilities of the buyer and seller.

Accurate and comprehensive details ensure smooth coordination between the shipper, carrier, and customs authorities.

Reference: Egypt Import and Documentation Guide
https://www.trade.gov/country-commercial-guides/egypt-import-requirements-documentation

A Commercial Invoice and a Packing List are essential documents for international trade, providing detailed information about the shipment for customs clearance and logistics. Here’s what each should include:

Commercial Invoice:

  1. Exporter’s Information: Name, address, and contact details of the seller.
  2. Importer’s Information: Name, address, and contact details of the buyer.
  3. Invoice Number and Date: Unique identification for the document.
  4. Description of Goods: Detailed information about the items being shipped, including quantity, unit price, and total value.
  5. Harmonized System (HS) Code: Classification code for the goods.
  6. Terms of Sale (Incoterms): Defines buyer and seller responsibilities.
  7. Currency Used: Indicates the currency for the transaction.
  8. Signature and Stamp: Authentication by the exporter.

Packing List:

  1. Exporter and Importer Details: Same as on the Commercial Invoice.
  2. Description of Goods: A precise list of items, matching the Commercial Invoice.
  3. Packaging Details: Number of boxes, crates, or pallets, along with dimensions and weight (gross and net).
  4. Marks and Numbers: Identifiers for tracking and matching with shipping documents.
  5. Mode of Transport: Specifies whether the shipment is by air, sea, or land.

Accurate documentation is essential to avoid delays and ensure smooth customs clearance.

Reference: Understanding Commercial Invoices and Packing Lists
https://www.unicargo.com/what-is-a-commercial-invoice-and-packing-list/

Bank Form 4 is a regulatory document required in Egypt for the importation of goods. It is issued by the importer’s bank to confirm that the financial transaction for the shipment complies with local foreign exchange regulations. This form ensures that payment for imported goods is legitimate and within the framework of Egypt’s banking and trade laws.

Key details included in Bank Form 4 are:

  • Importer’s and exporter’s information.
  • Description and value of the goods.
  • Payment method, such as Letters of Credit (LC) or wire transfer.
  • Bank account details for the transaction.

When is it required?
Customs in Egypt demand Bank Form 4 during the clearance process for most commercial imports. It serves as proof of the financial transaction, helping prevent illegal trade activities and ensuring compliance with currency regulations.

Reference: Bank Form 4 – Requirements and Purpose in Egypt
https://www.businesstodayegypt.com/Article/1/1734/CBE-issues-new-instructions-to-facilitate-importing-process

A Letter of Credit (LC) is a financial instrument issued by a bank guaranteeing payment to the seller, provided that the terms and conditions specified in the LC are met. It acts as a safeguard for both buyers and sellers in international trade.

How it works:

  1. Buyer Requests LC: The buyer arranges for their bank (the issuing bank) to issue the LC in favor of the seller.
  2. Seller’s Compliance: The seller must provide documentation, such as a Bill of Lading, Commercial Invoice, and Packing List, as proof of fulfilling the shipment conditions.
  3. Bank Verification: The issuing bank verifies the documents to ensure compliance with the LC terms.
  4. Payment Release: Once verified, the bank releases the payment to the seller.

LCs reduce risks by ensuring payment for the seller and providing assurance to the buyer that goods will be shipped as agreed.

Importing goods into Egypt involves several steps to ensure compliance with customs regulations and smooth clearance. Here is an overview of the key customs procedures:

Final Clearance: Once all fees are paid, the goods are cleared and released for delivery to the importer.

Documentation Submission: Provide essential documents, including the Commercial Invoice, Packing List, Certificate of Origin, Bill of Lading (or Airway Bill), and any additional certificates required for the goods (e.g., health certificates for food products).

Customs Declaration: Submit a customs declaration through Egypt’s Single Window system (Nafeza), including accurate details of the shipment.

HS Code Classification: Ensure that the correct Harmonized System (HS) Code is used for tariff determination.

Inspection: Goods are inspected by customs authorities to verify that they match the declared documentation.

Duty and Tax Calculation: Customs calculates applicable duties and taxes based on the declared value of the goods and the HS Code.

Payment of Fees: Importers must pay customs duties, taxes, and any other applicable charges.

The Single Window System (Nafeza) is an electronic platform introduced by the Egyptian government to streamline and simplify trade processes. It serves as a centralized system for managing and submitting all trade-related documents and procedures.

How it works:

  1. Electronic Submission: Importers and exporters can upload all required documentation, such as customs declarations, invoices, and permits, onto the Nafeza portal.
  2. Integration: The system integrates with various governmental and regulatory bodies, reducing the need for manual paperwork and in-person visits.
  3. Automated Processes: Customs inspections, duty calculations, and risk assessments are handled more efficiently through automation.
  4. Real-Time Tracking: Users can track the status of their shipments in real time, ensuring greater transparency.

Nafeza improves trade efficiency, reduces delays, and enhances compliance by providing a single access point for all import and export procedures.

The Advanced Cargo Information (ACI) system is a pre-registration system implemented by Egyptian customs to enhance the efficiency and security of import procedures. It requires importers to submit cargo information electronically before the shipment arrives in Egypt.

How it works:

  1. Registration: Importers and exporters must register on the Nafeza platform and submit shipment details, including the Commercial Invoice, Packing List, and Bill of Lading.
  2. ACID Number Generation: An Advanced Cargo Identification (ACID) number is issued once the cargo information is approved. This unique 19-digit number links all shipment details.
  3. Pre-Clearance Processing: Customs begins processing the shipment before its arrival, reducing clearance time.

The ACID number ensures transparency, minimizes fraud, and speeds up customs clearance, making the ACI system a critical part of Egypt’s modern trade infrastructure.

Shipping costs for air and sea freight are calculated based on several factors that determine the overall expense. Here’s a breakdown:

  1. Type of Freight:
    • Air Freight: Cost is typically calculated by the greater of the actual weight or the volumetric weight (length x width x height / 6000, in kg). Air freight is faster but more expensive.
    • Sea Freight: Charges are based on the volume (CBM) of the cargo or the weight, whichever is higher.
  2. Distance and Route: Longer distances and less direct routes generally cost more. Port and airport fees also vary by location.
  3. Container Type and Size: For sea freight, using a full container (FCL) or sharing a container (LCL) impacts the cost. Similarly, the type of container (e.g., refrigerated, high-cube) affects the price.
  4. Customs and Duties: Import/export fees, including customs clearance and applicable tariffs, add to the overall cost.
  5. Additional Charges: Fuel surcharges, insurance, warehousing, and handling fees also contribute.
  6. Freight Class (for air): Air cargo classifications, such as hazardous or perishable items, may incur higher rates.

To get an accurate estimate, freight forwarders or shipping calculators provided by logistics companies can be used. Ensure all details about the cargo, including weight, dimensions, and destination, are accurately provided.

International shipping involves complex logistics, and several challenges can arise during the process. Here are common issues and ways to avoid them:

  1. Customs Delays: Incomplete or inaccurate documentation often causes clearance delays.
    • Solution: Ensure all documents, such as the Commercial Invoice, Packing List, and Certificate of Origin, are accurate and complete.
  2. Freight Damage: Improper packaging or handling can result in damaged goods.
    • Solution: Use appropriate packaging materials and labels, and choose reliable carriers experienced in handling your cargo type.
  3. High Shipping Costs: Unanticipated fees such as fuel surcharges or demurrage can inflate costs.
    • Solution: Plan shipments in advance, negotiate rates, and monitor for cost-effective routes or modes of transport.
  4. Regulatory Compliance: Changes in regulations can lead to penalties or shipment rejections.
    • Solution: Stay updated on international trade laws and work with customs brokers or trade consultants.
  5. Delays in Transit: Weather, port congestion, or carrier availability can disrupt timelines.
    • Solution: Use freight forwarders to anticipate and mitigate potential disruptions with contingency plans.

Proactive planning, accurate documentation, and partnering with trusted logistics providers help overcome these challenges for smoother shipping operations.

A Bill of Lading (BOL) is a crucial legal document used in shipping to serve as a contract between the shipper and the carrier, a receipt for the goods being transported, and a title of ownership. It is essential in both domestic and international trade for the following reasons:

  1. Proof of Shipment: The BOL confirms that the carrier has received the goods in the specified condition for transportation to the agreed destination.
  2. Ownership and Control: The BOL acts as a title document, allowing the consignee or another authorized party to claim the goods upon arrival.
  3. Legal Agreement: It outlines the terms and conditions of transport, including the responsibilities of the shipper, carrier, and consignee.
  4. Customs Compliance: The BOL is often required for customs clearance, ensuring that the cargo aligns with regulatory and trade documentation.

Types of BOL include Straight BOL (non-negotiable) for direct delivery to a consignee and Order BOL (negotiable), which allows transfer of ownership during transit.

To avoid errors, ensure all details on the BOL are accurate, including shipment description, destination, and consignee information.

FCL (Full Container Load) and LCL (Less than Container Load) are two shipping methods used in sea freight, each catering to different cargo requirements. Here are the key differences:

  1. Cargo Volume:
    • FCL: Involves renting the entire container for your goods, ideal for large shipments.
    • LCL: Combines shipments from multiple shippers into one container, suitable for smaller cargo volumes.
  2. Cost:
    • FCL: Higher cost due to exclusive use of the container but more economical for bulk shipments.
    • LCL: Lower cost since you only pay for the space your cargo occupies; additional handling fees may apply.
  3. Handling and Transit:
    • FCL: Direct shipping with less handling, reducing the risk of damage or delays.
    • LCL: Requires additional consolidation and deconsolidation, which may increase transit time and handling risks.
  4. Flexibility:
    • FCL: Offers greater control over the container, including loading and unloading schedules.
    • LCL: More flexible for small shipments but dependent on the schedules of other cargo in the container.

Choosing between FCL and LCL depends on the shipment size, urgency, and budget. Larger shipments typically benefit from FCL, while smaller loads are cost-effective with LCL.

Inaccurate customs declarations in Egypt can lead to significant penalties, including fines, delays, and legal complications. These penalties are imposed to ensure compliance with trade regulations and prevent fraudulent activities. Here’s a breakdown of potential consequences:

  1. Monetary Fines:
    Customs authorities may impose fines based on the severity of the error, such as undervaluation, incorrect HS codes, or misrepresentation of goods.
  2. Confiscation of Goods:
    In cases of deliberate falsification, customs may seize the shipment until corrections are made, or in severe cases, confiscate the goods entirely.
  3. Delayed Clearance:
    Errors in documentation can result in prolonged inspections and clearance delays, affecting delivery timelines and causing financial losses.
  4. Legal Action:
    Serious violations, such as smuggling or intentional misrepresentation, can lead to legal proceedings, including criminal charges.
  5. Suspension of Import/Export Privileges:
    Repeated offenses may result in the suspension or revocation of import/export licenses.

How to Avoid Penalties:

Consult with customs brokers or trade specialists to verify compliance with local regulations.

Ensure all documents are accurate and match the shipment details.

Use the correct HS codes and declare the true value of goods.

A freight forwarder acts as an intermediary between shippers and carriers, simplifying the logistics of international shipping. Here are the key benefits of using a freight forwarder:

  1. Expertise in Regulations:
    Freight forwarders have in-depth knowledge of international trade regulations, customs procedures, and required documentation, ensuring compliance and reducing the risk of delays.
  2. Cost Efficiency:
    They negotiate competitive rates with carriers due to their bulk shipping volumes, helping shippers save on transportation costs.
  3. End-to-End Solutions:
    Freight forwarders provide comprehensive services, including transportation, warehousing, insurance, and customs clearance, streamlining the supply chain process.
  4. Risk Management:
    By handling unforeseen issues such as delays, rerouting, or damage, freight forwarders minimize disruptions and ensure goods are delivered as planned.
  5. Access to Global Networks:
    Their established relationships with carriers and logistics partners ensure flexibility and reliable service in multiple countries.
  6. Time-Saving:
    Outsourcing logistics to a freight forwarder allows businesses to focus on their core activities while leaving the complexities of shipping to the experts.

By leveraging a freight forwarder, businesses benefit from smoother operations, lower costs, and better management of international shipments.

Demurrage is a fee imposed by shipping lines when a container remains at the port or terminal beyond the free time allocated for loading or unloading. This charge compensates the shipping company for the delayed return of the container and ensures efficient turnaround times.

How it Happens:
Demurrage occurs when delays arise in clearing cargo through customs, documentation errors, or logistical mismanagement, leading to extended container storage at the port.

How to Avoid Demurrage:

  1. Efficient Planning: Ensure all required documentation, such as customs declarations and import permits, is prepared in advance to avoid delays.
  2. Customs Compliance: Work closely with customs brokers to ensure the smooth and quick clearance of goods.
  3. Timely Communication: Coordinate with shipping lines and freight forwarders to confirm vessel schedules and container availability.
  4. Use Warehousing Services: Arrange for goods to be moved to a warehouse if there are unavoidable delays.
  5. Monitor Free Time Periods: Be aware of the allocated free time for container storage and plan accordingly.
  6. Partner with Experienced Freight Forwarders: They can handle logistics and ensure efficient container movement.

By staying proactive and organized, businesses can significantly reduce the risk of demurrage charges, saving time and money.

Shipping hazardous materials involves strict compliance with international and local regulations to ensure safety for people, property, and the environment. Here are the key requirements:

  1. Classification and Identification:
    • Properly classify hazardous goods according to the UN Dangerous Goods List, identifying their hazard class and division.
    • Assign a correct UN number to the material.
  2. Packaging:
    • Use approved, durable packaging designed to contain hazardous materials safely during transit.
    • Comply with packaging standards outlined by the International Maritime Dangerous Goods (IMDG) Code for sea freight or the International Air Transport Association (IATA) for air freight.
  3. Labeling and Marking:
    • Clearly label packages with hazard symbols, handling instructions, and the proper shipping name.
    • Include markings such as the UN number and packaging group.
  4. Documentation:
    • Submit a Material Safety Data Sheet (MSDS) detailing the hazardous material’s properties and handling requirements.
    • Provide a completed Dangerous Goods Declaration.
  5. Training and Certification:
    • Ensure that all personnel involved in handling hazardous goods are trained and certified according to regulations.
  6. Carrier Approval:
    • Work with certified carriers experienced in transporting hazardous materials.
  7. Special Permits:
    • Obtain necessary permits for restricted or regulated materials, if required by local authorities.

Proper preparation and adherence to these requirements minimize risks and ensure compliance, making the transportation of hazardous materials safer and more efficient

The customs valuation process in Egypt is designed to ensure that imported goods are assessed correctly for customs duties and taxes. The process follows international guidelines, specifically the World Trade Organization’s (WTO) Customs Valuation Agreement, which stipulates that the customs value of goods should be based on the transaction value—the price actually paid or payable for the goods when sold for export to the importing country.

Here’s how the process typically works:

  1. Transaction Value:
    The main method of valuation is the transaction value, which is the price agreed upon by the buyer and seller. This includes the cost of the goods plus shipping, insurance, and any related charges incurred to get the goods to the destination port.
  2. Adjustments:
    Certain elements must be added or subtracted from the declared value, such as:
    • Freight Costs: Costs associated with transporting the goods to the port.
    • Insurance: Any fees paid to insure the goods during transit.
    • Commissions: Fees related to the sale of the goods, if applicable.
  3. Customs Inspection:
    Egyptian customs officials will assess the value based on the provided documentation. This can include invoices, packing lists, and shipping documents. If they find discrepancies or undervaluations, they may request further information.
  4. Alternative Methods:
    If the transaction value cannot be determined (e.g., due to related-party transactions or incomplete documentation), Egyptian customs may use alternative valuation methods like:
    • Comparable Goods Method: Based on the value of similar goods sold in Egypt.
    • Computed Value Method: Based on the production costs of the goods.
  5. Documentation:
    Importers are required to provide comprehensive documents, including the Commercial Invoice, Packing List, and Bill of Lading, as well as a Certificate of Origin to ensure transparency.

Proper valuation ensures that both importers and the government comply with Egyptian trade laws. Misvaluation can result in fines, delays, or additional duties.

Choosing the right shipping method for your cargo depends on several factors that balance cost, speed, and reliability. Here are the main considerations:

  1. Cargo Type and Size:
    • Air Freight: Ideal for high-value, perishable, or time-sensitive goods, but it is more expensive.
    • Sea Freight: Suitable for bulk cargo, large shipments, and less time-sensitive goods, offering more cost-effective solutions for large volumes.
    • Road Freight: Best for domestic or regional shipping where flexibility and lower costs are key, especially for smaller loads.
  2. Transit Time:
    • Air Freight is the fastest but often costs more. If time is crucial, air freight may be the best option.
    • Sea Freight is slower, but for large volumes of non-urgent goods, it offers significant cost savings.
  3. Cost:
    • Air Freight is more expensive due to speed and handling, suitable for small shipments with high value.
    • Sea Freight offers lower costs for larger volumes, but there may be added expenses for longer transit times and port fees.
  4. Distance and Route Availability:
    • Sea Freight is commonly used for long-distance international shipments, particularly for containers, and often provides a wider network.
    • Air Freight is more limited by the number of direct routes and specific airports but is effective for global coverage.
  5. Regulations and Documentation:
    • Some shipping methods have more stringent regulations, especially air freight, which has specific rules for hazardous or restricted items. Ensure the cargo complies with the regulations of the chosen shipping method to avoid delays.
  6. Cargo Tracking:
    • Air Freight typically offers more real-time tracking systems, providing updates throughout the shipping process. Sea freight tracking is improving but might not be as immediate.
  7. Packaging Requirements:
    • Different methods require different levels of packaging to ensure the safety of goods. For example, air freight might require more secure or compact packaging than sea freight, where larger items may be packed in containers.

By considering these factors, businesses can choose the most appropriate shipping method based on their specific cargo needs, balancing cost and efficiency.

A proforma invoice and a commercial invoice are both critical documents in international trade, but they serve different purposes:

  1. Proforma Invoice:
    A proforma invoice is a preliminary document provided by the seller to the buyer before the actual shipment of goods. It details the estimated price and terms of sale, including product descriptions, quantities, and potential charges. A proforma invoice is often used for customs purposes or to obtain financing but does not demand immediate payment. It acts as an offer for the buyer to review, but it is not a request for payment.
  2. Commercial Invoice:
    A commercial invoice, on the other hand, is the final bill of sale issued after the goods are shipped. It serves as a legal document for both customs clearance and payment. The commercial invoice contains the actual sale price, payment terms, and details of the transaction, including shipment terms (like Incoterms), and is used to calculate customs duties and taxes. Unlike the proforma invoice, the commercial invoice requires payment from the buyer.

The main difference lies in the timing and legal status—the proforma invoice is an estimate or quote, while the commercial invoice is the official, binding document for both payment and customs clearance.