Consular Invoice Explained
Import and export transactions often require different documents for varied purposes such as verification, calculation of duties, etc. A consular invoice is one of the essential documents in these transactions.
Meaning of a consular invoice and its uses
A consular invoice is a document containing details regarding the shipment of goods certified by the consulate of the importing country. The destination country’s consulate affixes their stamp, thus authorising the shipment for clearance with the customs officials.
A consular invoice is an important document for the following reasons-
- Helps the customs officials in the calculation of import duty.
- Ensures the prevention of dumping.
- Enables the customs officials to identify the contents of the shipment
- Helps in the quick clearance from customs in both countries
Format and contents of a consular invoice
A consular invoice may contain the following details –
- Names of the importer and exporter with their relevant details
- Ports of Origin and destination
- Description of the goods
- Additional charges (packing, insurance, etc.)
- Total value of the shipment
- Name of the certifier
- Identification marks and numbers
Difference between commercial invoice and consular invoice
| Basis | Commerical Invoice | Consular Invoice |
|---|---|---|
| Meaning | It is an export document that proves that a sale transaction has been entered into. | A document containing the signature of the Consulate of the importing country stating that those goods have been imported. |
| Purpose | Provide information regarding the goods sold and the value of the sale. | Used for clearance purposes, especially with the customs department. |
| Copies | There is no limit on the number of copies that can be prepared. It is based on need. | Consular invoices are usually prepared in triplicate: Consulate’s office, customs, and exporter. |
| Fee | No fee is involved for document preparation. | The Consulate charges a nominal fee. |
| Contents | Details regarding the goods and the terms and conditions associated with the sale. | Details regarding the goods and their value and the fact that they have been imported from another country. |
| Status | Helps in preparing other export documents since it contains the details of the sale. | When a duty is being imposed on the value of the goods, a consular invoice is needed. |
Difference between customs invoice and consular invoice
| Customs Invoice | Consular Invoice |
|---|---|
| A document that enables the import and export of goods. | A document certified by the Consulate of the destination country for shipment of goods. |
| Helps determine if the contents of the shipment are allowed to enter the destination country. | Helps in calculating customs duty and contains details such as the quantity, rate and value of the shipment. |
| All countries require a customs invoice. | Not all countries require a consular invoice. Certain countries such as Nigeria, Latin America, Tanzania, New Zealand, etc. |
Quick Summary
A consular invoice verifies shipment details and aids in duties calculation. It helps in preventing dumping and enables quick customs clearance. The document includes importer-exporter details, goods description, and value. It differs from a commercial invoice in its clearance purpose and preparation fee. Consular invoices are usually prepared in triplicate. Unlike a customs invoice, a consular one is certified by the consulate of the destination country.
Was this summary helpful?
Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.
Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.
CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.
Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.
Cleartax is a product by Defmacro Software Pvt. Ltd.
Company PolicyTerms of use
ISO 27001
Data Center
SSL Certified Site
128-bit encryption