A well – crafted shipping invoice is crucial for a seamless shipping process from China to Iraq. It serves as a key document for both the shipper and the consignee, and plays a vital role in customs clearance and financial transactions. Here’s a step – by – step guide on creating an accurate and compliant shipping invoice.

1. Identify the Parties Involved

Shipper Information

Begin by clearly stating your company’s details as the shipper. Include your full legal name, business address in China, contact number, and email address. For example, if your company is “China Textiles Co., Ltd.” located in Shanghai, provide the complete address, such as “123 Nanjing Road, Shanghai, China, 200000”. This information helps in establishing the origin of the goods and enables the consignee and relevant authorities to contact you if needed.

Consignee Information

Next, include the consignee’s information in Iraq. Write down their full name, business or residential address in Iraq, contact number, and email. Ensure the address is accurate with the correct street name, city, postal code, and any relevant district information. For instance, if the consignee is “Iraqi Trading LLC” in Baghdad, the address should be detailed as “456 Rashid Street, Baghdad, Iraq, 10001”. Precise consignee information is essential for the delivery of the goods and for communication regarding the shipment.

2. Invoice Number and Date

Unique Invoice Number

Assign a unique invoice number to the shipping invoice. This number helps in tracking the invoice within your accounting system and also serves as a reference for both you and the consignee. You can use a sequential numbering system or a combination of letters and numbers that is easy to identify and trace. For example, “INV – 2025 – 001” where “INV” stands for invoice, “2025” is the year, and “001” is the sequential number for the first invoice in that year.

Invoice Date

Enter the date on which the invoice is created. This date is important for accounting purposes, as it determines when the financial transaction is recorded. It also helps in establishing the timeline for payment and can be relevant for customs clearance in Iraq, as some regulations may consider the invoice date for valuation and duty calculation.

3. Provide Goods Details

Description of Goods

Describe the goods being shipped in detail. For example, if you’re shipping electronics, mention the brand, model, and any unique features. Instead of a vague “electronics”, write “Samsung Galaxy S23 Ultra smartphones, 128GB storage, Phantom Black color”. This detailed description helps customs officials in Iraq accurately classify the goods for tariff purposes and also ensures that the consignee knows exactly what to expect.

Quantity and Unit of Measure

Specify the quantity of each item being shipped along with the appropriate unit of measure. If you’re shipping clothing, it could be “50 pieces of men’s cotton shirts” or for machinery parts, “20 sets of engine bearings”. Using the correct unit of measure is crucial as it affects the valuation and can impact customs duties.

Value of Goods

State the value of the goods clearly. This should include the unit price of each item and the total value for the quantity shipped. For example, if each Samsung Galaxy S23 Ultra is priced at $1000 and you’re shipping 10 units, the unit price is $1000 and the total value is $10,000. The value of the goods is used by Iraqi customs to calculate import duties and taxes.

4. Include Shipping and Freight Details

Shipping Method

Indicate the shipping method used, whether it’s sea freight, air cargo, or express shipping. If it’s sea freight, mention the name of the shipping line and the vessel if known. For air cargo, include the airline’s name. For example, “Shipped via Maersk Line, MV Explorer” for sea freight or “Shipped by Emirates Airlines” for air cargo. This information helps the consignee track the shipment and also provides context for customs regarding the mode of transportation.

Freight Charges

If you are responsible for freight charges or if they are included in the invoice, clearly state the amount. Break down the freight charges if there are multiple components, such as base freight, terminal handling charges, or any surcharges. For example, “Freight Charges: Base Freight – $500, Terminal Handling – $100, Total Freight – $600”. This transparency helps the consignee understand the cost structure.

5. Consider Iraqi Customs Requirements

Harmonized System (HS) Code

Assign the appropriate Harmonized System (HS) code to the goods. The HS code is an international standard for classifying traded products. In Iraq, customs uses these codes to determine the applicable tariff rates. Research the correct HS code for your goods; for example, the HS code for smartphones might be 8517.12.00. Using the wrong HS code can lead to incorrect duty calculations and customs clearance issues.

Currency and Exchange Rate

State the currency in which the invoice is denominated. If you’re dealing with international transactions, you may need to convert the amount to Iraqi dinars (IQD) if required by Iraqi customs. Provide the exchange rate used for the conversion and the date on which the exchange rate was applied. This ensures transparency in the valuation of the goods for customs purposes.

6. Additional Information

Terms of Payment

Specify the terms of payment, such as “Payment due within 30 days of receipt of goods” or “Payment by irrevocable letter of credit”. Clear payment terms help avoid disputes between you and the consignee.

Any Special Instructions

If there are any special instructions related to the shipment, such as handling instructions for fragile goods or specific delivery requirements, include them in the invoice. For example, “Handle with care – goods are fragile” or “Deliver to the back entrance of the warehouse”.

Conclusion

Creating a shipping invoice to Iraq requires attention to detail and compliance with both international shipping norms and Iraqi customs requirements. By following these steps and including all the necessary information, you can ensure a smooth shipping process and avoid potential delays or issues at customs.

When it comes to ensuring your shipping invoices are accurate and in line with Iraq – bound shipping needs, China Top Forwarder can offer valuable guidance. Our team has experience in handling shipping – related documentation for Iraq. Contact us for a free consultation to streamline your invoice – creation process.