Consular Invoice
A consular invoice is a document certifying a shipment of goods and shows information such as the consignor, consignee, and value of the shipment. Generally, a consular invoice can be obtained through a consular representative of the destination country and must be certified by the consul of the country of destination, who will stamp and authorize the invoice. In the case of consular invoicing, the invoice can be used to calculate the price differences between imported products and the price of the product to the country it is being exported to prevent the unfair trade practice of dumping. Additionally, the export price of the goods may be evaluated against the current market price in the exporter’s country to avoid the process of export dumping from taking place. The process of submitting and authorizing a consular invoice is called consularization and it can help speed up the process of importing goods into a new country.
What Is a Consular Invoice?
A consular invoice is a document certifying a shipment of goods and shows information such as the consignor, consignee, and value of the shipment. Generally, a consular invoice can be obtained through a consular representative of the destination country and must be certified by the consul of the country of destination, who will stamp and authorize the invoice.
Understanding Consular Invoice
The consular invoice is required by some countries to facilitate customs and collection of taxes. The process of submitting and authorizing a consular invoice is called consularization and it can help speed up the process of importing goods into a new country.
In order to complete the consularization process, the company or individual seeking to export the goods must file the paperwork and pay any associated fees for processing. Once the paperwork has been processed, the exporter is given a copy of the invoice and the second copy is filed with the customs office. A consular invoice contains information about the product, its destination, and the declared value of the product. You can expect the invoice to list the following:
Special Considerations
A consular invoice also includes a copy of the commercial invoice in the language of the country, giving full details of the merchandise shipped. In general, the purpose is to provide the foreign customs authority with a complete, detailed description of the goods so that the correct import duty can be levied. Additionally, the export price of the goods may be evaluated against the current market price in the exporter’s country to avoid the process of export dumping from taking place.
Dumping is when a product is sold in a foreign market for a price lower than the cost in the home market in order to maintain an advantage over other suppliers of the product. It is considered an unfair trade practice and is regulated by national governments. In the case of consular invoicing, the invoice can be used to calculate the price differences between imported products and the price of the product to the country it is being exported to prevent the unfair trade practice of dumping.
Related terms:
Anti-Diversion Clause
The anti-diversion clause is a regulation that prevents exported goods from going to destinations not approved by the U.S. government. read more
Anti-Dumping Duty
Anti-dumping duty is a protectionist tariff that a government places on imports thought to be significantly underpriced. read more
Delivered Duty Unpaid (DDU)
DDU shipping is a term that indicates a seller is responsible for the safe delivery of goods, responsible for all transportation costs and risks. read more
Delivered Duty Paid (DDP)
Under delivered duty paid (DDP), the seller is responsible for the cost of transporting goods until customs clears them for import at the destination. read more
Dumping
Dumping is the export of a product at a price that is lower in the foreign market than the price charged in the exporter's domestic market. read more
Export
Exports are those products or services that are made in one country but purchased and consumed in another country. read more
Import Duty
Import duty is tax collected on imports and some exports by a country's customs authorities to raise state revenues. Import duty may also be referred to as customs duty, tariff, import tax or import tariff. read more
Import
An import is a product or service produced abroad but then sold and consumed in your country. read more
Invoice
An invoice records itemized transactions and is used for expense management and bookkeeping. read more
Mergers and Acquisitions (M&A)
Mergers and acquisitions (M&A) refers to the consolidation of companies or assets through various types of financial transactions. read more