What Are the Differences Between an Invoice and a Packing List?

Caravan KOBE
Jul 9
4 min read

In logistics and international trade, the documents called the "Invoice" and "Packing List" are indispensable. However, since their roles and purposes differ, it is important to correctly understand the differences between them. This article explains the basic overview of the invoice and packing list, their respective roles, contents, usage scenarios, and points of caution in detail.

1. What is an Invoice?

An invoice is a commercial document issued based on a sales contract, sometimes called a "commercial invoice." It is issued by the seller to the buyer and lists details such as the products, prices, quantities, and terms of the transaction. It is one of the most important commercial documents in international trade and is essential for import/export procedures.

Main Roles of an Invoice

Proof of the sales contract
Specification of product types, quantities, unit prices, and total amounts
Clarification of payment and transaction terms
Required document for customs clearance during import/export
Basis for calculating customs duties and import taxes

Main Items Included in an Invoice

Issue date and invoice number
Names and addresses of the seller (exporter) and buyer (importer)
Product names, item numbers, quantities, unit prices, total amount
Payment terms (payment deadlines, methods, etc.)
Delivery terms (Incoterms such as FOB, CIF, etc.)
Export license numbers or certificate of origin details (if required)

2. What is a Packing List?

A packing list, also called a "packing specification," is a document that details the contents, packaging types, quantities, weights, and dimensions of the export cargo. It is mainly used for handling, inspection, and verification of cargo during transportation.

Main Roles of a Packing List

Detailed description of cargo packaging contents
Material for verifying cargo quantity and weight
Basis for inspection by shipping companies, customs, and recipients
Proof for investigating damages or losses during transportation and handling claims

Main Items Included in a Packing List

Issue date and packing list number
Names and addresses of the seller (exporter) and buyer (importer)
Package numbers (e.g., Box 1, Box 2, etc.)
Contents of each package (product name, quantity)
Packaging type (boxes, pallets, drums, etc.)
Weight of each package (net weight and gross weight)
Dimensions of the packaging (length × width × height)

3. Differences Between Invoice and Packing List

Item	Invoice	Packing List
Purpose	Proof of sales contract, clarify terms	Detailed explanation of packaging contents, for transport and inspection
Contents	Product names, quantities, unit prices, total amount	Quantity, weight, dimensions per package unit
Primary Users	Seller, buyer, customs, banks	Exporter, importer, carriers, customs
Role	Financial and legal basis for transactions	Reference for cargo content verification and logistics management
Legal Effect	Acts as proof of contract, used for customs declaration	Limited legal effect but essential for cargo management
Impact on Customs Duties	Directly affects duty calculations	Not used for duty calculations

4. Why Are Both Documents Necessary?

The invoice is a crucial document that proves the sales contract and shows the price and transaction conditions. On the other hand, the packing list details the actual contents of the cargo, which helps with transport, inspection, and reconciliation by the recipient. Customs calculate duties based on the invoice but need the packing list to verify that the actual cargo matches the documents. Additionally, if cargo damage or loss occurs during transport, the packing list serves as proof of the cargo’s content.

5. Tips for Writing Invoices and Packing Lists

Invoice Creation Tips

Write product information accurately and in detail
Clearly state payment terms and Incoterms (trade terms)
Use official names for buyer and seller
Include issue date and number for easy management
Include all information necessary for customs and tax purposes

Packing List Creation Tips

Number each package and detail contents separately
Measure and record weights and sizes accurately
Specify packaging materials to ease handling during transport
Separate and specify each product when multiple items are packed together
Maintain consistency with the invoice

6. Common Issues and Points of Caution

Inconsistent content: Differences between the invoice and packing list can cause customs delays and other troubles.
Inaccurate weights or quantities: Mismatches can lead to customs or transport issues.
Language problems: English is standard in international trade, but multilingual support may be needed.
Format consistency: Using a standard format within your company reduces errors.

┌─────────────────────────────┐

│ Invoice │

│─────────────────────────────│

│ ■ Purpose │ Proof of sales contract, basis for customs duties │

│ ■ Main Contents │ Product name, quantity, unit price, total amount, │

│ │ payment terms, Incoterms │

│ ■ Uses │ - Submitted to customs for clearance │

│ │ - Serves as invoice for payment │

│ │ - Proof of transaction │

│ ■ Key Points │ Accurate pricing information to avoid customs delays │

└─────────────────────────────┘

↓ (Interlinked)

┌─────────────────────────────┐

│ Packing List │

│─────────────────────────────│

│ ■ Purpose │ Detailed description of packing contents, cargo verification │

│ ■ Main Contents │ Package number, quantity, weight, dimensions, packing type │

│ ■ Uses │ - Cargo check by carriers and recipients │

│ │ - Customs inspection │

│ │ - Claims for damage or loss │

│ ■ Key Points │ Must match actual packing; discrepancies cause issues │