It is the base for any customs declaration and although it may seem not to be a big deal, obtaining a correct shipping invoice from a client is one of the main challenges of my job ...especially when tax-evasion or money laundering tricks are attempted :) Fortunately it occurs very rarely but - just in case - please be aware that a "pimped" invoice is usually disguised by agents and the customs at the first glance!
Due these facts, I created an instruction sheet on "how to prepare a correct shipping invoice"....and when my clients turn out not to be good students and don't observe the guidelines, I charge them extra for amendments :) !!!
There are basically three kinds of export shipments:
PERMANENT: occurs when you sold an art work, received the payment, it doesn't belong to you anymore, so you don't expect or need it to return from abroad. In this case it is crucial that your agent uses the actual commercial invoice (the one that you client received and paid) for the customs declaration. Afterwards you should receive the proof of export (POE, in German: Ausgangsvermerk) containing a description of the art work as given on the invoice, and naming the number of the invoice. You'll need it for your tax declaration! More about that to follow soon in a separate post.
Other cases of permanent export which don't involve selling/purchasing and can be cleared basing on a proforma: donations, samples, gifts, moving.
TEMPORARY: you are sending an art work as a loan to an exhibition or to a gallery for sales on commission, so you expect it to return or hope that it sells abroad :) but if it doesn't, you'll need it to be re-imported free of import tax. In this case it is important that the proforma invoice enables the customs to doubtlessly identify the shipped art work. They have to be sure that the one returning is the same one that left the EU for a temporary stay abroad.
RE-EXPORT: the art work is on temporary admission but is leaving the EU again. In some cases a commercial invoice can be used here but in the remaining >90% you'll need a proforma that corresponds with the TA doc. The value of the shipped work, however, does not have to be the same! The customs, luckily, are aware of the fact that the value of an art work is very speculative and may dramatically change within a year or two.
Below you'll find enumeratoin of information that needs to be included in both types of invoices - hopefully it will help you to create correct documents :)!
Please note: both kinds of shipping invoices are to be issued without VAT!!!
PROFORMA
- Consigner - the one who will be receiving the art work back- Consignee
- Number, not obligatory but helpful (the customs at Frankfurt airport REALLY love it)
- Date
- Color image of the shipped work, if for a temporary movement
- Description of the work consisting of:
- artist’s name
- title
- year of creation (obligatory - otherwise the customs reject a declaration)
- inventory number, if given
- technique /medium
- dimensions, if available
- value and currency
If instead a loan agreement is used, it still has to contain all above components and additionally it should be signed at least by the lender!
COMMERCIAL INVOICE
- Buyer
- Delivery address, if other than the buyer
- Invoice number (absolutely obligatory, otherwise obviously "pimped")
- Date
- Terms of delivery, if it is supposed to be 100% correct :)
- Description of the sold work consisting of:
- artist’s name
- title
- year of creation (obligatory - otherwise the customs reject the declaration)
- inventory number, if given
- medium / technique
- dimensions, if available
- value and currency
- total, after reductions ect.
Now you know everything - good luck in creating beautiful shipping docs :) !
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