Switching documents in triangular Exports and imports

 The information provided here is part of Import Export course online

Documentation on triangular exports.

Before reading this article, I suggest my readers to go through all other articles related to triangular trade which make you more clear about the procedures and formalities of triangle exports and imports.

In a triangular exports and imports, if A obtains order from B and transfers export order to C who is final supplier, the terms of contract between parties each other can be explained below with  two levels.

Level 1. Transactions between A & B

Level 2. Transactions between A & C

Here in Level 2, A act as a buyer of goods and places export order contract to C the supplier of goods. Once after receiving purchase order from A, C ships goods to the port which A mentioned in purchase order. Once after shipping goods from the port of C’s country, C completes all regular export documentation procedures with A who is the buyer of goods to him. The necessary documents like invoice, packing list and Bill of Lading and other required documents to A either by courier or through C’s bank as per the agreed terms.

Switching documents in triangular Exports and imports

Once after receiving documents by A, he prepares his documents to B as per the terms and conditions of purchase order between A and B. Here, A act as a supplier of goods and attach his invoice to B. While switching required documents, A makes sure in meeting all required terms and conditions between A and B. A approaches carrier to switch Bill of Lading and obtain switch Bill of lading and arrange to send to B. Shipper in the Bill of Lading mentioned in level 2 above is C. However shipper in switched Bill of lading in level 1 will be A. While consignee in Bill of Lading under level 2 is A, consignee in switched bill of lading of level 1 is B.

(updated with corrections pointed out by  Tee on October 2, 2013. and Mr.E K Koshi on January 28,2014-  A special thanks to both)

Read more - Documentation for triangular shipment   Triangular export    Bill of Lading procedures in triangular shipment What is switch Bill of Lading?   Procedures and documentation on Triangular shipments  How to protect parties each other in triangular exports   Payment procedures in Triangular exports

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The above information is a part of Online Export Import course 

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Comments


Sendhil: Dear Admin, I feel this as same as middle man trade. Can you explain up to which level "C" will use their company name in the documentation.

admin: Please read other articles about documentation of triangular trade.

nouran: what about the certificate of origin which will be issued by the real supplier and i do not want the final receiver know him

sameer: Dear Sir, I like the artical but i would like to know each single step to protect A therefore in certificate of Origin B can see the name of C . I want to know at what stage we make switch BL if i am selling material to B in FOB bases. best regards

Tee: Dear admin, I has a little confuse as below, //quote// Level 1. Transactions between A & B Level 2. Transactions between A & C ... ... Shipper in the Bill of Lading mentioned in the example level 1 above is C. However shipper in switched Bill of lading in example level 2 will be A. While consignee in Bill of Lading example level 1 is A, but consignee in switched bill of lading of level 2 will be B. //unquote// 1.why shipper in transaction between A&B is C? 2.And why consignee in switched bill of lading of level 2 that transaction between A&C is B?

admin: Hi Tee, You are exactly right. Many thanks for pointing out the error. Please see new update. thanks once again for your support to this web blog.

addy: Hi, we are a proprietorship firm, we are importers of paper from all over the world. A buyer in bangalore wants me to source the product for him from foriegn countries. I want to ask if I can purchase the material abroad and then switch bill of landing to put my name as shipper and the buyer in bangalore as consignee? I don't want to disclose the foriegn supplier details to the buyer. So I act as an indentor. Also I will need to re issue the invoice too right? Could you please let me know if this is possible according to Indian law, if yes then please brief about the steps to be taken to do so. Your help will be highly appreciated. thank you.

addy: Hi, we are a proprietorship firm, we are importers of rejected paper from all over the world. A buyer in bangalore wants me to source the product for him from foriegn countries. I want to ask if I can purchase the material abroad and then switch bill of landing to put my name as shipper and the buyer in bangalore as consignee? I don't want to disclose the foriegn supplier details to the buyer. So I act as an indentor. Also I will need to re issue the invoice too right? Could you please let me know if this is possible according to Indian law, if yes then please brief about the steps to be taken to do so. Your help will be highly appreciated. thank you.

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