Triangular shipment
Friday, January 06, 2017     Category : Import

 

The information provided here is part of Online export import training guide 

 

 

Triangular Shipment – An introduction.

 

What is Triangular shipment? Who are the parties involved in a Triangular Shipment? How does triangular trade function? How many parties involved in a triangular trade minimum? How foreign exchange payments are accounted in Triangular business?

There are different dimensions in the term ‘triangular shipment’. Here I am explaining about one of them.

 

Let me explain Triangular Shipment with an example to make you easily understand.Triangular Shipment (2)

 

You are situated in Mumbai, India. You have obtained an order from a buyer called ABC from Yang Min, China. As per your contract with your buyer in China, you need to ship the goods to a party called XYZ New York, USA. Here, the purchase order from final buyer has been obtained by ABC from China and he procures goods from you in India. You will be shipping goods to the port of XYZ at New York. This is one of the examples of ‘triangular shipment’.

 

I will explain once again to make easier on the above example of Triangular Shipment.

 

As far as you are concerned, your buyer is ABC and you will receive foreign payment from your buyer ABC in China. All your accountability is with ABC only and you have no connection with XYZ. In turn, ABC will be receiving purchase order from XYZ. ABC receives amount of sale of goods also from XYZ. ‘Certificate of origin of goods under triangular shipment’ is obtained from the final manufacturer of goods, here in this case ‘you’ situated in India.

 

I have written separate articles about Documentation procedures under Triangular Shipment and Payment procedures under Triangular Shipment. You can have a look in to the same to know more about Triangular Shipment in import export of international business.  Read  more Documentation for triangular shipment  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
Switching documents in triangular Exports and imports

Do you wish to write more information about Triangular Shipment under international business? Share your experience about Triangular Shipment.

 

Have you satisfied with this article about Triangular Shipment? Comment below your thoughts and discuss about Triangular Shipment in export and import trade.

  

 


The above information is a part of Import Export course online


Other details on how to import export  

 

Documentation for triangular shipment

Bill of Lading procedures in triangular shipment What is switch Bill of Lading?

How to protect parties each other in triangular exports

Difference between Purchase Order and Commercial Invoice

Mode of payments in international trade

Difference between IHC and THC

Excise and Customs - Click here to read complete notification under Budget 2014

How to get Export Orders?

How to settle dispute in Exports and Imports?

Click here to know India Trade Classification(ITC)

Click here to know HS code of other product/commodity

Pre shipment bank finance to suppliers for exports through other agencies

Types of export containers
Measurement of export containers
Exim Policy of India 2015-2020
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

 

Terms of Payment in Export and Import

Terms Used in Marine Insurance

 The difference between FCA and CIP terms

The formalities to sell / auction unclaimed or un-cleared goods

The legal strength of Bill of Exchange in International Trade. What is Bill of Exchange in International Trade.

The role of bill of exchange in import export business

The role of CBEC - Central Board of Excise and Customs in India.



 The role of Export Inspection Agency in Pre-shipment Inspection & Quality Control

The role of Reserve Bank of India

The Role of the International Chamber of Commerce (ICC)

The term FCL. What is FCL means

The term LCL. What does LCL mean?

 Tips to exporters on Documentation

How does a Running bond work?

 How does Bill of Lading work in DP payment terms?

How does Bill of Lading work in Sight LC

How does CENVAT Credit work?

 How does CFR term of delivery work in Export Import business

How does comprehensive policy of ECGC work for exporters?

 Top 137 Airline names and their websites worldwide

Toxic Substances control Act (TSCA) certification

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

 Triangular shipment

Types of Insurance Documents.

 How to make DA mode of payment safe

How to make delay in delivery of Shipment?

 How to minimize import cargo clearance time? An open logic proposal to WTO

How to obtain a duplicate BL, if original bill of lading lost.

How to obtain GSP - Certificate of Origin?

How to obtain Phyto sanitary certificate. What is phytosanitary certification

   

Comments

 
Hari nair Says :
Tuesday, January 21, 2014
Hi I have customer who is doing triangular shipments.He is based in Mumbai and importing from Switzerland to Dubai.Everyhting is fine and we issue switch B/Ls for him but he is requsting us to issue a COO from malasia.Is this possible?? as per my shipping knowledge COO can be issued only from the manufaturing country.Here in this case from Switzerland. Do we have any other option to tackle this issue Awaiting yours. Hari Nair.
Kumar, Mumbai Says :
Tuesday, November 18, 2014
Hi one of our customer need to do triangular shipment, he is situated in Germany and need to do the shipment to Africa, he is sourcing from India he had 10 to 20 suppliers from India, his intention is to do this triangular shipment as buyer console to his consignee in Africa. But for cost reduction he need to avoid switch BL's as it attracts cost's. Is there any way to avoid switch BL and to do triangular shipment by hiding the ultimate supplier and ultimate buyer
Gulmira Says :
Thursday, June 18, 2015
I buy material from India and want my customer doesn t see manufacturer details. Can we make Switch Certificate of Origin? If yes what are the rules?
Md.Anwarul Islam Says :
Thursday, July 02, 2015
Hi!I have a situation where one country(main buyer) wants to buy and deliver to a 2nd country ( final receiving country).From 3rd country(main communicator between main buyer and main manufacturer/supplier) wishes to do the business,who will procure(import) the goods from 4th country(main supplier) and request for shipment(export the goods to the 2nd country as mentioned earlier).Do this type of business can work,how the B/L will be issued.Here 3rd country will act as an importer(import goods from 4th country) but the goods will not enter in his own country and get the B/L from the exporter and make payment to them.Again 3rd country will send a 2(two) sets of B/L, one to the main buyer(1st country) for payments and for final receiving country(2nd country) to take the delivery of the goods.Finally 3(three) sets of B/L will be required here.In this event main buyer will make payments 1st(after getting of B/L) and the main manufacturer/supplier will get payment within 45 days after actual date of shipment.
aresh Says :
Thursday, July 16, 2015
i would like to know can a Indian certificate of origin can be issued. for a cargo which i have bought from ABC CHINA and i am selling the cargo XYZ USA. cargo will not touch Indian port & will travel directly from China to USA.
Usha Chandran Says :
Thursday, October 15, 2015
I work in a department which deals with Import & Export Clearance. And your information regarding the import & Export on the website had helped me a lot in my Job, Thanks to you. I have a clarification on Importing of Maps. we have one of the Customer who had imported Maps and wants to clear the shipment. he is an individual. Please advice how to proceed with this. Do we need to get a No Objection from any Department. Please guide me.
Amit Sharma Says :
Thursday, October 29, 2015
Dear sir, Can we do the triangular shipment via air mode, if yes then pleas suggest HAWB can be switch in air mode,
Harsh Jain Says :
Wednesday, April 20, 2016
I have a query , the answer of which I was unable to find. online. Q . Around 2% of my shipment has some defects for which the buyer is asking for a credit note or replacement.I'm willing to accommodate this request.Please guide me on the steps to be taken from my end for the same i.e documentation, customs, bank etc.
Rameez Raja Says :
Wednesday, August 10, 2016
My name is Rameez Raja and I have been in a bit of a fix and was doing some research and happened to read your articles. I understand that you are a very learned man with great knowledge and may be You can give me a piece of advice So my situation is like this. I am based out of India, Delhi and have registered export company also but along with this I have started trading goods from China and shipping to Malaysia, Singapore. So the goods will be manufactured in China and shipped directly to the party. Ofcourse I am the vendor and the POs from the buyer are all issued in my company name. The problem and the big question is goods exported from China need FormE/Certificate of origin. Now can shipper details in Form E different from BL because I plan to make a switch BL.
Rahul Says :
Wednesday, August 10, 2016
THIS IS RAHUL FROM CHENNAI. I AM INTERESTED IN PHARMA EXPORT BUSINESS. I GOT NO CLUES ON HOW TO GET EXPORT ORDER FROM COUNTRIES ARE THERE ANY DEDICATED SITE THAT PROVIDE PLATFORM FOR IMPORT EXPORT.
SD EXPORTS IMPORTS Says :
Saturday, April 08, 2017
Dear Team, I got an order at Maldives, but the goods are at China. China party ready to supply to Maldives, But Maldives buyer made purchase order on my Indian company name. Guide me at the earliest sir.
SUSHIL SINGAL Says :
Thursday, July 13, 2017
I saw that all the discussions are with regards to sea shipments . In sea shipments , you switch B/L but my situation is with regards to air shipment . I do not want to let my buyer knows who is actual seller and actual seller should not know who is final buyer . How we can do this in case of Air shipment , how we can manage COO and all the other documents . Please advise
Leonardo Says :
Monday, August 28, 2017
is triangle shipment still possible in vietnam ? we are 100% FDI foreign company in vietnam and the bank told us we can't do traignle shipment anymore thank you
 

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