Documentation for triangular shipment Posted on 06 April 2023 Category : Export The information provided here is part of Guide on howtoexport and import The preparation of documents under triangular shipment is concerned, just assume, you are the exporter and ABC is the importer except the column of ‘port of discharge’ and ‘place of final destination’. You need to prepare all documents accordingly. So all necessary documents like invoice, packing list, certificate of origin, Bill of Lading and other required documents will be sent to ‘your buyer’ in China. Once goods moved from your factory in India and once after shipment effected from the load port in India, ABC in China prepare the necessary documents especially his invoice and sent to his ‘buyer’ XYZ in USA. In other words, he gets his contracted amount under the said goods from XYZ in USA. On maturity date as agreed each other, XYZ in USA pays to his seller ABC in CHINA and ABC in China pays you as per your contract with ABC. Carrier issues ‘switch Bill of Lading’ to ABC to send to XYZ, once after surrendering original bills of lading already issued at load port. Also read - 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 Switching documents in triangular Exports and imports The above information is a part of Online export import training guide Other details on how to import export Bill of Lading procedures in triangular shipment What is switch Bill of Lading? Payment procedures in Triangular exports How to protect parties each other in triangular exports Difference between ‘Shipped on board’ and ‘Received for shipment’ Advantages of LC - letter of credit – to Importers. When does overseas buyer prepare Purchase order or Letter of Credit. 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 Click here to know GST rate on Goods and Services GST Exemption list of goods and services Find HSN number or Service tariff code for GST GST registration guidelines Indian GST Laws How to export your goods? Learn exports imports free of cost GST rate changes 06th October, 2017 Reduced GST rates as per GST council meet 09th September 2017 Revised GST rates on 11th June, 2017 GST exemptions for SME GST, Composition scheme changes GST council meet decision as on 06th October, 2017 Importance of Bill of Lading Is Airway bill a documents of title? Is Customs House Agents (CHA ) required to be appointed mandatory? Is DP terms of payment safe in export business? What is VACIS exam in US import customs clearance When can an exporter release bill of lading from shipping company? When does exporter get EP copy of shipping bill after customs clearance Comments jason: On 04 February 2014 I have one more question regarding triangular trade: I have a Spanish company. If my customer is in UK and my supplier is in Turkey (I am the intermediate supplier), (by the way, shipping is being done through air, so I don´t know what you call the document for air transport which would replace “bill of lading”), do I a) Contact a customs broker in UK, have them receive the goods which have as receiver my Spanish company, and have them change the shipping invoice with me as new supplier and my UK client as end customer Or b) Do I actually have to contact the shipper in Turkey when they have the goods from my supplier, and have them prepare the documentation in turkey listing me as supplier (my Spanish company), shipping directly to my UK client. The problem I have with this is Spain requires shipping documents with comercial invoice attached (apart from the E-invoice) from my Turkish supplier to my Spanish Company, otherwise Spain will not recognize the E.-invoice alone. So is this original document from Turkish supplier to my Spanish company preserved by the Carrier(UPS?). And does the merchandise value/shipping invoice on the original document have any validity on this document, since it has never passed customs nor stamped by customs? I guess what I am saying is does the switch happen in Turkey or in UK? Kind regards Surendran Kollerath: On 11 March 2014 Hi Jason, Switching documents is taken place from your side (Spain). Two options - Option 1. You can directly courier required documents to your final buyer. Option 2. There are customs brokers who also act as consignee by obtaining necessary import licence from government of importing country. You can appoint such freight forwarder to customs clear and deliver to your buyer in UK. Argo Exports : On 13 February 2015 I have certain questions to ask you. 1. How to prepare a document/agreement to export? (very first stage) 2. Do all the banks deliver the money readily to the seller INITIALLY after verification of LC? Sridhar.U.L : On 13 February 2015 I happened to go thru your website while looking for some clarification on above subject.Since you are in related trade I thought prudent to touch base with you and address my query.It is well known fact that “High Sea sales (HSS) is a sale carried out by the actual consignee (ie, the consignee shown in theBill of Lading) to another buyer while the goods are yet on high seas after their dispatch from the port of loading (POL) and before their arrival at the port of discharge (POD).” My Query is as under: -Original buyer (A) is buying on FOB and before making / finalizing shipping arrangement identifies Intended buyer (B). - Intended buyer (B) has competitive shipping arrangement. -Intended buyer with shipping arrangement agrees to sub-charter the vessel to original buyer -Original buyer uses the shipping arrangement and sails the shipment -While the shipment is in transit High Seas Agreement is made and sale carried out. In BL actual consignee shown is original buyer (A). Is the above valid high seas sale? If Yes “Can the High Seas Sale agreement can be drawn for FOB value?” Admin: On 13 February 2015 Hi Argo exports, You may read other posts about international business in this website. Finance against LC is depended with your banker's policy Admin: On 13 February 2015 Read our articles about HIGH SEA SALES PROCEDURES in this website Peter: On 06 April 2015 Cross Trade documentation We are a construction equipment trader from Dubai. We sell Italian manufactured equipment to buyers in GCC countries like Saudi Arabia, Oman and Qatar, which ships directly from Italy to Buyer, paying sometimes through (a) bank transfer, sometimes through (b) letter of credit. On shipment Italian manufacturer sends B/L with Italian Certificate of Origin and his Commercial Invoice to us in Dubai, either directly for (a) or through the banks for (b).We send B/L with Italian Certificate of Origin and our Commercial Invoice to Buyer to clear goods from customs either directly for (a) or through the banks for (b). Problem is the Certificate of Origin is from Italy and not from Dubai. Without a Dubai certificate of origin, we cannot get our commercial invoice attested by the Dubai Chamber of Commerce. An attested invoice is required by customs in both Qatar and Saudi Arabia. Is there a solution to this discrepancy? Juke: On 29 July 2015 I have another situation here, I have contract with party (A) in India and my self (B) also in India, our supplier (X) is from China. Party A and X have a contract and Party A and B have a contract. Shipment to be delivered at B's (SEZ) location with duty exemption and Party B should make payment to supplier X in foreign currency. How this can be done. Juke export trade: On 18 April 2016 We would like to export some material from Rajasthan to Qatar, The materials are handcrafts made of marble, stone and steel. Please let us know the procedure to export as we are doing it first time. Once we are familiar with the export there will be regular shipment to GCC countries and we can work together. We are a company located in Bangalore and we have IE Code of 0715006835.Initially, the shipment will be of size around 1.5m3 ( the size of big home table ) volume and weight of around 500kg.The collecting point will be somewhere in Rajasthan (exact location will give you later) and it should be shipped to CIF Qatar. You have to do all the documentation, transport and shipping. Please let us know what all the documents required from us. Expecting your response at the earliest. If you need any information please let us know. HARPREET SINGH: On 30 July 2016 Want to know regarding Certificate of Origin in Switch B/L Shipment, how can change/issue ABC CHINA Certificate of Origin if the Actual Shipper from India as no Chamber of Commerce issue new Certificate of Origin in switch BL Shipment. T.H.K.Swamy: On 20 August 2016 My question is it possible to release switch BL if shipper given container booking for HONG KONG and mention consignee abc colombo, port of loading CHENNAI and port of discharge COLOMBO Final delivery Sri Lanka in his invoice and shipping bill. Is it possible to change the destination,while shipping bill shows COLOMBO. rajat agarwal: On 07 March 2017 Kindly note that we have exported carpets to UK and received payment from UK for the same. The consignee name is the company from UK from whom we received the payment , at the same time on the Invoice the buyer other than consignee name as per the buyers instructions we have mentioned his parent company name which is based in Iran. But the shipment has gone to U.K and the payment has been received from U.K. only Further note that our bank is refusing to accept the documents by saying that trading with Iran is prohibited therefore we will not accept the documents and will not clear the exchange control copy. please help as to what we can do in this case. Regards, Rajat Agarwal Oviya: On 06 April 2017 Please advise. I have Indian company. Seller in ITALY. Customer in QATAR. We get invoice, certificate of origin from Italian seller company which states buyer as our Indian company and destination India. Shipment to be done by air frieght. Air frieght carrier generated air way bill with our Indian company as seller and Qatar Customer as buyer. But the airway bill says Italy as Port of loading and Doha, Qatar as Port of discharge. We provided our Indian company invoice. Now, the agent in Qatar says, Qatar customs needs all documents from single country. Please advise how to handle this. Shipment is still in Italy. Export Customs completed in Italy with original seller Italian invoice and COO. Oviya: On 06 April 2017 Please advise. I have Indian company. Seller in ITALY. Customer in QATAR. We get invoice, certificate of origin from Italian seller company which states buyer as our Indian company and destination India. Shipment to be done by air frieght. Air frieght carrier generated air way bill with our Indian company as seller and Qatar Customer as buyer. But the airway bill says Italy as Port of loading and Doha, Qatar as Port of discharge. We provided our Indian company invoice. Now, the agent in Qatar says, Qatar customs needs all documents from single country. Please advise how to handle this. Shipment is still in Italy. Export Customs completed in Italy with original seller Italian invoice and COO. NR NAGARAJAN: On 09 November 2018 I am middle man from India . I have material in china and export to Iran . Is it possible and tell the procedure. This is my first business , so i need more information kalpana: On 06 July 2019 regarding difference between hss sale and triangular shipment Mustufa: On 28 August 2020 Dear All Please advise. Exporter is in India Buyer is in Oman Consignee is in Iran Payment received from Oman in USD But bank is not issuing the BRC stating since Shipment went to Iran payment to come in INR and not USD hence not issuing the BRC. Please help and advise how to we go about this as payment is already recd only issue is the bank not issuing brc and stating payment to come in INR however the buyer is in Oman and the consignee is in Iran still they insist for INR payment after receipt of payment in USD. Hemant patel: On 22 January 2021 Hello sir /Madam I am middle man from india . I have material in china and export to Iran . Is it possible and tell the procedure. This is my first business , so i need more information your help is more appreciate to my work valentin: On 23 June 2022 I am purchasing equipment from China and ship it directly to USA. I am in Canada and I received the PO from my customer in USA and I issued the PO to the manufacturer in China. What do I need to do so my customer in USA will not see the invoice from China and will receive my commercial invoice from Canada. How should I request to be shipped from China. sanjeev: On 06 July 2022 Thank you for sharing all the knowledge about the export and import. Can you please guide me on how to the importer in UK cN get the GSP benefits if the goods were shipped from India but B/L switched in Dubai UAE ? alessandro: On 07 July 2022 I would like to ask you the following: In case of Triangular Trade of Food Products there is a likely problem to solve i.e. the Health Certificate or NO GMO certificate and other similar health related certificates or even HALAL certificates….. The above certificates are often required by customs at port of entry and are normally issued by local sanitary/medical authorities in the country of production directly to the producer showing also the name and details of the producer. Is there a way to solve this problem? The idea is to keep the producer details shielded from the client knowledge but I suppose this is not possible? yousuf: On 08 July 2022 I have gone through your article for triangular export business which involves switch BL, but how to do business in below way: A - Indian supplier B - Indian supplier C - Overseas customer I buy goods from A who in is India and A shall export goods from Indonesia to SRILANKA customer who is C. B will switch BL and change beneficiary address ...this part is done. Now in which mode and place will B make payment to A Will it be in INR ...as A is already in India( with or without gst) OR How??? subha: On 21 July 2022 Can you give me clarification on the following. I have a buyer in Switzerland who wants to buy copper scrap. I have a seller who is in Nigeria who can sell copper scrap. I am a trader with IEC and GST in Bangalore. Can I take a purchase order and payment from buyer and supply the copper scrap to Switzerland buyer on high sea sale. The BL given by Nigerian seller can I switch BL and give to Switzerland buyer. Will custom officials in india ask for any documents. I will not be able to give any BE to buy bank. I can only give BL copy with export documents. kannan: On 16 November 2023 Hi, Iam going to ship the goods from U.S.A the final destination is INDIA. I am the middleman. I am having office is U.K. and I am going to release the switch B/L from my U.K. office address.The U.S.A shipper will raise the Invoice,Packing list, Certificate of Origin & B/L in my U.K office address. Based on this documents, I will raise the Invoice,Packing List, B/L & Certificate of origin from UK office to India (enduser name) MY question is , based on this U.S.A. certificate of origin U.K. chamber will able to issue the Revised certificate of origin as a shipper (in my U.K. address).Please clarify