How to protect parties each other in 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 trade.

Since I have explained in details about other aspects of triangular shipments, I mention below only about documentation in triangular shipments to hide final buyer with final seller in triangle exports.

Let us start with an example of 3 parties involved in triangle trade situated in three countries separately. ‘A’ obtains export order from ‘B’ and transfers the purchase order to ‘C’. Here, B is the final buyer and C is the final seller. Even though the financial transactions are between (A and B) and (A and C), and there is no communication or other financial movements between B and C, the cargo is moved from final seller C to final buyer B. Here, while issuing Certificate of Origin and other specific documents, the issuing authority has to disclose the shippers name and importer name in the documents which reaches to the hand of final importer who can know the details of final supplier.

In order to overcome this problem, normally A represent himself or appoints an agent in final buyer’s country to handle all shipments on behalf of him. So, A or his agent act as an Importer in the said country legally and receives goods from final seller and supplies to final seller.

Also read - 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
Payment procedures in Triangular exports Switching documents in triangular Exports and imports

The above information is a part of Import Export online Training

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Comments

Ragu.R: On 18 February 2015 I have started export business in the name of Rasu Global Connect. I am basically came from agriculture family.I would like to improve my nation economy with some extend, in addition to that improve formers life/social.I have completed MBA and working under the TVS group of companies as a Manager. some basic knowledge i have for export business.Now I got IEC number and trace the buyers from oversees. But, i am unable to trace the importers id and contact details.

Praveen: On 18 February 2015 I like to take IE code. I have prepared all the documents.I need one clarification. Should i have enclosure of pan card to apply for IE code? and can i apply directly without contacting any agent?

Admin: On 18 February 2015 Hello Praveen, If you are a sole proprietor, you can enclose your personal PAN card copy along with IEC application documents. If your firm is a partnership or a Private limited firm, you need to attach PAN copy of your firm issued by Income Tax Department.

rajan: On 30 June 2022 I have many times used your website to get clarification on import export procedures. however at this time I am in need of some clarificaton and unable to find a clear answer on this. We have a company in Hong Kong. We are buying products from a company based in Korea who is supplying the products FOB Vietnam. I in turn am supplying these same products to my buyer in USA on same FOB terms. Here, for AWB or BL, my Korean seller will need a copy to show sale from his company to me and then I will also need a copy to show final sale between my and my buyer. How can I do this without both Korean seller and USA buyer getting to know each other?

ruby: On 08 July 2022 I have a question about the commercial invoice legalization. We're a Hong Kong based trading company, and currently we have some goods which will be shipped from Korea to Iraq. Our supplier in a Korean plant. To export to Iraq, we need to have the commercial invoice legalized in the embassy. So my question is, can my company (Hong Kong company) have our commercial invoice (Between our company and our client) be legalized by your embassy?

ranjikanth: On 16 July 2022 I HAVE ONE DOUBT HOPE YOU CAN HELP ME OUT FOR SWITCHING BL OR TRIANGULAR EXPORTS:: MATERIAL GOES FROM CHINA ( C ) TO AMERICA ( B ) BY SWTCHING BL 01. HOW MY BANK WILL PAY TO MY VENDOR IN CHINA WITHOUT BILL OF EXCHANGE CRAETED AT INDIA LEVEL AS MATERIAL IS NOT ENETRING INDIA 02. HOW MY BANK WILL ACCEPT THE PAYMENT FROM MY CLIENT IN USA WITHOUT SHIPPING BILL GENERATED AT INDIA LEVEL AS MATERIAL IS NOT EXITING FROM INDIA OUR BANK OF BARODA AND HDFC BANK ARE NOT MAKING THE PAYMENT TO CHINESE VENDOR WITHOUT BILL OF EXCHANGE HOPE YOU CAN HELP US WITH THIS

How to protect parties each other in triangular exports

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