Switching documents in triangular Exports and imports

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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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.

Vimal Sawansukha: How is COO is switched in Triangular Export

Thuy: I am C in this sales route. I have done triangular to many countries and in almost all transaction of level 2, I mention SHIP TO adress as B address and only consignee as A because we are selling to A and ship to B. Only India customer they require me to put A address for both Consignee and ship to in invoice even we are really shipping to B. Is it really possible? I am talking about invoice, packing list only. In BL, i will be Shipper, consignee will be A, notify party is A as well. A will make another swtich BL to B after that.

Sandeep Bhavsar: Require details of triangular Exports shipment - Invoice raise by India client, Goods / Consignment move from Egypt, Goods / Consignment deliver to Ethiopia client. And consignment payment received from Ethiopia to India client. Pls share the document part.

ben: Can you advise how transit in bond works. I have the following senario that I need cleared up: I have a Seller of copper cathodes. He is based in DRC. The cathodes are also manufactured in DRC making it DRC origin. The Seller has agreed to deliver the cathodes to C.Steinweg. C.Steinweg has bonded facilities in Zambia. This means that the Seller will have to pay Customs taxes on the cathodes in order for the cargo to leave DRC. Once the cathodes are at C.Steinweg in Zambia can I resell this cargo on a back to back basis? My Buyer will buy the cargo from C.Steinweg in Zambia. If the cargo is in bond, can I sell the cargo? Will any taxes be need to be paid?

manan: I would like to have some advice and information regarding triangular export (Foreign to foreign export). My Company (Farmvale group, Cochin - India) have received an export order for Pulses from UK. I have a supplier for the same from Myanmar. Is it possible to do triangular export by my Indian company to UK company when actual export will be from Myanmar. Kindly inform the procedures and documentation. Switch of BL is not necessary as Myanmar company is my partner company. Also let me know if I need to pay the Import duty as goods are not for India. Thanking you in advance.

Margiritus: I would like to congratulate and thank you for all the precious information posted on the howtexportimport.com website.Being relatively new to the sea shipping industry I allow myself to ask you a question. I am doing a shipment of 2x40OT from Greece to Panama. Greek shipper sells to a Spanish partner of theirs and delivers to cnee in Panama - this is what is mentioned in the invoice shipper have issued in Greece. I do not have a trading partner in the country so I am making a direct BL with MAERSK. Shipper is the Greek company and cnee the one in Panama. Is this correct? Should I/ Can I mention in any part of the BL the spanish buyer?

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