What is Third Party Exports?

href="/Is-Letter-of-Credit-LC-safe-for-an-Importer--425.aspx">Is Letter of Credit LC safe for an Importer?

 Is ON BOARD CERTIFICATE required for LC negotiation

What is Rummaging

How does First Appraisement system of import customs clearance procedures work?

 How does Letter of Credit work?

How does STP units work in India?

How does TT (Telegraphic Transfer) work?

 How does Wire transfer work in international business?

Sea carriers

sea exports

SEZ benefits

Shipping lines worldwide

Short shipment in Export business
Shut out procedures to get back goods to exporter's place
Spelling error in LC? Is wrong spelling a discrepancy under Letter of credit?
Stuffing and De stuffing – 2 regular terms used in shipping
Surrender of Bill of Lading – Some facts
Switch BL
What is the difference between BAF and CAF
What is the difference between High sea sales and imports
What is the difference between re-exports and re-imports
How does First Appraisement system of import customs clearance procedures work?
How does Letter of Credit work?
How does Bill of Lading work in DP payment terms?  
How does STP units work in India?
What is VACIS exam in US import customs clearance



What is Third Party Exports


The information provided here is part of Export import business Course online


Any exports made by an exporter or manufacturer on behalf of another exporter or exporters are called third party exports. Here, the legal document of shipping bill has to be mentioned both addresses of manufacturer exporter and third party exporter. In a third party exports, the overseas order is obtained by a third party exporter. So the Foreign Inward remittance is received by the third party exporter, as he had obtained the export order. So the purchase order from overseas buyer, Foreign Inward Remittance Certificate (FIRC) etc. will be in the name of third party exporter and not in the name of manufacturer exporter. So the Reserve Bank point of view, the regulation of inward remittance is monitored with the third party exporter.

In third party exports, the export order is obtained by a third party exporter and he may not have goods under the said purchase order. He procures goods from another manufacturer exporter and exports the goods on his name and obtain foreign exchange by the third party exporter. Once after obtaining a purchase order from overseas buyer, third party exporter issues a purchase order locally to the manufacturer exporter lesser price than he contracted with overseas buyer. The third party exporter pays the value of goods to the manufacturer exporter as per mutually agreed terms and conditions. Normally third party exporter pays the value of goods in local currency to manufacturer exporter. In turn, the third party exporter receives his export proceeds from overseas buyer in foreign currency.  Also read Triangular export      Which category of exporter are you? Merchant Exporter,Manufacturer exporter,Service exporter Project Exporter or Deemed Exporter


The above information is a part of Online international business guide course

Other details on how to import export 

Triangular shipment
Which category of exporter are you? Merchant Exporter,Manufacturer exporter,Service exporter Project Exporter or Deemed Exporter
Difference between mother vessel and feeder vessel
Procedures for Re-exports
What is the difference between BAF and CAF
A simple tutorial on high sea sale procedures and formalities in India
Is Letter of Credit LC safe for an Importer?
 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)
Pre shipment bank finance to suppliers for exports through other agencies
Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
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


We have IEC, can we export from all ports?

What are the legal documents in exports

What does ECGC do on default of payment of any overseas buyer?

Post shipment finance in Export Business


 Printing machine error with customs – Un able to hand over documents to carrier.

 Procedure and Documentation for Filing Claim of Marine Insurance.

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

Procedure for Central Excise Clearance Under Claim of Rebate

Procedure to claim Duty Drawback

 Procedures and documentation on Triangular shipments

Procedures for Re-imports

 Procedures to claim brand rate of draw back

 Procedures to file IGM (Import General Manifest)

 Procedures under Re-exports

 Re warehousing procedures under STP and EOU units.

 Register with Export Promotion Council

Risks and solutions in export business



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.

 Import General Manifest (IGM)

Importance of Bill of Lading

Introduction to this web site.

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?


ajoy kumar mukherjee: we kolkata base manufacturer dealer export cast iron article to the foreign buyer through third party of delhi based. at the time export documentation the exporter made invoice prior to purchase invoice. as per my view the export invoice to be prepare for complete the shipping bill process. but sales tax authority disallowed the export due to export invoice date is made earlier than the purchase invoice. whether is it right or wrong. please help.

Mahesh Jindal: in case of third party export ARE-1 should have name of both the party i.e. manufacturer and third party. Please confirm.

Surendran Kollerath: Hi Ajoy Kumar Mukherjee, The sales tax authority is right because, invoice date of third party exporter (to his overseas buyer) should not be prior to the date of invoice of local supplier of goods. Means, the goods are exported only after buying from local supplier.

rajat arora: hi ajay kumar and surendran kollerath , I am manufacturer exporter from raipur , third party exporter is from bhopal , my question is can i deleiver the goods at france port on behalf of my third party exporter. and what documents will be require to submit for bhopal third party exporter. as said on article (FIRC)is enough. rajat arora . aroraprs@gmail.com

rajesh dhanjani: we want to search buyers of medicine & its related product , but dont know the sites , will you help me , im the wholseller of fda approved branded & genric medicine in nagpur thanku

MEENA SHINDE: I purchase good from Local Manufacturer say FOB Price USD 2000 and then Export the same in name by stuffing container from Manufacture premises. I make shipping bill sau USD 2000 FOB plus Freight amount say USD 700. So total CIF Value is USD 2700/-. But I received Export order for USD 5000/- and Inward remittance will also come for USD 5000/- then how the bank will take difference of USD 2300/- . Is their any way to file Shipping Bill for FULL export order say USD 5000/- instead of USD 2700/- or any provision for Third party export, since they buy in less amount against purchase order. Awaiting your reply

SURESH NAIR: I have received an order from Bangladesh for some machinaries. How can effect the supplies to the customer as I need to get these machines either from Japan or from Germany. In case If i import this product into India then Customs duty will be payable and thus the transaction becomes un viable. What is the procedure to complete this transaction. Can you please advise on this on priority.

sachin hire : Sir as I have to start importing animal feed grade medicines from China to india which I haven't don't yet and is in the process of getting I.E.code. So sir I need a help from you that is about complete list of documents I would be requiring for importing medicines is drug license also required for it?.Will also let me know the complete process of importing it china to india. As I have to supply this medicine as it is to the third party for them to add this into poultry feed. Sir as I am a computer science student and hence I am completely new into this so I need to ask you that will this be very hard for me to do trading.As I have prepared myself but still have some doubt so asked you

Jamesrajan: Dear all,I have own brand tea bags is there in India that name was AX- tea.now we need the buyers and forging exporter

Amit Oza: if i want to sale one product to Delhi customer but, This material supplier is in china & our customer will pickup this shipment from china & ship to Europe. in this case shipment is not arrived in India. Question : how we do payment our supplier from India

ramesh: One of our customer (merchant exporter)have not issued form H as the goods bought by them are not exported due to problems with their overseas customers. Goods will be exported soon and there will be delay in issuance of H form by them. Please advise - is there any violation??

Nurain Anina: What is the procedure to purchasing the insurance in export ?

piyush Dhaduk : I am Piyush from Pune, currently working as an engineer in automobile sector. I am interested in starting a business related to Brass Parts. For that i need to issue IE Code. Here the question is what to select when you issue IE Code online, here are some options like Merchant Exporter, Manufacturer Exporter, Service Provider, Merchant cum Manufacturer Exporter, Merchant cum Service Provider Exporter, Manufacturer cum Service Provider Exporter & Merchant cum Manufacturer cum Service Provider. Now currently if i want to just start as Merchant Exporter, is it okay to select an option as Merchant cum Manufacturer cum Service Provider?? Do i need to produce documents related to Manufacturing ?? or does it affect in future if i wont be able to start Manufacturing facility.

Dhaval Hirapara: I am planing to start business office of Merchant export & Import cum consultant of import & export in short time.

SURENDERS subramanian : i am surender from bangalore. i am very much intrested to do export business..can u pls support me. how we can select product & how we can select buyer. can u pls guide me sir.

Manoj Chandak : Is it possible to sell the goods another party that is still at the Destination Port at a discounted rate given that all the Original Documents are in the name of the Original Importer who intentionally rejects the goods? How can the papers be taken care, how can the third party even move the Goods from the port?

Munim Laskar: I've a brand "New Diamond Tailor" & i won't to sale my Product, the Product is Men's Apparels.

Rajesh Gore : If after having availed Advance License, is it imperative to give details of Inputs gone in the products exported? 2) Similar details are to be incorporated on shipping bill legally?3) How to meet similar requirement in case of Local Export

samudra frozen foods: As per R B I rules in third party export we need to lodge the documents in EDPMS with third party IEC registration number then only system will show third party name but the actual remittance still will show as pending In the shipper /Exporter s account kindly advise us how the bank can close the transaction

vivek chaudhari: As per R B I rules in third party export we need to lodge the documents in EDPMS with third party IEC registration number then only system will show third party name but the actual remittance still will show as pending In the shipper /Exporter s account kindly advise us how the bank can close the transaction

RANJIT: Sir advise LC applicant name is xyx and consignee to order is bank and notify party is abc and file the Bill of entry in name of ABC import payment done through xyz but system not accept the bill of entry in favor of xyz then what is procedure for submitting bill of entry in EDPMS

UNNIKRISHNAN THUMBIKATT: I am getting n order from UK .Item to be supplied to UK is manufactured by Chinese manufacturer.I will be paying the chinese manufacturer and a freight forwarder will handle the shipment. What are the documentation requirements in this TRIPARTITE 3 COUNTRY EXERCISE..

Aditya : Hi I'm manufacturer of essential oils and wants to export our products but there is facing problems like export documents and as well as ISO certificate and organic certificate as Halal certificate, kosher certificat but I'm not able to take these certificat so can you help me

lokandra: Need your expert opinion!! With reference to your blog at https://howtoexportimport.com can you please suggest my business model I just started. I am facing issues in receiving payments in Forex in third party export. For better clarity, I have explained my business model as below: Business Module:- 1. Buying Agency -Trading under substitution invoice (90% of the biz is under this module) To elaborate the working/transaction process in each module, kindly note below points:- BUYING AGENCY:- a/ order placed by European customer(A) to Shri Sourcing(B) and Shri Sourcing place the order to Indian Manufacturer(C). b/ C is taking all export benefits and bill of lading is at their name. B gives substitute invoice to the freight forwarder to send it alongwith goods to party A. c/ Upon receipt of goods party A makes payment to B. d/ party A doesn’t want to make the payment under collection of documents and makes the payment as soon as they get the goods. e/ party C submit documents with shipping bill to their bank and their bank submit docs to party B bank for payment purpose. f/ thereafter party B makes payment to C in forex. g/ Contract between party A & B is 30% advance and balance 70% at the time of shipment dispatch, which is a challenge with my current bank as they don’t allow to take advance under buying agency or substitution invoice case. In case 30% advance is not workable, then 100% payment can be made at the time of shipment. Can you please suggest how can i get opened my trade bank account so that I dont get any issue in receiving payments in Forex from my buyers and payment in Forex to my manufacturer.I seek your help and support in my start up.

parvaiz: I am not an exporter or importer .but I have got a consignment of disposable face mask to Moscow from a local entrepreneur I have already talked to the manufacturer in the India but I need to know about that how can I export the consignment to the Russia from Delhi airport what will be the charges and what are the documents needed for the process can you please give me some contact of any exporter to whom I can consult regarding my deal

sachin: Kindly guide us for Export of Third party by mechant exporter. And RBI instruction and FEMA regulations for third party export by merchant exporter for Foreign Exchange Remittance.

abu: I have some queries related import export system ,I am very interested in this business I have good contacts overseas although I have never done any deal related import export ,I read about the registration for IEC ,i have to send raw material from India to Iran ,I don't have my address and name of the business but those in Iran my friends they want me to b a part of their company ,can i mention and put their business titles for getting myself registered although I have my own pan card , Sir it wd b ur most kindness if u help me out with any information

Rahit : Are there third party exporters for tea from Kolkata via which we can export to different countries

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers