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Triangular shipment


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Triangular shipment Similar Articles

Posted on 30 April 2018 Category : Import (/Import/default.aspx)

Documentation for triangular

shipment (/Documentation-for-
The information provided here is part of Online export import training guide
Bill of Lading procedures in
triangular shipment What is switch
Bill of Lading? (/Bill-of-Lading-
Triangular Shipment – An introduction. W-105.aspx)

Procedures and documentation on

Triangular shipments
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 on-Triangular-shipmen-208.aspx)
are accounted in Triangular business?
Pre-Shipment Finance and Post-
There are different dimensions in the term ‘triangular shipment’. Here I am explaining about one of them. shipment finance (/Pre-Shipment-

Let me explain Triangular Shipment with an example to make you easily understand. (/UserFiles How to protect parties each other
/Windows-Live-Writer/Triangular-shipment_A9C3 in triangular exports (/How-to-
/Triangular%20Shipment%20(2)_2.jpg) triangular-ex-209.aspx)

Payment procedures in Triangular

exports (/Payment-procedures-in-
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 Switching documents in triangular
Exports and imports (/Switching-
order from final buyer has been obtained by ABC from China and he procures goods from you in India. You documents-in-triangular-Exports-
will be shipping goods to the port of XYZ at New York. This is one of the examples of ‘triangular shipment’. and-impo-211.aspx)

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.

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Triangular shipment

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 (/Documentation-for-triangular-shipment-104.aspx) Bill of Lading procedures in
triangular shipment What is switch Bill of Lading? (/Bill-of-Lading-procedures-in-
triangular-shipment-W-105.aspx) Procedures and documentation on Triangular shipments
How to protect parties each other in triangular exports (/How-to-protect-parties-each-other-
in-triangular-ex-209.aspx) Payment procedures in Triangular exports (/Payment-
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Ductile Iron Pipes originating in or
Do you wish to write more information about Triangular Shipment under international business? Share your
exported from China (/Anti-dumping-
experience about Triangular Shipment. duty-on-the-imports-of-Ductile-Iron-

Customs provisional Assessment

Have you satisfied with this article about Triangular Shipment? Comment below your thoughts and Regulations, 2018 (/Customs-
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2018 dt 9th October, 2018 under GST

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Hari nair: On 21 January 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: On 18 November 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: On 18 June 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: On 02 July 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: On 16 July 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 : On 15 October 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: On 29 October 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 : On 20 April 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: On 10 August 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.

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Rahul: On 10 August 2016


SD EXPORTS IMPORTS : On 08 April 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: On 13 July 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: On 28 August 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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