Cross Trades/Triangle/3rd Country Shipments
Fab Logistics keeping abreast of the increasing trend for the trade between 3 countries promises to do smooth handling of the trade service between 3 countries in need of prompt business handling through this company-possessed network of partners located at each country of the world to make it possible to do handling of the complicated documents and transport process more conveniently.
Trade between 3 countries?
Its the form of trade, in which a trader from the 3rd country intervenes in transactions in trade between an exporting country and importing country in order to achieve transportation, and it is widely used in toll processing
As B/L mostly used in triple trade, there is a Switch B/L, in which an entrepot trader is changed into an exporter at a third place by collecting B/L issued by a shipping company or a forwarder at a place of shipment or handling it as a surrender on request of an entrepot trader in order for an importer to exclude an entrepot trader to prevent the transactions with an actual supplier. In other words, this B/L is aimed at hiding an actual supplier, and an entrepot trader comes to request it of a forwarder or a shipping company.
Strengths of Triangular Trade
Its possible to adjust the invoice value through the protection of an actual supplier and importers information leak.
Increase in trade smoothness through overseas relocation of domestic factories
Procedures for Triangular Trade
- A domestic shippers request for shipping of our company
- This company directs shipping after providing seller information (provision of documents for an importer use) to an exporting countries agent.
- An exporting countries agent checks preparations for cargo transport and does Pick-up/ Issuance of the first B/L.
- A seller transfers the shipping documents to an exporting country’s agent, and product unstoring
- An exporting country’s agent gives PLE—ALERT to this company, and collect the first B/L.
- This company notifies a domestic shipper of shipment information (Issuance of switch B/L).
- This company provides shipping documents to an importing countries agent(Provision of P.O.D).
- An importing countries agent gives a notice on arrival to a buyer and issues D/O
- A buyer suggests the switch B/L to an importing countries agent.
- An importing countries agent provides P.O.D to this company.