BL Switching and payment settlements/ triangular shipments

[Nikhil Gupta]

Dear Sir

I would like to know some information regarding procedure under triangular shipment.

I receive order for some goods from a company based in UK, and i source the goods from china, to directly export to UK, and i do BL switch once the shipment is at china port.

I would like to understand how payment system works without bill of exchange being generated in India, as the shipment is going directly from china, and i take advance from uk company and pass on to china company now when final shipment is ready Uk company pays me balance amount and i forward the pending amount to china, so what about bill of exchange ? hwo it is handled or how the payment is settled in bank and rbi ?

regards

Nikhil

AI Summary

Guidance Sought on Payments and Documentation in Triangular Shipment: UK to China to UK via India A participant in a discussion forum seeks guidance on handling payments and documentation in a triangular shipment scenario. The individual, based in India, receives orders from a UK company and sources goods from China, shipping directly to the UK. They perform a Bill of Lading (BL) switch at the Chinese port. The query focuses on managing payments without generating a bill of exchange in India, as the shipment bypasses India. The process involves receiving an advance payment from the UK, forwarding it to China, and settling the remaining balance upon shipment completion, raising questions about banking and RBI procedures.