TMI BlogExport to Customer's Customer.X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, We have got an Export Order from Switzerland for supply of components . After that the said components would be exported by our Customer to USA. But due to short of time our Customer situated at Switzerland wants to export directly from our place to USA instead of import the said goods at Switzerland then export to USA. In that case our Customer wants to prepare the document ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( Export Invoice , ARE-1 and shipping Bill on the price ) on the price charged by him to USA Customer. But We will get our Export price on the basis of our price. Query is that:- 1) Is it possible to export on the price of our customer which is higher? 2) When we will get less payment then , what will be procedure to close the Export Documents like gap between amount mentioned in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shipping bills and actual amount received. Kindly advise. Regards Pradeep Jain - Reply By Kishan Barai - The Reply = Respected Pradeep Jain, First of all let me tell you, you did not require to send shipping bill / ARE 1 to your customer. Its the documents used for our internal custom purposes. Secondly I would like to know that has Switzerland party revealed the name addres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of USA party ? What is the payment terms used in the trade ? ex. L/C / DP / DA What are the documents required by the importer? Ex. Invoice, PKL, COO, Ins., B/L , etc ? If possible, please elaborate your query..... - Reply By Kishan Barai - The Reply = You are going to receive full invoice value only as you are sending directly to USA customer. USA Customer will make pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment you can provide commission to Switzerland party. I hope this will help - Reply By surya narayana - The Reply = Dear Friend, In the international transactions, export to customer's customer is possible provided 1. You have to mention in your commercial invoice and Shipping Bill as BILL to party name as your customer and Ship to party name as your customer's customer . 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ARE1 commercial invoice and shipiing bill should represent the value of the material accepted by your customer and in no case you have to indicate the price of your customer's customer. 3. The above is because, you are under obligation to receive the Forex to the actual invoice value into india as per RBI Guidelines 4. In the Bill to party party and Ship to party scenerio, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... your customer is expected to raise his invoice on his US customer and not you. Hope it is clear Regards Surya - Reply By Kishan Barai - The Reply = What a great reply Surya Narayana sir. But my question is how the USA party will make payment to Switzerland Party. Rather than doing this it is better if Switzerland Party does switch B/L. He should not revail the name address ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of USA party to Indian Party. Now what will happen if Indian USA comes under one umbrella ? - Reply By surya narayana - The Reply = Dear Kushan ji It is possible in the international trade and I handled many such transactions. Further, the Switzerland customer is the person received the purchase order from the US customer and based on that that the Swiss customer raise the invoice by enclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the shipping docs. Regards Surya - Reply By Kishan Barai - The Reply = Yes sir, your view point is 100% correct you are great. There is no doubt about it. But I was only talking about another Switch B/L idea which is not applicable hear as all parties are exposed to each other. Thanks a lot sir. - Reply By malay pota - The Reply = Dear Mr. Pradeep Actually the transaction will b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e through as under. For example, Mr. A of India receive an export order from Mr. B of Switzerland to export 1000 components @ USD 100 per component. As per the condition of the export order the shipment is to be effected to Mr. C of New Jersey USA as consignee on CIF New Jersey basis. As per the export order all the post shipment documents like commercial invoice, packing list, full set of Bill o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f lading showing name of the consignee as Mr. C New Jersey USA, certificate of origin and other documents as may be asked in the export order will have to be sent to Mr. B to his banker at Switzerland. Here, Mr. B may instruct Mr. A that all post shipment documents except Commercial Invoice and bill of exchange shows buyer or consignee as Mr. C of New Jersey. Mr. A will file shipping bill mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning name of Mr. C as consignee and port of discharge as New Jersey and complete export formalities in India. After shipment Mr. A will send all the post shipment documents to the banker of Mr. B at Switzerland where Mr. B will effect export remittance as per terms to Mr. A and receive export documents. After receiving export documents Mr. B will remove the commercial invoice and bills of exchang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sent by Mr. A of India from the set of export documents and attach Commercial Invoice and Bill of exchange prepared by him as per the terms and conditions and value fixed between Mr. B and Mr. C and send to the banker of Mr. C of New Jersey. In New Jersey Mr. C will make export proceeds to Mr. B as per terms and release the export documents and clear the consignment on arrival. - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kishan Barai - The Reply = Excellent Answer Malay Pota Sir, your view point is same as Surya Narayana Sir you have explained the insight process. Thank you both Malay Pota Sir Surya Narayana Sir. - Export to Customer's Customer. - Query Started By: - Pradeep Jain Dated:- 21-3-2016 Customs - Import - Export - Customs - SEZ - Got 8 Replies - Customs - Discussion Forum - Knowledge Sharing, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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