How to ensure your interest as Middle man

Hi all,

I am new to this forum, My main role is sourcing agent for buyer in Malaysia. Our company incorporated this year and it is a one man band.

I have a question and it has been bothering for long time in the way how to successfully run the business.
Here is the Scenario: I have a client in Malaysia look to import.
I found a good supplier in UK for them. UK supplier quote me a price and I mark it up 10% then quote to my client. Client accpet the price and sample and ready to go ahead. Now, I would like to secure my 10% commission, but how do I protect my interest? As if I disclose the supplier to the buyer, they may bypass me and make a deal themselves. Please note my name or company name will not appear in any Docs like sales contract, L/C, B/L, Commercial invoice and etc. It is only between supplier and end buyer. On top of that I would only make a deal with the supplier so that my commission is gurranted.

Can any pros advise me the process and things need to be aware of.

Thanks in advance and welcome open discussion.

Regards
Vocow.

Replying to [Vocow]:

NCND and FPA are the common advises for an intermediary. But transferable L/C is the Mantra for the protection of your interest.

Replying to [cyber chap]:

Thanks heaps Cyber chap.

Can you explain how transferable L/C work for this scenario and the process involved? Dont you still need to sign the NCND and FPA?

Replying to [cyber chap]: Further to the above, my best intention is act as sourcing agent for buyer and reward with commission paid by supplier through purely mark up the price. However, I think that best illustrate my purpose.

your advise is highly apreciated.

Replying to [Vocow]: With a transferable L/C opened in your favor there is no way for buyer to know who the seller is except what country they are in because of the Certificate of Origin.

Ranger

Replying to [Vocow]: Heres a link to an illustration on how the "Triangle Trade" works.

I've answered this so many times myself but the link I found below also illustrates the process for you:

http://www.export911.com/e911/export/triTrade.htm

Ranger

Replying to [Ranger]:

Thanks for your help, Ranger.

I have read the link thoroughly and need to ask you a couple of question.

Understand, transferable L/C would never disclose the details of Manufacturer to Foreign importer. However, Manufacturer will ship the goods directly to the foreign importer. That Create a problem; on the B/L, Consignor of goods and Consignee's full details are both presented which lead the risk that they would bypass first benificiary for the next shipment or make a deal between them next time.

Hope I explained this well, and I apreciate for your reply on the above.

Regards
Vocow

Replying to [Vocow]: Actually thats not true, Since the buyer has opened the Transferable L/C to you, You are the Consignor of the goods not the actual supplier in China. With a transferable L/C you are merely assigning an amount to the supplier from the L/C you have in hand to pay for the cost of goods and freight. The supplier sends negotiation documents to you and you in turn issue new documents with your company's name and details. You must remember however that the total amount of the L/C opened in your favor must be higher than the amount you are transfering to the supplier. This is how you recieve your commission. Your trade bank should be able to walk you thru the whole process. This is done in every country on a daily basis, so as I said a good trade bank should be able to answer your questions. You might even decide that instead of flying the first deal solo, that you have another broker ie. mentor help you thru your first deal so that you have an understanding of the process involved and the paperwork that you personally need to generate.

Ranger

Replying to [Ranger]:

Thankyou for the above advise, Ranger.

I have notice you mentioned about trade bank, is there bank you reconmmend?

Also I want to clear my doubt about the B/L so I could have total control over this. Would the actual shipping document (B/L)have my company name and details as Consignor even though the goods are in another country, anufactured by foreign supplier and shipped by them? If yes, do that take place only upon request and negotiation?

I look forward to receiving from you on the above soon.

Regards
Vocow

Replying to [Ranger]:

Further to our discussion, I found something which might gave indications on my above question.

SHIPPER:
UNLESS OTHERWISE STIPULATED IN THE L/C, B/L MAY INDICATE AS THE SHIPPER OF THE GOODS A PARTY OTHER THAN THE BENEFICIARY OF L/C.

Does that mean I have to ask foreign importer to open the transferable L/C with the above clause stipulated within then allow my company name to be presented in B/L as shipper (Consignor)?

Await for your reply
Vocow

Replying to [Vocow]:In my opinion, you'd better tell the supplier and buyer in advance. For example,"I will receive 10% commission for my handling charge and things like that". Maybe they'll like to do long-termed business with you for your honesty and sincerity. Good Luck Besides, I'm also a newcomer for this forum.