Quoting from [Ranger]:


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

Hi,

I made this type of transaction years ago. I provided libya with canned tuna fish. The products came from Colombia then they were shipped to Rotterdam (to my company under customs in EU). I then rerouted the products through a belgium company located in antwerpen (shipping company) the issued documents for the loading were on my company name. The brand of the canned fish was ours also.

Sincerely

 

 

Quoting from [Simond]:


Replying to [Vocow]:


I just read the whole thread in this Forum.No one except probably one person gave you the right advise.As a HK co I will advise you as follows.


1) You started business this year and are a 1 man co.So it is safe to

assume you are a small co and will not have a LC limit in yr bank

to open Letters of Credit (LC).If you do not have an LC facility then

your bank will ask you 100% cash depoist to open LC to your

supplier.


2) You have not disclosed what is the product and what is the amount

invloved.Some one suggested that you open a tranferable LC in yr

name, which I think is quite right ( but not sure if it is practical if

you do not have LC limit with yr bank)


If I were you I would first consult a Bank and discuss the whole issue

with them and seek their advise rather than listen to 10 different

people on the net and get confused.


2) I also do not see any need to disclose how much commission you make

either to your buyer or seller.You have finalised the deal.What you

need is to do is to put this order on paper for execution.

If you use Transferable LC (talk to bank and get all terms clarified)

then this is how it shd work.


a) Get Yr sales contract signed with Malaysia Buyer

b) Get your Purchase contract with yr UK seller

c) Ask yr Malaysia buyer to open transferable LC to you in HK.

It will state the shipment from UK to Malaysia.

d) UK shipper will send docs to yr bank in HK.

The Bills of Lading will show UK co as Shipper and you as Consignee

Then you will SWITCH the B/L in Hk thru the shipping co. (Make sure

that the shipping co has an office in HK to switch B/L)

This new B/L will show you as shipper and Malaysia buyer as

consignee.

You will be paid yr 10% commission once LC is negotiated.


If you have the Certificate of UK origin it will show the shipper's name in the certificate.You can get a new Certificate of Origin in HK called the Re-export Certificate of Origin which will show that the goods were shipped from UK to Malaysia and are of UK origin.This C.O. can show you as shipper and Malaysia buyer as consignee (this way you will not disclose the sellers name to Buyer)


Pls make sure that all other docs show you as Shipper from HK.

Pls also make sure that when you SWITCH B/L in HK the bank may ask you to give Indemnity...sort this with the bank.


Simon-HK

Yes, this is how the game is played.  You have to get used to handling documents and deal with banks.  NCNDs don't really work in Asia because there are many ways to bypass the middlemen.

 

Sam - Singapore

I am doing a very similar thing in my country. I do not bother myself with L/Cs - both the supplier and the buyer know each other. However I am choosy with my buyers, I only work for people who want products with a high possible margin (mainly industrial stuff) but have no time or knowledge to conduct the whole process themselves. Since I work alone I do not need too many such clients. If they can make 2-300% on the products I organize for them they won't cry when I take my 10%. Anyway it is VERY advisable to make an agent contract for yourself and you client well in advance. If you have a written contact between you and your commissioning client then there is no need to hassle with the L/Cs. An additional tool for you, ask the supplier to send the shipping documents directly to you (B/L and invoice), so you can have the title to the goods with the B/L until your client pays.

Of course this method gives you more responsibility than making a transferable L/C but if you make your homeworks and are honest with both the supplier and the buyer it will work out well.

 

Quoting from [Vocow]:


Replying to [Ranger]:

I'd like to add my "two cents worth" re: above subject.

With the advent of  Internet Technology, it seemed  that

everything has become transparent,( in so far as source of

goods manufactured or traded goods are concerned.

Without a doubt, the "regime of traders" are slowly being eased-out

in our midst and before our very eyes.

Cheers to all!!

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

Quoting from [Vocow]:


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.

The only way to secur your money as a middlean is to open yourself to both buyer and seller and get confirmation from both parties. Written is better if they agree but usually in small bsiness they would not accept any written confirmation. All you can do is to do the best as a middleman. No other options. No way to hide the seller behind you.\

Wane Lee

Quoting from [Vocow]:


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.

, hi, i have learn so many from these replies. thank you for your artile. i am a new hand in business and also new to this forum.

  thank you , all

Quoting from [cyber chap]:


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.

check out my website iam a middle man just  starting this www.freewebs.com/yungone

 

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.

Quoting from [vutuan]:


Replying to [Vocow]:Dear Mr Vocow, I have also same situation like you and lose some customers in middle east. I think the best way you should set up your own trading company and L/C beneficiary is your own company


Vu Tuan - Vietnam

Hi Tuan,

I'm from the US and currently working as the middle man here in Vietnam. I'm very new and inexperience but I have quite a few number of deals. Would glad to get to know you and learn from you. We can work out some deals together if you're interested. please email me at alphasoi@yahoo.com

Await for your email.

Thanks Tuan