I am middleman, buyer arranges ship, possible to hide end-seller information from buyer?
Post 1 of 9
Hi all,
Good day to all. I have an enquiry and hope someone could kindly advise.
I am buying products from company A in a foreign country. Company A sells FOB basis, which is fine with me. By the way, I am buying bulk commodities cargo.
I am re-selling the products to company B in my country, also on FOB basis. Company B will arrange for shipping.
My question: Exactly what are the procedure for the shipping arrangement? I have figured out it is probably this way:
Step 1: Company B advises me the ship it nominates with all relevant ship details, for example ship name, size, draft, voyage number, ETA loading port, etc. Company B also advises the shipping agent.
Step 2: I will pass on the ship nomination information to company A, which will then prepare its cargo for loading.
Step 3: Commodities loaded on ship completed. Shipping agent/master of ship issues a B/L to company A.
Step 4: Company A passes B/L and other documents (invoice, etc.) to his bank for L/C negotiation.
Step 5: After completion of B/L negotiation, I will receive the B/L from my bank and I can proceed to switch B/L through the the shipping agent. After successfully switching the B/L, I can present the B/L and my other documents (invoice, etc.) to my bank for L/C negotiation with company B's bank. [Let us NOT start discussing why don't we do back-to-back or transferable L/C. We can discuss this on another occasion :-)]
Can someone advise whether my understanding of the steps involved are correct? Thanks!
By the way, IF company B owns the ship that it is nominating, then it controls the ship and its master. So this naturally forces me to follow with another question: In such a situation, does it mean company B can actually instruct the ship master or shipping agent to reveal to it (company B) the company that arranges for the loading of the cargo? If yes, then does it mean I am wasting time and money to switch B/L because company B will know about company A through its master and/or shipping agent?
Thank and regards!
Good day to all. I have an enquiry and hope someone could kindly advise.
I am buying products from company A in a foreign country. Company A sells FOB basis, which is fine with me. By the way, I am buying bulk commodities cargo.
I am re-selling the products to company B in my country, also on FOB basis. Company B will arrange for shipping.
My question: Exactly what are the procedure for the shipping arrangement? I have figured out it is probably this way:
Step 1: Company B advises me the ship it nominates with all relevant ship details, for example ship name, size, draft, voyage number, ETA loading port, etc. Company B also advises the shipping agent.
Step 2: I will pass on the ship nomination information to company A, which will then prepare its cargo for loading.
Step 3: Commodities loaded on ship completed. Shipping agent/master of ship issues a B/L to company A.
Step 4: Company A passes B/L and other documents (invoice, etc.) to his bank for L/C negotiation.
Step 5: After completion of B/L negotiation, I will receive the B/L from my bank and I can proceed to switch B/L through the the shipping agent. After successfully switching the B/L, I can present the B/L and my other documents (invoice, etc.) to my bank for L/C negotiation with company B's bank. [Let us NOT start discussing why don't we do back-to-back or transferable L/C. We can discuss this on another occasion :-)]
Can someone advise whether my understanding of the steps involved are correct? Thanks!
By the way, IF company B owns the ship that it is nominating, then it controls the ship and its master. So this naturally forces me to follow with another question: In such a situation, does it mean company B can actually instruct the ship master or shipping agent to reveal to it (company B) the company that arranges for the loading of the cargo? If yes, then does it mean I am wasting time and money to switch B/L because company B will know about company A through its master and/or shipping agent?
Thank and regards!
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06 Apr 2007 22:47
Post 2 of 9
Replying to [kai1]:Hi Kai, I think the most convenient way to solve this problem is to hire a reliable local agent which is familiar with the shipping document procedure to be the coordinator( let's call it company "C") between the supplier: Company A and the Company B's nominated freight forwarder(Let's call it "D") , when the product is ready to ship, supplier contact company"C", company "C" contacts "D", then neither D will get in touch with your supplier,nor your final buyer.
If the nominated forwarder request " invoice", the company C will submit the document to them according to your S/R to final buyer.
Another question, how do you make payment to your supplier? T/T or L/C and how do you get payment from your final buyer?
Right now, we are provideing this coordinating service to a client in the U.S. He buys product from China and sells to his final buyer in New York based on FOB term. The final buyer arranges shipping, they nominated a freight forwarder in shenzhen to arrange shipping,my client hire us to be his agent to avoid the end-seller info disclosed to the nominated freight forwarder, so whenever there is a new shipment , the supplier book with us,then we book with the nominated freight forwarder, and take care of the document transfer for our client, the nominated freight forwarder never contacts the factory at all.
If the nominated forwarder request " invoice", the company C will submit the document to them according to your S/R to final buyer.
Another question, how do you make payment to your supplier? T/T or L/C and how do you get payment from your final buyer?
Right now, we are provideing this coordinating service to a client in the U.S. He buys product from China and sells to his final buyer in New York based on FOB term. The final buyer arranges shipping, they nominated a freight forwarder in shenzhen to arrange shipping,my client hire us to be his agent to avoid the end-seller info disclosed to the nominated freight forwarder, so whenever there is a new shipment , the supplier book with us,then we book with the nominated freight forwarder, and take care of the document transfer for our client, the nominated freight forwarder never contacts the factory at all.
08 Apr 2007 19:10
Post 3 of 9
Replying to [kai1]:
Hi Warren, thanks for helpful advice!
On your question of payment: I buy on L/C and also sell on L/C.
Regards.
Hi Warren, thanks for helpful advice!
On your question of payment: I buy on L/C and also sell on L/C.
Regards.
08 Apr 2007 20:12
Post 4 of 9
Replying to [kai1]:Hi Kai, noted the payment will be made by L/C, it will be fine. May i know where is the loading port and destination port?
09 Apr 2007 21:00
Post 5 of 9
Replying to [kai1]:
Hi!
As far as L/C basis is in concern I would suggest to follow with endorsed bill(s) of lading inspite of consigned to the definite company.
But here is still another question: whether the shipper onto Bs/L will be Your initial seller and whether You would like the end user to see the name of the seller in export country.
If this doesn't matter to You then I would suggest to follow another way in order to avoid switching of the Bs/L and to save some time.
In any case whether You'll use transferable LC or 'back-to-back' LC there will be three banks involved:
1) Issuing bank
2) Your bank
3) Seller's bank
The most painless is LC to call for Bs/L consigned "to the order of Your bank" or "to the order of the Issuing bank".
So after presentation either Your bank or issuing bank will endorse Bs/L to applicant passing the rights for the goods under B/L to the applicant.
Notify party may be the same as consignee or stating agents at the port of discharge. But in first case You should in time advise applicant, agents of the buyer and vessel at POD reg details of shipment and correct notify details.
Think it's applicable.
Good luck
Hi!
As far as L/C basis is in concern I would suggest to follow with endorsed bill(s) of lading inspite of consigned to the definite company.
But here is still another question: whether the shipper onto Bs/L will be Your initial seller and whether You would like the end user to see the name of the seller in export country.
If this doesn't matter to You then I would suggest to follow another way in order to avoid switching of the Bs/L and to save some time.
In any case whether You'll use transferable LC or 'back-to-back' LC there will be three banks involved:
1) Issuing bank
2) Your bank
3) Seller's bank
The most painless is LC to call for Bs/L consigned "to the order of Your bank" or "to the order of the Issuing bank".
So after presentation either Your bank or issuing bank will endorse Bs/L to applicant passing the rights for the goods under B/L to the applicant.
Notify party may be the same as consignee or stating agents at the port of discharge. But in first case You should in time advise applicant, agents of the buyer and vessel at POD reg details of shipment and correct notify details.
Think it's applicable.
Good luck
15 Apr 2007 04:03
Post 6 of 9
Replying to [kai1]:
Hi,
Normally the Switch BL is a very safe and secured means of avoiding your SUpplier and Buyer knowing each other.
The more important issue will be of the Certificate of Origin?!!! That will bear the name of the manufacturer and hence will be available to you buyer. Even though the BL has been switched, how do you conceal the information leaked through the Certificate of Origin? Even I am trying to figure this out and put in place ASAP to start indenting 3weeks from Now! Do let me know if you clues to this
Thanks!
Hi,
Normally the Switch BL is a very safe and secured means of avoiding your SUpplier and Buyer knowing each other.
The more important issue will be of the Certificate of Origin?!!! That will bear the name of the manufacturer and hence will be available to you buyer. Even though the BL has been switched, how do you conceal the information leaked through the Certificate of Origin? Even I am trying to figure this out and put in place ASAP to start indenting 3weeks from Now! Do let me know if you clues to this
Thanks!
27 Jun 2007 06:42
Post 7 of 9
Replying to [kai1]: Hello, You have a very interesting situation. Please share what happened to this transaction. Thank you.
20 Sep 2007 18:41
Post 8 of 9
Replying to [kai1]: What if PAYMENT is CASH not L/C?
What will be the arrangement of the deal?
What will be the arrangement of the deal?
06 Oct 2007 01:23
Post 9 of 9
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13 Oct 2007 08:45
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