What is Switch B/L, what is its purpose, how do Trading Companies make use of it? What are its Legal and Commercial implications?
Regards,
Minil
I have no idea of " High Sea Sales" . i was waiting other kind person to reply this question .
Refer to : Switch B/L . There are 3 parties involved:
Trading company , Real supplier , Buyer
Generally :
Trading company often has worldwide business network , it would be more easier to search out a certain supplier or get a better quoation than common buyer . They usually make profit on the "price difference" between "the buyer " and " the supplier " offered . You can learn that if the " real buyer" establish relationship with " real seller" , the trading company might lost its advantages .
HOW TO RUN :
A.) 1st issuance of the B/L .
shipper will be the " real supplier " and conisgnee will be the trading company or its agent at a nominated place .
Then , the trading company will get the 1st full set of B/L or telex the B/L to shipping company to exchange 2nd B/L from the shipping company .
B.) 2nd issuance of the B/L .
This time , shipper will be the " trading company" and consignee will be " the real buyer"
acoording to above 2 steps issues B/L , " The supplier" or " The buyer " will be isolated .
Hopeful my awkward answer could let your understand .
Thanks, Mr. Peter Zhang for your reply to my above query. I have understood it to some extent, I should say. I have got further few queries out of your answer.
In the B/L obtained by the 1st Shipper what would be the port of loading (of course it would be a place in his home country) and port of discharge? Will it be to the final destination as suggested by the Trader and the O/F being paid by the shipper if its CIF terms. Will the shipment be operating with a Master B/L stating POL (place in Shipper's country) and POD a place in t he country of actual cnee & the Cnee in the MBL being the trader's associate and Two House B/Ls one for the Shipper with trader as Cnee and his POD and one for the actual cnee with POL being a place in Traders country and POD being a place in actual cnee country.
My query in nut shell is will the container directly sail to a place in cnee's country.
Regards,
Minil Xavier
Quoting from [minil]:
What is High Sea Sales, How is it executed?
What is Switch B/L, what is its purpose, how do Trading Companies make use of it? What are its Legal and Commercial implications?
Regards,
Minil
The problematic points you must clear is, telling the forwarder who will pay the shipping, who does customs clearance, and see if it is possible/legal for the party now having the B/L to import these goods.
Since the B/L represents the ownership of the goods, the goods will be theoretically released to the person holding the B/L at the customs.
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Quoting from [minil]:
What is High Sea Sales, How is it executed?
What is Switch B/L, what is its purpose, how do Trading Companies make use of it? What are its Legal and Commercial implications?
Regards,
Minil
Quoting from [minil]:
What is High Sea Sales, How is it executed?
What is Switch B/L, what is its purpose, how do Trading Companies make use of it? What are its Legal and Commercial implications?
Regards,
Minil
Hello there,
The question you ask is fairly easy in practicality.
The switch B/L procedure is no different from the High sea sale, in its execution an in its procedure.
Basically, this type of business is done for some reason,
1. Mostly when a middle man is involved
2. If certain goods, from certain countries can only be shipped to certain ports without problem, such as plastic scraps
3. If the supplier has gotten into trouble with his buyer, and wants to resale the goods before they arrive at the EX-buyers port.
The procedure for both B/L and High Sea Sale is as following;
1. You need to have a 3rd party, which will play the middle game, they are going to be the receipients of the goods in the first go in the original bill and in the original B/L, it can be the middle man, the forwarder etc.
2. As the goods have been shipped on the way, this third party will sale the goods to the original buyer, in which the third party will issue a bill to them and not you. And on basis of that there will be a switch B/L (if the third party is a forwarder then its the easiest way)
Now you can also just issue just a new B/L, which is often done in cases of scrap material, but the departure port will be the original arrival port and not the original departure port, reason being just to hide the tracks.
3. The transaction of the money though will be paid to you through the buyer itself under the name of the thirdparty, so also indirect.
All of this is pretty much done to avoid being tracked, and for some middle man to hide his sources. Most of this kind of business are done on T/T basis, to keep it flexible.
its fairly easy, if you have the right forwarder.
Hope this helps to clearify some problems.
Peace out