22 March 2021
We are importing material from China as follow: Order is placed by us to Hongkong Dealer. The Hongkong dealer places order with China Dealer. The China dealer directly sends good to India from China. However in the above scenario, the Invoice on India is raised by Hongkong but the Certificate of origin has the name of China Dealer in 'Box 1-Consigner name' as the same is the manufacturing party and 'box 2 - Consignee name' has India's name. However the FTA benefit is being rejected by the custom authority on the ground that: 1. Box 1 - Consigner name should be same as the exporter name on the Invoice. However in our case the invoice is raised by Hongkong. But manufacturer is of China, Thus this arrangement of Third party trade is not accepted by custom 2. box 2- Consignee name should have 'to order' in case of Third party transaction. However as the same is not madatory the COO has Indian Company Name mentioned. Thus in Third party trade scenario what should be the name specified in Box 1 and Box 2 which will be acceptable at customs?
06 July 2024
In third-party trade scenarios like the one you described, where the order is placed by you (in India) with a Hong Kong dealer who then places the order with a China dealer, and the goods are directly sent from China to India, the Certificate of Origin (COO) documentation needs to be carefully aligned with customs requirements to ensure eligibility for FTA benefits. Here’s how the information should typically be filled out in Box 1 (Consigner name) and Box 2 (Consignee name) of the COO:
1. **Box 1 - Consigner Name**: - This should ideally reflect the name of the entity that physically exports the goods from the exporting country (China, in this case). Since the goods are directly sent from China, the consigner name should be the name of the China dealer or manufacturer who physically shipped the goods. - In your case, if the goods are directly shipped from China by the China dealer, their name should be mentioned in Box 1.
2. **Box 2 - Consignee Name**: - This should reflect the name of the entity in India to whom the goods are consigned. In third-party trade, it’s acceptable for Box 2 to show the actual consignee's name (your company in India). - However, if required by customs or for certain FTAs, Box 2 can also show "To Order" or "To the Order of [Your Company Name]" to indicate that the goods are consigned to your order. This ensures flexibility in transferring the goods to another party if needed.
### Recommended Approach: - **Box 1 (Consigner Name)**: Use the name of the China dealer or manufacturer who physically exported the goods from China. - **Box 2 (Consignee Name)**: Use your company's name in India (the actual consignee) or optionally use "To Order" if required for specific FTA requirements.
### Additional Considerations: - **Customs Requirements**: Ensure that you comply with the specific customs requirements of the importing country (India in your case) and any specific FTA provisions that might apply. - **Documentation Accuracy**: Make sure all documentation, including invoices and COOs, accurately reflect the flow of goods and comply with customs and FTA requirements to avoid any delays or rejections.
By aligning Box 1 with the China dealer/manufacturer who shipped the goods and appropriately documenting Box 2 with your company's name or "To Order" as necessary, you should be able to meet customs requirements and potentially qualify for FTA benefits based on the specific FTA's rules and regulations.
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