By Cadys Wang    Photo：CANVA

In the previous article, Exploring the Role of International Logistics Companies in Triangular Trade , this time we will illustrate the operation process and necessary documents in triangular trade with a practical example.

For example, a trading company in Hong Kong purchases goods produced by a Taiwanese supplier and sells these goods to Chicago, USA. This type of trade is triangular trade, and the logistics company needs to produce and handle various documents to ensure that the goods can be successfully exported from Taiwan to Chicago, USA, and use a third-party bill of lading to avoid the risk of direct contact between exporters and importers.

Here are the detailed steps of the entire process, including the production of cargo receipts.

Document Operations and Process

1. Taiwanese Supplier Prepares Documents
   • Commercial Invoice: Issued by the Taiwanese supplier, showing the details of the goods, price, quantity, etc., for the Taiwanese logistics company to use for export declaration.
   • Packing List: Detailed list of the quantity and description of the goods in each package.
   • Export Declaration Form: The Taiwanese supplier declares goods for export to Taiwanese customs.
2. Cargo Receipt
   • Logistics Company Produces: The logistics company issues a cargo receipt to the Taiwanese supplier after receiving the SO/goods from the Taiwanese supplier as proof that the goods have been delivered to the logistics company.
   • Content: The cargo receipt will contain information such as the consignor (Taiwanese supplier), consignee (Hong Kong trader), number of goods, packaging, type, and marks.
3. Bill of Lading Production
   • First Layer B/L:
     • Shipper: Taiwanese supplier
     • Consignee: Hong Kong Trade Company
   • Second Layer B/L:
     • Shipper: Hong Kong Trade Company
     • Consignee: Chicago recipient
     • Goods Information: Contains information such as the name of the shipper - Hong Kong Trade Company, address, number of goods, packaging, type, and marks.
4. Export from Taiwan to the USA
   • Transportation Arrangement: The logistics company is responsible for arranging transportation from Taiwan to Chicago, USA, including sea or air transportation to end-to-end delivery.
   • Use the second layer B/L for transportation to ensure the importer holds the correct bill of lading for handling the delivery procedure.
5. Customs Clearance in the USA
   • Customs Clearance Documents:
     • Commercial Invoice: This shows that the Chicago recipient is the final destination.
     • Packing List: Detailed list of the information of the goods in each package.
     • Second Layer B/L: Shows that the Hong Kong trader is the shipper and the Chicago recipient is the consignee.
     • Import Declaration Form: The US recipient or its agent declares import to US customs.
     • Certificate of Origin, COO (if needed): Shows the origin of the goods.
6. Recipient in Chicago, USA
   • Customs Clearance and Delivery: After the customs clearance procedures are completed, the logistics company arranges the final delivery to the recipient in Chicago, USA.

Process

1. Export by Taiwanese Supplier
   • Commercial Invoice, Packing List, Export Declaration Form, Cargo Receipt, First Layer B/L
   • The logistics company arranges transportation to Chicago, USA
2. Bill of Lading Production and Exchange
   • First Layer B/L: Taiwanese supplier as the shipper, Hong Kong trader as the consignee
   • Second Layer B/L: Hong Kong trader as the shipper, Chicago recipient as the consignee
3. Import by Chicago Recipient, USA
   • Commercial Invoice, Packing List, Second Layer B/L, Import Declaration Form, Certificate of Origin (if needed)
   • The logistics company assists in customs clearance and final delivery

By such operation, the logistics company can ensure the smooth transport and delivery of goods from Taiwan to Chicago, USA, without going through Hong Kong, while protecting the interests of the middleman and avoiding direct contact risks.

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