Third Country Export

A third-country export is a sale where the goods go to a buyer in one country while the deal is arranged or invoiced by a party somewhere else, often an Indian trader selling goods made by another manufacturer. The steps are the same as a normal export, but more parties are involved, so the paperwork has to line up exactly.

How a third-country export works, step by step

1. Quotation. The buyer asks for a price, and you quote on the agreed Incoterms (for example EXW, FOB or CIF).
2. Purchase order. The buyer sends a purchase order; you confirm it with a sales order or proforma invoice.
3. Shipping notice (optional). You tell the buyer the dispatch date and quantities in advance.
4. Packing and documents. The goods are packed, the commercial invoice and packing list are prepared, and the shipping bill is filed with Indian Customs.
5. Shipment. The cargo moves by sea, air or courier under a bill of lading or airway bill.
6. Payment. The buyer pays as agreed: in advance, against a letter of credit, or on open account.
7. Import clearance. The buyer clears the goods and pays any import duty and taxes in the destination country.

Why exporters sell to third countries

Selling into more than one market evens out the ups and downs of a single economy, and lets a product keep growing abroad after demand slows at home. For traders, it also means matching buyers with the right manufacturer without the goods ever passing through their own premises.

Documents to have ready

• Commercial invoice and export packing list
• Shipping bill filed with Indian Customs
• Bill of lading (sea) or airway bill (air)
• Certificate of origin, if the buyer or destination needs it
• Insurance certificate
• Export licence or authorisation, where the goods need one

Check these before you ship

Confirm the goods are freely exportable under India's ITC(HS) policy, that the HS code and description are right, and that the names, values and quantities match across every document. Our third-country export services page covers what we check, and the GST on third-party exports guide explains the tax side.