CAN EXPORTER AND IMPORTER B THE SAME PERSON?

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asrafrana
Posts: 2
Joined: Tue Jul 10, 2012 10:10 am
First Name: Asraful
Last Name: Haque
Organization: Uttara Bank Limited
Filter: Two Plus Two =: 4
Location: Bangladesh

CAN EXPORTER AND IMPORTER B THE SAME PERSON?

Post by asrafrana »

CAN EXPORTER AND IMPORTER B THE SAME PERSON IN INTERNATIONAL TRADE? EXPORTER FROM INDIA IN A NAME AND IMPORTER IN MALAYSIA IN ANOTHER NAME. MALAYSIAN IMPORTER COLLECTS ORDER FROM DIFFERENT COUNTRIES OF THE WORLD AND SEND LC TO INDIA. INDIAN EXPORTER EXPORTS DIRECTLY TO THE ULTIMATE BUYER. THE BUYER SENDS PAYMENT TO MALAYSIA AND THEN FINALLY FUND SEND TO INDIA OR ULTIMATE BUYER SENDS THE FUND TO INDIA DIRECTLY.

WHAT ARE THE RISKS?? WHAT TO AVOID?? IS THE PROCEDURE LEGAL???
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picant
Posts: 1962
Joined: Wed Aug 20, 2008 1:49 pm

Re: CAN EXPORTER AND IMPORTER B THE SAME PERSON?

Post by picant »

Hi Pal,

with true problems due to AML, KYC etc, it is very hard to conduct such transactions, However in the past it could be possible to compensate debit and credit or to indicate in its own invoice to remit proceeds to a different company.
Checking the local law is necessary before starting to operate in this scenario,
Other comments appreciated
Ciao
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