Exports from 3rd Party Factories overseas - changing invoices en route.

Question posted by Tom Strickland, on behalf of Hide Stationery Ltd in SW1P

I have my goods manufactured in a 3rd-party factory in India. I pay $ prices on Invoice A. The factory then exports my goods directly to my customer, and uses Invoice A to clear customs.

However, my customer pays me £ prices on Invoice B for the goods. I would like my customer to be able to import the goods into his country on Invoice B, and not Invoice A. Is this possible?

Do I simply provide my customer with Invoice B, and do not show them Invoice A?

Thanks for your help!

Posted:
Report inappropriate content

Mike Rundle, on behalf of UKTI South West in Bournemouth.

Tom - can I suggest you contact Business West in Bristol who have an export documentation service that could help resolve your issues ? Tel : 01275 370 723

Posted:
Report inappropriate content

Les Parfitt, on behalf of TMG Advisory P Ltd in TA8 1EZ.

Hi,
I am part of a leading business consultancy company in India which helps UK companies in the Indian market. I am based in the UK and help the UK customer base.
In order to understand your question in more detail I would need to know if the value of both invoices is the same ? If invoice A is lower, then I suspect your supplier may be trying to reduce his export charges by quoting a lower figure.
You can contact me direct on email lparfitt@tmgadvisory.com

Best regards,
Les Parfitt
TMG ( UK Office )

Posted:
Report inappropriate content

Tom Strickland, on behalf of Hide Stationery Ltd in SW1P.

Hi Les,

Thank you for your answer - the invoices are indeed different.

Example

I pay my factory $10 (£6.66) for an item. I pay the prices on Invoice A, and the goods leave India through customs on Invoice A.
This is because any money entering my factory's bank account must be accounted for against the invoice registered with customs.

However, the goods are destined to go to my client, who has paid me in £12.60 ($20) for these goods on Invoice B.

When the goods reach my client at customs, can they import these goods using Invoice B (the prices they actually paid), without the use of/knowledge of the prices on Invoice A?

Thanks for your help

Tom

Posted:
Report inappropriate content

Dear Tom

what happens to the documentation from India .
Does it come to you ?
If necessary you can give a call on 01263 513127
colin ; Crown Freight
or email colin.crown@ntlworld.com

best regards

colin

Posted:
Report inappropriate content

We already help a client in a similar situation,. The exporter in India has to make a Customs declaration and they use their invoice A to support this. Is there anyway you would be happy to provide them with Invoice B?

However, while they do not have to send copies of the Invoice forward with the goods, Courier companies usually insist that they do as they want to avoid any delay in Customs clearance at destination. By Freight it is much simpler to intervene in Customs and substitute invoices.

Please get in touch for specific help

Posted:
Report inappropriate content

To respond to this question, please Login or Register

View all