Third party invoicing |
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Third party invoicing refers to a situation where the commercial invoice is issued by a party other than the party which manufactured the goods or a party from which premises the good has been shipped. This third party can be an entity related to the exporter or an unrelated party. The third party can be located in the FTA territory or outside.
Third party invoicing provisions in FTAs can either allow or prohibit such invoicing by third parties. If third party invoicing is not explicitly allowed or prohibited under a trade agreement, it is up to the customs authorities according to the national legislation to determine how such instances are treated.
Example:
A good is shipped directly from a supplier in FTA country A to the final client in FTA country B. However, the ownership of the goods passes from the supplier in country A to a third party company in non-FTA country C which then sells it to a final client in FTA country B. While the goods together with the certificate of origin are shipped directly from the FTA country A, the commercial documentation provided at the time of export lists as a supplier a third party entity located in a non-FTA country.
See also direct shipment.
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