General

Cross Trade

Illustration for Cross Trade, General

A shipment where seller and buyer are in different countries and cargo moves directly between two other countries without passing through the forwarder home country.

In depth

Cross-trade (triangular trade) moves goods directly between two countries while the seller and buyer are in a third. The forwarder may issue documents showing neutral shipper/consignee to protect commercial confidentiality. Tax and customs treatment needs careful structuring.

Key points

  • Cargo does not transit the trader’s home country
  • Documentation may use switch B/Ls to hide supplier identity
  • VAT/GST and sanctions screening apply to all parties and routes
  • Requires experienced forwarder and legal/tax advice

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Cross Trade: Freight Glossary | CargoLinked | CargoLinked