BL Switching and payment settlements/ triangular shipments, Customs - Exim - SEZ

[Nikhil Gupta]

Dear Sir

I would like to know some information regarding procedure under triangular shipment.

I receive order for some goods from a company based in UK, and i source the goods from china, to directly export to UK, and i do BL switch once the shipment is at china port.

I would like to understand how payment system works without bill of exchange being generated in India, as the shipment is going directly from china, and i take advance from uk company and pass on to china company now when final shipment is ready Uk company pays me balance amount and i forward the pending amount to china, so what about bill of exchange ? hwo it is handled or how the payment is settled in bank and rbi ?

regards

Nikhil