Examples of Triangulation Trade Transactions

You can specify how triangular trade transactions will be analyzed for the generation of Intrastat report of an individual country.

You can report triangular trade transactions by:

• Invoice- A triangular trade transaction is reported in the Intrastat report based on the issue of an invoice. A record is created based on the invoice and not the physical movement of goods.

• Shipment- A triangular trade transaction is reported in the Intrastat report based on the physical movement of goods. A record is created based on the physical movement of goods and not the invoice.

You can also specify who declares the transaction when the seller is the same country as the shipper and the customer to avoid duplication of records in the Intrastat report.

Examples of the how triangular trade transactions are reported are discussed for these scenarios:

Shipment based triangular trade transactions

Your company based in Italy receives an order from a German company. To fulfill the order, you order goods from your supplier in the France. The goods are delivered from the French company to the German company.

These transactions are created as a result of this triangular trade:

• You send a sales order to your customer in Germany

• You invoice your customer in Germany

• You create a purchase order to your supplier in France

• Your supplier in France sends you an invoice

• France creates a shipment to Germany, fulfilling the sales order

If you have selected Shipment as your triangulation method, then no record is generated for inclusion in the Intrastat report since no physical movement of goods occurred in Italy. However, Germany is required to declare the arrival of goods from France.

Invoice based triangular trade transactions

Considering the example of the triangular trade transaction scenario given above. If you have selected Invoice as your triangulation method, then:

• A sales order or dispatch record is generated from Italy to Germany with this information:

  • Movement Amount: zero (no movement of goods took place between these countries)

  • Movement Quantity: zero (no movement of goods took place between these countries)

  • Extended Value: calculated as the invoice quantity multiplied by invoice price

  • Dispatch Country: Italy

  • Destination Country: Germany

  • Triangulation Country: France

Note: Germany is required to declare the arrival of goods from France.

• A purchase order or arrival record is generated in Italy for France with this information:

  • Movement Amount: calculated as the receipt quantity multiplied by unit price

  • Movement Quantity: zero (no movement of goods took place between these countries

  • Extended Value: is calculated as the receipt quantity multiplied by unit price

  • Dispatch Country: France

  • Destination Country: Germany

Note: Germany is required to declare the arrival of goods from France.