1. BBB is a commodity trader based in Singapore, with various affiliates in China. 2. BBB would organize round tripping transactions on the strength of a scanned PDF copy of a B/L of a cargo that they had sold to CCC on FOB basis. 3. While the physical cargo sold by BBB to CCC is in transit from the load port to the discharge port, BBB would arrange for various third-party traders, together with BBB and its affiliates to take up position as buyer / seller in the round tripping transactions. Most of the participants would feature at least twice in the chain of the round tripping transactions. 4. Each leg of these round tripping transactions has its own unique price and payment terms, to correspond to the monies borrowed between the relevant participants and the period within which such borrowed monies are to be paid. 5. Where a participant requires bank financing, the necessary transaction documents (voyage instructions, vessel nomination, certificate of origin of cargo, cargo inspection reports, LOI to discharge cargo without original B/Ls, etc.) will be generated based on the documents in the transaction between BBB and CCC. 6. For participants who do not use bank financing, they can choose to pay one another in cash/remittance or make arrangements for assignment of account receivables arising from the round tripping transactions to set off the account payable, resulting in the balance payable between the relevant participants. QUESTIONS A. Discuss what steps would you advise a potential party or a Lender to take so as avoid being lured to become a party in the round tripping transactions or to finance a transaction in the round tripping transactions. B. The financial statements of BBB record very substantial revenue and profits, arising from the round tripping transactions, thereby giving the impression that BBB is financially strong. Discuss what steps would you