Question
We are based in City A and it often happens that customers from other areas like Johannesburg, Durban, Cape Town etc. purchase from us.
Is it permissible to have our suppliers who have warehouses in the abovementioned areas deliver directly to our customers or alternatively to have our customers collect directly from the suppliers warehouse, i.e. both without us having received the physical stock?
The supplier invoices us and we invoice our customer or we first invoice the customer and then receive the supplier’s invoice…
Answer
First, you should purchase the stock from the supplier. This means that the supplier will invoice you for the stock purchased from him. You should then appoint someone in those areas to go to the supplier’s warehouse and take possession of the stock on your behalf. This person will then be considered as your Wakeel/agent to take possession of the goods on your behalf. When he has taken possession of the stock by signing the relevant documentation, the supplier should inform you that the stock has been ceded over to your agent and left for safekeeping at their warehouse. Thereafter, you may conclude a sale with the customer that purchases directly from you.
Once the sale has been concluded between the purchaser and you, the goods may be delivered to the purchaser or he may pick up the goods from the supplier’s warehouse. This is left totally to the customer. By following this procedure your transaction will be concluded in accordance to Shariah, because in terms of Shari’ah, it is imperative that you first take possession of the item purchased from your supplier before selling it to another customer. In the above procedure, you will be considered to have taken possession via your agent (whom you have appointed to take possession on your behalf) after you had enacted the purchase transaction with your supplier.
Checked and Approved By:
Mufti Muhammed Saeed Motara Saheb D.B.