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Export Sales - Info. req. urgently please help

Sonu Kakde (CA Student & Working) (42 Points)

01 June 2010

Dear All,

I Need a urgent and important clarification regarding Export Sales, i hope to get your kind reference.

1. Can we Procure material from one county and ask them to directly despatch to our customer who is in other country without the goods entering into India i.e., our territory . But billing and consideration will be done/received here in India.

2. and if the above transaction is valid. then what is the implication on CUSTOMS and VAT.

3. Will there be any more formalities to keep in mind, while transacting or while movement of goods.

4. How to (or can we ) issue the certificate or origin when the goods are not entering our country.

I hope to get the replies at the earliest

Thanks & Regards,

Sonu Kakde

sonukakde1 @ gmail.com

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2 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 03 June 2010

DEAR KAKDE,

1. Can we Procure material from one county and ask them to directly dispatch to our customer who is in other country without the goods entering into India i.e., our territory. But billing and consideration will be done/received here in India.

WE CAN PROCURE MATERRIAL EXCEPT IRAQ, & IRAN & NOT ASK THEM DIRECTLY DISPATCH TO OUR CUSTOMER SITUATED AT ANY COUNTRY WITHOUT GOODS ENTERING IN INDIA.

FOR IMPORT TRANSFER ONLY NOT SELL THIS GOODS TO DIRECT AND RBI AND DGFT CONSENT IS MANDATORY.

AS PER HAND BOOK OF PROCEDURES VOL-1(2009-2014) PARA 2.26.2 IN CASES WHERE EXPORTER DIRECTLY NEGOTIATES DOCUMENTS (NOT THROUGH AUTHORISED DEALER ) WITH PERMISION OF RBI, HE IS REQUIRE TO SUBMIT DOCUMENTS FOR AVAILING BENEFIT UNDER EXPORT PROMOTION SCHEMES.

2. and if the above transaction is valid. then what is the implication on CUSTOMS and VAT. 3 & 4

TRANSCATION IS NOT VALID, HOWEVER YOU CAN TRANSFER BY SALE OR OTHERWISE IMPORTABLE FREELY GOODS WHICH ARE. TRANSFER OF IMPORTED GOODS which are subject to ACTUAL USER CONDITION AND HAVE BECOME SURPLUS TO NEEDS OF ACTUAL USER , SHALL BE MADE ONLY WITH PRIOR PERMISSION OF CONCERNED REGIONAL AUTHORITY AS PER PARA NO.2.43 OF HBP-2009-2014

AND ALSO FURNISH THE SUPPORTING DOCUMENTS WITH REQUEST T FOR GRANT OF PERMISSION FOR TRANSFER TO R.A.:-

(A) REASON FOR TRANSFER OF IMPORTED MATRRIAL

(B) NAME, ADDRESS, IEC NO. AND INDUSTRIAL AUTHORISATION, IF ANY OF TRANSFEREE

(C) DESCRIPTION, QUANTITY, COPY OF IMPORT AUTHORISATION AND BILL OF ENTRY RELATING TO IMPORTS MADE.

REGARDS,

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Sonu Kakde (CA Student & Working) (42 Points)
Replied 03 June 2010

Originally posted by : Sonu Kakde
	Thanks a lot Mr. Verma for the Help Dear All, I Need a urgent and important clarification regarding Export Sales, i hope to get your kind reference. 1. Can we Procure material from one county and ask them to directly despatch to our customer who is in other country without the goods entering into India i.e., our territory . But billing and consideration will be done/received here in India. 2. and if the above transaction is valid. then what is the implication on CUSTOMS and VAT. 3. Will there be any more formalities to keep in mind, while transacting or while movement of goods. 4. How to (or can we ) issue the certificate or origin when the goods are not entering our country. I hope to get the replies at the earliest Thanks & Regards, Sonu Kakde sonukakde1 @ gmail.com