30 June 2016
Our Company is manufacturer exporter and operates as a 100% EOU. Most of its products are customised to the customer requirements and are primarily being sold in the markets of US and Europe.
Company being faraway from its market, its shipping and production time is quite high and this affects our turnaround time for the new customers. Based on a strategic decision, company wants to stock some of its standard fast moving products in USA in a warehouse and shorten the cycle time to convert new customers. This will also allow to target few more market areas in US.
Approval from the bankers to operate a warehouse is in place and is in compliance with FEMA rules.
Would like to know:
Goods will physically move from factory in India to warehouse in the US. company shall have a separate agency to look after the warehousing and further movement of goods. The customer is not known during movement of goods from India to US. The goods will be stored in US warehouse for 2-3 months and will be sold from there to end customer who will pay to our company.
Should movement of goods from factory in India to warehouse in US be through an export invoice or any other document is required as per the customs?
Can our company raise another invoice from India for movement of second leg, i.e., from warehouse in US to customer in US as technically our company is owner of goods while goods are in US warehouse?
If the goods have to move from India to US on an export invoice, there would not be one to one matching of receipts to the export invoice, as the amounts will be received from customers for subsequent movement of goods to customers. In such case there will be difficulty on getting the e-BRC from bank and we may not get Service Tax and Vat refunds from department where this e-BRC is a requirement. What could be done to in this case so that our company does not lose these benefits as an EOU?
CAclubindia
