How to export from an overseas manufacturer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2013 Hello,
We have an export opportunity of electronic goods to a foreign country. But our manufacturer is in China. We want our customer to raise a PO to us and we want to ship the good directly from China to the customer destination. We pay the manufacturer and the importer [our customer] pays us.

We are looking for some advice on how to set up this transaction.
- Is the process described above correct or do we need to be aware of some compliance issues?
- Is this considered as an export transaction?
- Do we need to be aware any export rules and compliance executing this trade?
- Any other tips/suggestions for making this transaction legal and compliant would be much appreciated.

Thanks.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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31 July 2013 must read:

https://www.eximguru.com/exim/guides/how-to-export/default.aspx

https://www.caclubindia.com/share_files/export-import-procedures-in-custom-in-india--41725.asp

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2013 Dear Mr. Ramesh Verma,
Thank you for a response. We appreciate it.

We have visited these links.
This export scenario is more of a financial transaction than physical exports. We are adding value to the chain through our relationship with the manufacturers in China that our export customers leverage.

The question was pertaining to if we get any export incentives since we earn foreign currency while we pay the manufacturer in INR.

For example, when we want to import for Indian market, can we offset any import duties against the exports we have facilitated?

Some experts, that we have talked to, have an opinion that since no physical goods is passing through India, you may not get any export credit.

Thanks.

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