Rbi approval

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This query is : Resolved

S G CHIPLUNKAR (Querist)

08 September 2011 One of our client have furniture business and will be importing chairs specifically made-to-order from China.However, for the production of these chairs the supplier needs made-to-order mould/tooling which will be arranged by the supplier to be delivered to him in Shanghai, for the manufacture of the end product "Chairs" which will be later imported to India. The cost of these mould/tooling USD 98970.00 needs to be remitted to the supplier. The life of these mould/tooling is three years. Thereafter it will be scapped in China and the proceeds will be remitted to India alongwith Certificate to that effect. Since the mould/tooling will not be reaching India, there will be no Bill of Entry for the same. Whether RBI prior approval is required and under which category this transaction comes under?
Please guide

Thanking you,

S.G.Chiplunkar

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

09 September 2011 AS PER PARA 2.(III) AN EXPORTER / IMPORTER IS EXEMPT FROM IEC CODE IF THEY ARE DOING BUSINESS NOT FOR PERSONAL USE.

IN VIEW OF ABOVE , YOU CAN NOW SAVE FROM THE CONCERNED FEMA ACT.

REGARDS,

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