Export

I understand that  both the companies are in india and sez company is the manufacturer and the parent company is the consignor/exporter and overseas company is the consignee/ buyer. This is a case of third party exports in that case either the sez company or their parent company can file the export documents before customs. It would be ideal if the documents are filed by sez company before the sez customs and the shipment is sent as SEZ CARGO by showing the sez company as manufacturer and parent company as exporter. On the contrary the parent company can also do the customs filing and in that case goods have to be PHYSICALLY removed from the SEZ UNIT . Third party exports  are permitted by RBI  

Thank you so much sir for your prompt response. But I have a further query, as sez co. is a wholly owned subsidiary then such a transaction will be counted as a material related party transaction u/s 188 of the companies act, 2013, and several listing compliances have to be followed and do we have to intimate the BSE as well about the transaction? Further, if we go through the procedure you have mentioned, are there any other acts & provisions apart from FEMA that needs to be taken care of or any other additional documents that needs to be filed.

Kindly provide me the documents, if you can.

Thanx

Please note that the transactions should be at arms length basis and the same can be done on a prospective basis and the compliances under section 188 will also be applicable. Third party exports are mentioned in Foregin Trade Policy and can contact your CHA for further advice as it is a regular business as far as they are concerned