Vaibhav Agrawal (MD) (58 Points)
23 February 2012Dear Sir,
We want to warehouse our goods in Rotterdam, and want to sale goods from there. For this we have already appointed a Warehouse. Our problem is that while doing export from India, how would be declare this sale? and how will we receive our incentives like Drawback and VKUY on these sales? Because payment will receive in parts from different customers.
best regards,
VAIBHAV
Sajjad Ansari
(MBA)
(28 Points)
Replied 12 November 2012
Very nice question,
Dear Expert ; help us for same
Rama Krishnan
(MBA)
(571 Points)
Replied 15 November 2012
THE CURRENT EXIM POLICY IS SILENT ON SUCH TRANSACTIONS, YOU CAN WORK ON BELOW SOLUTIONS........ I WILL ALSO CHECK OTHER POSSIBILITES AND GET BACK
GET YOUR COMPANY REGISTERED IN ROTTERDUM, EXPORT THE GOODS TO THIS COMPANY AND CLAIM EXPORT INCENTIVES, THIS COMPANY CAN WAREHOUSE THE GOODS AND SELL AND REALISE PAYMENTS FROM BUYERS.
FOR THIS YOU NEED TO TAKE A PERMISSION FROM RBI, EXPORT REALISATION IN SUCH CASES ARE ALSO RELAXED UNDER FOREIN EXCHANGE CONTROL MANUAL, WHICH IS 15 MONTHS, WHEREAS IN NORMAL EXPORTS IT IS 6 MONTHS. RELEVENT SECTION OF FEMA ENCLOSED..
Time limit for Realisation of Export Proceeds
6A.7 In terms of Rule 8 of the Foreign Exchange Regulation Rules, 1974, as amended, the amount representing the full export value of goods exported must be realised by an exporter on the due date for payment or within six months from the date of shipment, whichever is earlier. In respect of exports made to Indian-owned Warehouses abroad established with the permission of the Reserve Bank, a maximum period of 15 months is allowed for realisation of export proceeds. As regards consignment exports to CIS countries and East European countries, see Note C under paragraph 6C.8(ii).
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