Hi Friends
Any body help me to give an answer
If a company in India purchase goods from chine and sells the goods to Russia Direct,
goods never come in India,What is the Export-import procedure & document req.?
Hi friend the transaction is widely known as Merchanting Trade.
Below points needs to be complied strictly.
There are three legs to the said transaction.
Shipment of goods.
Export receipt.
Import payment.
The entire transaction should be completed within 9months.
The cycle start when any of the above leg happens and ends when all legs are completed.
Also if the Import payment if made first you should ensure that the export receipt is received within 4months of import payment. Any breach of above timeline and your bank will report to RBI.
You should submit the shipment documents to your AD Bank along with details regarding both the overseas entity.
When funds are received you must inform the bank that the same is against the Merchant trade same goes with payment also.
One thing to note that the transaction should be reasonably profitable - it is RBI guidelines. You can't make loss.
