We intend to open a Merchant export operation in India so that our customers from outside India places the orders to our Indian arm directly and in turn we place those orders to the Indian manufacturers. Please advise the correct way to do this. We don't want to get into the local duty draw back documentation which we would like to give directly to the manufacturer exporter. Also we would like to pay the local manufacturer directly in USD. Also we don't want the manufacturer name reflects in any of the documents to the foreign Buyers.
Merchant export
Shanmugam Nathan
Merchant Exporter Plans India Operations via FTWZ to Ensure Manufacturer Anonymity and Simplify Export Process A merchant exporter is seeking guidance on establishing operations in India to process international orders through Indian manufacturers without involving local duty drawback documentation or revealing the manufacturer's identity to foreign buyers. One response suggests that the merchant exporter can place orders with manufacturers and sell products under their name. Another response recommends using Free Trade and Warehousing Zones (FTWZ) in India, allowing payments in foreign currency, re-labeling goods, and ensuring the manufacturer's anonymity while enabling them to claim export incentives. The FTWZ setup allows flexibility in operations without necessarily establishing an Indian entity. (AI Summary)