Opinion / Suggestion on Sub: Export of Capital Equipment’s such as Machinery , Moulds and other consumables from our India Plants to our DUBAI named as Moldtek Packaging

[Rajavarapu Nageswar Rao]

Sir,

Kind Attn: Sri Viswanath Garu

Sub: Export of Capital Equipment’s such as Machinery , Moulds and other consumables from our India Plants to our DUBAI named as Moldtek Packaging FZE located at –RAK Free Trade Zone (registered as wholly owned subsidiary) for manufacturing purpose – Regarding..

With reference to above subject we intend to manufacture the capital goods such as Moulds, Auxilliary equipment in our Hyderabad plant facilities, India and will be exported to our Dubai (new plant).

We also manufacture certain consumables which are inputs for the plastic containers in our Indian plant and it will be exported regularly to our Dubai plant.

Now our question is as follows:

1. Does the transfer of Moulds with valid document such as Invoice with value , Packing list , Certificate of origin , Bill of Lading , Shipping Bill etc considered as export or not ? As per Govt rules and regulations.
2. The consumable which we intend to export will be considered as exports or not? As per Govt rules and regulations.
3. Is it mandatory such exports to our unit at Dubai should receive remittance for the value of the goods exported from India to consider it as an export?
4. What is the procedure to capitalise the capital goods in the process to show in the books of accounts?
5. Is there any other mandatory laid out the procedures to follow for such exports to take the benefit of export?

Please let us know under which provisions of export – import tariff / manual to be followed.

Look forward your early reply.

Thanks & Regards,

For Mold-Tek Packaging Ltd.,

R Nageswar Rao

AI Summary

Export classification of intercompany transfers: moulds and consumables treated as exports, requiring documentation and remittance compliance.
Transfers of moulds, machinery and consumable inputs from an Indian parent to a wholly owned foreign subsidiary constitute exports when supported by standard export documentation; exporters must obtain invoicewise bank realisation certificates and comply with FEMA remittance timelines to access export incentives and customs drawbacks. Capital goods should be capitalised into the gross block and depreciated; EPCG relief and drawback may be available, while related party transfers require attention to transfer pricing and procedural linkages with DGFT and customs for incentive claims.