New Issue / query = Export against the INR Purchase Order

[Guest]

Dear Respected,

We are in 100% EOU scheme, We have received an order from Indian Vendor who is located at SEZ. for time factor he is requested us to send the consignment to theire overseas unit. payment will be paid by Indian vendor only. The said Purchase order in INR Currency only. Could you please suggest is there any possibility to send the consignment. is there any issue at Customs at the time of clearance.

EMAIL ID : [email protected]

M.Pentaiah

+91 9553221186

[KASTURI SETHI]

Sh.LAXAI AVANTI JI,

Pl. go through the following:-

1. As per Notification No.50/2008-CE dated 31.12.2008 supplies made to SEZ are at par with physical exports made out of India.

2. CBEC vide Circular No.1001/8/2015-CX.8 dated 28.4.2015 has clarified that since SEZ is deemed to be outside the Customs territory of India, any licit clearances of goods to an SEZ from the DTA will continue to be export and will not be hit by Notification No.6/15-CE & 8/15 both dated 1.3.2015.

3. Go through para no.3 of Circular No. 961/04/2012-CX. 6, dated 26-3-2012.

4.As per FTP, no drawback is admissible if payment is received in Indian currency

 

[MUKUND THAKKAR]

he is requested us to send the consignment to theire overseas unit

payment will be paid by Indian vendor only.

The said Purchase order in INR Currency only. Could you please suggest is there any possibility to send the consignment. is there any issue at Customs at the time of clearance.

In above situation please ask your SEZ customer provding there invoice and packing list for custom purpose and act as merchant exporter. This is my view.

[CSSANJAY MALHOTRA]

Dear Mr. M.Pentaiah,

Best Option would have been payment by overseas entity. Amount in INR can be transferred through Vostro Account by Overseas unit.

Customs will not raise any objection as Goods are to be physically exported, but you would not be entitled to any Export Benefit. Also please go through Master Circular on Export of Goods and Services which specifies various Modes of Payment receipt for knock off of Shipping Bill. Payment can be made by Indian Unit of Overseas Branch but RBI approval and Bank Intimation is must to ensure compliance.

Further you need to enter into Tripartie Agreement as per RBI Master CIrcular on Export of Goods and Services for receiving payment from Third Party to knock off

AI Summary

Exports to SEZ treated as exports; domestic currency payment bars export benefits, require RBI approval for third party payment. Supplies from a domestic EOU to an SEZ unit are treated as exports and not within customs territory; however, payment received in domestic currency disqualifies entitlement to export incentives or drawback. Exporters should secure the SEZ buyer's invoice and packing list, may act as merchant exporter, and must comply with RBI and bank procedures for third party payments, including tripartite agreements per the Master Circular to enable shipping bill knock off.