inward remittence

[GANESH IYER]

Dear Sir,

we have one customer who wants us to set up 3PL services in DUBAI for them wherein we will export the consignment to dubai and warehouse the same in Dubai for keeping the ready stock.. By marketing in Dubai the goods will be sold to the customers in GCC countries..

the question is

while filing the shipping bill we will be filing the Invoice to the 3PL service provider in Dubai and the Value will be at X price.But then the selling happens from Dubai to the ultimate customer there will be profit made in that transaction..

how the Money earned from Dubai to the ultimate customer will be transferred to India??as the SDF form while filing the Shipping bill will not match as we will not know the ultimate selling price at the time of export from India..

can anyone explain the RBI guidelines or circular in this regard or the procedure to be followed..

[YAGAY andSUN]

Vide Circular No. 15/2015-Customs dated 18-05-2015 read with Notification No. 46/2015-Customs (NT) dtd. 18-05-2015, the CBEC has dispensed with SDF Form and the declaration of foreign exchange remittance under the Foreign Exchange Management Act, 1999 has been made a part of the Shipping Bill. Since, you are setting up a unit in Dubai and exporting certain material therefore remittance can be received directly.

[GANESH IYER]

dear Sir,

Thank you very much..

The shipping bill we are making will have X price and then once we sell the material to other GCC countries then we will make profit that means price X + profit..

My question is can we receive the profit earned in Dubai through a debit note?? will bank ask for any supporting other than D/N like shipping bill ??

AI Summary

SDF dispensation into shipping bill allows direct receipt of proceeds from overseas third-party logistics sales; banks may require documentation. The regulatory reply states that SDF has been dispensed with and the declaration of foreign exchange remittance is incorporated into the Shipping Bill, and that where goods are exported to a Dubai unit remittance of proceeds can be received directly; the question persists whether profit remitted from onward sales can be returned through a debit note alone and what additional supporting documents banks may require.