Merchant trade

[Arihant Sethi]

Hello,

Sir we are selling our products through ebay globally. when we receive order, products are directly shipped from china to different countries. order value lies from 5$ to 30$.

We receive payments in different currencies for different transactions to our Paypal account, which is then converted to INR and received in our accounts.

How we can remit our supplier in china who is shipping the items.

Please share the procedure so that all requirements can be meet for banks to make the payment and for accounting purposes also.

Regards

[DR.MARIAPPAN GOVINDARAJAN]

You may consult the expert in the relevant field.

[Arihant Sethi]

We have consulted many CA for the same but no one is sure for this.

Thus requesting you to if you can help us in guiding for the same.

Regards

[Kishan Barai]

When you ship the items from CHINA, it would be termed as re-export.

No harm in receiving money via Paypal from buyer, same way you can provide the amount to your supplier in China via Paypal or https://www.payoneer.com/in/ or doing bank TT.

There are basically 2 ways for re-exports.

1. People import the goods into India, keep it in the custom bonded warehouse filing bill of entry for warehousing & does re-exports via filing shipping bill again.

2. Switch BL, people directly ship from China & does Switch BL

AI Summary

Re-export procedures: electronic receipts via PayPal acceptable and suppliers may be paid by PayPal, Payoneer or bank transfer. Sellers using direct shipment from foreign suppliers may receive buyer payments via PayPal and may remit suppliers via PayPal, Payoneer, or bank telegraphic transfer, subject to bank procedures. Customs options are: import into a customs bonded warehouse and re export by filing a shipping bill, or direct shipment with a switch bill of lading to effect onward carriage without domestic importation.