Export directly form UK to UAE via Indian company

[Ezudheen P]

One of our foreign Buyer located in UAE want to import a Machinery form United Kingdom through our company

1. Buyer located in UAE want to do the transaction through Letter of Credit

2. We have to buy the item from an Indian subsidiary of an MNC located in United Kingdom

3. We have to pay the amount in to Indian subsidiary in INR

4. The Indian subsidiary then arrange the shipment directly form United Kingdom to UAE

5. Once the shipment reaches in UAE we will get paid in Dollar

Does this transaction is legal/valid in India?

How can we execute this transaction without violating rules and regulations?

AI Summary

Merchandise export compliance: ensure invoice, bill of lading and LC referencing for foreign currency realisation and documentation integrity.
Advised procedure: require the UK supplier's invoice and bill of lading to show the UAE buyer as bill-to, cite the Indian intermediary as account party, and reference the LC and purchase order; after receiving UK shipping documents the Indian intermediary must raise a US dollar invoice in favour of the UAE customer with LC/PO references and submit those documents to its bank for foreign currency realisation. The transaction is treated as merchandise export for documentation but is ineligible for Indian export benefits because goods are not exported from India; consult the bank due to absence of Indian shipping bills or customs documents.