Experts...Need some insights.
Can a Indian manufacturer having high export sales in Latin America open a warehouse in Latin America (in a FTZ (SEZ)) to smoothen the operational activities? Wherin the agreement will be directly between the Buyer and the Manufacturer? Can the buyer pull as per his requirement? Can we have many buyers in such case?
What are the requirements ? Is the RBI Master Circular for exports which mentions the 'the opening of a warehouse abroad' applicable if I open/hire a warehouse in a 'free trade zone' in Latin America?
To open a warehouse abroad, do we need a registered company in that country?
Thanks in advance.
Indian Manufacturers Can Open Warehouses in Latin American FTZs; Follow RBI Master Circular on Exports for Guidance. An Indian manufacturer can open a warehouse in a Free Trade Zone (FTZ) in Latin America to facilitate export operations. The arrangement can involve direct agreements between the buyer and manufacturer, allowing multiple buyers to pull inventory as needed. The RBI Master Circular on exports, which addresses opening warehouses abroad, applies in this context. It is necessary to register a warehouse or company in the respective Latin American country. The respondent advises consulting the RBI Master Direction for detailed guidance on the process. (AI Summary)