Can a Indian manufacturer open a warehouse in a FTZ in America ?

[Guest]

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.

[YAGAY andSUN]

Please check the RBI Master Direction in this regard as allows whatever you are seeking in this query and you have to register your warehouse/Company in Latin America.

AI Summary

Foreign warehouse operations in a free trade zone permitted, subject to RBI guidance and host country registration. An Indian manufacturer may operate a warehouse in a foreign free trade zone to support export logistics, with supply contracts directly between manufacturer and buyers and ability for buyers to pull stock; multiple buyers can be served. Such activity is subject to the RBI Master Direction permitting the arrangement and requires registration of the warehouse or operating company in the host country and compliance with local and RBI regulatory requirements.