Purchase from Country A and supply it to Country B without bringing it to India

[TN Rajendran]

Dear Experts,

I'm buying a material from one country, say Germany. I want to sell it to my customer in another country, say Dubai.

Normally, customs should be paid if I import it to India from Germany and then export it to Dubai from India. Since the customs duty that I'm paying during the import getting added to my cost I'm not able to supply it to at a competitive price to my customer is Dubai.

Suppose, if I directly supply the materials from Germany to Dubai (i.e., without bringing it to India) can I avoid Customs duty? What would be its Pros and Cons?

Thank You.

AI Summary

Customs duty not leviable where goods move between foreign territories without entering national territory, subject to documentary routing.
Goods sold from one foreign country to another without entering India are outside Indian GST and customs levy; customs duties are imposed only at import/export into India and thus do not arise if goods do not enter Indian territory. To operationalise this, the supplier must ensure physical non entry into India and maintain documentary evidence, routing transactions through an authorized dealer or banker to regularise payment and support the non levy position.