procedures to be followed in contract manudacturing export

[anand vaidyanathan]

Respected Learned members,

A Indian manufacturing concern imports goods in SKD format from overseas vendor assembles it in india and exports to other countries in the name of the overseas brand itself. Kindly request you to process involved in it and critical procedures to be followed in doing this. Should the overseas OEM set up a company in India for this process?

AI Summary

Contract manufacturing SKD assembly: independent Indian assembler can export under OEM brand while receiving assembly fees, subject to compliance.
SKD contract manufacturing for export requires customs clearance with correct import documentation and possible use of a customs bonded warehouse; assembly must comply with manufacturing, product standard and labour regulations; exports are GST zero rated with export documentation and may attract incentives. IP and branding require licensing or trademark rights. Where the Indian assembler is independent, the OEM need not set up an Indian entity; the arrangement can be structured as service/assembly fees with transfer pricing, FDI and other regulatory compliance addressed.