Bill to Oversea Company and Ship to Indian Company (Present in SEZ)

[Danish Azfar]

Dear Experts.

Have a case that needs support for clarification.

Company Z (indian Entity Present in SEZ in India) places the PO to Taiwan Company (we called it company A). Company A places the PO to Company B (MOOWR approved company in India).

Company B Places the Raw material PO to Company A, once the raw materials converted to finished goods, company B provide the Bill to invoice to Company A but ship the FG to company Z (on the instruction of Company A). Upon receiving the goods company A provide the invoice to company Z.

Question 1 - How it will become export to company B (how this will show in the IDPMS system of bank)

Question 2 - How it will become import for company Z, (how this will show in the IDPMS system of bank) so that Z will make the payment to company A.

Thanks

AI Summary

Exports to SEZ treated as export: IDPMS records Company B's export while SEZ records corresponding import and payment flow.
Movement of finished goods from an Indian manufacturer to an SEZ unit is treated as an export by the Indian supplier and as an import into the SEZ. The supplier must file export formalities (including Shipping Bill) and record exporter, invoice and customs details so the bank's IDPMS shows an export. The SEZ recipient must complete SEZ inward procedures (no Bill of Entry for home consumption) so the import is recorded in IDPMS. Payment flows from the SEZ unit to the foreign principal should be documented to reconcile IDPMS foreign exchange reporting.