Purchase Order from Oversea customer and Delivery to Customer Warehouse in FTW In india

[Danish Azfar]

Hello Experts, 

If we receive a purchase order from an overseas customer, the customer also arranges the material for production, and we import the material under MOOWR benefits. 

After the production customer asked us to deliver the finished goods to FTW in India. Will this transaction be fully compliant? As the upfront duty on the import will not be there under MOOWR and supply to FTW (SEZ) is also treated as a export. 

From FTW, overseas customers will sell to its final customer in India, and duty and IGST will be paid by the final customer in India.  Will this transaction also be fully compliant? 

Thanks. 

AI Summary

Overseas Buyers Can Use MOOWR Benefits for Goods Stored in FTWZ Without CGST Liability When an overseas customer provides a purchase order and supplies raw materials imported under MOOWR benefits, and the finished goods are delivered to a Free Trade Warehouse (FTW) in India, the transaction is compliant if all documentary requirements are met. Goods stored in FTWZ, created under the SEZ Act, are not treated as a supply of goods under the CGST Act. An overseas company without a physical presence in India can register as a client in the FTWZ and retain ownership of goods stored there. The transaction remains compliant with SEZ and Customs laws, provided prescribed procedures for storage and clearance to the Domestic Tariff Area are followed. Duty benefits under MOOWR apply as there is no home consumption clearance. Export obligations can be fulfilled with proper billing and shipping documentation reflecting the overseas customer as the buyer, and payment receipt should not face issues if these conditions are satisfied.