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

FTWZ storage not treated as supply, allowing imports under MOOWR to be warehoused by overseas clients if procedures met.
Goods imported under MOOWR and delivered to an FTWZ are not treated as a supply for GST purposes, so the arrangement is legally permissible if documentary evidence and prescribed SEZ/FTWZ procedures are followed. Ownership can remain with the overseas principal if the overseas entity registers as a client in the FTWZ and storage, invoicing and DTA clearance processes under SEZ/Customs rules are observed. MOOWR benefits need not be repaid where there is no clearance for home consumption.