Export through merchant exporter

[madhavvan n]

will the transaction be held as export by the main manufacturer if the manufacturer sells to a merchant exporter and the merchant exporter sells to another merchant exporter who in turn exports the goods outside india

[Guest]

Mr madhavan i think that it only the penultimate sale which is treated as export and not the sale before that. Hence i doubt that the transaction in the given case will be considered as export

AI Summary

Export treatment of a manufacturer's sale depends on whether the sale is the penultimate transaction before physical export. Whether a manufacturer's sale to a merchant exporter qualifies as an export when the merchant exporter resells to another merchant exporter who effects the physical export; the advisory view is that only the penultimate sale is ordinarily treated as the export transaction, so the manufacturer's initial sale is unlikely to be regarded as an export.