3rd Country Exports

[Tikam Rawat]

We are Manufacturer Exporter having Trading House status would like to 3rd Country Export such as our supplier is based in Turkey and customer in USA

-Is it possible we have to export directly from Turkey to USA

-If yes, how can we remit the sale proceeds to our supplier in Turkey since there will be no Import Bill of Entry

-How we can adjust the inward remittance since there will be no value added Shipping Bill

-What will be the norms of RBI

[janardanan manojkumar]

 

See link to RBI circular

http://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=1389&Mode=0

[Tikam Rawat]

Dear Janardanan - Link attached belongs to Project Exports, whereas, we would like to know the procedure for out right exports

 

Once again we repeat as : We would like to export from Turkey to our customer in USA, in turn we will remit sale proceeds from India to Turkey to our supplier and our customer will remit value added sale proceeds to us in India

 

Please advise // Thanks

 

 

[Sanjib Kothari]

Dear Mr Rawat,

 You can go for 3rd country exports. There are certain RBI regulation which you have to strictly follow :

 1. You must get payment from your USA buyer first prior to remitting to your Turkey supplier

2. There must be some value addition otherwise 3rd country exports are not permitted

3. You must apply for Inward Remittance Certificate from your bank for the receipt of payment credit to your bank from USA customer

4. You are allowed to remit the payment to your Turkey Supplier without submitting the Exchange Control Copy as this is the case of 3rd country exports but you have to enclose documentary evidence of receipt of payment from your USA customer to your bank while asking them for remittance to your Turkey supplier.

 To the best ofmy knowledge the above is the procedure.

 Warm Regards

 Sanjib Kothari

AI Summary

Third country export rules require receipt of buyer payment before remitting to supplier and documentary proof of value added. Third country exports are permitted if the exporter first receives payment from the overseas buyer, performs some value addition, obtains an Inward Remittance Certificate from its bank evidencing the buyer's payment, and furnishes that documentary evidence when seeking remittance to the overseas supplier; submission of an Exchange Control Copy of an Import Bill of Entry is not required but banks may demand supporting records in lieu of import documentation.