export & foreign Remittence

[sanjay malviya]

Dear Expert 

Newly  release notification by DGFT without received advance payment of shipment from foreign , export not allowed. ( condition on export of carpet, handicraft and silk item )

if self warehouse in foreign and goods send to foreign in the name of warehouse , what is the treatement of transaction - stock transfer or export and above condition of custom regarding advance receipt are levy or not

Please advice as soon as possible .

Notification no. 5(RE-2012)/2009-2014

AI Summary

Advance realisation requirement for specified exports makes shipments to self owned foreign warehouses stock transfers until realisation.
Transfers of goods to a self owned warehouse abroad are treated as stock transfers and do not constitute completed exports until foreign exchange is realised; a DGFT condition requiring advance payment for specified exports therefore still applies. AD Category I banks may permit opening or hiring of warehouses abroad subject to eligibility criteria, routing through designated branches, recordkeeping and renewal, and exports to such warehouses must meet prescribed realisation and repatriation timelines to be treated as exports.