Merchanting trade transactions

Merchanting Trade Transactions (MTT) – Revised Guidelines Attention of Authorised Dealer Category-I banks (AD banks) is invited to A.P. (DIR Series) Circular No.115 dated March 28, 2014 containing directions relating to merchanting trade transactions. Merchanting or Intermediary Trade involves purchase of goods by Indian residents from non-residents and then reselling them to another non-resident directly without the goods touching the Indian ports. Although the merchanting trade transactions do not contribute to the exports from India, they result in net foreign exchange inflows. In the simple terms merchanting transaction is the transaction in the international market when shipment of goods is effected from one foreign country to other foreign country involving Indian Intermediary who buy/import the goods from the person of one foreign country and sale/export the same goods to other person of other foreign country.

24 Mar 2015 Merchant Trading Transactions. Merchanting Trade Transactions (MTT) are those transactions where the supplier of goods will be resident in  offshore transactions, which together are also known as offshore trade.2 Merchanting refers to the trading of goods that are purchased from and sold to parties. 28 Mar 2014 Both the legs of a merchanting trade transaction should also be routed through the same AD bank, which should verify the documents, it said. Buyer's credit is not allowed for import of services; Buyer's credit cannot be given for Merchanting Trade transactions/intermediary transaction. The tenor of loan  1 Jan 2020 Merchanting Trade. 80. 73. Purposes. 83. 74. Payment to Nepal. 84. Transactions for Individuals. 85. 75. Remittance facilities for resident 

In the simple terms merchanting transaction is the transaction in the international market when shipment of goods is effected from one foreign country to other foreign country involving Indian Intermediary who buy/import the goods from the person of one foreign country and sale/export the same goods to other person of other foreign country.

24 Mar 2015 Merchant Trading Transactions. Merchanting Trade Transactions (MTT) are those transactions where the supplier of goods will be resident in  offshore transactions, which together are also known as offshore trade.2 Merchanting refers to the trading of goods that are purchased from and sold to parties. 28 Mar 2014 Both the legs of a merchanting trade transaction should also be routed through the same AD bank, which should verify the documents, it said. Buyer's credit is not allowed for import of services; Buyer's credit cannot be given for Merchanting Trade transactions/intermediary transaction. The tenor of loan  1 Jan 2020 Merchanting Trade. 80. 73. Purposes. 83. 74. Payment to Nepal. 84. Transactions for Individuals. 85. 75. Remittance facilities for resident  i) Where the payment for export leg of the transaction precedes the payment for import leg, we shall ensure that the terms of payment are such that the liability for   Merchanting Trade Transactions - Revised guidelines The guidelines mainly explains For a trade to be classified as merchanting trade following conditions should be satisfied ; Goods acquired should not enter the Domestic Tariff Area and The state of the goods should not undergo any transformation ;

In the Indian context, when a transaction involves the shipment of goods from one foreign country to another foreign country through an Indian Intermediary it is called merchanting trade or Intermediary trade. Goods involved in the merchanting trade transactions would be the ones that are permitted for exports/imports under the prevailing Foreign Trade Policy (FTP) of India, as on the date of shipment and all the rules, regulations and directions applicable to exports (except Export

1 Jan 2020 Merchanting Trade. 80. 73. Purposes. 83. 74. Payment to Nepal. 84. Transactions for Individuals. 85. 75. Remittance facilities for resident  i) Where the payment for export leg of the transaction precedes the payment for import leg, we shall ensure that the terms of payment are such that the liability for   Merchanting Trade Transactions - Revised guidelines The guidelines mainly explains For a trade to be classified as merchanting trade following conditions should be satisfied ; Goods acquired should not enter the Domestic Tariff Area and The state of the goods should not undergo any transformation ;

iii. The entire merchanting or intermediary trade transactions should be completed within an overall period of nine months and there should not be any outlay of foreign exchange beyond four months. iv. The commencement of merchanting or intermediary trade would be the date of shipment / export leg receipt or import leg payment, whichever is first.

28 Mar 2014 Both the legs of a merchanting trade transaction should also be routed through the same AD bank, which should verify the documents, it said. Buyer's credit is not allowed for import of services; Buyer's credit cannot be given for Merchanting Trade transactions/intermediary transaction. The tenor of loan  1 Jan 2020 Merchanting Trade. 80. 73. Purposes. 83. 74. Payment to Nepal. 84. Transactions for Individuals. 85. 75. Remittance facilities for resident  i) Where the payment for export leg of the transaction precedes the payment for import leg, we shall ensure that the terms of payment are such that the liability for  

ii) Goods involved in the merchanting trade transactions would be the ones that are permitted for exports / imports under the prevailing Foreign Trade Policy (FTP) of India, as on the date of shipment and all the rules, regulations and directions applicable to exports (except Export Declaration Form) and imports (except Bill of Entry), are complied with for the export leg and import leg respectively ;

Merchanting trade Trade can qualify as merchant’s trade transactions if goods imported by the merchant trader do not enter the Domestic Tariff area and aren’t altered in any manner. Goods that are parts of the merchant trade should comply with the current Foreign Trade Policy & other relevant regulations applicable to both exports & imports to India. • Merchanting transaction is one which involves shipment of goods from one foreign country to another foreign country involving an Indian Intermediary. Hence, It is also called Intermediary Trade. • According to revised guidelines, for a trade to be classified as merchanting trade, goods acquired shall not enter the Domestic Tariff Area. merchanting trade declaration a) Goods involved in the transactions are permitted for exports/ imports under prevailing Foreign Trade Policy of India, at the time of entering into the contract. b) Goods involved will not enter into the Domestic Tariff Area and the state of goods has not / will not undergo any transformation.

Merchanting transaction is one which involves shipment of goods from one foreign country to another foreign country involving an Indian Intermediary. Hence, It is also called Intermediary Trade. According to revised guidelines, for a trade to be classified as merchanting trade, goods acquired shall not enter the Domestic Tariff Area. • Merchanting transaction is one which involves shipment of goods from one foreign country to another foreign country involving an Indian Intermediary. Hence, It is also called Intermediary Trade. • According to revised guidelines, for a trade to be classified as merchanting trade, goods acquired shall not enter the Domestic Tariff Area. For a trade to be classified as merchanting trade, goods acquired shall not enter the Domestic Tariff Area. Considering that in some cases, the goods acquired may require certain specific processing/ value-addition, the state of goods so acquired may be allowed transformation subject to the AD bank being satisfied with the documentary evidence and bonafides of the transaction.