Import goods and Sell directly to Customer

[Former Member]

Dear Gurus,

I have a scenario in which the customer (outside INdia) will send their goods to India. And from India it has to be sold to the final customer (In India) without any further processing.

Should the place at which the goods will be rcieved (India) be configured as depot or warehouse.

What will be the difference? Also what all tax I had to consider if I import theses goods and then sell it to final customer.

I am new to such kind of scenario.

Please give your valuable inputs.

Thanks

[Lakshmipathi · Accepted solution]

As you would be aware, in export and import process, we can have Bonded Warehouse facility. A Bonded warehouse is a warehouse in which goods on which the duties are unpaid are stored under bond and in the joint custody of the importer, or his agent, and the customs officers.

I am not sure, whether your client is having such facility. For having Bonded Warehouse, the importer / exporter should get prior approval from Chennai Customs authorities.

So having said that, you can treat the bonded warehouse as a warehouse and configure accordingly. Since I have not come across this situation (that is importing from one country and exporting the same), I could not give you more details. However, will try to study further and if possible, will give a clear picture.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Thank you G. Lakshmipathi for your valuable inputs.

Currently I am not very familiar with Bonded Warehouse concept. I will definitley explore that and do the indepth study.

However If you study and get more details about it, I would definitely like to know more about it.

Thanks once again

[Former Member · Accepted solution]

Can anyone give more inputs on this?

Would be helpful for me

[Lakshmipathi · Accepted solution]

Dear DDP

Further inputs I got from my friend is that since the selling price on the imported component would be higher than the imported cost, it is better to go for Advance Licence where also, the import duty is exempted.

Of course, the procedure to be adopted for this, should be explained in detail by your client and based on that, you can configure accordingly.

Last but not least, whatever be the process, in standard, you cannot address this issue. You have to go for zee development, as you cannot store Advance Licence details (from MM side) and those details, you will have to capture in export invoice which is a mandatory, as per Customs Law.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

You can read the functionality of SAP GTS where all such cases can be dealt with. You also extensively use the Bonded warehouse concept there as Laxmi has already proposed.

Link is [SAP GTS|http://help.sap.com/saphelp_gts72/helpdata/en/b1/8dc5c62c885046ab71fdcddc6ad2c2/frameset.htm]

[Former Member · Accepted solution]

Thanks for your inputs.

Closing this thread