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Merchanting Trade to Nepal and Bhutan

FEMA - 97 - Dated:- 30-4-2015 - RBI/2014-15/580 A.P. (DIR Series) Circular No. 97 April 30, 2015 To All Category - I Authorised Dealer Banks Madam / Sir, Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 115 dated March 28, 2014. In terms of the revised merchanting trade guidelines stipulated therein, for a trade to be classified as merchanting trade, goods acquired should not enter the Domestic Tariff Area and the state of the goods sho .....

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tries, there is a facility of transit trade whereby goods are imported from third countries by Nepal and Bhutan through India under the cover of Customs Transit Declarations in terms of the Government of India Treaty of Transit with these two countries. In consultation with Government of India, it is clarified herein that goods consigned to the importers of Nepal and Bhutan from third countries under merchanting trade from India would qualify as traffic-in-transit, if the goods are otherwise com .....

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