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FTP treats merchant exporter with order as third party, says expert

'Third party' means any party who is not the buyer or the seller, but whose name is required to be mentioned in the shipping bill

trade, export, container, import, shipping, sea, business, seafarer, merchan navy
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Sometimes, the shipper may be different from the seller. Para 9.60 of the FTP says that “third party exports” means exports made by an exporter or manufacturer on behalf of another exporter(s)

T N C Rajagopalan New Delhi
Q. We have to pay fees for use of a foreign party’s trade name. What requirements need to be fulfilled for remittance of such fees, as per FEMA Rules?

Para 4.10 of RBI FED Master Direction no. 8/2015-16 dated January 1, 2016, says that AD Category-I banks may permit drawal of foreign exchange by persons for purchase of trademark or franchise in India without approval of the Reserve Bank of India. Para 6.2 of the same Direction 8/2015-16 says that before undertaking any transaction in foreign exchange on behalf of any person, an Authorised Dealer (AD) is required to obtain

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