ARE 1 AND ARE 3 FORM

[Former Member]

Hi SAP Guru's

What is the difference between ARE-1 form and ARE-3 form?

When ARE-1 form is required and where ARE-3 form is required?

When CT3 form required?

Rewrad points for helpful answer.

Regards

Ashis

[Former Member]

done

[Former Member]

Hi Ashish,

Please note the follwoing.

ARE-1 form is used for the goods sold to export customers.

ARE-3 form is used for deemed export e.g.Domestic projects financed by world banks.

CT-3 form is will be fiven by the domestic customer who will finally sale the product to export customer.

Regards,

Dilip Shende

[Former Member]

This message was moderated.

[Former Member]

Hi Ashish;

ARE 1 Is for Direct Export or SEZ Sale

& ARE3 for indirect export,

CT3 is value based bond meant for direct export.

This will resolve your query;

Avinash

[Former Member]

Hi Thanks for ur reply.

But what is direct export and what is indirect export?

Regards

Ashis

[Lakshmipathi]

Dear Ashis Patnaik

1) Direct Exports

When you export your products directly to an overseas customer and get payment from that customer, it is called direct exports.

2) Indirect Exports

There are 4 ways to do indirect exports

a) An Exports merchant

b) An Exports agent

c) A resident foreign buying agent and

d) A resident foreign buyer

a) Export Merchant

Export Merchant, this is a trading company that will buy the local firm's goods outright and assume the risk of being able to resell them profitably abroad.

The export merchant usually specializes in a particular line of products and/or in a particular geographical market area. Sometime it sells the goods with the original supplier's labels or puts its own label.

b) Export Agent

An export agent, is a trading company that acts for local manufacturers, usually representing a number of non-competing manufacturers.

In return for obtaining export order from abroad, the export agent receives a commission.

Unlike the export merchant, the agent does not become the owner of the goods and therefore does not assume the risk of not being able to sell them abroad.

An export agent is usually retained on one or two years renewable basis with an export agency agreement.

The function of the export agent is to appraise the export potential of the local manufacturer's products, advertise them abroad, look for foreign buyers, obtain export orders, and advise on, or arrange for, the documentation, shipping and insurance once a sale has been made.

c) Resident Foreign Buying Agent

This is a firm that acts as the purchasing agent for foreign companies, receiving a commission on the goods purchased

d) Resident Foreign Buyer

Sometimes large foreign firm (e.g. food or department store chain) will have its own employee stationed in the local manufacturer's country or within the region.

This Resident Foreign Buyer will act on his employer's behalf, seeking to buy goods for his company.

thanks

G. Lakshmipathi

[Former Member]

Hi Lakshmipathi ,

Thanks for your reply.

But when CT3 form is required. CT 3 form is linked with ARE 1 form or ARE 3 form.

Who will give the CT3 form,ARE 1 form,ARE3 form and to whom it is to be given?

Regards

Ashis