MERCHANTING TRADE TRANSACTIONS (MTT) – REVISED GUIDELINES

About:

• In Indian Context, the trade is called Merchanting Trade when,
  • The supplier of goods will be resident in one foreign country
    
    
  • The buyer of goods will be resident in another foreign country
    
    
  • The merchant or the intermediary will be resident in 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. Also, the entire MTT shall be completed within an overall period of nine months.