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

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