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    MTT Final Draft 2

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    guru math
    The company Featherlite Office Systems requests that DBS Bank India help regularize a merchanting trade transaction where goods were shipped directly from China to the Philippines for a client order, as the company did not follow the exact RBI process for an MTT due to pandemic delays and lack of knowledge; they provided background on the MTT and client purchase order, and requested changing the purpose code and obtaining necessary approvals to regularize the transaction.

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    MTT Final Draft 2

    Uploaded by

    guru math
    42 views2 pages
    The company Featherlite Office Systems requests that DBS Bank India help regularize a merchanting trade transaction where goods were shipped directly from China to the Philippines for a client order, as the company did not follow the exact RBI process for an MTT due to pandemic delays and lack of knowledge; they provided background on the MTT and client purchase order, and requested changing the purpose code and obtaining necessary approvals to regularize the transaction.

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    MTT FINAL DRAFT 2

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    The company Featherlite Office Systems requests that DBS Bank India help regularize a merchanting trade transaction where goods were shipped directly from China to the Philippines for a client order, as the company did not follow the exact RBI process for an MTT due to pandemic delays and lack of knowledge; they provided background on the MTT and client purchase order, and requested changing the purpose code and obtaining necessary approvals to regularize the transaction.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    42 views2 pages

    MTT Final Draft 2

    Uploaded by

    guru math
    The company Featherlite Office Systems requests that DBS Bank India help regularize a merchanting trade transaction where goods were shipped directly from China to the Philippines for a client order, as the company did not follow the exact RBI process for an MTT due to pandemic delays and lack of knowledge; they provided background on the MTT and client purchase order, and requested changing the purpose code and obtaining necessary approvals to regularize the transaction.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    Dated: 16-12-2022

    To,
    The Manager,
    DBS Bank India Limited,
    Salarpuria Windsor,
    #3, Ulsoor Road,
    Bangalore 560 042.

    Dear Sir,

    Sub: Regularization of Merchanting Trade Transactions.

    We request you to approach RBI and take appropriate approvals to regularize the captioned trade below.

    Company Background:- We Featherlite Office Systems are manufacturer s and suppliers of Modular Furniture.

    Background of captioned MTT:- We had accepted a purchase order from our Client CTS, Philippines, Manila, where the client
    had asked us to supply Modular furniture and chairs. Client also ordered for Metal Storage Racks. These Metal Storages are
    finished goods and we found that we will incur excess cost if we import them from China to India and then ship it to
    Philippines. Hence these were shipped directly from China. Hence this MTT transaction took place.

    We were not able to complete the financial outlay in 4 months due to the pandemic Covid 19 which affected entire humanity.
    Also, Philippines was under complete lockdown since it was one amongst the most affected countries. All the works related to
    this project was delayed. Hence we saw a delay in payment.

    We have received USD 67,900.90/- under IRN 0827IT0000504968 in this USD 22,354.90/- is towards the MTT Invoice No.
    E030/19-20. And we did receive USD 1,05,496.44/- under IRN 0827IT0000506154 and in this USD 27,380.51/- is towards The
    MTT Invoice again i.e E030/19-20. So we have received a total of USD 49,735.41 against our MTT Invoice.

    The purchase order given by client had both regular items and MTT items. We did raise a separate invoice for MTT transaction.

    Our client made payment of this MTT Invoice along with our regular invoices. For them this is normal transaction but for us
    this is MTT. Usually, our client pays in bulk by summing up many Invoices. They treated this as normal Invoice and paid us
    along with other Invoice.

    Since the payment from our client had come in adhoc forms, we took all the payments under purpose code P0105 instead of
    P0108.

    Client hadn’t shared us any payment advice. Since we where waiting for advance payment as per the contract, we too all the
    funds under purpose code P0105.

    Due to lack of sufficient knowledge and the pandemic, we weren’t able to follow exact process setup by RBI for a MTT.

    We now request you to change the purpose code of IRN 0827IT0000504968 & 0827IT0000506154 from P0105 to P0108.

    Further, we request you to take necessary approvals and regularize the captioned transaction.

    Please debit Account No. 827200083775 for regularization charges.

    We are enclosing Complete Set of 1st Leg & 2nd Leg documents for your reference.

    We are also enclosing appropriate letters from CA.

    Thanking You,
    For Featherlite Office Systems (P) Ltd

    Page 1 of 2
    (Authorized Signatory)

    Page 2 of 2

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