FIEO Ware House and Office Facility at Sharjah, UAE: FAQ's

What is the size of warehousing space and office space which will be given to the member 

The Members will be provided with storage space equivalent to the space required for keeping materials that can comes out from a 20Ft container. The members who also opt for office space will be given table space and there will not be any partition. 

2.   Do you have racks for storage 

We have installed racking system also in the warehouse. You can either use racks or stack the goods depends on the nature of the goods and packing

 

3.   Do you provide furniture 

We will be providing office space. You need to purchased require furniture, chairs, storage shelf, etc depend on your needs. Our personal will assist you in purchase and installation of furniture. A full set furniture including table, executive chair, two visitors table, side table and storage shelf will cost less than AED 4000 and price is depend  on the type of furniture you select. Our personal can also assist you in getting second-hand furniture in case you prefer that for cost cutting. 

4.   What other facility you will provide at office

There will be two land line numbers which you can use for incoming calls. If you need to use outgoing calls, same will be provided on actual costs. However, mobile connection is preferable convenient mod. We also are having fax facility. Our personals will provide all assistance you need to run an office. 

 

5.   Whose name we need to send goods from India and who will be the  owner of the cargo. 

You need to send the consignment in the name of Indus Trade Services FZE, Sharjah which is 100% subsidiary company of FIEO registered in Sharjah, UAE. You need to send all the documents to Indus through your Bank as RBI do not permit you to send it directly. Indus will clear the goods and store in the Warehouse. The clearing and forwarding charges as per actual needs to be paid by you.  Indus will be providing the warehousing facilities and you will be the owner of the goods.

6.   As one visa will be provided, what will be the cost and will it be valid for how many years?

As availability of Visa is limited, we will be able to provide one residence Visa in case you take Office and Warehouse together. The residence Visa will be issued for three years. The cost of Visa needs to be borne by you. ( Visa Charges around 2500 AED + Approx 3500 AED refundable deposits to be paid to the Sharjah Immigration Department)

7.   What is the Custom Duty payable at UAE           

In UAE all products are having uniform 5% customs duty accept for some restricted products like Alcohol, Tobacco, etc., Which carry higher duty and required to obtain advance permission.  All other products are freely importable. Most of the food products do not have any import duty.  As this facility is in Free Zone, goods can be cleared without payment of duty. However, when goods cleared for UAE 5 % duty on sales invoice value as applicable needs to be paid.

 

8.   What is the import clearance procedure

Indus can take care of the import clearance. However, for edible products and consumer products clearance from Municipality is required.  It t is suggested that before sending this type of goods, send a Performa invoice soft copy to Indus so that  we can tell you well in advance the details of documents required.

9.   We are having some customers in UAE who require goods in smaller lots

In this case this is the best option to save the costs substantially. Indus can knock down your cargo and ship it to your customers in smaller lots, repacking, etc as per your instructions and all actual logistic costs needs will be in your account.

10.       We need to re-export to Pakistan, Saudi Arabia, African countries, etc. Can Indus take care of this need 

Indus can handle all your re-export needs as we are having expertise in this field. You may need to give necessary instructions by e-mail.

11. What about the invoicing to our customers in UAE and other countries

The goods to be shipped from the Warehouse in the name of INDUS only. Hence we need to raise invoice from our end. However Performa invoice needs to be given by you. Documents like certificate of origin, etc will be prepared by the Centre.

12. In this case what about the payment collection and fund transfer to our account, etc. 

We will take the responsibility of collecting payment from your customers, deposit to our account and transfer to your account as per your instructions. Indus will collect 0.5% transaction charges towards this to take care of some of our actual costs.  You may also pay cheque collection /courier charges if any as per actual.  However our responsibility limited to the collection of cheque payment on due dates and making reminder calls if necessary.  In case the party is not paying, we will inform you and you should take call on that issue subsequently and we cannot involve further.

13.       What type of export documents preferable while sending goods from India

The goods should be consigned to Indus   and documents through bank which should include Invoice, Packing List, Certificate of Origin, Original BL duly endorsed to Indus etc. As  you may aware that by what time you can get the export proceeds receivable, the Bill of Exchange can be drawn accordingly. For E.g., if you think that it will take around 60 days, you may send document on collection with 60 days sight.  Immediately on receipt of the payment we can remit the amount.

14. We may be invoicing Indus in whole sale price. However as we intend to give to our customer in smaller quantity the pricing will be higher. You may remit as per import invoice. What about the balance amount

The balance amount can be kept in Indus account and can be used by you for logistic expenses as well as for your personal expenses when you travel to UAE. This also can be used for all expenses you may incur anywhere in the world including agency commission, any exhibition participation charges, etc. You can also open an individual account in UAE (in case you are having residence visa) and this amount can be transfer to that account so that you can use it freely including remitting to India.

15. It there any possibility of leaking my buyer information to others and what will happen if you are having more members dealing with similar products.

We take the responsibility of keeping 100% confidentiality of your buyer, pricing, etc and this will not be shared with anybody. Even though the invoicing is form Indus, we will give your name and contact details in the invoice as the Manufacturer/supplier so that this will be kept separately.  We normally do not encourage competition from different exporters with same products. However even if it happens, we can assure our above commitments.

16. Can we get marketing supports

Our officials will help you in getting details on potential buyers. However, further contacting and negotiation needs to be done by you.

I am having a supplier who will be sending the goods  to Indus. The same I need to send USA without having the suppliers name in the documents. Is it possible?

The best option in this case is that after goods shipped from India, you may send the documents to us giving necessary instructions including billing details to USA party. Indus can prepare documents in Indus invoice giving supplier as your name and get necessary certifications like Certificate of Origin(COO) Phytosanitary Certificate, etc from UAE and can do switch B/L form UAE to USA.  Whatever documentation costs, etc needs to be paid by you. In this case for US buyer the consignment is shipped from UAE by Indus and you are the supplier in India. The documents can be handover to you or we can send to your buyer directly or through our Bank as we do not have any restrictions in UAE.  However, in case you need to change labelling etc., we need to bring in to the warehouse, repack it and ship in new invoice.

18. After taking warehouse and office space I wanted to appoint a marketing man at Indus for marketing our products. Is it possible?

Yes. You can appoint a person. He can use your office space and do the marketing. We will provide all required support to him to get business. His salary also can be paid by us from your credit balance

19. Can we give the Indus address in our letter Head?

Once you join in Indus, contact address, telephone number etc can be used by you and all your calls will be attended and feedback will be given to you as and when required.  You can print your letter head and visiting cards as Indus as your own office. This will help you to get more business as buyer will have confidence when they see that you are having office in their country. 

20. How you handle enquiries received on our behalf

Immediately on receipt of any enquiry, we will mail you the enquiry. In case you want us to quote, you may give details, we can do it for you. Otherwise you can send them directly.  You can use Indus name and contact details while sending the enquiry.

21. What type of agreement needs s to be entered into with me and Indus?

This system presently is working with full transparency and confidence.   Indus will give you dos and don’ts along with a letter which contain commitments from both side. This needs to be accepted and signed by you and send back to Indus for records. We can work with tailor made arrangements as per the needs which will vary and hence depend on your needs more points can be included in the acceptance letter. The Manger, ITS will send a draft copy.

22. License is required to do Trading in said office? if yes any fees for simple trading activities?

FIEO opened a 100% subsidiary named INDUS TRADE SERVICES FZE which is having trading licence.  You can do the trading activity in the name of this company. No need for any separate registration and charges.

 23. Can we open account in Bank?  

       Without registering a company, you cannot open bank account in UAE.  However, you can do your financial transactions through Indus Bank account. A dedicated FIEO employee has been posted in UAE to handle all your bank related and document related needs.  In case you are having residence visa you can open Bank account in your individual name.

24. Can we only do documentations without physically importing or exporting ?

            Indus will be able to handle documents without physically import or export form UAE ( BL switch over, related invoicing, etc.) For this purpose, you can give instructions by e-mail and the same will be carried out by our officials. However, any actual expenses for documentation will be charged on you.

25. If physical Import has to be done and sale in UAE, what is the procedure? As we have customers in Dubai who are  ready to buy locally our product. what is procedure? 

You can send the good to Indus Trade Services, who will import the goods and keep it in the warehouse. As per your instruction, Indus will be able to send the goods either in small consignment, repacked, etc. to your buyer by raising local invoice issued by Indus. Indus also can take care of your receivable management  (collection of payment, deposit in Indus account, transfer to the accounts) as per your instructions, etc. However please note that actual cost related to logistic, Customs, documentations if any, etc will be charged to you. There is also a transaction charge of 0.5% on the amount received on your account towards incidental costs.

26. Is registration in Chamber of Commerce is required? what will be fees?

Indus has taken membership with the Chamber and there is no need for you to take separately as it is very costly.

27. Any hidden cost? 

            There are no other hidden costs. The Customs charges, logistic costs, etc. to be paid as per actual.

28. Do we get visa facility and at what are the formalities and cost?

Visa will be provided only to those who take Warehouse and office space together, as we are having very limited Visa available. In case you are interested, we can provide you 3 years valid Residence visa. We will complete all the procedures upon you filling the application form along with PP copy and photographs.

In case you are planning for office space or warehouse space only, we can facilitate only visit visa.

29. If we opt for office facility only initially and during the year need warehousing facility whether it will be available and at what cost?

You can opt for as per your choice. If you take it later, you may pay as  per the individual charges mentioned and validity for the facility will be from 1st April to 31st March 2014 even if you join later.

30. What will be charges applicable to individual transaction of sale or purchase or no charges applicable how many transactions allowed free of cost?

There is not being additional charges applicable. However logistic, customs and documentation charges which is very nominal as per actual will be billed to you. There is a transaction fee of 0.5% on the invoice value.

                                
31. What is the situation of registration of VAT and how many items are allowed to deal or it is general trading is allowed?

We have registered in UAE as a  multi product trading company and we can import and export any products without any restriction. There will be 5 % custom duty either needs to pay while importing to UAE or taking out form the warehouse. There is no VAT.

32. Apart from the annual charges payable to FIEO, is there any other charges payable to the local authorities in Sharjah?

There are no additional charges. However, any labour charges, documentation charges, customs charges, etc will be billed on you as per actual.

38. Is it allowed to store hazardous cargo in this warehouse?

Hazardous cargo storage requires permission from SAIF ZONE and Municipality.  Charges for getting permission, any fee, etc need to be paid. We do not know the nature of the cargo. If it is contaminating nearby cargo due to its smell or due to its nature, it may not be possible.

For more details..

Federation of Indian Export Organisations

Southern Region

  7th Floor, Spencer Plaza, 769, Anna Salai, Chennai 600002                                                             Phone: +91 44 2849 7755 / 3333 Fax: +91 44 2849 6666                                                                               Email: fieosouth@airtelmail.in  / unni@fieo.org

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