ARE 1 AND ARE 3 FORM

Question

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

Answer 1

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