I wanted to know that in case of a merchant trade wherein purchase is from HK and end sale is to Australia, if there is custom duty of say 10% involved on the goods if imported in the normal course of business, will the same be imposed in case of merchant trade transactions. Similarly for exports too.
(i) If custom duty is no charged, wont there be a huge revenue loss for the government.
(ii) However as the goods dont enter the Indian territory, I suppose custom duty shall not be applied.
However please draw light as to what shall be the case.