The above scene shows Martan (played by Rajpal Yadav) who is playing the role of the boss. He is being asked to sign documents related to the export consignment to the UK.
In this blog, Learning Perspectives will explore the meaning of Consignment.
What is a Consignment?
Consignment is an agreement between the consignor and consignee. In this agreement, the consigner is the exporter or seller of the shipment. The consigner could be the person who manufactures the goods or who is the contact point for the export.
Similar to the scene that you saw, Asrani (an employee in the company) is explaining to Martan (the new CEO of the company) that their clothes are exported to the United Kingdom and hence the agreement needs to be signed.
Consignee, on the other hand, is the importer or buyer of the shipment. The consignee generally would further sell these goods to the end consumer. Common goods that are sold in the consignment are clothes, books, shoes, musical instruments, toys, etc.
India’s exports and imports are regulated by the Foreign Trade Act, 1992 and EXIM policy. The value of consignment is determined on the basis of the current exchange price of the goods. If however, this price is not available then the current market price is adopted.
A consignment sale is regulated by CGST or the consignment goods and service act, 2017, and the sale of goods act of 1930. The GST law primarily does not concern itself with the sale but rather with supply. Issuance of tax invoices does not mean the ownership of goods has been transferred. Hence, it is important to know whether or not the title has been transferred or not to the consignee.
The agreement should be very clear in their language about the transfer of title.