Advisory: Cross-Border Liquor Trade Compliances Proposed Route: Netherlands to Kenya | Model: Merchanting Trade Transaction (MTT) Purchasing liquor from a supplier in the Netherlands and shipping it directly to a buyer in Kenya without the goods entering the Indian customs territory is legally classified under Indian law as a Merchanting Trade Transaction (MTT) [cite: 19]. Operating this from an Indian entity triggers a specific set of foreign exchange, GST, and international trade regulations[cite: 19]. 1. FEMA and Banking Compliances The Reserve Bank of India (RBI) regulates these transactions through the updated FEMA 23(R)/2026-RB Regulations , effective October 1, 2026[cite: 19]. The "One Bank" Rule The entire transaction (paying the Netherlands supplier and receiving funds from the Kenyan buyer) must be routed through the exact same Authorized Dealer (AD) bank branch[cite: 19]. ...