Documentation procedures on high sea sale.

Posted on 11 April 2023 Category : Import India

The information provided here is part of Export Import Training online

Documentation procedures on high sea sale.

What are the documentation required und a high sea sale?

I have written a couple of articles about High Sea Sale in this web blog. You may kindly go through the same also to have clear idea about documentation formalities under High Sea Sale – HSS.

Documentation procedures under high sea sale.

All documents need to be mentioned as ‘on high sea sale bases’. Bill of Lading, Invoice, packing list etc. should be reflected ‘ On high sea sale basis’. The value of invoice can be either existing invoice value or new high sea sale value depends up on the understanding between high sea sale buyer and seller. If the seller need not want to disclose the existing selling rate of original sales, he can issue a new invoice mentioning the high sea sale value.

Bill of lading endorsement and other required procedures on bill of lading has to be completed with carrier before arrival of goods. Title of goods is transferred to high sea sale buyer, once Bill of lading endorsement procedures completes.

You may click here to read other articles about High Sea Sales :A simple tutorial on high sea sale procedures and formalities in India Major Documents required under High Sea Sales, How to hide invoice value of original contract under high sea sale transactions, Can high sea sales possible under air shipment?, Can high sea sale be effected more than two times?, Is sales tax applicable on shipments effected under high sea sales? How to check the time of contract on high sea sale transaction? Documentation procedures on high sea sale. Yes, I am sure, once after going through that articles you will have a good knowledge about High Sea Sales under International business.

Would you like to share your experience and knowledge in handling documentation under High Sea Sale? Please write below your thoughts.

Opine below your comments on this subject about documentation under High Sea Sale – HSS.

The above information is a part of Import Export online Training

What is the difference between High sea sales and imports

How is IGM filed under high sea sale?

Can high sea sale be effected more than two times

How to check the time of contract on high sea sale transaction?

Can high sea sales possible under air shipment?

7 Major Documents required for import clearance under high sea sale

Comments

Kapil Sood: On 09 June 2014 Dear Sir We are importers and selling to single customer under HSS. 1. Does the HSS Agreement and INR invoice to be raised on the same date or it can be different. 2. I understand that the HSS agreement need to be made before the shipment enters India border, do we have to make the INR invoice also at same time or we can make the same after the shipment reaches the india border. 3. Can we make two or more invoices to same customer for single HSS sale under single USD invoice and BL? Thanks Kapil Sood 9810190011

Gaurang Suthar: On 28 October 2014 Dear Sir, My company is in Vadodara, Gujarat. My sister firm is in Dombivali. My sister firm want to import the material under LC but he do not availed the facility. Can I used my limit for his import as third party importer? 1st: Seller 2nd: Consignee XVZ, Dombivali - Maharashtra 3rd: LC applicant ABC, Vadodara - Gujarat 4th: Bank Value: USD 15,000/- XYZ do not availed facility for LC. The seller would like to sale only under sight LC payment. ABC availed facility of LC limit. If ABC apply to open LC for XYZ than what is the procedure for it? Documents like BL, Invoice and the most important the Bill of entry. On Whom name would like filed the Bill of entry? How the original user XYZ can take credit of CVD and SAD?? If the exchange controll copy has to submit to the ABC (applicant's) bank than what name should be in bill of entry?/ Kindly advise

nagesh.: On 21 February 2015 Can high Seal Agreement enter after arrival of the vessel.

yogesh: On 18 March 2015 i would like know what are the documents for air shipment High Seas Sale procedure with regards Yogesh Karmavat

LAKSHMANA B.R: On 11 May 2015 Should the overseas invoice be addressed to Indian Entity importing and selling on high sea basis or it is must to have High Sea Buyer detail under the ship to coloumn Please clarify matter very very urgent.

SAMEER ABHYANKAR: On 09 March 2016 I am planning to have high sea sale ( by AIR) basis order with one of government organization. Both of us located in Maharashtra. The material will be manufactured by a company based in USA ( we are there Indian distributor). I do not mind the end customer knows about my purchase price. Suppose I buying a US$ 100 material. Considering today's US$ rate it will be about Rs.68=1 US$ my purchase cost will be Rs.6800/-. I will be selling this product at Rs. 8000/- on high seas sale basis. The BOE will be on government organization. They will be getting this material cleared under customs duty exemption certificate (concessional duty of 5%) & will pay duty directly. My terms are Ex works USA, hence freight & insurance will on same government organization. My question is the customs duty will be charged on Rs. 6800/- or on Rs. 8000/-

Nirav Kapadia: On 18 March 2016 If one party Import the Goods & sold it to other party on high seas sales basis, in the same state what should be the taxability for sales commercial invoice within same state? or documents necessary for the same?

Vanit Gupta : On 18 April 2016 I am importing some goods at Kolkata port. I am based in Mumbai. I am proposing to sell the imported material on High Seas Sales basis. The buyer of the goods wants the goods to be transferred to a bonded warehouse till he makes the payment and lifts the material. My question is that in case, he does not make the payment within the stipulated time, I will have no option but to sell the goods elsewhere in the local market to recover my dues. In that case, what will happen to the IGM and BE which would already have been filed in the name of the HSS buyer. Can it be amended? Is it possible to file the BE until after the buyer makes the payment to me? Till that time, I will not hand over the HSS agreement o the buyer.

Ramamurthy: On 06 August 2016 I want to do High Sea Sales. I have IE code number. I do not have a godown and hence I do not have State Government Form 20.B & 21.B Drug Licence (to store and sell). In any way will this affect me or I can go ahead with High Sea sales or whether I should have a godown and get 20.B & 21.B.

Prashant Goyal : On 11 August 2016 I am Prashant, wish to ask you, can we get in to High Seas Sales Agreement (HSS) with the customer (Government): We have taken purchase order from before the shipping of the goods and The product needs End user declaration for obtaining the license.

Pratik Patel : On 12 August 2016 I just started my EXIM firm and going to finalize first import shipment. I will import material and sale on HSS basis to Indian buyer in INR. I need your advice for following: 1. Can we advise to final supplier to make 'To Notify' documents instead of our name in importer & final supplier/Exporter name? 2. What document required to sale/trasfer ownership to Indian final buyer? For less error or expenses 3. How we hide actual shipment values so my final Indian buyer couldn't get actual prices & supplier IDEA.Do you recommend any bank who provide trade finance for import or provide discounting LC for transaction for newly start business without track records

Vinay Tharkar: On 16 September 2016 The information was useful. I want to know is there any rule to have certain minimum margin while doing the sales agreement.

krishna: On 02 November 2016 Under High Sea Sale Agreement, will there be a chance for my customer to know my original landing price as produced in the Proforma Invoice?

Neeraj shukla: On 19 November 2016 It's awesome to see information shared on your website. I have small queries on the high sea deal format , one of my client is expecting deal to be executed under high sea agreement: 1. They are Indian entity and has contract govt contract with them ... What could be reason for them to demand high sea contract?? Will they get duty exemption/ Benefit? Or any tax Benefit like VAT or CST? 2. My company has I.E. Lic and we will be buying goods from singapore in USD, can we invoice to our client in USD before the custom clearance ?? 3. Do my client whom we are billing must have I.E. LIC for getting custom clearance ? Thanks once again for wonderful informations and will look for your advise.

Chandrakant Patil: On 24 March 2017 Hello, I would like to inform about HSS Air Shipment under Non-Negotiable Air way bill. We received query from sales Dept. to pay all sales tax which we did HSS Air shipment in 2012-2013. It is not acceptable. Anybody facing same problem from Sales tax dept.? Thanks & Regards, Chandrakant Patil Mob 8380076370

Alpesh Kalsara: On 23 August 2017 hello sir, can you please tell me for in HSS contract notify party name to mention in.

varun sharma: On 18 April 2018 can high sea sale be carried out through road, is legal metrology certificate required for both buyer and seller or with only seller. High sea sale by road from attari border, a consignment of 70mt of cement

vinod mankar: On 22 July 2019 I want to do High Sea Sales. I have IE code number. I do not have a godown and hence I do not have State Government Form 20.B & 21.B Drug Licence (to store and sell). In any way will this affect me or I can go ahead with High Sea sales or whether I should have a godown and get 20.B & 21.B.

umesh arya: On 15 January 2020 Dear sir we made purchase order before the highseas contract is this transcation is valid

Deepak Pednekar: On 19 December 2020 We planning to do high sea for Aluminium UBC, seller purchase CIF nhava sheva price is 1120 and i negotiated for price 1090. is this transaction valid for high sea sale

rajan kolaparan: On 19 March 2022 High sea sale procedure

kushal: On 24 June 2022 Wanted some clarification on payment and documentation procedure for a High Sea Sale happening . i.e. from a Party in Bengaluru who has a supplier in Germany and the consignment would be shipped to US. In the entire process there is a margin. We do not want the end customer to know the Margin enjoyed by the Suppller in Bengaluru. The Consignment will not pass through the Customs of India . But directly shipped from Germany to US There should not be any payment issues at the local Banker level. If you share your contact details ( like phone Number) I can ask my Client do directly contact you

thushar: On 27 June 2022 Myself Tushar from Mumbai and I am working with a private sector bank in field of Trade Finance since 5 years. I am regularly following your website and believe that it is very useful resource for aspiring trade professional. Let me come to actual purpose of writing mail to you. One of our customer is doing high sea purchase from vendor who is trading company in INR and vendor is insisting billing in FCY for high sea purchase. Our customer is quoting DGFT guidelines related to deemed export.

harshit: On 28 June 2022 We deal in iron scrap. My doubt is that I want to close a deal with factory supply of iron scrap My company is in India Factory is in india And supplier is in new Zealand. Can my name be there as shipper on Bill of lading? Can I take payment from factory in usd and keeping my commission send the remaining payment to USA supplier (keeping his details to me ) and BL will be on my name so factory owner will not name of supplier.

alsadi: On 30 June 2022 We are marine service co.and we are facing difficulties to get our stuff to ksa fm UAE Saso and SABRE in addition to hs codes and all formalities required .Do you have some names we can use on eastern region of ksa