High Sea Sales
About
‘A’, an overseas seller supplies goods to ‘B’ an overseas buyer. Once after completion
of necessary export procedures, A submits all necessary documents to his bank at
seller’s place.
‘B’, enters in to an agreement of sale with C under high sea sale, once after movement
of goods from the territorial border of exporter but before arrival of goods at
the territorial border of India.
B accepts documents from his bank which has been sent by A through his bank. If
the payment terms with A and B are on sight LC or DP, B remits invoice value of
goods to A before collecting documents from bank. Incase of credit arrangements
with A, B remits invoice value of goods to A as per the arranged credit period.
The Bill of Lading (or airway bill) is endorsed by B and transfers the title of
goods in favor of C.
B prepares invoice to C in local currency ( INR ). B delivers endorsed original
Bill of lading (or airway bill), his invoice in local currency along with import
invoice, packing list, certificate of origin, insurance certificate and other necessary
documents if any for import clearance duly endorsed. A retains a copy of all documents
which he delivers to C.
C files Bill of entry along with other import documents delivered by A with customs
authorities. C pays necessary import customs clearance charges with import duty
if any. B can also under take customs clearance and delivery to C, if B does not
want to know the actual contract price of A and B. In this case, B is filing documents
on behalf of C to hide the selling price between A and B.
Once after completion of import customs clearance procedures, C delivers a copy
of bill of entry to B. B files the said bill of entry and other copies of import
documents and high sea sale documents with his bank.
Apart from document needed for regular import consignment below documents are also needed for high sea sales
Documents Needed :
1. Buyers Confirmation letter confirming that the Consignment has been bought on
HSS.
2. Seller Confirmation Letter confirming that the consignment has been sold on HSS.
3. High Seas Sale Agreement on Rs. 200/ stamp Paper duly notarised. (notary should
be done from the same local advocate from where the agreement is prepared)
4. Commercial Invoice in foreign currency
5. Local Invoice in INR.
[P.N : The same person who is signing the buyer/ seller letter has to sign the agreement.
Date of the HSS Agreement has to be between the BL date and arrival date of the
shipment.]