High Sea Sales

The High Sea Sales is an international trade practices more often used to get the benefits of Customs duties and ownership transfer on the High Sea.

As per the Section 5(2) of The central sales Tax Act 1956, A sale or purchase of goods shall be deemed to take place in the course of the import of the goods into the territory of India only if the sale or purchase either occasions such import or is effected by a transfer of documents of title to the goods before the goods have crossed the customs frontiers of India.

The High Sea Sales can be done as a bilateral agreement between two registered company in India with subsequent Sale invoice to the buyer and endorsement of the bill of lading in the name of the buyer.

The Date of High sea sales agreement should be always before the vessels or air vessel enters into the customs frontier.

The Bill of Entry gets generated in three copies in the name of the importer (Buyer of the HSS).
The Original is kept with the Customs Dept. The Duplicate copy is for the Importer which may required for customs reconcilliation. The Triplicate copy is sent to Exchange Control Board, RBI through the designated foreign remmitance bank of the Importer.