High seas sale

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divita agarwal (Querist)
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31 October 2013 what would be the assessable value of the imported goods which are sold by the original importer to another importer before bill of entry is filed for home consumption?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 November 2013 In a high sea sale business, while assessing value of goods at import customs, the authorities may demand to disclose the actual value of goods at each high sea sale transactions from first high sea sale transactions to last transactions. The customs clearance procedures are undertaken at the destination customs location where in last high sea sale transaction effected.

So the party who files import customs clearance at final port of destination requires the details of invoice value of previous transaction (s) where in previous parties may not like to disclose the selling price of each transaction.

In such cases, normally the first buyer of goods who originally contracted sale undertakes the responsibility of import customs clearance and procedures and delivers cargo to the final buyer under ‘high sea sales‘. Although the first buyer undertakes and customs clears the cargo, all required documents are filed in the name of final buyer under high sea sales, who is responsible to the authorities, as he holds the title of goods under high sea sales.

documentation procedure on high sea sale
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All documents to be mentioned as ‘on high sea sale basis’. Bill of Lading, Invoice, packing list etc. should be reflected ‘ on high sea sale basis’. The value of invoice can be eithdocumentation under high sea sale 1er 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.