divita agarwal (xyz) (99 Points)
31 October 2013
Sandeep Garg
(Consolidation and IndAS Application)
(1056 Points)
Replied 31 October 2013
The present Import and Export policy provide for High Sea Sale Transaction at the time of import. The original importer, when enters into a High Sea Sale agreement and sells the goods on High Seas, for the purpose of assessment the Transaction value is taken by adding the High Sea Sale Commission to the CIF value by the original importer. The B/Es are noted in the name of the High Sea sale buyer, and noted in the import departments alongwith all import documents and High Sea Sale Agreement.
There is practice followed in customs that in case the HSS transfer takes place at import invoice value only, the custom would add 4% of CIF value as HSS loading factor. There have been cases where HSS sellers have sold at two percent more than import CIF but custom have added 4% of CIF as HSS value addition. Such practice of customs can be challenged at the customs duty is chargeable on genuine transaction value.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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