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High Seas Sales

Rajpal Singh (Dy. Manager Finance) (29 Points)

11 October 2010

Can a manufacturing company sell goods imported by it to some other traders , when the goods are under high seas? If yes what will be the procedure ?

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SANJAY THAKOR (MANAGER-FINANCE) (68 Points)
Replied 24 October 2010

Yes, subject to following ...

01. Manufacturer has to add the status as IMPORTER in VAT and CST registration copy.

Conditions for High Seas sale.

01. Bill of lading (BL) has to be endorsed in favour of customer while the goods are in motion i.e. in sea 12 notical mile away in sea from the Indian custom frontire.

02. High Seas agreement on stamp paper and the date of agreement should be after the goods been shiped and before it reaches 12 notical mile of indian custom forntire.

03. While clearing the goods from custom, buyer has to pay the Custom duty and clearing and forwarding charges.

04. Ex-bond bill of entry should be in the name of customer.

05. Seller (in this case manufacturer) has to mentioned goods sold on High Seas Sales basis in the invoice raised to his customer. VAT in this case will be NIL.