Custom act-plz explain
This query is : Resolved
Guest
Guest
(Querist)
18 March 2013
hi,in simple terms what is high sea sales/purchase?
20 March 2013
Imports through transfer of documents of title to goods before the goods cross the customs Frontier of India are popularly known as HighSeasales.
The controversy regarding when the goods cross the Customs Frontier of India as been resolved by the amendment to definition Customs Frontier of India – by clarifying that, goods are deemed to be in the import stream until the goods are cleared from the Customs station – the goods are cleared from the Customs station, when the Bill of entry is made – i.e. when the Customs duty is paid.
Even after the amendment clarifying and making it easier to decipher when the goods are said to be in the import stream so as to enable the importer to transfer the same by transfer the documents of title to goods – i.e. without taking delivery of the goods-there are disputes regarding this issue.
Factors that need to be taken in account to decide whether the goods are still in the import stream and before which the documents of title to goods should be transferred is dealt with by the two high court decisions. The ratio of the said decisions is extracted below, which can be a guide to high sea sales:
M & M. T. Corpn of India Ltd. vs. State of A.P 110 STC 394(AP)
Under the explanation, the customs station and customs authorities have the same meaning as in the Customs airport, or land customs stations. Customs port means any port appointed Under Section 7 (a) and includes a place appointed under clause (aa) of that section to be an inland container report. Customs airport means any place appointed Under Section 7 (b). A reading of section 2 (ab) makes it clear that if the goods crosses the area of the customs station, viz., the customs port which is noticed Under Section 7 of the Act, where the goods are kept before clearance and if the transfer is effected by transfer of documents of title then if amount to sale in the course of import. In other words if the goods are kept in the port before clearance crossing the limits of that port amounts to sale in the course of import.
The controversy regarding when the goods cross the Customs Frontier of India as been resolved by the amendment to definition Customs Frontier of India – by clarifying that, goods are deemed to be in the import stream until the goods are cleared from the Customs station – the goods are cleared from the Customs station, when the Bill of entry is made – i.e. when the Customs duty is paid.
Even after the amendment clarifying and making it easier to decipher when the goods are said to be in the import stream so as to enable the importer to transfer the same by transfer the documents of title to goods – i.e. without taking delivery of the goods-there are disputes regarding this issue.
Factors that need to be taken in account to decide whether the goods are still in the import stream and before which the documents of title to goods should be transferred is dealt with by the two high court decisions. The ratio of the said decisions is extracted below, which can be a guide to high sea sales:
M & M. T. Corpn of India Ltd. vs. State of A.P 110 STC 394(AP)
Under the explanation, the customs station and customs authorities have the same meaning as in the Customs airport, or land customs stations. Customs port means any port appointed Under Section 7 (a) and includes a place appointed under clause (aa) of that section to be an inland container report. Customs airport means any place appointed Under Section 7 (b). A reading of section 2 (ab) makes it clear that if the goods crosses the area of the customs station, viz., the customs port which is noticed Under Section 7 of the Act, where the goods are kept before clearance and if the transfer is effected by transfer of documents of title then if amount to sale in the course of import. In other words if the goods are kept in the port before clearance crossing the limits of that port amounts to sale in the course of import.
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