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EXPORT SALES 2019 - 2020

This query is : Resolved 

Dear Sir's,

This case pertains to our Company. Following are the facts.

1. Export Sales Invoice done on 1st March 2020 for US$.225,000.00

2. Let Export given by customs and dated as 20th March 2020.

3. Containers stuffed with the cargo and in Nhavasheva Port.

4. Due to lockdown the Vessel could not dock and now the cargo in inside the Port premises. Once the lockdown in open we will immediately dispatch the goods and the Bill of Lading will be dated as maybe 20th April 2020.

Now my question is:

1. As the Sales has been booked on 1st March 2020 will the sales stand in the accounts books for the Financial Year 2019 - 2020.

2. As the Customs has given Let Export order and in the Customs web site it has been registered as sale in this Financial Year 2019 – 2020.

3. Will the Bill of Lading which will have date a of 20th April 2020 wherein only physical movement will be done have a effect on the sales for the Financial Year 2019 – 2020.

Kindly get a detailed written reply from you Professional Contacts as our CFO is telling us that he will cancel this sale and re-book in the year 2020 – 2021

Awaiting your reply to this mail.

Thanks & best regards,


Normally export contracts are based on FOB contracts. So bill of lading date will be considered as ownership transfer date/sale date. Your CFO is right book sale in 2020-21.

As there is no GST involved in this transaction; why should not the sale be taken in the year 2019 - 2020

No we have to go by the commercial practice and sales contract.

Sir Seetharaman,
This being an FOB, Nhavasheva; the goods have already been handed over to the shipping agent inside the Nhavsheva Port and and the cargo is in the container of the buyer as this is an FOB, Nhavsheva transaction; so why should not the sales be taken into account in the year 2019 - 2020. As per Sales Contract we have custom cleared the cargo; LET EXPORTS given by customs, cargo has been physically given to the buyers shipping agent!

The vessel not entered the Port by 31st March. Cargo only in the pori not loaded in the ship and Bill of lading not given FOB condition not fulfilled as on 31 st March.

Dear Seetharaman Sir,
Could you quote some rule either in DGFT or GST or Income tax Manuals wherein I could check the same.

Internaonal Sale of Goods
FOB Contract (Free On Board)
Like CIF contracts, FOB contracts are one of the most popular in the internaonal sale of goods.FOB refers to the obligaon of the seller, who’s main duty in an ordinary FOB is to bring the goods to the port of shipment, at his own expense and to put the goods on-board the vessel. The FOB seller, unlike the CIF seller, is under no further obligaon to incur any further expense in relaon to the carriage of the goods. This means the seller is under no duty to pay for the insurance, or for the freight.
Refer international sales contract terms.

Moreover, Let export order means that the goods have been out of the charge of customs department. Not only, shipping bill but also the BL must have been issued to you and therefore, there is no chance to book the sales in 20-21

Dear Suresh Jain Sir,
That means sales will stand for the Financial Year 2019 – 2020
Please confirm the same Sir.

Yes, if BL issued on or before 31st March

Dear Seetharaman Sir; Suresh Jain Sir,
Thanks for the detailed reply to my query. Understood the transaction. In future will push the shipping company to issue the BL as fast as possible.


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