16 December 2008
Following are the ingredients of High Sea Sales. 1) There should be an agreement between the importer and the buyer in India 2) That agreement should have been entered before goods reaches customs frontiers in India. 3) All shipping documents/air documents should be endorsed in favour of the buyer by the importer. 4) The buyer should pay the customs duty in his name and goods should be taken by the buyer. In this case, no customs duty should be paid by the Importer and also not to take possession of the goods. 5) The buyer would become the owner of the goods and when he effects sale of those goods, it would be first sale and would suffer VAT Tax.
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