High sea sales

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This query is : Resolved

Bhavana Khemka (Querist)

01 February 2013 Dear all,

who is liable to pay customs duty in case of high sea sales and why ?
if i am purchasing via high sea sales, am i liable ?

Manickam.N

Manickam.N (Expert)

02 February 2013 In the case of High sea sales, the buyer is the importer and Bill of Entry has to be filed in his name and he has to pay the duty.

Manish Mehta

Manish Mehta (Expert)

05 February 2013 Suppose original seller is A. If a had sale the product to B and if you enter into High sea sale arrangement with B ( your will name C) now B will raised a fresh invoice on C. C will file the Bill of entry on his name.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

08 February 2013 In the case of HSS , the CIF value for calculation of duty is taken to be the HSS value.

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.

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