High sea sales

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This query is : Resolved

KALYANA SUNDARAM.T.V. (Querist)

04 November 2011 I have received an order fro supply of equipment from my customer having their place of business at China.

The manufacturing activity is going to take place in our factory at Chennai. We will procure some material from overseas supplier also.

The material which i am going to procure from my supplier is required by us only at the time of installation, hence we are planning to ship it directly to our customer. The invoice will be made in our name with the mention that material is dispatched to our customer directly. I will also make the high sea sales documents simultaneously on getting the confirmation from my supplier.

Now my query is as follows:

1. Is it mandatory to go for high sea sale agreement.
2. Since no shipping document will come to us can i make the payment to my overseas supplier on the basis of copy of the Master Air Way Bill and Shipping Bill received from my supplier along-with copy of duty documents paid by my customer.
3. The above is acceptable procedure under FERA or if it will be treated as FERA violation how to over come the same.
4. I can\'t ask my customer to make the direct payment to my supplier because of different currencies involved and we do not want our customer to know the purchase cost.

Kindly advice.

Regards

Kalyan