Custom duty under epcg scheme on import

Many importers, acting as agents, import goods and the documents are transferred to ultimate buyer. Such buyer usually clears goods from Customs. This is ‘sale in the course of import” if the documents are transferred (i.e. endorsed in favor of buyer) before goods are cleared from customs.

In other words goods are sold when they are stored in customs bonded warehouse, before clearance from warehouse.  It has been held that goods continue to be in customs barrier when they are in customs bonded warehouse. Import would be completed only when goods cross customs barrier and not when they land in India or enter territorial waters.

Thus, sale before clearance from customs bonded warehouse will be ‘sale during import’ and will not be taxable.

Imports could be (a) direct imports (b) imports through agent (c) import by transfer of documents.

High Sea Sale -

High Sea sales (HSS) is a sale  carried out by the carrier document consignee to another buyer while the goods are yet on high seas or after their dispatch from the port/ airport of origin and before their arrival at the port / airport of destination.

As per trade practice, sale of goods when they are on high seas, that is, in transit, is recognized and in such transactions, the liability to comply with import regulations and to pay Customs duty shift to the buyer of the goods. Transport of goods by sea takes more time and therefore, there is time to enter into agreements for sale of goods when they are in transit.

Refer to para 2.24 of FTP" Sale of goods on high seas for import into India may be made subject to this Policy or any other law for the time being in force."

dear sir/mam

i am an accountant in starch ind.,
as per ssi we shall not cross accessable value 1,50,000/-.(april-may)
we purchased material with cenvat input.these input can be taken at the time of entering in excise.

WHAT IS UR QUERY?

Sir,

Does the "sale in the course of import" is taxable as our buyer is using there epcg license for clearing the consingment from custom bonded warehouse?