High Seas Sale

In case of high seas sale, consider the following:-

X Ltd. is an indentor who has imported 5 containers of Merchandise on seperate bills of lading. X Ltd. has to pay the foreign exchange to release b/l and as per FEMA he gives an undertaking to his bank that he will produce the Bill of Entry within 90 days.

Before the IGM of the ship is released, X Ltd. makes HSS of 2 containers to Y Ltd.

The question:-

In whose name will the Bill of Entry be made for the 2 containers (X Ltd. or YLtd.) If it is in name of Y Ltd., how will X Ltd., fulfil his compliance under FEMA?

What is the procedure to complete the HSS transaction vis a vis the foreign exchange payment.

Replies (1)

Dear Mr.Sunil,

The bill of Entry is raised in the name of both Importer -X Ltd. & HSS Buyer -Y Ltd for the 2 Container for import. The said B/E is accepted by the ADs  for the documentary evidence for the release of Forex.  This is a normal pratice for HSS Transaction.

Varathan

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