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.
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