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High seas trading

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K.Dhiwakaran

Dy.Manager - F&A

24 Points Posted on 06 February 2012

Hi, My friend has has got a trading firm in India.. Till now he is into domestic market only.

Now he had got an enquiry from USA and the products are being supplied by a company in Hong Kong.

He wants the goods to be shipped directely from HK to USA directelly and do a High Seas sales. What is the Customs / Sales Tax formalaties he need to follow for this.

Regards

K.Dhiwakaran

krishdhiwa @ gmail.com

Replies (1)

Tushar

Service

159 Points Posted on 06 February 2012

This is not the case of Highseas Sale but it is a case of transfer of the documents.

Suppose Firm X is based at China. Firm Y is based at India and Firm Z is base is at Dubai. Now, whne Y buys the goods from china, documnets have to be prepared in favor of Y with the Port of Discharge and Port of Delivery at the required destination.

When the B/l is recived from X to Y, the same has to be switched from Y to Z by the shipping line. so, far the taxation is concerned, I do not thik there is any taxation as the goods does not enter the Indian taritorry. But need to confirm.

When I was working at Africa, I used to get documents from our supplier like that only.