HSS / SICOI

Sale in the course of 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.

https://rahulchaitanya.wordpress.com/2009/02/16/high-sea-sale-and-sales-in-the-course-of-import/