High Sea sales (HSS) is a sales transaction done by the carrier documented to another buyer while the import consignment/s are yet on high seas (In transit or In Custom bonded warehouse).
HSS contract/ agreement should be signed after dispatch of goods from origin & prior to their arrival at destination.
On concluding the HSS agreement,the B/L should be endorsed in favor of the new buyer. In respect of airshipment, HSS seller should write to the airline / console agent informing thata HSS agreement is there. Import Agent may charge some extra fees for theendorsement process.
The Bill of Entry shows the nameof HSS buyer under head High Sea Sale party.
Customs consider HSS Load Amount =whichever is Higher Between <High Sea Sale Agreement Amount - CIF Value> and<CIF x 2%>, it then be added to CIF Value with other factors to calculatelanded value which then will be considered to get Assessable Value.
Same goods can be sold to morethan once on high seas.
The title of goods transfers toHSS buyer prior to entry of goods in territorial jurisdiction of India. Thedelivery from customs is therefore on account of HSS buyer. The CENVAT creditin respect of CVD paid on import is entitled to HSS buyer.
Classification, rates of duty andall notification benefits of HSS goods are similar to import goods on normalsale.
HSS is independent of mode oftransport used to import cargo in to country.