Many times people import without any documentation. In actual we should check ECCR [Export Compulsory Compliance Requirement] before exports or ICCR [Import Compulsory Compliance Requirement] before importing any product. Once could check online via Indiantradeportal or Icegate.gov.in , but the best option is CHA in practical.
Actually, a person imported an OCC waste paper from the UK to his brother in India. His brother only holds IEC but he did not know that "Pollution Control Board Certificate" would also be required in it.
His cargo was going to arrive in India & he went to CHA, then his CHA told that sir actually PCB [Pollution Control Board] certificate would also be required , but he didn't have. CHA told that if he failed to clear in 2 days after arrival, demurrage charge of 5000 INR on per day bases has to be paid to the government. He was very worried.
He immediately googled "Export Import Consultant" & found out my name and firm.
He approached me that Sir, I don't have certificate & how can I get it.
I just told him that many of my students and clients are dealing in OCC Waste paper and I make my clients strong from basics so all my clients dealing in OCC has PCB certificate, and its FREE to get but it takes approx 15 to 20 days to come. Now can he afford port demurragerage charge of 5000 per day? for 20 days ? because without proper certification one cant clear the cargo.
So I suggested him to do high sea sale to one of my clients.
Meaning of high Sea Sales
High Sea sales (HSS) is a sale carried out by the carrier document consignee to another
buyer [in local] 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.
In Simpler Words, It means sale of goods after crossing the Custom barriers of the Foreign
Nation but before crossing (entering) the Custom frontiers of India by way of transfer of
documents of title of goods, that is, While it is in transit.
High Sea Sale Agreement:
This is an agreement where the HSS seller do the import by means of sea and sell the same
to the HSS buyer before the consignment reaches port of destination.
For Example,A from America sells goods to B of India at some price .Now B, in this case is
called the Importer B , further sells the goods to C of India by entering into a HSS
agreement-transaction between B & C is called High Sea Sales where B is called HSS seller
& C as HSS Buyer.
The contract you will find below.
Benefit / Objective of High Sea Sales:
No GST is chargeable which would have to be paid on the resale
if the importer was involved as a middle man. Moreover, a high sea sale is considered
as a sale carried outside the territorial jurisdiction of India.
The procedure of High Sea Sales
Step 1: After Completion of Export Procedures, the Exporter submits all necessary
documents to his bank.
Step 2: HSS Seller Enters into an Agreement of Sale (High Sea Sale Agreement) with HSS
Buyer after the movement of goods from the territorial border of exporter but before arrival
of goods at the territorial border of India.
Step 3: HSS Seller accepts documents from his bank which has been sent by Exporter
through his bank. If the payment terms with Exporter and HSS Seller are on Letter of Credit
or Payment against receipt of Documents, HSS Seller remits invoice value of goods to
Exporter before collecting documents from bank. In case of credit arrangements with
Exporter, HSS Seller remits invoice value of goods to Exporter as per the arranged credit
period. The Bill of Lading (or airway bill) is endorsed by HSS Seller and transfers the title of
goods in favor of HSS Buyer.
Step 4:HSS Seller prepares invoice to HSS Buyer in local currency (INR). HSS Seller
delivers endorsed original Bill of lading (or airway bill), his invoice in local currency along
with import invoice, packing list, certificate of origin, insurance certificate and other
necessary documents if any for import clearance duly endorsed. Exporter retains a copy of
all documents which HSS Seller delivers to HSS Buyer.
Step 5: HSS Buyer files Bill of entry along with other import documents delivered by
Exporter with customs authorities. HSS Buyer pays necessary import customs clearance
charges with import duty if any. HSS Seller can also under take customs clearance and
delivery to HSS Buyer, if HSS Seller does not want the HSS buyer to know the actual
contract price of Exporter and HSS Seller. In this case, HSS Seller is filing documents on
behalf of HSS Buyer to hide the selling price between Exporter and HSS Seller.
Step 6: Once after completion of import customs clearance procedures, HSS Buyer delivers
a copy of bill of entry to HSS Seller. HSS Seller files the said bill of entry and other copies of
import documents and high sea sale documents with his bank.
Documents Required to Prove High Sea Sales:
-> High Sea Sales Agreement Copy on Non-Judicial Stamp Paper of requisite value as
per State Stamp Duty Act.
-> Copy of Import Bill, Bill of Lading & Airways Bill, Insurance Papers.
-> Debit Note issued by importer/seller for his profit margin.
-> Bill of entry specifying the name of Final Importer and proof of payment of Custom
Duty.
The official & contract between two parties done with my client, my client can get this goods without GST & can clear it as he has got PCB Certificate.
HIGHSEAS SALE CONTRACT
SELLER BUYER
M/S.NITIN GENERAL STORE M/S.PAVANSUT PAPER MILL PVT.LTD.
17, KUTCHI HOUSE, SHOP NO. 11 SURVEY NO.203P1 & 203P2 NAVGAM
K.A.SUBRAMANIAM RD, ADEPAR ROAD, AT. PACHASIYA WANKANER
MATUNGA, MUMBAI RAJKOT, GUJARAT- 363641
MAHARASHTRA
Description of Goods Sold : WASTE PAPER – SUPERMARKET OCC
Quantity : 50.960 MTS
Name of Vessel : MSC FILLIPPA – IS811A
B/L No. & B/L Date : MSCUU7856786 Dt: 20.03.2018
Highs Rate : CIF + 2%
PAYMENT OF COST OF DOCUMENTS:
Full payment of documents comprising of CIF value, L/c Charges, Amendment Charges, Bank Charges, Bank Interest, Bank Commission and other charges will be paid by the buyer to seller in advance.
DELIVERY:
All the rights and the title of the above goods will be transferred by us to the Buyer by endorsing of the above referred bill of Lading in favor of the said buyer after the documents have been retired from the bank.
IMPORT DUTIES AND CLEARING CHARGES:
Customs Duty or other Levy/Duty to be paid by Buyer as per Custom Tariffs Act as clarified under Custom Circular No. 11 Dtd 03.06.2010. Further any duties and the like or any other charges if payable or imposed or leviable by any authority whatsoever in future either on the goods or on the prices thereof shall be paid by the Buyer to the seller.
In view of the disposal of the goods in terms of this contract the Buyer shall arrange clearance for goods from customs at his sole risk and responsibility. Their entire clearing expenses vis. Custom duties; Clearing Charges, Demurrages, Detention, Octroi, etc. will be born by the Buyer and paid directly to the customs and / or Clearing & Forwarding agents. Buyer has to submit Exchange Control Copy of Bill of Entry after clearance of the goods,
STORAGE:
Material to be lifted on or before ………………. In case of delay in lifting beyond that Rs. 500/ M.T. +Service Tax would be charged on balance quantity per month basis.
INSURANCE CLAIM:
As regards any loss/damage/shortage/ and/ or any other claims to the consignment. We shall nominate and subrogate our rights to you recover the amount from Insurance Company /Steamer Agents and / or customs Authorities to enable you to deal directly with the concerned.
SALES TAX:
No Sale Tax will be charges as the above goods are being delivered to the buyer in terms of this sales contract, but if at later date the sales tax authority assesses sales tax on this sale the same shall be paid by the buyer to us on demand.
In witness thereof the seller and the Buyer here to have set their respective hands on the date: ……………….
Please return to us copy of this contract duly sealed & signed.
We confirm the above & accept all terms & conditions.
SELLER BUYER
M/S.NITIN GENERAL STORE M/S.PAVANSUT PAPER MILL PVT.LTD.
17, KUTCHI HOUSE, SHOP NO. 11 SURVEY NO.203P1 & 203P2 NAVGAM
K.A.SUBRAMANIAM RD, ADEPAR ROAD, AT. PACHASIYA WANKANER
MATUNGA, MUMBAI RAJKOT, GUJARAT- 363641
MAHARASHTRA
WITNESS:
- Signature:____________________________
Name:_______________________________
Address:_____________________________
____________________________________
- Signature:____________________________
Name:_______________________________
Address:_____________________________
____________________________________