High seas sales of restricted items

[Sanjay Agarwal]

I want to import an item which is restricted and requires DAE licence for import and clearing of the same. Can I import the same in my name ( I am not having DAE licence), and sell the same on high seas sale basis to a customer who is having alll the requesite licences and the customer gets the goods cleared in his name?

[Vijay Jha]

Yes, u can import the item & transfer its title to the name of customer by transferring the related document in the name of customer i.e., Bill of lading & bill of entry(these are negotiable document). 

[Sanjay Agarwal]

Thanks Mr Vijay Jha for your advice.

[YAGAY andSUN]

Please check the relevant provision in FTP read with HBP vol.1 in this nregard.  Before acting please seek clarification from the DGFT and customs authorities.

[PAWAN KUMAR]

Yes, import can be done in the manner. Just argeed with the buyer with signing an high sea sale agreement and submit the copies to customs authorities where you are planning to import. On the basis of that file the bill of entry in customs along with check list and all papers you received from the supplier. you will get the bill of entry in the name of your buyer of goods from the customs after doing the subject formalities. Also duty is to be paid by the buyer not you after generating the bill of entry in EDI.

AI Summary

High seas sale: transfer of title via negotiable documents lets buyer clear restricted imports and assume duty liability. Title in a restricted import can be transferred to the purchaser by transferring negotiable documents such as the bill of lading and bill of entry, or by executing a high seas sale agreement and submitting it with the bill of entry and supplier papers so customs may generate the bill of entry in the buyer's name, after which the buyer bears duty liability; regulatory provisions should be checked and formal clarification sought before acting.