if percentage of high sea sale is high.

[prem abhishek tayal]

dear sir,

i want to ask you my friend is importing knitting machine from china. and he sold the machine on high sea sale basis against epcg, by adding 50-60% from actual value. the custom officer is not allowing that coz of high percentage. so is there any thing written in custom rules that he cant do this. i think minimum is 2%. so what can he do. and what type of action they can do.

AI Summary

High sea sale valuation: assessable value is the last sale price to the final importer, not the original invoice.
Assessable value in a high sea sale is the consideration paid by the importer to the assessee at importation; the original supplier's invoice or original buyer's price is not the basis. When multiple high sea sales occur, valuation uses the last sale price. If documentary links are absent, valuation is determined under general valuation rules. Administrative practice has prescribed a notional addition for HSS commission, formal requirements for stamped and post departure dated HSS agreements, and bills of entry reflecting the HSS buyer. High sea sales are outside territorial jurisdiction for sales tax.