Requirements - ' sale on high seas' of goods

[wig sinbad]

please inform regarding the requirements to be met for ' sale on high seas' of goods meant for import into India

[Guest]

sale should take place before goods should land in indian teritory, min 2% value addition needed, high sea sale contarct should be between adte of BL/AWB and landing date in INdia

[Rama Krishana]

You may also refer to cbec circular no. 32/2004 dated 11th May 2004

[Rama Krishana]

In addition, it is advisable to prepare an agreement on stamp paper which is proof of high sea sale and acceptable to sales tax / vat authorities.

AI Summary

Value addition requirement for sale on high seas: sale must precede landing and contract dated between BL/AWB and landing. A sale on high seas for import into India must occur before the goods land in Indian territory, with the high seas sale contract dated between the bill of lading/airway bill date and the landing date. A minimum value addition in the exporting operation is required for customs recognition. Parties should document the transaction with a stamped high seas sale agreement acceptable to sales tax/VAT authorities, and may rely on the applicable customs circular for administrative guidance.