All about High Sea Sales in Import Export Business
High Sea Sales refers to a transaction where *goods are sold by the importer to a third party after shipment from the exporting country but before the goods arrive at the Indian port and before customs clearance.
In simple words:
Sale of goods while they are still on the sea (in transit).
Process with an Example:
- ABC Imports (India) is importing from China.
- ABC has confirmed the order with its supplier in China.
- Supplier in China has shipped goods to India in the name of ABC Import.
- Goods are shipped by the Chinese supplier.
- The Chinese supplier issues the Bill of Lading to the ABC Import.
- While the goods are still in transit, (in the sea), ABC sells the goods to XYZ Traders (India).
- So, before the Importer receives the goods in India, ABC sells the goods while the shipment is in the mid sea to a Company XYZ traders in India.
- This sale is called High Sea Sale.
- XYZ Traders becomes the final importer and XYZ Traders clears the goods from customs.
- XYZ Traders will pay the final Import Duty & IGST, as applicable.
- The ABC Imports will pay the Supplier in China
- XYZ Traders will pay ABC Imports for the HSS.
Steps for High Sea Sales
Documentation in High Sea Sales
Difference Between Regular Import and High Sea Sales
High Sea Sales is only for ship transportation
High Sea Sales is only for importing goods