High Seas Sales, Customs - Exim - SEZ

[Sanjay Agarwal]

I am importing an item and want to sell the same on High seas sales basis , to a customer based in India which is 100% Export oriented unit. Can I raise my High seas sales Invoice to the customer in USD, and collect the proceeds from him in USD ?

Posts / Replies

[PAWAN KUMAR]

Yes, invoice can be raised in USD as this High Seas Sales is outside the territorial jurisdiction of India but you will have to provide the same in hss agreement with your buyer.

[Shiv Bansal]

in case of HSS, only the goods are outside the Indian territory on international sea but the HSS agreement has to be executed on stamp paper in India. It is a transaction between the two indian residents hence no foreign currency transaction is allowed between the two Indian redients within India. The agreement shall be deemed to be in rupee only but for payment/amount purpose you may give reference to a dollar like " for a consideration of rupees equal to ____ US$ to be converted as per the SBI card rate on a particular date or at a fixed conversion rate etc.

The custom duty shall be levied based upon the high sale value in ruppes if it is more than 2% + the import value.  If reference to US$ has been given in HSS then the Custom department shall convert the US$ by applying the rates on BE date with reference to the rate declared by customs from time to time.

Thanks

 

S.R. Bansal

      

[Sanjay Agarwal]

Thanks Mr Bansal.

Regards

 

Sanjay Agarwal